Why no listed MSRPs?

[Turbys_1700]

A dealer has to make a profit. Most folk don't understand how much money it takes to run a dealership. Overhead is the killer. Most dealers are willing to deal more on tractors getting ready to come off the floorplan. Most will try to maximize their profit. It's our job to get a ouple of quotes to keep them in line. Competition is the key. Always has been. Always will be.

 

[bluechip]

Getting back to the pricing financing thing for a minute, please understand that most factory incentive programs are either/or propositions. You can get the reduced rate factory financing OR an additional cash reduction in the price, actually a rebate applied at time of purchase. As a dealer, it is tough to quote an exact price until we know if the customer is interested in the low rate financing or will be paying cash. We want to quote the best price up front that we can offer, but sometimes our customers will not be upfront, many will say, "give me the cash price" which I will, including the rebate, then they want to know what kind of financing we offer. If you take the rebate you can still finance at market rate, OR you can give up the rebate and get the 0percent or 4.9 or whatever the best plan for you is. It is not a price increase and it is not extra interest paid up front. It is a rebate designed to give the cash buyer some incentive just as the low rate is an incentive to the credit buyer. The cost to the dealer is different depending how the customer buys. I find MSRP to be meaningless also. We quote cost plus a modest markup, then do our best to explain the rebate/low rate options. It worries me that the customer does not understand what we are doing, but I cant find a more honest way to address it...

 

[DavesTractor]

Different companies also have a different percentage between MSRP and dealer cost - some are as low as 15, others near 60. MSRP is largly a useless figure. I never bother to sit down and figure out what it is when selling a tractor.

Well said, I agree.

 

[CTW]

If a dealer won't talk prices over the phone then he doesn't want your money very badly. Dealers that aren't interested in attracting customers deserve to go out of business, which is what most that have that attitude end up doing.

Well said Gary, I'm looking around at various brands in the 70hp range and I saw some Mahindra models that were interesting on a dealers website so he sent me his pricelist in e-mail of all current models (which were alot) and showed the price diff. with FEL. He also included some monthly package deals w/ prices like tractor, b-hog and 16' trailer... etc. Now that is somebody who wants to do business.

 

[schmism]

Ive been shopping for about 2 weeks. Got an odd day off last fri and decided id spend a good 4 hrs driving around rural IL from small town to small town knowing were a few dealers were.

I was amazed at the diffrence. Some would put a quote on paper in 5 min. Others would shoot the sh*t all day long with ya, but never seemed intrested in getting down to the nitty grity details about closing a deal meaning $$. Id keep asking.... "and that runs?" and that adds how much? and answers were always ohhh welll its around, or about.. etc.

But the thing that pissed me off the most is the inablity to "work with you" on a deal on used impliments they have sitting around the yard. Dude understand this im not intrested in dropping $2K on 3 brand new impiments when used ones work just fine, on top of that im shure you gave virutally nothing for them when they were traded in (probibly as a package deal with some other tractor).

So hear is how i expected it to go down. Ask $$ on a tractor. I take face value. Walk around talk about impiments (rear blade, brush hog etc, post hole digger) we talk about price on those. Now, i counter on tractor, say i take 5% off. but then want the impiments. You look at that 5%, look at the impiment price, ask if i want financeing, and come up with a "package" price which is $100 more than the orginal price you quoted me.

Every time i asked a dealer, so you gonna throw in a used $300 rear blade for me? And they look at you funny like... ya right buddy.

and i look at them like "your nuts if you think im not going to haggle the price of that used tractor"

so save us some headach, (toss in $600 worth of impliments) and ill feel good about that org price you quoted me and everyone is happy right?

but tis not the way it seems to work in the 4 places i visted.

 

[Keith_B]

I have been driving to all the areas dealers the past 2 days. I get the "well it is this price but if you finance it is this price" sort of deal. I don't even know what a good deal is anymore.

Some of the companies are offering special financing rate OR rebate deals. When I bought my Mahindra I could either take the special rate or get a $300 rebate.

 

[Keith_B]

No sure. I financed with CNH at 5.9% on a 6 year note and the $500 was added. It doesn't matter either if your putting down $4000 as I did or $40,000 they still add the $500 if you go through CNH. If looked at in the long run that's still better then a bank with there rates today. Lowest rate I could find with a local bank on a new tractor here was 8.5%
LOL

A lot of banks and other places that are financing these days are adding these loan charges in for the paperwork and stuff, especially those that are dealing with lower rates. Every place has some kind of charge, but not to the tune of $500.

 

[Redneck_Randy]

A lot of banks and other places that are financing these days are adding these loan charges in for the paperwork and stuff, especially those that are dealing with lower rates. Every place has some kind of charge, but not to the tune of $500

New Holland does.

 

[HillbillyFarmer]

Most manufacturers DO list prices. You just have to look for that feature on their web site.

When I bought my tractor last fall, I picked out exactly what I wanted, equiped the way I wanted it and then called or visited every dealer within a 100+ mile radius. I badgered them all for a week or two and when I felt like I'd finally reached rock bottom on the price, I bought the thing. It was fairly simple, just took a little bit of leg work deciding what I wanted.

BTW: I told them I'd write them a check while dealing, but when I got the bottom line price I said "let's look at your 0% financing." They gave it to me and never batted an eye.

 

[Keith_B]

New Holland does.

Sorry for the confusion, Randy. What I meant to say was that a lot of places are much less than $500 for a loan fee.

 

[daTeacha]

Bottom line -- decide what you want from lots of looking, then tell the salesman he gets one shot at earning your business. Be ready to name the model, transmission, tires, PTOs, and everything else you want in the deal.

A lot of the differences come from the fact that tractors are like cars in that they can be set up in a number of different ways and you might not find two dealers with the exact same option combination. Everyone has different costs involved in a particular unit, too, depending on whether the dealer owns it or not and how long it's been sitting there or you order it out special.

In my case, after I finally decided on what tractor I wanted, I went with the dealer that seemed most interested in me as person. It's an extra 10 miles to this dealership, but the guy nearby just seemed like he was doing me a favor to talk about the tractors, and always was pushing for any kind of a sale instead of helping me figure out and meet my needs.

 

[bluechip]

Document fees are usually 75 to 150 or so. the $500 is likely the "adding back" of the rebate that was included in the "cash price" that was quoted. I cant tell you the number of times I have asked if a buyer is interested in Cash price or below market financing. Many say Cash price, THEN want the financing. So the price changes and the dealer is thought of as shady.. The factories that are offering below market financing offer a cash rebate to those who are not interested in the financing. If a buyer says he wants the cash price, that price is cash or market rate financing. The dealer does not get the $500 or whatever it is. If the dealer shows it on his invoice as a rebate, then he will deduct it when he pays his floor plan off so it is a pass through of a savings.

 

[BTI]

Kioti lists there "Cash-in-lieu" discounts on the website.
This keeps everybody honest.

All companies do things different. When I first signed with Kioti, they had no
"Cash-in-lieu". It was what it was, pay cash or finance same price.
Now it isn't. You can't just draw a line and say "if a dealer does this, he's ripping you off."
The people that write up some of these, floorplan, retail financing and wholesale financing programs must sit around and just see what wierd stuff they can dream up.

daTeacha gives a valid idea--Give them (dealer) one last shot, BUT stick with what you say you are going to do.
Don't go thru all of it with the dealer then decide to finance or take away part of the big package you had the dealer figure out his "best deal" on.
Also let the dealer know how soon you are going to buy, prices, programs etc change all the time.

BTI

 

[777777]

Hi All,

Well, I for one, think that MSRP's should be posted on the Companies websites. Gives you a starting point.
Pretty frustating and maybe expensive to phone around ( long distance), send emails to which you are lucky to get a response, or eventually drive around ( paying for gas ) just to find out how much a tractor is. Or at least a starting price since no one is going to give you a firm price if you aren't serious.
You get a budget from your financial manager, look at the manufacturers websites, come up with all these dreams\ideas and then have to chase your tail around to find out that you are way off base with what your financial planner will allow you for your toy. You end up wasting your time\money and the dealer's time\money by not having an idea if the product is out of your range.
Granted, the MSRP might be pointless to the dealer because of rebates\floor pricing, etc, but if you factor in some wiggle room in the MSRP, it helps you, the consumer some way to decide what brand\what model\what options you may be able to afford.
I think it is also great that the manufacturers give you the choice of low rate financing or cash back rebate with it advertised on their website. That way you know that there are choices.
If you try to beat the dealer by getting his best cash price ( including rebate) and then try to switch to financing with the same price, don't be surprised if dealer just figures your a time waster and doesn't really want to deal with you anymore. Your choice when it is front of your face.

So, ya, I think all manufacturers should list their MSRP's so you can decide if you can afford and what you can afford given some wiggle room.

I think it makes it easier for all parties right up front.

Thanks and have a great one.

Tom