Buying new with cash- how much bargaining wiggle room?

[jeffgreef]

Hi folks-

Well looks like I’m getting close to retiring, moving rural, and time to get a 40-50hp CUT for snow clearing, grading, road repair etc. I know what capabilities I want to end up with, and getting all those used off craigslist is a pain. So I’m thinking of buying new. My question is about pricing and how much wiggle room there is for a dealer if the customer has cash. Probably looking in the $40-45k range. I’d like to know what the dealer’s perspective is on this. On the one hand I don’t want to try to squeeze the last drop out of the dealer, but if I’m paying cash I should get a certain discount, right? Fair’s fair.

So if I march in to get a unit with all the goodies like loader, backhoe, blade up front on a quick attach loader frame, post hole digger, Gannon, etc, what is a reasonable percentage down from list price to offer the dealer on the total package, where I’m not robbing him but getting a fair deal for myself? I know a lot of you are/were dealers so you know what the real financial situation is where the dealer sits. 10% under list price? 15%?

Not talking about financing, and not looking for input on brand, size,implements at this time. Thanks

 

[Jchonline]

It depends on the manufacturer. Some have a large difference between financed and cash price (Massey). Others have virtually nothing (Kubota). The theory is that interest rates in Japan are so low right now (ie 0% borrow) there is no incentive for Kubota to charge much for financing a tractor.

If you went into a Kubota Dealer and expected a much better cash vs financed price they probably wouldnt budge much...but you can certainly try .

 

[jeffgreef]

Thanks Jchonline. Looking at Mahindra

 

[paulfun9]

I did way better with cash than anyone I know who financed. My first price quotes didn’t all reflect that but with each dealer as I researched and got other quotes from competing dealers they all came in line with the exception of 2 JD dealers who thought I was foolish enough to pay the same price with cash as someone who was doing zero percent financing. Green put themselves out in many ways but I found it funny that 2 places said the price is the same no matter what but other dealers offered real discounts when I showed them the roll of green. In my lunch bag!

 

[nybirdman]

Paid cash for the last two Kubota's(new);I think I got a fair price and was upfront with the dealer.With the options your are looking for;around a 35 H.P. tractor for your money I would guess.Give all the brands a hard look.

 

[deserteagle71]

It depends on the manufacturer. Some have a large difference between financed and cash price (Massey). Others have virtually nothing (Kubota). The theory is that interest rates in Japan are so low right now (ie 0% borrow) there is no incentive for Kubota to charge much for financing a tractor.

If you went into a Kubota Dealer and expected a much better cash vs financed price they probably wouldnt budge much...but you can certainly try .

^ This as far as Kubota.

I "built" my Kubota on-line - which you should do just to see what list price is on everything. Then I went to the only Kubota dealer here in Northern Nevada, told them exactly what I wanted, and asked for their best price. It matched the on-line price. Not willing to deal at all!

 

[George2615]

I went to our local farm show 5 years ago to look at all cab tractors in the 35HP range. Previous tractor was a Mahindra that I financed. This time I was going to pay cash. I was going to stay with Mahindra and asked the dealer the price. He gave me a price then I asked if there was a cash discount price. He gave me the same price whether cash or finance and wouldn't budge. Case, NH, Massey, Kubota, JD, Kioti, Yanmar, and LS all offered a cash discount. Most were between $1000-1500 but that was 5 years ago.

My LS XR3037HC came with 2 rear remotes, rear window wiper. The others did not and would have cost the price of the cash discount to add them. I bought an LS and have had no problems.

You will have to check with each dealer you are considering buying from to see if they have a cash discount. It may be a dealer thing as to how low he will go with his commission.

 

[Diggin It]

Dealers generally get the same money in the end no matter how the customer pays. With manufacturer financing and incentives, there are conditions as to which can be combined.

For the brands that do not offer manufacturer financing, there aren't usually much in the way of incentives. In some cases a dealer may offer a discount to get an older machine off their lot. But if a machine is priced at $40K, the dealer with get that whether you pay cash or get some other kind of private financing. There's really no advantage to the dealer that I'm aware of.

 

[4570Man]

Almost none in my experience. The dealers have told me the price they pay for the manufacture doesn’t change. Personally I believe the interest rate to really be pretty low to discourage buying a lightly used machine.

 

[Gary Fowler]

I have seen advertised where financing is part of the bargain. Cash would not get you any discount, in fact you may pay more than financing price. Of course with cash you wont pay any of the interest accrued.