Another NH dealer closing?

[Robert_in_NY]

I understand this and maybe worded it wrong, but my question is why would I be told I could bring it anywhere from the original dealer for the warranty work, but then be told it had to go back to the original dealer by even the area's NH representative? I feel as though I wasn't being honest with from the get-go....

The selling dealer didn't lie, you can take it to any NH dealer. However, not all dealers will accept it even though their legally required to. This gets into the area of where you have to go to court to get them to do the work and how much is it really worth and also would you really want that dealer working on your tractor if you had to fight that hard to get it in there? The regional rep quoted in the Kubota thread if I recall said something similar, the dealers are suppose to take the tractors but not all of them do and short of going the legal route it is usually best to take it back to the selling dealer.

None of the OEM's actually want consumers buying from dealers far away. They want them to buy local to avoid these problems. It protects their dealers from out of area dealers sniping sales by selling at very low prices knowing they will never see the tractor again once its shipped. The consumers are the ones partially responsible and also punished as a result. There is no incentive though for the tractor industry to change their practices and I don't see anything changing unless the government gets involved to force them too.

 

[jaymar421]

What caught my attention in your post is that you intentionally buy a tractor from far away to save money then get upset when your local dealers go out of business. How are they suppose to stay in business if the local people are buying from dealers further away to save money? "

Its not so much the fact that it is our local dealers, but more so that it is multiple dealers. From what else I have heard is that many have taken on a different line and the compacts are fewer and far between. I do usually try to give the local mom & pop stores more business, however my tractor was thousands of dollars less where we bought it from. I had worked hard to save up for this tractor, and of course now I do wish I had bought it from somewhere else because maybe if I had, it wouldn't have the problems it has. Sometimes things are of smaller cost for a reason. But it is a lesson learned for sure Meanwhile I still have the tractor and it is doing its job, but does not run the way a brand new machine should. It hasn't from the start. Its just a matter of getting it taken care of, which has been nothing but a nightmare, unfortunately.

 

[RickB]

Warranty repairs in the off-road (farm, construction, etc.) equipment industry are seldom reimbursed at flat rates reflecting real-time repairs. And parts sales margins are absolutely never equal to what they would be if the same parts were sold over the counter or on a customer workorder. It is in the manufacturer's best interest to pay only enough warranty dollars to keep the dealers from deciding that subsidizing manufacturer's warranty obligations just isn't worth it. This is not new information to those who routinely follow threads of this nature here or elsewhere.

The decision to accept all of this as fact is up to the reader.

 

[Hollow]

I bought my little TT45A at a going out of business auction, it was originally bought by a tree service from a dealer up in Tennessee. It was only a year old at the time and the tree service said it was never taken out in the field so it only had a summer of pulling a 6' finishing mower around their office and shop area. So it still looked new when I brought it home. As soon as I got it I mounted some hydraulic remotes on it and took it to the local dealer to be plumbed. They acted like they didn't want to have anything to do with it until I mentioned that I had bought it second hand.

 

[HenryFordPower]

NH commercial pays 100% of parts and labor on warranty issues. The only things that are not covered by NH standard warranty are pickup and delivery, provided the issue is a warrantable one.

I understand that there are issues with the dealer network of NH, however, all manufacturers face this problem. The push for multi-store dealerships have resulted from customers that choose to do the majority of their business outside of their general trade area, creating a go big or go home type atmosphere within the dealer world. Smaller dealerships need customer loyalty in order to avoid being swallowed up by their larger neighbors.

That being said, from a customer perspective, go to the brand and dealer that serves your needs best. When your local dealer does not meet your standards or price point, look elsewhere, but remember that a great price doesnt always mean great service. Sometimes its the after the sale things that make the difference.

 

[RickB]

NH commercial pays 100% of parts and labor on warranty issues. The only things that are not covered by NH standard warranty are pickup and delivery, provided the issue is a warrantable one.

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Are you posting from a dealership perspective, or merely reading the warranty statement from a New Holland operator's manual?

Nobody is suggesting that the customer is holding the bag for warranty repair costs.
All but a very few customers know, need to know, or care which repair costs are paid by the manufacturer and which are absorbed by the dealer.

 

[Hoosier Hay Man]

I do see alot of difference in NH dealers on how they operate. Also don't assume parts are priced the same at each dealer. I had a wobble box I needed to replace on my haybine. I called my NH dealer I have always done business with and asked for price and availibility. I was told three days and was the given the price including trading in my core. I called a NH dealer I have never done business with and asked for price and availibility. The price was $300 less including $100 for next day 8:00AM delivery. My dealer didn't even offer next day which I need as I needed to cut hay.
I know with John Deere I can go on line and find out what dealer in my area has the part and the price no matter what dealer I go to. I once needed a steel hydraulic line that goes from the pump on my JD 4430 at the front of engine to the rear of the tractor. It had came loose from its bracket and vibration wore a hole in the tube. It was Saturday of Memorial Day weekend and I need to cut hay. I was able to locate a part 30 mile from me by going on Deere's web site and knew the price before I left home.
I do know Messicks has a new app I downloaded on my phone where I can search parts and it has shipping, inventory and prices and in some cases pictures. I can't find any dealer or main line companies have anything like that yet. All companies have Great dealers and some that have some room to improve.

 

[HenryFordPower]

I am not simply reading the NH warranty statement nor looking for an argument. I am a NH dealer, and a previous CNH employee as well as a sixth generation farmer. I have been on all sides here. The only point I am getting at is the fact that every dealer is different and they all receive different care from the company. I believe in small business and love this industry. The way an individual business is run depends on the person or people running it. That is not brand specific.

As with parts availability, it all depends on who you talk to. Daily stock orders that are freight free occur everyday for my shop, but some locations do not take advantage of it.

I honestly believe in customer satisfaction, and love to hear what you guys have to say, whether positive or negative. It gives me perspective.

Warranty claims on new equipment are almost always covered in their entirety. As always, there are exceptions, but we try to absorb anything that is not. There is a fine line there, as getting to the main point of dealership survival comes into play.

When it comes down to it, as with any business, support your community and try to stay local if possible. Maybe not for everything, but someday the small guy might be able to help you out.

 

[mike10]

Warranty work is not a profit center in most cases. In that context, why should another dealer lose money doing warranty work when they did not make any money on the initial sale? Yes, I know the dealers are required to do the work, but I hope this explains the reluctance of dealers to eagerly take on the risk of losing money. My father had a saying when asked to provide this service. He would say "the profits gone".

Contrary to what was posted not all NH dealers receive 100% of their labor rate and they certainly do not always get paid for the hours they spend on the repair. This is not just a NH issue, but an industry issue. The more serious the problem the more likely they will not make the flat rate NH provides.

If you have a good dealer close, then you should patronize them or they can not stay in business. Good service is not inexpensive to provide and must be paid for one way or the other.

Put yourself in your local dealers shoes, do you do the warranty work and possibly lose money or take care of your customers where you will make money. I would assume you would prefer to do the latter.

I know you will say that if the dealer does the work the customer will come back and do business with the local dealer. What we have found is just the oposite. The customer is more likely to again shop for the cheapest price since he believes the local dealer will take care of him.

 

[HenryFordPower]

Well said!!!