Wow, buying a tractor can be interesting!

[LabLuvR]

First I was way off on the price of a new tractor. Then I explain such to the boss(wife) and she says no problem, look at new!WHOA!!

Which leads me to a few questions. After tire kicking some I was quoted $12,500 on a Branson 40hp tractor and $14,900 on the Century 40hp. from two dealers who are not 20 miles apart and both are relatively small dealers. What gives???

Second, since I have been researching buyin a tractor I notice that quite a few people will buy a tractor out of state or some distance from there home. I don't understand the justification? If a dealer is say, 100 miles from home and you need work done on the tractor then doesn't someone have to haul the tractor to that dealer or the dealer has to make a 100 mile drive? Surely someone, I would expect the purchaser pays for that trip(s). Just highly curious on these long distance purchases. Thanks!

 

[Golfgar4]

I can't speak to the price difference between the Century and the Branson. As long they are similar in set-up (type tires, transmission, etc.), I too would believe they should be closer in price.

Regarding your dealer question, I'd just offer this. I am also tractor shopping with the expectation of purchasing sometime in mid '05. By researching on TBN, and any where else I can, I've determined that for me, I will make sure that I have a dealer within a reasonable distance to me, even if I have to pay a little more for the same tractor. For me, reasonable distance means within a 1 hour one-way drive.

I've considered if I would ever buy from a distance to save money. But clearly, when a person does that, it puts them in a position where they will end up taking their tractor to the closest dealer anyway. As I understand it, any dealer has to honor the warranty for their brand of tractor, so getting the work done close by even when you've bought from a distance isn't a problem. The problem becomes how long it will take to get the work done. The dealer close by will certainly take in the work, but he's probably going to put more emphasis on his "real" customers - those who bought from him in the first place. Then your tractor will get fit in when they have the time.

I guess I can understand the dealer thinking that way, although I'm not sure I agree with it. From what I've learned, most dealers make their best profit from the service department, so wouldn't it make sense to be operating it as effiecently as possible, and in a way to encourage business, rather than discourage someone from coming there?

That brings up a similar question I've always wondered about. What about the guy who has purchased a new tractor, but then for whatever reason, moves out of state? Is he going to be "penalized" by the dealer in his new location, even though there is no way the owner would have ever purchased from that dealer in the first place?

That's why I think it's in the dealers best interests to treat every customer the same.

 

[rockyridgefarm]

For long distance purchases you are asking the right questions.

I think the safe way to look at it is: how far am I willing to go, figuring I may have to use the selling dealer for service, and be responsible for transportation. Transportation is almost always the customers responsibility. There are often issues that a selling dealer needs to be the one correcting.

You MAY be able to use a closer dealer for service. But that may have enough caveats to make you sorry.

Don't be afraid to check all the dealers in your area. Some small dealers are fantastic. Some have a long way to go. I have a friend who bought his tractors shortly before mine at a small tire store/tractor place. Their lot now looks like a bone yard from all the tractors they have scabbed parts from to keep his going. Just a warning about under capitalized dealers, not the brands you mentioned.

As it turned out when I was buying, I got comparable pricing from New Holland and Deere, a little higher from Kubota, than I was getting from the smaller brands. Those were very established dealers...

 

[PineRidge]

<font color="blue">First I was way off on the price of a new tractor. Then I explain such to the boss(wife) and she says no problem, look at new!WHOA!!

Which leads me to a few questions. After tire kicking some I was quoted $12,500 on a Branson 40hp tractor and $14,900 on the Century 40hp. from two dealers who are not 20 miles apart and both are relatively small dealers. What gives???

Second, since I have been researching buyin a tractor I notice that quite a few people will buy a tractor out of state or some distance from there home. I don't understand the justification? If a dealer is say, 100 miles from home and you need work done on the tractor then doesn't someone have to haul the tractor to that dealer or the dealer has to make a 100 mile drive? Surely someone, I would expect the purchaser pays for that trip(s). Just highly curious on these long distance purchases. Thanks!
</font>

LabLuvR good questions. When shopping for a new tractor do your homework first. Dealers are in business to make money, but if you shop wisely you can and will save some money. I can tell you that when I was pricing TC-40Ds I found a 4K spread among my local dealers. That is a chunk of money.

Why do some folks buy out of state? Prices are more negotiable if a dealer doesn't have to worry about ever seeing that tractor once he sells it. Plus most out of state & Internet sales are not taxable. On a 28K deal that amounts to $1680 in tax savings alone, based on our 6% sales tax, not counting the dealer discount........

Your local dealer will do the service but you will wait for him to take care of his regulars first. Is the wait worth the savings, only you can answer that question. Personally, I spent more, and supported my local dealer. I hope he is there when I really need him.
/forums/images/graemlins/grin.gif

 

[SteveH_CT]

In response to your remark about buying from a dealer at great distance to save $$ - I recently bought a JD4310, but looked at several brands including Kioti. I was approached online and by private message from out of state dealers offering to save me $$, which I believe they could have. When I answered that I had chosen to stay local for my purchase every one of the out of state dealers answered me saying I was making the right move... something to think about.

One More thing that pushed me local is my brothers musings... he has a commercial equipment store down in Florida - I know for a fact if you didn't buy from him you can get service... but after all his real customers have been taken care of. I prefer to get good service because I am a real poor mechanic and I know I'll be using it /forums/images/graemlins/wink.gif.

I just believe that what comes around goes around - find a good local dealer and strike a deal where both sides are happy - thats my advice... that and 10 cents will get you absolutely nothing nowadays! /forums/images/graemlins/grin.gif

Good Luck Shopping!

 

[TCowner]

One of the John Deere dealers I did some business with a few years ago was positioned along a busy highway. He would regularly get inquiries about the lowest price he would take for a JD garden or utility tractor from truckers or others who were "just passing through". They usually tried to get him to accept the minimal profit using the arguement that "you will never see the tractor for service or hear from me if there is a problem."

The dealer told me he had one response, "I sell tractors and equipment to my regular customers with a reasonable but not excessive profit. These are the customers who come back for service, parts, and future sales. They also refer other customers to me. How can I sell you a tractor for less money than my regular customers."

At first I was surprised by his response then I realized it made perfect sense. Frankly, it would irritate me a bit if an out of state customer got a better deal than me. I understand that you can't be married to one dealer or one manufacturer. I always shop different dealers in my local area. You have to in order to keep them honest as well as have some peace of mind. But if I'm buying oil, filters, cabs, parts, and getting service at the local dealer then I better be getting his best price when I purchase.

 

[keeney]

When buying new, it would be assumed that all dealers can order the same stuff at about the same prices.

When shopping for a deal, however, you can get into some categories of machines that may be priced differently and have different availabilites at different dealers.

1. In-stock vs. order from factory. The delaer gets immediate profit without the hassle of writing up a complex custom order on equipment that is in-stock. You write the check and take it home. Maybe some add-ons are ordered, but the bulk of the projfit gets booked this month or quarter, not next. So depending on what the dealer has in-stock on his lot, you may find some slight variations in pricing based on that. If the configuration that he ordered qty 25 of matches what you are looking for, that will likely be the best place to buy it from.

2. Demo equipment. As a demo model gets towards the end of its demo life, the dealer will need to sell this equipment. There are a couple of reasons for this: the new model year stuff is arriving, a replacement model is coming, or accounting or tax rules that would force the machine to be moved from inventory to capital. Different dealers will have different amounts, types, and pricing on demo equipment. If they have something that matches what you want, you can maybe get a good deal and still get a factory warranty. My experience is that the pricing on this stuff is not discounted all that heavily from new.

3. Dealer-owned used equipment. Usually from trade-ins or other returns. This equipment might have some kind of short dealer warranty based on their inspection and "refurb". It takes a lot of luck to find what you are looking for. Internet listings can help you find what you want, but it might be states away. I purchased my used tractor that way from a dealer in another state.

4. Consignment used equipment. Dealer does not own it, but for a fee put sit on his lot and sells it for a customer. Same as above, but price negotiations can turn into a three-way deal. Warranty is usually as-is.


I would say that most dealers are happy for the service business assuming you are a paying service customer. If you start using a bunch of their time without buying anything from them, they are not going to want to talk to you anymore. A certain amount of leeway would be extended to somebody who made a large purchase of a new machine vs. somebody who never bought anything from them except a $15.75 part that took them two days to research and had to be special order, rush delivery, etc.

- Rick

 

[zuiko]

I got quotes on the exact same model of tractor from dealers 15 miles apart from each other that varied a lot more than that. There's a lot of variability in pricing. I ordered from a dealer that is pretty close but I'd have no concerns about having to go to another local dealer for parts or service.

 

[MossRoad]

<font color="blue"> Plus most out of state & Internet sales are not taxable. </font>

Careful, there... you might want to look into that /forums/images/graemlins/wink.gif

 

[PineRidge]

Anybody ever buy a tractor at Corriher out of the state in which you reside care to let us know if you paid sales tax at the time of your purchase? No we are not with the IRS. /forums/images/graemlins/wink.gif