Buying local - How much is it worth?

Roxburyeric · Mar 9, 2011

I am looking at buying a $18,000 tractor and have rec'd what I consider very good prices - one from an out of State Dealer and one local Dealer. The local Dealer dropped his initial price a little lower and has matched the out of state Dealer on the price, but the difference between No-tax but delivery fee vs. tax is $400 cheaper from the out of State guy. I am on the fence as I really like the local place but the out of State guy also has a great reputation. So I am trying to figure out if I should pay $400 more and stay local. I am not mentioning brand or Dealers at this point to be fair to them. Thanks

Perplexed · Mar 9, 2011

You're looking at plunking down $18,000 and want to know if it's worth $400 to go with an out-of-state dealer? Well - for me, it's a no-brainer. I'd go with the local dealer, since a good working relationship with the dealer when it comes to parts and service is worth way more than $400. In my very humble and inexperienced opinion

abeal · Mar 9, 2011

For that amount of money and the fact that you like your local dealer and he matched the price, I'd buy local in this scenario.

If my local dealer did not want to work with me on price, that might indicate his attitude after the sale and I'd definitely look elsewhere. Sounds like you have a good dealer that will work for your business.

bonefish101 · Mar 9, 2011

I was in your position a few months ago, I am so glad I chose to go local and visiting the dealer is turning into one of my favorit weekend pastimes, my guys have great coffee and are full of usefull tips and information (im a total rookie and need all the help I can get). If you are financing any or all of it then that 400 wont make hardly any difference to your payments but the reassurance that the local guy is looking out for you is priceless (imho).

slipshot77 · Mar 9, 2011

I'm not sure how your state handles taxes but in most cases with an out of state purchase you are obligated to pay the taxes to your state when the item purchased is delivered to you. with that said, will you local dealer let you sign a farm exemption waiver ?

JoelD · Mar 9, 2011

Local is worth the slight increment in price will likely payoff in other ways like a little higher priority personal service when you show up at his place post purchase possible home visit god forbid there is major meltdown etc

Roxburyeric · Mar 9, 2011

Thanks for the quick responses and I do agree with you guys. I can be frugile (cheap) and I have also read people on hear say the opposite "Well $400 will buy you the thumb or that attachment you want". I am very much leaning local so to hear the re-assurance of my initial thoughts is nice.

ruren · Mar 9, 2011

For the extra 2% I would agree, go with your local dealer. When you have a problem with something and you have a local person that can help you out it will be worth it. My first tractor was a used Kubota. The dealer fixed a problem with it for me a few weeks after I bought it even though it was used and didn't come with any warranty. Of course, guess who I bought my current tractor from a few years later.

A few years ago I bought a trailer out of state for a lot better price than I could find local. After some defective wiring shorted out shortly after I bought it, guess who fixed the wiring? Me. To get it fixed under warranty I would have to tow it to the out of state dealer and drive back to pick it up when it was done. I took that as a lesson that saving a few bucks wasn't worth it.

thatguy · Mar 9, 2011

IF you are financing the tractor, the finance company will file a lien (cant think of the actual name) thru the State Corp Commission - which will trigger the state tax dept to send you a bill for the sales/use tax..

So you may not want to count saving that sales tax by buying from the out of state dealer just yet..

Brian

grsthegreat · Mar 9, 2011

are you sure you dont have to pay tax on the tractor...even if purchased out of state???

most states require sales tax on large purchase items like tractors UNLESS you are a listed farm..ie the majority of your income come from the farm.

just saying your a farm can burn you. we had a local tractor dealer here go bankrupt via state govt lawsuits over selling tax exempt equip to hobby farms. they nailed him, and the people he bought the tractors from. a 200% penalty added to the sales tax.

also..for 400 id buy local. \\my local dealer here wanted multiple thousands more for mine.

I bought my tractor out of state, with free delivery. but i had to pay instate sales tax.