All These people buying tractors, have you thought about group buying?

[oldpilgrim]

I think the hardest part would be trying to find enough buyers who can pay cash. When I walked in and pulled out 27,000 in cash the look of astonishment on the sales mans face told me straight up that not many folks buy this way anymore. As for me if I was still looking for a new machine I would definitely get in on a group buy if the savings was there to merit having to travel or to compensate for any extra time that might be involved getting everyone and everything together

My dealer never blinked.

 

[KiwiBro]

Just to be clear, when I posted "cash" earlier, I didn't mean just notes (although that's perfectly legal tender), but bank transfer, bank cheques, etc. Basically anything but on-credit, so it's a clean and tidy process for the dealer and buyers alike.

 

[oldpilgrim]

Just to be clear, when I posted "cash" earlier, I didn't mean just notes (although that's perfectly legal tender), but bank transfer, bank cheques, etc. Basically anything but on-credit, so it's a clean and tidy process for the dealer and buyers alike.

that's the way I understood it also. They have a 'cash' (pay for it now) price and a financed (pay as you go) price.

When I said the dealer never blinked, it was for a personal check. I gave them the check and loaded it on the trailer. They didn't verify the check. Just said thanks, enjoy the tractor.

 

[Threepoint]

Just to be clear, when I posted "cash" earlier, I didn't mean just notes (although that's perfectly legal tender), but bank transfer, bank cheques, etc. Basically anything but on-credit, so it's a clean and tidy process for the dealer and buyers alike.

That's how I took it, as well - "cash" as distinguished from on credit (as on a credit card or otherwise financed). But it's interesting the way cash has a different meaning, depending on context. If I'm selling or buying something on Craigslist here in the States, it means US$ currency, and virtually never a personal check. If in many brick-and-mortar retail situations, a personal check is often treated as cash, as when we say to the tractor or automobile dealer, "What's your best price for an all-cash deal?" It used to be the case many years ago that an all-cash deal was more attractive to car dealers because it was simpler and got the inventory out the door quicker. Not anymore, as the dealer's finance department is often a profit center in itself.

To bring this full circle, though, a personal check is not consider "cash" for purposes of the Federal anti-money laundering reporting requirements. But a cashier's check or a travelers check is. I think that is a product of balancing benefit versus burden, but it also makes some sense in terms of the purpose of the statute, i.e., to help provide accountability back to the source to fight illicit drug and other types of trafficking, and of course terrorist activity.

 

[Small farn Hay]

If by "cash" you mean that you tendered $27,000 in U.S. Dollar paper currency, I've no doubt the salesman was astonished! :laughing: Unusual, as you say, but it also triggered IRS reporting requirements designed to combat money laundering, and probably created security concerns at the dealership as well. I wonder which of the managers drew the short straw to drive it to the bank.

Credit Unions will pre approve for the funds, contracts would have to be signed, and an LLC could "own" them all through the warranty period to keep that in place. As long as all involved have local dealers to maintain the equipment it's possible. I don't think any dealer would have a problem with differential equipment or models any more than a manufacturer does when their dealer orders a varied group.

We're really just talking a Co-op. I'd bet if you went to your dealer, and said we've got 6 members all wanting new tractors, were looking at Orange, Red, Blue and Green. Here's the spec list, what's the price. Their pencils would get sharpened. Especially if their sitting on inventory, they can ask for and get factory concessions to make it move so that everyone wins. Now, if you want to save real money, you send in your wives to do the negotiating. First thing they'll do is tell the dealer they don't like the color, and then they call every day and come in when convenient to see what the holdup is to getting the quote, then they offer to contact the manufacturer. 2 months of that and you could get free loaders, and maintenance plus the best PITA price that can be had. It isn't sexist if it's the truth, and we all know they are the toughest negotiators.

 

[mopardude318]

To me, when someone says "cash money" I think of hundred dollar bills... But also, to pay for something large up front like a tractor or a vehicle all in one shot, one transaction, is also paying cash. (No need for financing from a bank, you paid for it with YOUR money that you had in your bank) whether it be a handful of franklins, a debit transaction or a check.

Now, let's say when I do a side job whether it be I work on someone's car or tile their kitchen floor and they say they will pay me "cash" then write me a stinkin' check. In that regard a check is not "cash" even though I can go to the bank and "cash" that check. LOL

So when I go put my 10k down payment on a tractor, you bet I'll be handing over 100 franklins.

 

[Small farn Hay]

Generally you are right and I think most of us would agree, and that certainly is the case when you are dealing with a private party. However to most businesses a check will do the trick. Now if the guy behind the counter went to your school and you stole his lunch money in the 3rd grade? Good freaking luck your karma just caught up with you.

 

[r porter]

even though this is not a tractor story it will give you something to think on.

in 1988 three of us got together and went to a big horse show in Ohio. we proposed to a dealer to get three aluminum horse trailers. the trailers were not identical but the dealer took a few pictures of Ben Franklin as a downp payment and took our order.

we saved a bunch and paid the balance when we went to the factory to pick up our trailers.

so, it may not take as many orders as you think to get a discount.