How Much is a Local Dealer Worth?

[SRMN8R]

I'm finally ready to make my first new tractor purchase. After much research and thought, I have decided to go new, which brings the added factor of the dealer to the equation.

My local dealer is only 10 miles or so from my primary home. That's awesome! Now for the monkey wrench in the plan! My local dealer is going to cost me almost 10% more than a dealer an hour away.

So, my question is: What value do you place on a very convenient dealer versus one who is "across town"?

- J

PS: Thanks to the TBN community for all the information that has helped me in my decision making process to date!

 

[Katahdin]

How do you value your tractor up-time? I think worst case is the local dealer could make you wait while he takes care his buying customers first, but that dealer won't turn down an opportunity to make some revenue on either a warranty, or off-warranty repair. In the case of the warranty repair, its the tractor maker that flips the repair bill.

 

[brain55]

It really depends on the local dealer. A crappy dealer 10 miles away is still a crappy dealer. Many here will tell you that after the initial purchase if you do your own maintenance you don't ever need to see your dealer again. You can buy everything you need online. Which is true a majority of the time. Not every tractor is problem free. Warranty issues do come up. A good dealer will make you forget there was even a problem. A bad dealer will have you regretting your purchase for a very long time. I'm very much a buy local and build a relationship with your dealer kind of guy, but I was a mechanic in a tractor dealer for 12 years. I enjoyed getting to know customers. Right or wrong more effort goes into the repairs of a known customer vs one you've never seen.

Brian

 

[Thomas]

"My local dealer is going to cost me almost 10% more than a dealer an hour away. "

Why is that?

The dealer w/good attitude also service would get my vote.

 

[TSO]

I drove 9 hours each way to get my Massey, because my nearest dealer (and pretty much every dealer in my state) didn't have the tractor I wanted, or couldn't touch the price once they traded to get it.

I like the idea of buying local, but not if it's going to cost me more. I figure, if the price of my fuel, and the price of my time/hassle is STILL cheaper than buying local & worth buying "abroad", then shame on my local dealer for not working harder to earn the sale.

Besides, warranty work pays the dealerships the same, regardless of where you bought it.

 

[kw22614]

Another consideration is if you have your own trailer to transport the tractor to and from the dealer for any work - warranty or not. I think all dealers charge transport costs other than the free delivery charge when you first buy it. I'd check both the close and farther dealers and see how much transport charges would be also see how much their mobile repair charge is too for the smaller things needing done. In my neck of the woods 1 hour is not really that far. Most folks in these parts measure travel in time not miles anyway. My dealer (about 45 min away) gave me the best deal on my tractor I could find in about a 100mi radius of home, but their parts costs are higher than I can order online w/shipping. I had to take tractor back once for warranty work(where I saved $150 transport fee because I have my own trailer)and their repair was WAY substandard. I complained enough so they sent their mobile repair mechanic to fix their initial fix(at no add'l cost to me). With me looking over his shoulder and asking loads of questions it got done correctly. Do an online search of both the dealers for customer satisfaction. The ideal situation would be to buy at the lowest cost, order all maint fluids, filters and parts online and do(at least most)your own maintainence. I think around the Richmond area there are lots of dealers. Good luck and let us know how it goes. KW

 

[SRMN8R]

Don't know why Thomas. I sat down w/ the co-owner and his best cash price was 10% higher than another dealer. I've been told that the "other dealer" is selling high volume and is decimating the prices of the other dealers in the area.

 

[SRMN8R]

I appreciate the input from everyone.

I'll prayerfully consider it, and sleep on it, but I think I'm going with the lower cost dealer. An hour drive isn't too intrusive, and I do plan on doing my own maintenance. With any good fortune, I won't have to visit the dealer post-purchase.

Again, my thanks to you all.

 

[kcflhrc]

I bought 80 miles away. Had probably 10 dealers closer. This guy was the cheapest and the nicest I talked to. Never set foot in the dealership. Did everything over the phone and they delivered the tractor and saved me $2,400. Had 2 dealers tell me that was below cost and there must be something wrong. Nope, same tractor.

 

[davrow]

...An hour drive isn't too intrusive...

No, it isn't. My closest dealer is further away than that!

I paid about $350 extra to buy local, though. Dealer with a better price is about 8-10 hours away in another state.

 

[bdog]

Have you got a written quote from the cheaper dealer and taken it to your local dealer and said if you can match this I will buy right now? I have had luck with that tactic.

In my experience there are not a ton of things you need special treatment from a dealer on. It is not like he is ten hours away. If you have to buy from the cheaper dealer you can buy basic stuff from your local dealer and then if something major happens you can drive an hour to dealer you bought it from.

 

[Retired LE]

I bought 80 miles away. Had probably 10 dealers closer. This guy was the cheapest and the nicest I talked to. Never set foot in the dealership. Did everything over the phone and they delivered the tractor and saved me $2,400. Had 2 dealers tell me that was below cost and there must be something wrong. Nope, same tractor.

I am currently in a similar situation. I am looking at a Mahindra 4025 4WD. The closest dealer (40 minutes away) has one in stock and will sell it to me for $22,741 out the door. The next nearest dealer is a four hour drive away over a mountain pass. On a hunch, I checked with that dealer and he said he would sell me the same tractor for $20,100 - a difference of $2641. Only problem is he doesn't have any in stock and it would be a three to four week wait to order one. Bird in the hand vs. two in the bush...

With that big of a price difference, I went back to the first dealer and after some hemming and hawing, he said he could come down to $20,900 but no lower. He claimed there was no way the other dealer could sell it that low, but he had no answer when I told him I had already received a purchase order for that amount. Anyway, that's still an $800 difference - which brings me to my quandary. Should I stick with the closer dealer (who will be doing the warranty and service work) or save $800 - which actually comes out to around $1200 when you figure in the term of the loan. This puts me in the same boat as the original poster.

 

[TSO]

I am currently in a similar situation. I am looking at a Mahindra 4025 4WD. The closest dealer (40 minutes away) has one in stock and will sell it to me for $22,741 out the door. The next nearest dealer is a four hour drive away over a mountain pass. On a hunch, I checked with that dealer and he said he would sell me the same tractor for $20,100 - a difference of $2641. Only problem is he doesn't have any in stock and it would be a three to four week wait to order one. Bird in the hand vs. two in the bush...

With that big of a price difference, I went back to the first dealer and after some hemming and hawing, he said he could come down to $20,900 but no lower. He claimed there was no way the other dealer could sell it that low, but he had no answer when I told him I had already received a purchase order for that amount. Anyway, that's still an $800 difference - which brings me to my quandary. Should I stick with the closer dealer (who will be doing the warranty and service work) or save $800 - which actually comes out to around $1200 when you figure in the term of the loan. This puts me in the same boat as the original poster.

Did you factor in the shipping costs?

 

[Retired LE]

Did you factor in the shipping costs?

The closer dealer offered to deliver it for free. I would have to transport the other tractor myself. That would cost about $75 for the one day heavy equipment tilt trailer rental - plus fuel and snacks.

 

[TSO]

The closer dealer offered to deliver it for free. I would have to transport the other tractor myself. That would cost about $75 for the one day heavy equipment tilt trailer rental - plus fuel and snacks.

Did you estimate those costs & add them in?

 

[kcflhrc]

800 bucks is 800 bucks, I would tell the farther dealer to deliver it for $100 and be done with it. My dealer charged me $125 for delivery and he was 80 miles away. I couldn't rent a trailer, buy gas and lunch for that.

 

[Cherokee140]

My dealer is 56.9 miles from my house one way according to google maps. He delivered it for free and he is also going to come out pick up the machine and drop it off for its first service. I have that on the paperwork from when I bought the machine. When he was out dropping it off he said it would not be a problem or a charge to pickup the machine for service whenever we needed....I am in shock or not sure if I can believe that....but so far these guys have been great.

 

[batwing]

When I bought my tractor the local dealer wanted 1000.00 dollars more than what he had on sale on the internet, when I asked him about it he told me if he sold it on the internet he would not have to work on it out of the area, I guess he figured us local red nicks did not used the internet.
Ron

 

[Cherokee140]

When I bought my tractor the local dealer wanted 1000.00 dollars more than what he had on sale on the internet, when I asked him about it he told me if he sold it on the internet he would not have to work on it out of the area, I guess he figured us local red nicks did not used the internet.
Ron

That has got to be the most stupid reason I have ever read....I really wonder about some of these guys business models. I don't know beans about tractors I freely admit that (but I am trying to learn) but in the car business (worked for GM) I do know a little bit about.....Service is where you make most of your money. Selling a car there is very little profit in...it is like buying a gallon of milk you can get the same thing many places, but if you sell the service, and personal touches that is where you can make real money.

I think my dealer must have come from that automotive background....sounds like the dealer you are talking about is one of those I am doing you a favor by taking your money.

 

[Guesseral]

10% isn't anything to sneeze about, when it comes to an expensive tractor purchase. I would go with the less expensive unit but I would stop at the local dealer first and lay all on the line and tell him that you just can't pass on the savings, that you hope he understands that but you want to give him all of the warranty work and buy parts from him. That should satisfy any reasonably man and everyone should be happy, you also have given him last look at doing better on the price and you don't really have to ask.
I bought my tractor 45 minutes away and out of state but I really didn't have any dealers closer that I could afford. I borrowed a trailer picked it up myself I had one warranty issue and I hauled it both ways myself, sense then I have bought my own trailer mainly to use around my own town to get fire wood but it hasn't ever left the yard it's still shiny new!