Negotiate with dealers on used equipment?

GManBart · Dec 5, 2014

I've been researching and looking at used backhoes for a while now, and tomorrow I'm going to take a look at a couple I may be interested in buying. I'm bringing a buddy who has owned a number of backhoes (a bit of everything else as well) and if things are good, I'm going to talk money.

I know some tractor dealers will get offended if you try negotiating on price, but others don't mind some polite haggling. What's the standard, if any, on used heavy equipment? I don't want to pay more than I have to, but I don't want to start off by insulting the dealer....figured I would just politely ask if they had any wiggle room, and see how they responded.

For anybody interested, the machine I'm most interested in is a 2006 Case 580 Super M, 2,700hrs, cab with heat, tilt steering, block heater, extendahoe, QA front and rear buckets (front may be hydraulic), standard Case controls, very good tires, and looks to be very clean inside and out, but no evidence of being repainted. The only thing it doesn't have that I was hoping for was A/C, but that isn't a deal breaker. The only other thing is that it has a 36" bucket with smooth edge, rather than a digging bucket...I'll see if they have a different bucket around, but if not there's a pretty big place near my work that has a yard full of them. They're asking $39,900, so it's a bit higher than the target I had of $35K, but I was expecting something with probably 1,000 more hours on it.

Anyway, what do ya'll think about politely making an offer, or seeing if they're responsive to one?

2458n · Dec 5, 2014

If they have been in the business you are not going to offend them by making a offer. A friend did this his whole life and sent items to Africa and Russia. He backed up his equipment so if something went wrong he would work with you to make it right. Most big dealers know someone who knows someone and word quickly spreads. Ed would keep a eye out for peoples needs and he made a good living. I do not think he would be offended by a offer.

tjcarguy · Dec 5, 2014

After last winter they'r asking big bucks for anything that will move snow. How many machines from your area just went to Buffalo ? I just bought a used tractor with bucket, been looking at the used dealers around for a while and now everything good just disappeared. I have noticed that some farm places get mortally offended that you may think their price is a little high. I had an owner curse me out of his showroom once. ---Trevor

Poopdeck Pappy · Dec 5, 2014

I think most used equipment dealers know that many people won't pay asking price for anything. So they add in some fluff to give them negotiating room. He would probably be shocked if you paid his asking price. You can always just ask "What's your bottom dollar on this?"

I've got a joking relationship with one used farm equipment dealer - the guy I bought my Gannon box blade from. When he quotes me a price on something, I'll usually say something like "No, you must have misunderstood. I only want to buy one ONE of them." And then he'll come back with some claim that he's practically giving it away.

After I bought my Gannon there, I stopped in later and said "I'm surprised to see you guys are still open." He asked why. I said "Well, as much money as you made off me on that box blade, I figured you'd be living on your own island somewhere." He just shook his head and laughed.

GManBart · Dec 6, 2014

Thanks guys, I'll just have to play it by ear, but they've been in business since around 1952, so I imagine they've dealt with all sorts of customers, and as long as I'm polite, I'm not too worried.

I did notice that several machines I was looking at seemed to disappear all of a sudden not long ago, so they may certainly have headed to Buffalo!

I'm thinking Pappy's take is right...they probably know people will negotiate a bit, and build that in from the start. We'll see what happens!

Piston · Dec 6, 2014

Pappy is absolutely spot on. Dealers price they're equipment knowing full well, that they won't get what they are asking, that's why it's called an "asking price"

You should never, ever, pay full asking price at a dealer, that goes for tractors, implements, or any used goods. Parts of course are a little different and sometimes you can get a discount (I always have) and sometimes you can't.

You are right in staying very polite, that goes a long way, and be somewhat honest, tell them you understand it's worth what they are asking but you really weren't planning on spending that much, if there is any room for negotiation then perhaps you could strike a deal, but if not, as much as you'd love to buy it, you just can't spend that much.....and then you leave....and then they call you back.

The most important thing is being polite, and not insulting, that doesn't mean you can't offer a lower price than you think you should, always go lower, because you'll always meet somewhere between. Also, just like picking up a girl, you have to be very confident in your demeanor. Good dealer's are like smoking hot women, they can spot lack of confidence a mile away, and never even entertain your offer. Be confident, and you'll get somewhere.

bcp · Dec 6, 2014

I've had good luck making a lower offer on two or more items. That way they get more items sold.

Bruce

joecoin · Dec 6, 2014

Piston said:
...

You should never, ever, pay full asking price at a dealer, that goes for tractors, implements, or any used goods.

...
The most important thing is being polite, and not insulting, that doesn't mean you can't offer a lower price than you think you should, always go lower, because you'll always meet somewhere between. ...

Know your maximum dollar amount going in. Always first offer that amount minus half of the difference between your max and their ask price, they want $20000, you have $18000; you offer $17000. They come back with $19000, you say $17500. Etc.

GManBart · Dec 6, 2014

Well, the deal is done! It turns out that just as we were getting there, another guy was leaving after making an offer on the machine, and filling out finance paperwork. I did a pre-approval with them earlier this week, and brought cash for a deposit, so the owner said he had to go with cash in hand. I think having the other guy show up before me hurt my negotiating power somewhat, but they came down $1K from their asking price.

The rear bucket is a trench bucket, so they're going to swap it for a 24" digging bucket, and a nice surprise was that the 5' forks are actually an entire quick attach setup (hydraulic) rather than the kind that hang off hooks on the bucket.

What was interesting was watching my buddy go through his inspection...he did almost exactly the routine that Greg9504 detailed in the other thread I started (Solid Backhoe for $35K possible?). The hoe is extremely tight...practically like new. The front bucket had a bit of play in a couple of the bushings, but not bad at all, and they would be easy to change. The heater put out a ton of heat, and it also had an AM/FM/CD player they hadn't mentioned. In short, it's at 2,770 hours, and everything seemed to work the way it should.

I'll get some pictures of it after it's delivered, but here's one they had on their website: