Pending new tractor purchase, How to negotiate?

[indianaEPH]

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

[yelbike]

|Iwould try 10%. Doesn't hurt.

[Army grunt]

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

[MG1867]

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

[houstonscott]

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

[yelbike]

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.

[murphy1244]

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

[houstonscott]

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

[Jamming]

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.

[indianaEPH]

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