Financing option reduces discount from dealer

[Mlebout]

I recently asked for a price on 1736HL, with 0 to 0.49% up to 84 months (Canada). Dealer gave me a good price, but added back finance fees (over $5,000). When I questioned him, he said he couldn't give discount and financing promotion??? Anyone else experience this?

 

[KennyG]

Yes. That's how it works. Sometimes the manufacturer provides the financing and it doesn't affect the price. Often the dealer is required to participate and then he will discount for cash.

 

[Mlebout]

I understand that, but a company normally states that the promotional finance options can't be combined with other promotions or discounts.

They do state "Contact local dealer for details"...

Massey Ferguson | Limited Time Offers


Thanks

 

[KennyG]

There are a lot of potential combinations and I think all you can do is talk to the dealer. Make sure he understands that you know that dealer participation makes a difference. In the US some states have laws (for cars and trucks) that require the discount advertisements to state whether there is dealer participation or not. It would be nice to have that requirement everywhere. A shady dealer will up the price on a financed sale, even if the manufacturer is providing the subsidy.

 

[Mlebout]

There are a lot of potential combinations and I think all you can do is talk to the dealer. Make sure he understands that you know that dealer participation makes a difference. In the US some states have laws (for cars and trucks) that require the discount advertisements to state whether there is dealer participation or not. It would be nice to have that requirement everywhere. A shady dealer will up the price on a financed sale, even if the manufacturer is providing the subsidy.

I actually contacted the Expert Group at AGCO. My file has been referred to their finance department. Just found it was kind of sly how the dealer submitted my quote.

Thanks again for you input!

Mike

 

[KingsEquip]

We are a Canadian MF dealer in Nova Scotia. Current October programs offer significantly higher discounts if you pay with cash or use Agco Finances standard preferred rate. For example on one MF model current dealer programming discounts are around 30% for cash/standard rate but only 15% for 0% financing. Therefore, there is a large difference in the sales price depending on the type of sale.

Quite often we suggest taking MF's cash discount and using their standard rate. Currently on 1700P model tractors the rate is 0% for 72 months or 0.49% for 84 months. However, if you take the extra cash incentive, you can finance at 1.49% for 36, 2.49% for 48, 3.49% for 60 or 3.99% for 72 or 84 (I don't have the programs in front of me, but I believe these are the rates!).

A lot of the time, payments are cheaper at the discounted price with the standard rate. If a customer has a large down payment, or plans to purchase the unit outright early than I recommend the cheaper price and higher rate because they have the chance to save money.

Just my two cents! Goodluck with your search.

 

[Mlebout]

Thanks for the heads up! Too bad you are so far from me!