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  1. #1
    Silver Member indianaEPH's Avatar
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    Sep 2006
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    229
    Location
    South Central Indiana
    Tractor
    Kubota M59

    Default Pending new tractor purchase, How to negotiate?

    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

  2. #2
    Veteran Member yelbike's Avatar
    Join Date
    Nov 2011
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    1,490
    Location
    Near Winnipeg, Mb, Canada
    Tractor
    John Deere 2305, 2320,Z465

    Default Re: Pending new tractor purchase, How to negotiate?

    |Iwould try 10%. Doesn't hurt.
    Carefull what you aim for, Aim for nothing and you will achieve it with amazing accuracy.

  3. #3
    Platinum Member Army grunt's Avatar
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    Dec 2009
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    792
    Location
    Georga
    Tractor
    TC 30 Newholland

    Default Re: Pending new tractor purchase, How to negotiate?

    Set your price at say 10% off simply tell him you only have that to spend(CASH). shrug your shoulders an walk away. the tractor is always there you aren't, His deal is a standard deal.The big part is letting him know what you want an what you have.Good luck
    Army Grunt
    "Be who you are, say what you will, those that matter wont mind, those that mind don't matter".

  4. #4
    Silver Member MG1867's Avatar
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    Dec 2011
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    146
    Location
    Illinois
    Tractor
    Ford 1920

    Default Re: Pending new tractor purchase, How to negotiate?

    Start low you can always add more money to your offer once you make a deal you can't get any back. The best negotiations happen when emotions are not controlling your decision and that is hard to manage with a new toy. You have to be able to walk away from the deal so have a plan "B" Good Luck
    Mike

    1997 NH 1920 4X4, NH loader, Woods 9000 Backhoe


    Link to interesting photos http://www.tractorbynet.com/forums/p...0540-bear.html

  5. #5
    Elite Member houstonscott's Avatar
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    Dec 2010
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    4,220
    Location
    Oglesby, Texas
    Tractor
    Kubota L3800, Kubota GR2120, Kubota RTV1100, Kubota 5100sc

    Default Re: Pending new tractor purchase, How to negotiate?

    In automobiles there is almost 22% profit or more. Tractors don't have the overhead of show room and advertising like cars but some manufactures do advertise. Tractor dealers don't sell as many in month as a car dealer would so he has to make that up in profit margin on each one sold. It also means he is always operating on the edge and may have to take something just to pay the bills that month. Shop on last day or two of the month, better even to deal on last days of the quarter. My bet is there's 18% profit in compact tractor and close to 22% in a utility tractor of retail values pushing 40-50K. I would offer a number that was 15% below the retail value and would walk away from any deal not approaching 10-12% below.

    HS

  6. #6
    Veteran Member yelbike's Avatar
    Join Date
    Nov 2011
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    1,490
    Location
    Near Winnipeg, Mb, Canada
    Tractor
    John Deere 2305, 2320,Z465

    Default Re: Pending new tractor purchase, How to negotiate?

    Quote Originally Posted by houstonscott View Post
    In automobiles there is almost 22% profit or more. Tractors don't have the overhead of show room and advertising like cars but some manufactures do advertise. Tractor dealers don't sell as many in month as a car dealer would so he has to make that up in profit margin on each one sold. It also means he is always operating on the edge and may have to take something just to pay the bills that month. Shop on last day or two of the month, better even to deal on last days of the quarter. My bet is there's 18% profit in compact tractor and close to 22% in a utility tractor of retail values pushing 40-50K. I would offer a number that was 15% below the retail value and would walk away from any deal not approaching 10-12% below.

    HS
    Thanks for your insight. Thats huge. I like a good deal, but I feel even worse when someone else gets a better deal.
    Carefull what you aim for, Aim for nothing and you will achieve it with amazing accuracy.

  7. #7
    Super Star Member murphy1244's Avatar
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    Nov 2011
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    16,778
    Location
    Ohio
    Tractor
    Kioti DK 40-Massey ferguson 135-Ventrac 4500 Diesel

    Default Re: Pending new tractor purchase, How to negotiate?

    I got about 17% off dealers list plus 3Gs from Kioti.
    Murph ------------

  8. #8
    Elite Member houstonscott's Avatar
    Join Date
    Dec 2010
    Posts
    4,220
    Location
    Oglesby, Texas
    Tractor
    Kubota L3800, Kubota GR2120, Kubota RTV1100, Kubota 5100sc

    Default Re: Pending new tractor purchase, How to negotiate?

    After you negotiate a price ask for something to seal the deal. Prime issue would be 50hr service. Ask them to pay for 50hr service. If they throw it in it could save you a few hundred more.

    HS

  9. #9
    Gold Member
    Join Date
    Jan 2012
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    356
    Location
    Northern Washington
    Tractor
    John Deere 3005

    Default Re: Pending new tractor purchase, How to negotiate?

    Find two dealers that are relatively close and keep going back and forth, I always tell each dealer what I am doing then the competition starts. Then check one other dealer after you think the price is close. I do this with cars, motorcycles, trucks, and now tractors. It worked for me. I bought 2011 JD 3005 with a 300 loader for 13.2k

    2 free hats, pink for the wife. 3 cans of touch up paint.
    2011 John deere 3005, already waxed 5 times.


    I drives me boat ! My wife drives me dingy !

  10. #10
    Silver Member indianaEPH's Avatar
    Join Date
    Sep 2006
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    229
    Location
    South Central Indiana
    Tractor
    Kubota M59

    Default Re: Pending new tractor purchase, How to negotiate?

    I have no problem supporting my local dealer. I want him around and he needs to make a profit to stay around. I just don't wnat to over pay (slightly uderpay would be nice).

    Thanks for all the good suggestions. I'll keep you posted on the results.

    Thanks

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