CK2610 Pricing Thoughts?

SManZ350 · Aug 22, 2019

Over the last few weeks I've been able to narrow down my tractor choice to a CK2610 HST. I'm in VA and visited two in-state dealers and contacted two more in MD for quotes on a cash sale.

The VA dealers are around $17,500 for tractor & loader w/ industrial tires, plus tax comes out to $18,400. Tires are filled with Rimguard and delivery is free.

One in MD replied with $16,700, no tax, and $150 delivery to VA, so $16,850. I've followed up to ask what tires are on it, if the tires are filled, and with what.

Is the pre-tax price from the MD dealer reasonable or should I be wary? This dealer is about 90min from me. My closest dealer is 15min away and has the next best price. If all is the same, the $1500 price difference has me leaning towards buying from the MD dealer. What are your thoughts? I'm planning on stopping in to see this tractor on Saturday. I'd like to function test it and make sure it has the KL4030 loader instead of the older model.

Thanks!

jeff9366 · Aug 22, 2019

When you buy out-of-state local warranty service is uncertain.

Tractor manufactures reimburse dealers for warranty work via pre-set reduced labor rates and pre-set reduced parts prices, so warranty work is only marginally profitable to dealers. Kubota electrical components ordered for repairs, warranty or non-warranty, cannot be returned for credit.

Manufactures limit warranty transportation reimbursement.

Dealers prefer to have the cushion of $600 to $1,000 gross profit on a new compact tractor sale before commencing minimally profitable warranty repairs.

Some call national HQ to complain about indifferent reception at home dealer after purchasing out-of-state but for HQ this out-of-state topic is endlessly listening to a broken record. Dealers are independent businesses.

What value do you place on hassle-free new tractor warranty service?

Threepoint · Aug 22, 2019

SManZ350 said:
Over the last few weeks I've been able to narrow down my tractor choice to a CK2610 HST. I'm in VA and visited two in-state dealers and contacted two more in MD for quotes on a cash sale.

The VA dealers are around $17,500 for tractor & loader w/ industrial tires, plus tax comes out to $18,400. Tires are filled with Rimguard and delivery is free.

One in MD replied with $16,700, no tax, and $150 delivery to VA, so $16,850. I've followed up to ask what tires are on it, if the tires are filled, and with what.

Is the pre-tax price from the MD dealer reasonable or should I be wary? This dealer is about 90min from me. My closest dealer is 15min away and has the next best price. If all is the same, the $1500 price difference has me leaning towards buying from the MD dealer. What are your thoughts? I'm planning on stopping in to see this tractor on Saturday. I'd like to function test it and make sure it has the KL4030 loader instead of the older model.

Thanks!

Don't be misled by that Maryland dealer's sales pitch. Compare apples to apples. He is being too cute by a half with you. He knows full well that your purchase will not be free of sales tax, because every U.S. state that has a sales tax also has a "use tax" equal to the sales tax. That includes Virginia. If he delivers to you in Virginia, you are still required, as the buyer in Virginia, to declare and pay the Virginia use tax when you next file your Virginia income tax return. The Virginia revenuers are quite alert to this kind of thing, and they have very good means of following up on big-ticket "delivered" purchases in this situation to hit you with unpaid sales tax, penalties and interest.

SManZ350 · Aug 28, 2019

I ended up purchasing from the dealer 15min from me. The lady and I discussed the tax free bit, and it turns out as a CPA her professional ethical standards would require proper reporting of the use tax. After that the 3hr round trip to MD and the lack of a foot in with the local dealer wasn't worth the cost difference. It turns out we got a really good deal on the rear blade and a great price on the tractor (based on other's reports here on TBN). We bought on Saturday and they delivered on Monday, as promised.

Threepoint · Aug 28, 2019

Yep, and I suspect the bookkeeper at the Maryland dealer would likewise ultimately have reported the delivery into Virginia too, but you probably wouldn't have found out about that until hearing from the Virginia Dept. of Taxation a couple of years from now. :laughing: Besides, you'll just feel better knowing the sales tax has been paid.

We are lucky here in Northern/North Central Virginia to have two very good Kioti dealers, McMichaels in Warrenton, and Lake Anna Tractor (formally Tractor Hill Equipment) in Mineral.