JD 2520 Discount and prep

[BethesdaEC]

I am real close to purchasing the JD 2520 with loader, backhoe, blade and box blade.

The dealer worked up the quote in MSRP which I verified, then discounted it by a little over 12%. That seems good to me but there is also a charge for 12 hours of prep. Is this normal or should the prep be included in the price? He is throwing in free delivery which is about a 45 minute drive.

I am planning to finalize the sale on Saturday, should I beat him down on price or is this a good deal?

 

[bp fick]

Dealers do some things differently. One gives a quote with the prep and/or delivery figured in. Another, like your present dealer, gives a quote and charges back for prep. (You didn't say how much) Delivery is included.

In the end, imho, you have to add back the prep price to your quote. You aren't getting 12% off. I don't have the figures to do the math, but you do and you can. Only you can decide whether the price is right, should it actually compute to 9-10% off MSRP, once you add back the prep charge.

I do not care for such practices, unless they are stated right up front. Otherwise, the original competitive bid was not the actual selling price. FWIW

 

[BethesdaEC]

Dealers do some things differently. One gives a quote with the prep and/or delivery figured in. Another, like your present dealer, gives a quote and charges back for prep. (You didn't say how much) Delivery is included.

In the end, imho, you have to add back the prep price to your quote. You aren't getting 12% off. I don't have the figures to do the math, but you do and you can. Only you can decide whether the price is right, should it actually compute to 9-10% off MSRP, once you add back the prep charge.

I do not care for such practices, unless they are stated right up front. Otherwise, the original competitive bid was not the actual selling price. FWIW

The prep is $984, I am think the best approach is to say done deal if you waive the prep cost. Just to be clear, the prep time was included up front, this was not a bomb shell dropped in the 11th hour.

 

[jlsmith]

I guess it depends on the dealer. I get my tractors in already set up so i dont have to charge for it. Alot of dealers get the tractors in crates so they have to put them together. They do that so they can get more on a truck load and pay less frieght.

 

[beppington]

That prep charge may very well be just whatever item they could think of this month to add to the invoice, that "sounds" legitimate, that they can argue actually is legitimate, that you might not argue at all, just to see if you'll agree to their first price.

(MSRP is just a figure to make you feel better about paying something less than that)

Then again, that may be their bottom-line price.

Never know unless you question them on it ... or shop around.

This has just GOT to be a buyer's market.

 

[beppington]

The prep is $984, I am think the best approach is to say done deal if you waive the prep cost. Just to be clear, the prep time was included up front, this was not a bomb shell dropped in the 11th hour.

None of that changes what I wrote. That prep charge is the same thing as the car industry's old "undercoating" line item & cost. They only added it because it was huge profit they wanted to see if they could get away with. And they did for a while.

You shouldn't care HOW they come up with the bottom line price ... just what is the bottom line price ... in order to compare to others. Without comparing to others, you have very little idea whether or not you're getting a fair deal.

By the way, if you say "waive the prep" charge, I bet he comes back with something like, "I'll cut the prep charge in half."

If you come back with a better price from another dealer, then he may waive the prep fee altogether.

If it sounds like I'm jaded, it's because I am. I really can not stand the whole car/ truck/ tractor buying process. Mostly a bunch of dirt bags trying to squeeze every penny out of you.

 

[beenthere]

Your dealer can't lose money selling you a tractor.

Give your offer a shot, and see if they budge. If not, then you know they are not going to give it away.

They have to feed the families of their employees and keep the doors open for you and others.

Not fun to have a good dealer and then have it fold up because of bad business deals.

 

[BethesdaEC]

I own a business and I know that there is a fine line between getting a good deal and nickel and diming. With a car, I can goto Edmunds and find out exactly what a fair price is, but with a tractor I have no point of reference.

At the end of the day I want to walk away with a tractor for a fair price and I also want to the guy on the other end to also feel it was a fair deal. Once you squeeze beyond that it is not worth it in my book.

 

[beppington]

At the end of the day I want to walk away with a tractor for a fair price and I also want to the guy on the other end to also feel it was a fair deal. Once you squeeze beyond that it is not worth it in my book.

Completely agree. It's the sales folks trying to squeeze the buyer that bothers me. Maybe it shouldn't but it does. Probably because I don't like anything about haggling. Or being ripped off. Or not being able to tell if I'm being ripped off. Wow, after typing all this, it's a wonder I ever bought my tractor! Or my truck.

 

[jenkinsph]

I would think 15% off is fair in your case without prep charges. I have received 18% off on the tractor and accessories but took them loose and installed them myself.

When you purchase both a fel and backhoe to install along with the various add ons needed this takes more of the dealerships time and money. I would consider knocking off a few points for their labor and expenses, still the add ons are profitable and part of the overall sale so the dealer should be able to make money with 15% off msrp.