What gives with dealers on tractor house?

[AxleHub]

I'm reading alot of bellyaching on this thread . . but in several instances I'm not reading the knowledge to suppot the bellyaching.

1. Credit scores are important because they indicate if your check will cash or what financing options are possible. Its going to waste alot of time if the 3 finance options you need can't get approved and the sales dept. Has spent 10 hours on you for nothing.

2. If dealers have to order in items for a tractor . . Maybe they'd like to know its going to go thru. Or don't you think prospe ts don't lie kr stretch the truth?

3. The number 1 rule in sales is to qualjfy the prospect to make syre you can make them a customer.

4. Yes, imagine rhat . . Dealers contribute to some of the finance programs especislly leases a d the higher interest rare options. Imagine how "bad" dealers are that don't want to get squeezed in financing costs after they gave you a great price . . aren't they terrible people lol

5. If you want to be recognized as believable . . then why don't you walk in to the dealer you know locally? Oh . .I forgot . . you want the cheapest price you can find anywhere lol

6. Oh and my tradein should be worth the same as cash . . except I won't tell the dealer about three problems with it and let them put a bunch of money in it because I concealed the info lol.

7. Lets say my trade in sits on the lot for 3 months . . . it still should be treated like cash value . . and gee . . . the salesman shouldn't expect to get any commissi9n on selling it lol.

My point is real simple . . whiners are usually the worst customers for many reasons.

Isn't it funny . . . I contacted 17 dealers for bids/pricing in 2015 . . I got pricing and never had to answer any questions relating to credit score etc.. . . and over half of them were on tractor house. Nope I'm not rich nor did I disclose anything. Strange how thst works.

Ever think some of the whiners might be the problem ??? Or maybe you just pick the "iffy" dealers ?

 

[jaydee325]

The bottom line for me is if an ad says call for price, I don't look any further. If a dealer can't figure something else out to get a look from me, that is to bad for them.

 

[Industrial Toys]

DITO!

 

[davesl708]

If the dealer is not upfront and earnest I go elsewhere. Plenty of others want to sell. I am the buyer and if I am having my time wasted finding out what the price is I go give someone else the business. You don't go to a department store and see ask for price.

Dealers are trying to get as much as they can for a machine. I am deciding who I will do business with. If I don't like the way the transaction is going I walk away. No whining just will do business with someone else.

 

[GManBart]

You'd like to think so, but confusion is a daily occurrence even when things are spelled out in bold lettering. If we dont have different prices for different situations we will loose some of the time.

For an explanation before everyone gets upset further, see below.

Each machine on the yard has a bottom dollar price. However, anything above this is dependent on several factors. If you have a trade, you usually dont get as good of a deal on the machine, we make our money on the trade and not on the machine. If you have bad credit, you arent going to get as good of a deal on the machine, we have to incur the risk of lending a tractor to you and then you default on the loan and then we have to repo a used tractor. If you are paying cash, you get the rebate. If you are financing, you dont get the rebate.

If you guys think its just easy to give everyone in every situation the same price, you are sorely mistaken. Its just not that simple. Every customer gets treated with honesty and respect at our dealer, but every customer with every situation may not get the same price.

That fails the logic test. Plenty of dealers publish prices and don't go out of business, so they've somehow managed to figure this out.

Before you suggest they're simply inflating their prices high enough that it doesn't matter, I know for a fact that some of them don't operate that way, because their pricing is in line with the pricing I was able to find at other dealers.

 

[Sprinklerman]

I'm a dealer, we do that because every person does not get the same price. If you trade in, price different. If you dont have good credit, price different. If you pay cash, price different. If you finance, price different.

Hard to include all that in one price.

This doesnt pass the sniff test , if it smells like BS , thats what it is

 

[ShowroomShine]

That fails the logic test. Plenty of dealers publish prices and don't go out of business, so they've somehow managed to figure this out.

Before you suggest they're simply inflating their prices high enough that it doesn't matter, I know for a fact that some of them don't operate that way, because their pricing is in line with the pricing I was able to find at other dealers.

Plenty of dealers dont publish prices and dont go out of business. You can call it failed logic (or bs), but its the truth of sales. The ugly truth is, out of 100's of tractors we advertise on tractorhouse.com, we may sell 2-3% from the internet. Its just not worth putting much money or time into, if you are a serious buyer you'll walk in the door. Some dealers thrive on internet sales and do very well, but their margins are probably extremely slim.

Therefore, we dont just put a set price on a machine, we'd rather get the best price for the customer based on his circumstances. We could put a set price, but like another user said it would just be an inflated price...so why bother.

 

[TSO]

You'd like to think so, but confusion is a daily occurrence even when things are spelled out in bold lettering. If we dont have different prices for different situations we will loose some of the time.

For an explanation before everyone gets upset further, see below.

Each machine on the yard has a bottom dollar price. However, anything above this is dependent on several factors. If you have a trade, you usually dont get as good of a deal on the machine, we make our money on the trade and not on the machine. If you have bad credit, you arent going to get as good of a deal on the machine, we have to incur the risk of lending a tractor to you and then you default on the loan and then we have to repo a used tractor. If you are paying cash, you get the rebate. If you are financing, you dont get the rebate.

If you guys think its just easy to give everyone in every situation the same price, you are sorely mistaken. Its just not that simple. Every customer gets treated with honesty and respect at our dealer, but every customer with every situation may not get the same price.

This really doesn't make any sense. You're not the one loaning the money, it's the lending company. They are the ones that assign risk, and they determine the financing rate based on that. Your dealership isn't getting any of that "additional interest" money, the lender is. Your dealership also isn't the one doing the repo to recuperate if the buyer defaults, again that's to the lender.

Now, if you decide to give a better deal to a valued return customer, or a customer that had sent business your way...then that's completely understandable and appreciated. But Joe Blow coming off the street shouldn't expect to pay different amounts...

My local Kubota dealer drives me nuts with their pricing. They start everything basically at MSRP and you have to fight tooth and nail to get down to a reasonable price. They do that on tractors AND implements, new and used.

As a very stark contrast, my closest Massey/Kioti dealer has a fantastic business model. He will literally show you what his cost on the machines are, and he builds in $1000 profit/commission for each new sale. No games, no drawn out haggling. Very honest guy. Does the same type process with implements too. And because of that, he has some of the lowest prices you'll see on Kioti and Massey products, and has earned a big following. His dealership is very successful.

I agree with the other posters... If I have to "call for price" then I probably won't bother. In my experience, when I do finally call, those prices are usually listed much higher than the other listings, and they don't list them because they don't want everyone to see that their price is higher.

 

[ShowroomShine]

This really doesn't make any sense. You're not the one loaning the money, it's the lending company. They are the ones that assign risk, and they determine the financing rate based on that. Your dealership isn't getting any of that "additional interest" money, the lender is. Your dealership also isn't the one doing the repo to recuperate if the buyer defaults, again that's to the lender.

Now, if you decide to give a better deal to a valued return customer, or a customer that had sent business your way...then that's completely understandable and appreciated. But Joe Blow coming off the street shouldn't expect to pay different amounts...

My local Kubota dealer drives me nuts with their pricing. They start everything basically at MSRP and you have to fight tooth and nail to get down to a reasonable price. They do that on tractors AND implements, new and used.

As a very stark contrast, my closest Massey/Kioti dealer has a fantastic business model. He will literally show you what his cost on the machines are, and he builds in $1000 profit/commission for each new sale. No games, no drawn out haggling. Very honest guy. Does the same type process with implements too. And because of that, he has some of the lowest prices you'll see on Kioti and Massey products, and has earned a big following. His dealership is very successful.

I agree with the other posters... If I have to "call for price" then I probably won't bother. In my experience, when I do finally call, those prices are usually listed much higher than the other listings, and they don't list them because they don't want everyone to see that their price is higher.

The finance company is incurring the risk yes, but we are the ones that will be responsible for repo'ing the machine if you default (and we've done that several times). When I say your price is based on credit, even just normal bad credit will likely get you the same price as someone with an 800+, its the really bad credit that we wont deal as well on.

We obviously give the best killer deals to return customers. We cut stuff to the bone and bend over backwards for the people that have bought more than one machine.

Also, your local Massy/Kioti dealer is making a ton more than $1000 on each sale. Here is how it works, he's shown you his cost but thats not what he's paid, he takes a factory discount further off that amount and then adds back in shop time and assembly.

For example, say my "cost" (called dealer net) on a tractor is $50K. I can show you that cost and mark it up at a "$1000 margin" and make it look like you get a killer deal. What actually happens is the factory has programs and discounts off that dealer net price, so in this case lets make it 10%. So now my cost is now $45K instead of $50K. You've paid me $51K.

Dont ever fall for the "here is my cost" line, its all BS. Perhaps you think what I/we do is dishonest, but the "here is my cost" line is one of the most dishonest schemes in the industry.

 

[TSO]

The finance company is incurring the risk yes, but we are the ones that will be responsible for repo'ing the machine if you default (and we've done that several times). When I say your price is based on credit, even just normal bad credit will likely get you the same price as someone with an 800+, its the really bad credit that we wont deal as well on.

We obviously give the best killer deals to return customers. We cut stuff to the bone and bend over backwards for the people that have bought more than one machine.

Also, your local Massy/Kioti dealer is making a ton more than $1000 on each sale. Here is how it works, he's shown you his cost but thats not what he's paid, he takes a factory discount further off that amount and then adds back in shop time and assembly.

For example, say my "cost" (called dealer net) on a tractor is $50K. I can show you that cost and mark it up at a "$1000 margin" and make it look like you get a killer deal. What actually happens is the factory has programs and discounts off that dealer net price, so in this case lets make it 10%. So now my cost is now $45K instead of $50K. You've paid me $51K.

Dont ever fall for the "here is my cost" line, its all BS. Perhaps you think what I/we do is dishonest, but the "here is my cost" line is one of the most dishonest schemes in the industry.

I think you're making an assumption about my dealer based on your own "dealer-trick" experiences, and certainly I have seen that ruse played by other dealers in a variety of markets (vehicles, appliances, etc). However that isn't the case with this particular dealer.

And why would your dealership be tasked with repo'ing the machines? Is that KTAC's rules? If I finance a tractor thru you, move out of state, and default on my loan to someone else, are you still coming to repo my tractor?