Canadians not welcome at JD - USA

[Robert_in_NY]

Simply put, if I show up to either Denny's or John Deere in Detriot Michigan - why should the price they quote me for a "Moons over my hammy" breakfast or a JD 3320 be different based on where I live - be that New England, Ontario, Canada or Timbuktoo?

Well, you most likely won't be going back to your local Denny's if you get sick from eating the food at the other Denny's. However, if you buy a tractor from the US and live in Canada will you bring it back to the US dealer for service?

 

[Robert_in_NY]

Robert, Kioti dealers in Canada purchase directly from Kioti USA in US $. Some dealers quote more than say a Kioti dealer in Michigan - again based on what the local market will bear and the cost of doing business.

I have also gotten quotes that are very much in line with what the rest of you would pay for a Kioti at your local dealership.

Point is, Kioti USA is not needlessly putting up a surcharge (yet for Canadians purchasing from the USA because they can pay less. Given the prices I've been quoted for Kioti in the past, locally, even though they are a bit higher, it would make no sense to do business with a dealer 100s of miles away.

Kioti is also trying to gain sales where ever they can. If they were as large as John Deere, CNH, Agco or Kubota then it might be different. But when they are trying to gain market share they will do what they can. The larger OEM's have the market share and are now in a position where they are trying to strengthen their dealers. If they lose sales as a result of a policy like the one Deere has then they will adapt or accept the lost sales if they feel it is for the best.

 

[canoetrpr]

The reason that many Canadians were buying JD over Kubota from the USA was because JD's warranty coverage was across North America while Kubota's was country specific.

The thing is that price difference was so high until recently (say 5-6K $ even after shipping) that for that kind of price I think that a buyer could have made his own warranty Kubota dealers up here had no problem charging for service even if the machine was bought in the USA. One dealer was telling me that that he recently had a USA machine (which would have been under warranty in the USA) up for a warranty issue and he had to charge the customer for the repair as Kubota Canada (as per their stated policy) did not cover it.

Don't get me wrong - I'm not suggesting that people go out of their way to purchase from someone other than their local dealers. There are many good reasons to stay local - including service as you have pointed out. However, there comes a point when the price difference is large enough that it would be silly not to look at a longer distance purchase for some thing that you believe will likely be reliable anyway.

 

[Robert_in_NY]

The reason that many Canadians were buying JD over Kubota from the USA was because JD's warranty coverage was across North America while Kubota's was country specific.

The thing is that price difference was so high until recently (say 5-6K $ even after shipping) that for that kind of price I think that a buyer could have made his own warranty Kubota dealers up here had no problem charging for service even if the machine was bought in the USA. One dealer was telling me that that he recently had a USA machine (which would have been under warranty in the USA) up for a warranty issue and he had to charge the customer for the repair as Kubota Canada (as per their stated policy) did not cover it.

Don't get me wrong - I'm not suggesting that people go out of their way to purchase from someone other than their local dealers. There are many good reasons to stay local - including service as you have pointed out. However, there comes a point when the price difference is large enough that it would be silly not to look at a longer distance purchase for some thing that you believe will likely be reliable anyway.

I understand where the guys are coming from and as I said earlier, if the item is just something you have to have then it is up to the consumer to pay for it. How are CNH or Agco products priced up in Canada compared to US? I have never been one to buy something just because of the paint so I buy from the best dealer. There is a reason I don't have much JD equipment on my farm. Deere has been priced considerably higher locally then CNH for the same type of equipment. And as far as vineyard tractors (which is my next purchase) go I would rather have a CNH tractor then the John Deere offering. But the John Deere salesman seems interested in my business so I will talk to him and see what type of price he is going to quote me. Generally they have been $5k higher then the equivelant CNH vineyard tractor

 

[drkmstr]

the way around the 7% surcharge is to allow the US JD dealer to register the warranty to a US name and address.

JD warranties are tied to serial numbers not name of owner.

Then if you needed warranty work in canada and anyone asks, just say you bought the unit used. The dealer has no business questioning a customer unless they believe the unit was stolen.

or worst case bring the unit back to the states for warranty work...

 

[CinderSchnauzer]

the way around the 7% surcharge is to allow the US JD dealer to register the warranty to a US name and address.

JD warranties are tied to serial numbers not name of owner.

Then if you needed warranty work in canada and anyone asks, just say you bought the unit used. The dealer has no business questioning a customer unless they believe the unit was stolen.

or worst case bring the unit back to the states for warranty work...

Might work as long as one can determine a way around paying US state tax on the purchase - probably needs out of state delivery, I'm told and there is some paperwork needed at the border that might not run smoothly with this scheme.

 

[drkmstr]

Might work as long as one can determine a way around paying US state tax on the purchase - probably needs out of state delivery, I'm told and there is some paperwork needed at the border that might not run smoothly with this scheme.

might be true, but while someone is being devious there would be nothing to stop a dealer from printing a dummy receipt sale. But true you would have to pay sales tax, which in most states could be equal or greater than the 7% surcharge being imposed.

 

[canoetrpr]

Not sure how CNH and Agco prices compare up here. I've been meaning to check out what CNH has to offer - although I need to trade in a tractor like I need a hole in the head .

The dealer I get my parts from is a Kubota and a CNH dealer and when I've walked around the CNH machines he has on his lot, I've noticed that they really seem to take ergonomics seriously in their design. One day when I really have a need for a trade, I'll definately look at what CNH has to offer.

I didn't actually realise that the 7% was tied to warranty registration. That actually does not sound as unfair to me as I originally thought it was. I'd hope that at least some of the 7% was being diverted to dealers up here that ended up doing warranty work on USA tractors.

 

[drkmstr]

I didn't actually realise that the 7% was tied to warranty registration. That actually does not sound as unfair to me as I originally thought it was. I'd hope that at least some of the 7% was being diverted to dealers up here that ended up doing warranty work on USA tractors.

Warranty registration is the only way deere knows who owns the product. The company is most likely keeping the money for themselves. I doubt CDN dealers are seeing any of the money

A dealer makes some money on warranty anyway

 

[Robert_in_NY]

A dealer makes some money on warranty anyway

Not always. Most of the time the dealers are lucky if they break even on warranty work.

The main area dealers make money is on parts sales with tractor sales being second.