Pending new tractor purchase, How to negotiate?

[idaho2]

I used email only to negotiate a final price. Had all the specs in front of me knew what I wanted as extras and went after it. I got what I wanted and more. This way you have a paper trail - both ways. Takes all emotion out of negotiations.

idaho2

[DavesTractor]

HI:

Im about to upgrade to a Mahindra 5035. THis will be my first new tractor purchase. I have a quote from a dealer. It is basically at list price with a cash discount + the other factory discount.

My question is how much discount do others get? 5%? I have no Idea how much wiggle room the dealers have. Any help would be appreciated.

Thanks very much

If the dealer is at full list, then you have quite a bit of wiggle room. The thing to remember is that it is not how much you can get off the asking price, instead it is the actual price you pay.

What I mean is illustrated by the following example. We occasionally advertise a loss-leader unit at near actual dealer cost. Not really a loss, but by the time it is delivered with a full tank of fuel, it is very slim. We do that to bring in customers and they generally buy implements or a different tractor and it works. But some yo-yo will come in on the loss-leader and offer $2k less on that model that has $250 profit. I'm not offended of course, but offering $2000 off MSRP list on a new 8560 Cab with a loader is way different than $2000 off a tractor that is already at rock bottom.

You can tell the dealer that you are going to price shop him some and would like his very best deal upfront. And then buy from your local dealer if at all possible, always giving him a chance to price match if needed. He needs your support, and you will need his.

[MtnViewRanch]

Dave, will you please give me a call when you are ready to sell that 8560 with a cab and ALL the goodies and only make $250. I won't even try to get the price down, everyone has to make a buck or even two.

See you in Tulare?

[TCowner]

I've had some success with negotiating the best deal I could on say the lower horsepower tractor in the line like the Deere 4320. Get the absolute best deal possible and then making an offer to go up the higher power tractor in the series for basically the dealer cost. This can work if the dealer has both tractors in stock or has to order the tractor or find one from another dealer. I was able to do this when I purchased my 4720 a few years back.

It seems as if they are comfortable with a certain profit on the lower hp tractor they won't want to lose a customer and a sale. Some dealers that work on a straight percentage of profit probably won't agree but I've found that if they can make a couple of thousand dollars on a sale it isn't worth a lost sale to try to make a greater profit on the more expensive tractor just to maintain the profit margin policy.

Again, this may not work with all dealers and I suspect one would be limited to just moving up a model or two in the series of tractors. The customer also has to be ready to sign the agreement so that the dealer knows the sale is imminent.

You might be able to do this with an attachment. If the dealer is satisfied with his profit then he/she may be be satisfied with minimal or no profit on the attachment if the tractor deal is certain.

[DavesTractor]

Dave, will you please give me a call when you are ready to sell that 8560 with a cab and ALL the goodies and only make $250. I won't even try to get the price down, everyone has to make a buck or even two.

See you in Tulare?

No problem Brian, but I get to pick the quantity. I'm thinking 100 tractors at $250 each in one sale might just work. No free delivery and I won't paint them blue. Tires extra.

I'll be in Tulare, and I look forward to seeing you again....Mr. Mahindra

[NYBOB]

I got 15% off my 3720 John Deere when I bought it. Just get other quotes and ask the local guy to match it.

When I bought my NH TC33D (my first new tractor) I actually spec'd out what I wanted and sent out bids to 5 NH dealers. Took the lowest one to my local guy and he matched it.

[bindian]

I did not negotiate for my Mahindra. The dealer sells tractor at $300 over cost. If you can not get the price you want...........try to get them to throw in implements or attachments or extra remotes or even a canopy.
hugs, Brandi

[DT86]

If you can not get the price you want...........try to get them to throw in implements or attachments or extra remotes or even a canopy.

When I priced my Kubota I did the just that. Once the dealer gave me his best price I asked him to throw in a hay spear. To my surprise it worked. The worst thing he can tell you is no deal.

[Turbys_1700]

I bought a new FEL last year...
I did not try to dicker down my local dealer any except the delivery...
I felt that the price was fair and lower than any comparable loader for my tractor...
I saved a little and was satisfied with the purchase, delivery, and service...
I have no problem with my local dealer making a fair profit off of me...
If and when I am in the marker for a newer machine I will give him an honest shot at my business...

[HenryFordPower]

I bought a new FEL last year...
I did not try to dicker down my local dealer any except the delivery...
I felt that the price was fair and lower than any comparable loader for my tractor...
I saved a little and was satisfied with the purchase, delivery, and service...
I have no problem with my local dealer making a fair profit off of me...
If and when I am in the marker for a newer machine I will give him an honest shot at my business...

Wise comment. I can appreciate your mindset.