Trade-In Differences

[Mrwurm]

Greetings all, I have three New Holland dealers within 30 miles of me. I am looking (again) at the TC33D. All of the dealers are pretty competitive on price. Heres the trouble. The dealer I really want to buy from based on service and reputation won't compete on my trade-in. The other dealers are offering $5,000 for my trade. The dealer I want to buy from offered $3,750 at first. When I told him about competing deals he upped his price to $4,300 but will not budge a penny higher. I went to his lot yesterday and saw that he only has ONE used tractor. He is in a fancy high-income area. The other dealers are out in the country. What are some of the reasons a dealer will offer more or less on trades?

 

[Bird]

<font color=blue>He is in a fancy high-income area</font color=blue>

I don't know for sure, but think you just answered your own question./w3tcompact/icons/wink.gif He's in an area where new ones sell (his customers have money), but he doesn't have the market for the cheaper used ones that a country dealer has (where his customers don't have as much money). The dealers offering more for the trade-in probably intend to retail it to a customer while the dealer offering less intends to wholesale it to another dealer or put it in an auction. Just my guess.

 

[EdKing]

Just ask yourself is buying from your prefered dealer worth the extra $700 ? If it is go for it. If not, buy from one of the other dealers.

Ed King

 

[Von]

Sell your old one yourself, You might get $7000 for it. That will be an extra 2k to use on other toys for your new tractor. I sold my old one myself last fall and got more than I paid for it!

 

[BOTAMAN]

Are the two dealers that are offering $5000.00 for your trade-in asking more for the new unit ? If they are they are probably using that extra amount to show you more for your trade.

 

[RoyJackson]

If you need the trade-in money to do the deal, you're in a bit of a quandry.
If you don't need the money (just want to sell the 650), ask him if he'll consign it for you. However, you might be better off if a Deere dealer sold it for you.

Or, as another post mentioned, sell it yourself. You won't get what a dealer would, but you might see $5000-$6000 depending on hours, condition etc.

 

[Mrwurm]

Botaman, the dealers are within $50 of each other on the new unit. I was just wondering about general trade-in philosophy from the dealer perspective. I think Bird came up with some good points that I did not think of. New Holland has financing specials till the end of the month. I might try selling on my own. This makes me kind of nervous for some reason. One of the dealers that is offering $5,000 said he thinks I could sell it on my own for $6,000. I sure like the idea of the dealer bringing the new one and taking away the old one in one swift motion. There's something creepy about selling my tractor and thinking about that empty space in the garage. I think I need tractor-counseling.

 

[CSAW]

Mrwurm

If you sell it yourself you will have to get more than the dealer will give you for trade in in order to break even. This is because you will have to pay sales tax on the money. If you trade you do not have to pay tax on the amount you get for your trade. In your instance this is probably not enough to make much difference but is something to keep in mind.

This is the way it works in my state, Fl. (may be different where you are)
This also assumes that you are not tax exempt

 

[Mrwurm]

Chuck, whenever I get a price quote here in Michigan, they tax the total and then subtract out the trade. Sounds like you have a better system there in Florida... Yeah !, that burns my BUTT!, I already paid tax on the trade-in value!

No, I'm not a farmer, so I'm not tax exempt.
(The farmers deserve a break)

Jerry

 

[frank_f15]

agree with BIRDS assement ! i think should sell it yourself. if it is a nice machine and the price is reasonable u won't have any problem selling it. but if u need the $$$ to swing the new one, then take the best deal. i do beleive a dealer catering to the higher income folks may also be more expensive for parts and labor?