Is a John Deere purchase order legally binding?

   / Is a John Deere purchase order legally binding? #1  

maddog_madden1975

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So im looking at trading my 4120 in on a 5525. I first try to sell my tractor on craigslist and ebay. No luck for 3 weeks. So i go to the dealer and settle on a price after a week of negotiations. I sign a purchase order stating the differences and such. As soon as i get home my phone rings with a cash offer of 4g more then they are giving me for my trade. Of course the question is am i legally bound by this "purchase order"? No contract has been signed nor has any money exchanged hands.
 
   / Is a John Deere purchase order legally binding? #2  
I had a similar situation a few years back with my JD dealer. As long as you purchase the 5525 I do not see how they could be upset with you selling outright. My dealer was happy I was able to sell my tractor I was looking to trade in...

My opinion is you have a "purchase order" saying you are to purchase said machine but with no contract signed I would think you should make the cash sale!!

Good luck.

John
 
   / Is a John Deere purchase order legally binding? #3  
I think you probably already know the answer or you wouldn't be asking.
















Stick to your word!;)
 
   / Is a John Deere purchase order legally binding? #4  
I had a similar situation a few years back with my JD dealer. As long as you purchase the 5525 I do not see how they could be upset with you selling outright. My dealer was happy I was able to sell my tractor I was looking to trade in...

My opinion is you have a "purchase order" saying you are to purchase said machine but with no contract signed I would think you should make the cash sale!!

Good luck.

John

I agree totally, especially if your purchase order spelled out a given price for the trade in. Simply tell your dealer you decided not to trade but go in with cash in hand for the agreed purchase amount of the new tractor and tell him you are ready to pick it up. What sales person would refuse especially in today's economy? I expect he will be glad not to have a used tractor to deal with, and happy he made a sale. I certainly don't see where you have anything to be ashamed of. I would be shocked if he even cares. Selling new tractors and making happy customers is what a dealer should be doing.
 
   / Is a John Deere purchase order legally binding? #5  
I just got my JD 4520 today. Ordered it 1 month ago. I made a deal with trade in of my JD 3720. I asked the salesman if it was ok to sell my 3720 in the meantime. He said no problem. I sold my 3720 privately 2 weeks ago. Sold it for $4250 more than trade in. I always arrange these deals with price for new tractor and price for trade-in written down separately. My dealer could not have cared if he got my tractor on a trade-in or if I sold it myself. I would ask the dealer/saleman if you can just buy the tractor outright if you sold the 4120. I am sure they have what they allowed for trade in on their paper work. My guess is they won't care as long as they are not losing money.

I live in farm country and the buyers and seller word are good in most cases in the farm industry. I have a brand new JD 4520 sitting in my shed and I have signed no paper work whatsoever. Ordered $80,000 tractor last year with just a handshake. I have done the same with most of my farm equipment and have used multiple dealers. Sales guy said he will drop by sometime this week or next with the paper work. He asked that I get insurance to be safe - which I already have done. Maybe I have an honest face.

My sales guy, who has been at the dealer for 20 years, told me he recently sold $500,000 worth of farm equipment which was just ordered. It was all done with a handshake. I asked him how can they operate like that? He said it is very rare there is ever a problem. Never had a problem with farmers. Had a few problems with landscaper and construction guys. He then added he has a very good local attorney which can get the money from anyone.;)
 
   / Is a John Deere purchase order legally binding? #6  
Radman,

Hope you like your 4520 as much as I like mine.



Most dealers prefer to make a cash sale the smart thing to do is simply ask the dealer.


Steve
 
   / Is a John Deere purchase order legally binding?
  • Thread Starter
#7  
Radman,

Hope you like your 4520 as much as I like mine.



Most dealers prefer to make a cash sale the smart thing to do is simply ask the dealer.


Steve

Well thats the problem, i already asked my salesman and he said " nope you signed the purchase order and that makes your tractor mine. If you have a buyer for the tractor he has to buy it through me" Like im going to sell the tractor for him.........i even offered to split the profit right down the middle. He still said no. I mean i know i already signed the po and should stick to my word, in a way i am cause im still going to buy the tractor, just not trade mine in. The fact that he is not willing to even work with me and act like now that he made the deal, customer satisfaction is out the door is what makes me maddest.
 
   / Is a John Deere purchase order legally binding? #8  
Wow, doesn't sound like either of my dealers. Don't know the circumstances but my gut feeling is this will get worse if allowed to continue. I would call my lawyer to seek advise. Others here may say you should keep your word but I agree that as long as you were willing to "purchase the tractor as ordered" that you would seem to be fullfilling your agreement. Let the owner of the business know you feel this is a lousy start to a long term business relationship. If he holds firm too I would consult my lawyer about rescinding the purchase altogether.



Steve
 
   / Is a John Deere purchase order legally binding? #9  
So im looking at trading my 4120 in on a 5525. I first try to sell my tractor on craigslist and ebay. No luck for 3 weeks. So i go to the dealer and settle on a price after a week of negotiations. I sign a purchase order stating the differences and such. As soon as i get home my phone rings with a cash offer of 4g more then they are giving me for my trade. Of course the question is am i legally bound by this "purchase order"? No contract has been signed nor has any money exchanged hands.

What would your response be if the dealer called and said he had made a mistake on the P.O. and the purchase price was $2000 more than the contract stated?

The dealer has the option to allow you out of the contract. If he chooses not to, he has a binding document. Man up and honor the deal.
 
   / Is a John Deere purchase order legally binding? #10  
I believe you have 72 hours to back out legally. It's obvious your salesperson realizes you have good value in your trade.

This is a bad way to start doing business with someone as trust does count.
 
 
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