Buying Advice "dealing" with a dealer...

[Jaypeesi]

Hopefully in the next day or two I will be signing the paperwork for a new tractor. My credit is good and have been approved for financing but there is just one issue, the price! I'm being quoted msrp. my question is probably something I should know after 43 years but what is the most realistic counter offer I should start with? I would rather not spend days haggling. Is 10% (total price is about $30,000) offensive to the dealer? I want to be fair and realistic but don't want to get taken advantage of either. I have had new company work trucks for the last 23 years so I don't haggle much and my wife buys her vehicles (and she is tough and beats up the sales guys on price) lol! any ideas?

 

[teg]

I find it easier to ask another dealer to beat your dealer's price, then go back to ask about a better price. As for your question, 10% would be the minimum, start at 15%. This advise is very local... are there other people willing to pay the full price? Good luck...

 

[quotejso]

Generally you try to meet halfway. So offer 24000. Or try to get some goodies thrown in. You know they are makingprofit. have you seen those combo deals offered by some dealers.

 

[jenkinsph]

I would offer 25k on a 30k msrp price. I would not pay over 25,500 (15% off) and would walk if the dealer would not do it.

 

[paulfun9]

my wife buys her vehicles (and she is tough and beats up the sales guys on price) lol! any ideas?

Let the wife up to the plate and she what she can do? Absolutely no shame in letting her haggle the deal for you. Mine has surprised me a few times getting a much better deal than I thought possible and somehow she never seems to offend them no matter how off base she is with a low offer. I think its the element of surprise when the hole time I look, touchy, feely she is quiet then out of the blue she starts breathing fire!

 

[dodge man]

The question is, what is the markup? On cars I used to figure the markup was 10%, but I think the margins are smaller now, but you still get factory incentives at times that can help lower the price. You can't really ask the dealer to sell it to you for less than they buy it for. I'm not sure what the markup is on most tractors, a lot of it depends on the make.

 

[AxleHub]

Hopefully in the next day or two I will be signing the paperwork for a new tractor. My credit is good and have been approved for financing but there is just one issue, the price! I'm being quoted msrp. my question is probably something I should know after 43 years but what is the most realistic counter offer I should start with? I would rather not spend days haggling. Is 10% (total price is about $30,000) offensive to the dealer? I want to be fair and realistic but don't want to get taken advantage of either. I have had new company work trucks for the last 23 years so I don't haggle much and my wife buys her vehicles (and she is tough and beats up the sales guys on price) lol! any ideas?

Jaypeesi, one of the things to remember is that there are many styles of negotiating. Some are mean or antagonistic. Others are educated but sometimes overdone. But I find the best method for me is having two things:

A second or third offer (not that you show the dealer - just for you to know).

A sense that fun negotiating is like playing a friendly game of poker - and know when to recognize a bluff versus knowing when to call or up the ante.

Lets say a friend of yours recommends a dealer of his and you feel obligated to get a price from that dealer for the exact same items (because your friend asked you to). And the price is considerably lower for THE EXACT SAME THINGS. Then you go back to your dealer and tell the salesman you must have made a mistake - because you "know" they would have been competitive with others as they said they would be - so you must have misunderstood your dealer's price quote. You don't need to show them anything - you don't need to say anymore - let the dealer do the talking. They will either talk themselves into a better price - or they will talk you into the other dealer - or they will claim the other dealer isn't reputable. Either way - you'll end up with a tractor at a better price - and probably a good dealer for the future

My motto is - a good dealer and a good salesman don't need to negative sell - and when they do - its not a time to buy.

 

[ovrszd]

Have you went online and "built" the tractor so you know what the MSRP is?

Historically on TBN buyers pay around 85% of MSRP.

 

[fried1765]

Hopefully in the next day or two I will be signing the paperwork for a new tractor. My credit is good and have been approved for financing but there is just one issue, the price! I'm being quoted msrp. my question is probably something I should know after 43 years but what is the most realistic counter offer I should start with? I would rather not spend days haggling. Is 10% (total price is about $30,000) offensive to the dealer? I want to be fair and realistic but don't want to get taken advantage of either. I have had new company work trucks for the last 23 years so I don't haggle much and my wife buys her vehicles (and she is tough and beats up the sales guys on price) lol! any ideas?

Are you trying to buy dealer friendship ..... AND a tractor?
If you like to be wise with your money, shop several dealers, and play one against the other.
If that troubles you, then just pay HIS price.
Then two years from now he will sell out, and you will just have a tractor that you paid too much for.
Trying to get the best deal is fun for me, and I am rarely in a hurry to buy anything.

 

[Jaypeesi]

thanks for the advice guys! I just offered 26k with after adding a backhoe thumb to the quote. got back a response of "I can't do that but I'll try to make the offer more attractive". I guess we shall see... and if it doesn't work out there are always other brands and dealers! This is actually kind of fun :0

 

[kthompson]

I am in sales with a product there is NO flex in the price of. I have sold tractor implements used at my full asking price as they were priced right to begin with and will pay full asking price if priced right. Bought my last tractor (my most expensive) after a good conversation about the tractor package with fel just getting to know him and the package. His first price I accepted for as I told him that is a fair price. Knew it was for had done my homework. When I had to go back to replace a damage fel a year later he did a great job on the price for me. Respect is needed in any dealing. If the price given me is not in line and obvious they will not flex easy I have no problem walking. Know your options and do not be in love with what you are wanting to buy. For me I rather look at what I think my second choice will be first so when I am talking with the first choice I can refer back to the other one as to why it suits me better. What ever it is, better mileage, more options, lower price, nearer to me. But all business must make a profit to be in business when you need parts, service, advice. If I have to travel an hour or more I always ask on the price before I leave my house. I will be very honest on the phone and tell them based upon what I see the price to me should be what ever. Let them tell you why that is too low or what ever. They do not want to waste their time either.

 

[cford36]

I guess what are you trying to buy? People on here can offer what they paid as a comparison. But you haven't given us any details.

 

[teg]

... People on here can offer what they paid as a comparison...

He from California... that's like a men are from Venus and women are from Mars type thing.. Apple vs. grape fruit... {just joking around}

 

[AxleHub]

It wrote: "I am in sales with a product there is NO flex in the price of."

But that statement explains much that the OP doesn't have going for him. I also am in a similar situation to kg for decades of selling and dealing with price resistance. But I also understand that cost justification is part of my effort needed. However when someone is trying to sell off MSRP pricing, we also understand that profits are already calculated into the MSRP plus more. Even assembly and prep is now part of the MSRP quote right on MF website.

My point in my past recent post and this one is the OP like too many other people. . . . don't know what a "fair price" is or how to determine it. As a result they either believe all the rumors and "stories" they hear and come in too hard on discount expectations, or they come in too loud trying to "kick the tires" or haggle for every cent, or they let a poor salesman manipulate them.

In my prior post I suggested a way to find out what a fair price might be and then let the dealer/salesperson react. A good dealer reacts well and a poor dealer reacts poorly. . . And that also gives you a future view of how that dealer will be too.

Kt made some fine points for those who are confident and experienced buyers . . . but lots of prospects aren't confident and experienced. So letting the dealer assist in the negotiations is a great way of not burning bridges and determining a dealer's true future intentions at the same time.

 

[Jaypeesi]

In the end, Im looking for a balance or a term that I hate... "a fair price". I am talking with the Yanmar dealer about a 424tlb with implements. I like the guy so far but in the end I have to go to work every day and pay for it. My other option is a Kubota B series spec'd identical. Not in love with either brand. I just am over manual labor unless you are paying for it . 23 years of working on boilers will do that to you

 

[Groo]

In the end, Im looking for a balance or a term that I hate... "a fair price". I am talking with the Yanmar dealer about a 424tlb with implements. I like the guy so far but in the end I have to go to work every day and pay for it. My other option is a Kubota B series spec'd identical. Not in love with either brand. I just am over manual labor unless you are paying for it . 23 years of working on boilers will do that to you

If tractor pricing is like car pricing, there is very little wiggle on the base unit, but tons more on the add-ons.

ps. just asking for another dealer's price over the phone won't get you very far. They aren't going to run the number for you if you wont bother to walk into the door.

 

[vanskills]

Personally I'm not haggle per dealer....I'll talk to 4-5 different dealers and tell them what I want and what's their best price

1 will always give MSRP and I cross them immediately off the list

 

[teg]

I definitely talked face to face with each dealer when getting a price... except for the last dealer which I bought it from. Told them exactly what I wanted and the price and he called me back and we agree on the lowest price. He even stepped up for me and got me a smooth 3ph valve (back in the really jerky 3ph days).

As for car/truck prices... our "state contract" price is 10k to 12k off of list... and you know they are NOT losing any money on that price.

 

[Jaypeesi]

So apparently there was some room to deal. Originally he was firm on his price and would not budge so I thanked him for time he spent working with me and moved on. The follow morning I got a phone call and he was willing to deal a bit. I explained that while the money was important, it was more important for him to show me that he could be flexible as opposed to drawing a line in the sand and not moving from his original position. If there is no compromise what happens when the is a service issue down the road and we each see the cause differently(Is it warranty etc?). I don't treat my customers that way and I would not like to be treated that way. I felt like he understood what I was saying and ultimately I decided to buy from him. And since that phone call I have called him back and ordered a rototiller, forks and a box scrapper (in addition to the tab and rotary mower). Thanks for all of your help guys (and gals), it is much appreciated!