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  1. #1
    Silver Member
    Join Date
    Dec 2001
    Posts
    149
    Location
    N. Vermont
    Tractor
    JD 110tlb, rtv900.

    Default Help with the ethics of negotiation

    Hi All,

    I have been eyeiing a tractor which the dealer has on consignment. The 07 machine has 100 hrs and is in pretty good shape. It seems like the asking price is about 15 percent less that the JD configuator less dealer setups etc. Of course when quoted new this sounds good, but upon reflection, a better deal should be had. The question is: Is it too rough to offer 10 percent less than the asking price with the intent of ending the negotiation somewhere between? I have to deal with the salesman. Any thoughts or reflections appreciated.

  2. #2
    Super Member Farmwithjunk's Avatar
    Join Date
    Aug 2005
    Posts
    7,514
    Location
    Mt Washington, Kentucky
    Tractor
    Where do I begin.....

    Default Re: Help with the ethics of negotiation

    It sure wouldn't be considered unethical, nor would I consider it out of the ordinary. However, I would be astounded if the dealer was to knock off as much as 10%. If the tractor has been sitting on the lot for ages, you might have a little more leverage, but MOST dealers I trade with will wait a while before they start discounting in big chunks. 15% under new on a tractor that recent and with those hours sounds like a decent deal already. They just don't depreciate much in that short of a time.

    But....It's worth a shot. Whatta you got to lose? Ask and see how they respond. Any dealer who's been around the block a few times has had lower offers.
    There are three kinds of men;
    1.) The ones that learn by reading
    2.) The few who learn by observation
    3.) The rest of them have to pee on the electric fence for themselves.

  3. #3
    Elite Member Ductape's Avatar
    Join Date
    Feb 2006
    Posts
    4,852
    Location
    Central New Hampshire
    Tractor
    Kubota B3030HSDC

    Default Re: Help with the ethics of negotiation

    Heck i might start at 20% under asking price and work back up in the direction of 10.

  4. #4
    Silver Member capi75rs's Avatar
    Join Date
    Dec 2008
    Posts
    129
    Location
    Central Illinios
    Tractor
    Mahindra 2810

    Default Re: Help with the ethics of negotiation

    Their is NOTHING wrong with trying to save a few dollars. I assure you that their is wiggle room in the price. Get the best deal YOU feel you can get. Just remember the owner has the final say, and if they get a few low offers they may decide to accept the best one. Times are tough and deals are to be had for folks in the right position. I've never purchased on consignment but I have sold on consignment. Whatever the final price is, make sure no leans are outstanding on the machine. I don't know the laws in your state and I've never had a bad experience selling but I've herd horor stories of buyers getting machines at consignment auctions that have existing leans and then a legal battle begins. Not trying to scare you just letting you know what I've heard. Also since your purchasing at a dealer, they may have done all the checking, but it wouldn't hurt to verify it with them.
    Good luck and GO get you a DEAL!

  5. #5
    Elite Member
    Parts Supplier
    MessickFarmEqu's Avatar
    Join Date
    Feb 2004
    Posts
    4,796
    Location
    Lancaster County, PA

    Default Re: Help with the ethics of negotiation

    pieces are often put on consignment when the owner wants more money than the dealer will put in the trade. If you offer less, they probably won't be surprised. When we have people do that we just call the owner and pass the offer along... give it a shot, no harm in what your asking for.

  6. #6
    Epic Contributor jinman's Avatar
    Join Date
    Feb 2001
    Posts
    21,011
    Location
    Texas - Wise County - Sunset
    Tractor
    NHTC45D, NH LB75B, Ford Jubilee

    Default Re: Help with the ethics of negotiation

    If the tractor is on consignment, you are really dealing with two people, the original owner and the dealer. That makes negotiations a little harder, because both the dealer and the original owner want to make a few dollars, or at least not lose any money. If you think the tractor might be sold to you for less, I would not hesitate to offer less.

    Now, if you found out who the tractor belongs to and went around the dealer to make the owner an offer, that might be unethical. However, trying to get a tractor at a great price is just smart.

    Edit: Neil, you and I were posting at the same time and had some similar thoughts.
    Jim


  7. #7
    Platinum Member BigD23's Avatar
    Join Date
    Jun 2008
    Posts
    776
    Location
    Pac. NW
    Tractor
    Kubota BX23 TLB

    Default Re: Help with the ethics of negotiation

    Like all other offers, worse they can say is.......no.

    Don

  8. #8
    Super Star Member EddieWalker's Avatar
    Join Date
    May 2003
    Posts
    14,872
    Location
    Tyler, Texas
    Tractor
    Several, all used and abused.

    Default Re: Help with the ethics of negotiation

    I like to comparison price just about everything that I buy. I find out the going price for similar items to give me an idea of what they are worth. I know that allot of them will sell for less then the asking price, but it lets me know what it reasonable. If the tractor is priced right, playing games with the price might put you out of the game and somebody else will buy it. I've had that happen more then once, and it's especially frustrating because I was just being greedy trying to save a few bucks on an already great deal. Of course, if you think the price is on the high side, offer what "YOU" think it's worth and see what happens. If they say no, there is always another deal out there someplace. It's just a matter of time until it comes up.

    I would think that the next few months will be a very good time for buyers. Winter isn't a good time for selling tractors, and those who are selling them should be more agreeable to a lower price to move them. Some dealers have to pay interest on new tractors after they have sat on the lot for a certain amount of time. I can't say how long this is for each dealer, but there is a time limit when they want to sell that tractor. After that, it starts to cost them money to have it on their lot. After that, they are more willing to move it at a lower price.

    People making monthly payments are in the same situation. If they have had it for sale awhile, they become more willing to lower their price. Again, this will be more so in winter when their are fewer buyers and less interest.

    Right now, it's a buyers market for just about everything.

    Good luck,
    Eddie

  9. #9
    Super Member
    Join Date
    Sep 2000
    Posts
    6,548

    Default Re: Help with the ethics of negotiation

    I had an old boss that moved to the area. Naturally, he had sold an expensive house and had a pocket full of change. He toured the area, found several homes that were what he wanted and selected two that had been on the market the longest. He made dual offers contingent on each other (so he would wind up buy only one!). The thing is, he way way way low balled the offers at least 100K under asking, but they were "cash" offers and would be completed in 2 days.

    Both accepted. He got the better of the two and a few tidbits tossed in to make it his selection!

    As others have said, the economy is down offer low -- but don't fall in love with any one machine. Others will pop up and be as good or better deals.

    jb

  10. #10
    Silver Member DWCox's Avatar
    Join Date
    May 2008
    Posts
    112
    Location
    Northen Virginia
    Tractor
    John Deere 790

    Default Re: Help with the ethics of negotiation

    It is refreshing to read someone wanting to do the right thing. That being said, there is no dishonesty involved in offering below what you would ideally like to pay. An offer is just part of a necessary step in the process of negotiations. You are not making a truth claim one way or the other (hence, no dishonesty).
    Last edited by DWCox; 12-27-2008 at 11:32 AM.
    DCox
    2005 John Deere 790

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