Help with the ethics of negotiation

[whoodle]

Hi All,

I have been eyeiing a tractor which the dealer has on consignment. The 07 machine has 100 hrs and is in pretty good shape. It seems like the asking price is about 15 percent less that the JD configuator less dealer setups etc. Of course when quoted new this sounds good, but upon reflection, a better deal should be had. The question is: Is it too rough to offer 10 percent less than the asking price with the intent of ending the negotiation somewhere between? I have to deal with the salesman. Any thoughts or reflections appreciated.

 

[Farmwithjunk]

It sure wouldn't be considered unethical, nor would I consider it out of the ordinary. However, I would be astounded if the dealer was to knock off as much as 10%. If the tractor has been sitting on the lot for ages, you might have a little more leverage, but MOST dealers I trade with will wait a while before they start discounting in big chunks. 15% under new on a tractor that recent and with those hours sounds like a decent deal already. They just don't depreciate much in that short of a time.

But....It's worth a shot. Whatta you got to lose? Ask and see how they respond. Any dealer who's been around the block a few times has had lower offers.

 

[Ductape]

Heck i might start at 20% under asking price and work back up in the direction of 10.

 

[capi75rs]

Their is NOTHING wrong with trying to save a few dollars. I assure you that their is wiggle room in the price. Get the best deal YOU feel you can get. Just remember the owner has the final say, and if they get a few low offers they may decide to accept the best one. Times are tough and deals are to be had for folks in the right position. I've never purchased on consignment but I have sold on consignment. Whatever the final price is, make sure no leans are outstanding on the machine. I don't know the laws in your state and I've never had a bad experience selling but I've herd horor stories of buyers getting machines at consignment auctions that have existing leans and then a legal battle begins. Not trying to scare you just letting you know what I've heard. Also since your purchasing at a dealer, they may have done all the checking, but it wouldn't hurt to verify it with them.
Good luck and GO get you a DEAL!

 

[MessickFarmEqu]

pieces are often put on consignment when the owner wants more money than the dealer will put in the trade. If you offer less, they probably won't be surprised. When we have people do that we just call the owner and pass the offer along... give it a shot, no harm in what your asking for.

 

[jinman]

If the tractor is on consignment, you are really dealing with two people, the original owner and the dealer. That makes negotiations a little harder, because both the dealer and the original owner want to make a few dollars, or at least not lose any money. If you think the tractor might be sold to you for less, I would not hesitate to offer less.

Now, if you found out who the tractor belongs to and went around the dealer to make the owner an offer, that might be unethical. However, trying to get a tractor at a great price is just smart.

Edit: Neil, you and I were posting at the same time and had some similar thoughts.

 

[BigD23]

Like all other offers, worse they can say is.......no.

Don

 

[EddieWalker]

I like to comparison price just about everything that I buy. I find out the going price for similar items to give me an idea of what they are worth. I know that allot of them will sell for less then the asking price, but it lets me know what it reasonable. If the tractor is priced right, playing games with the price might put you out of the game and somebody else will buy it. I've had that happen more then once, and it's especially frustrating because I was just being greedy trying to save a few bucks on an already great deal. Of course, if you think the price is on the high side, offer what "YOU" think it's worth and see what happens. If they say no, there is always another deal out there someplace. It's just a matter of time until it comes up.

I would think that the next few months will be a very good time for buyers. Winter isn't a good time for selling tractors, and those who are selling them should be more agreeable to a lower price to move them. Some dealers have to pay interest on new tractors after they have sat on the lot for a certain amount of time. I can't say how long this is for each dealer, but there is a time limit when they want to sell that tractor. After that, it starts to cost them money to have it on their lot. After that, they are more willing to move it at a lower price.

People making monthly payments are in the same situation. If they have had it for sale awhile, they become more willing to lower their price. Again, this will be more so in winter when their are fewer buyers and less interest.

Right now, it's a buyers market for just about everything.

Good luck,
Eddie

 

[john_bud]

I had an old boss that moved to the area. Naturally, he had sold an expensive house and had a pocket full of change. He toured the area, found several homes that were what he wanted and selected two that had been on the market the longest. He made dual offers contingent on each other (so he would wind up buy only one!). The thing is, he way way way low balled the offers at least 100K under asking, but they were "cash" offers and would be completed in 2 days.

Both accepted. He got the better of the two and a few tidbits tossed in to make it his selection!

As others have said, the economy is down offer low -- but don't fall in love with any one machine. Others will pop up and be as good or better deals.

jb

 

[DWCox]

It is refreshing to read someone wanting to do the right thing. That being said, there is no dishonesty involved in offering below what you would ideally like to pay. An offer is just part of a necessary step in the process of negotiations. You are not making a truth claim one way or the other (hence, no dishonesty).

 

[dave78063]

No more unethical than someone pricing something higher knowing they will get less.

 

[AchingBack]

When purchasing most anything, remember the Seven Golden Words: Is that the best you can do?

 

[ToadHill]

I spent over 30 years negotiating and I've hears some really crazy offers. All that can happen is for them to say no. I always felt a good deal was one that neither side liked but that both sides could live with.

 

[ultrarunner]

Growing up around the family car business... no one ever came in and paid the price on the window... ever!

The only thing I see as unethical is when a person makes low-ball offers with no intention of buying and doesn't complete the sale if accepted... it's wasting time, if nothing less.

If I'm looking, I will just say so. I have no problem letting a salesman know of my interest and that I price shop.

I have to admit that shopping tractors is different. Often there isn't a posted price and many times there isn't ANYONE available to quote price???

At 3 local dealers, I found there wasn't anyone who could sell me a tractor... two never did get back to me.

My last visit to Green Valley Kubota was the same. The owner was away and all the salesman were out...

I called a dealer out of my area and asked for price and availability for what I wanted. He said he had 3 coming in and asked if I wanted one. I told him the only question was price.

Twenty minutes later he called with his best out the door price and I told him to consider it sold. Three days later I had my new tractor.

If you want the tractor, figure out what it is worth to you and make the offer... no harm, no foul.

 

[DavesTractor]

You can often get a new tractor at 15% off list price, so this seems high. It is coming on to two years old. I'd find a similar new one and see what you can buy it for, then use that as a basis. About 70-75% of new price (not MSRP, but what you can buy one for) is a fair price. On new, you get the full warranty, any rebates, 0% financing, etc, so there must be a discount for buying used. As far as making an offer, dealers expect that, especially on a used item.

Hi All,

I have been eyeiing a tractor which the dealer has on consignment. The 07 machine has 100 hrs and is in pretty good shape. It seems like the asking price is about 15 percent less that the JD configuator less dealer setups etc. Of course when quoted new this sounds good, but upon reflection, a better deal should be had. The question is: Is it too rough to offer 10 percent less than the asking price with the intent of ending the negotiation somewhere between? I have to deal with the salesman. Any thoughts or reflections appreciated.

 

[Border Rat]

I kept getting response from dealers about how set in stone their prices were till I went shopping with a completed credit apllication and $2000. cash deposit in my hand.
The dealer sees plenty of tire kickers every week. When he sees you are serious . . .. the pencil gets a little sharper.
Most that discount the tractor deeply try to get some back on accessories or shop work.

 

[preacher1]

Most people ask more than they are willing to take, expecting to get lower offers they can live with. Offering less is as ethical as asking more! Dealers that receive the asking price call the buyers that pay "list price" "sucker's".

 

[kevin37b]

Ask the dealer who owns the tractor and if you may have contact with them . Be upfront with them , no bad ethics there . Some people just don't want the hassle of selling a tractor . If you buy it the dealer still gets his cut .

 

[DavesTractor]

5 year old thread......