</font><font color="blue" class="small">( It’s impossible to put a number to it. Some people try to figure a % off list price.. that’s pointless. )</font>
From a buyers perspective I wouldn’t call it pointless. Assuming MSRP is the same throughout the country within the same brand, if one knows what % discount is average for most people or perhaps what DOT’s are getting, then knowing that at least gives one a quick reference. MSRP for comparing one brand against another is a different story, that IS absolutely useless. Bottom line is bottom line, but since dealers won’t let us in on what their cost is, you have to have some point of reference. I find it unbelievable the OEM’s don’t publish this info. You can always tell the guy who paid way above the norm when looking at used ads, he will be priced above a new one and wonder why it isn’t selling, that’s the worst part about paying too much more than what others are paying.
</font><font color="blue" class="small">( I am a dealer and I don't ever figure out what list is. )</font>
Only YOU know your own cost so there is no point in YOU figuring list prices unless list prices are what you sell for. A dealer’s view and buyers view is not anywhere near the same things.
I absolutely applaud the state of MN DOT for making this info available. It would appear dealers hate that and I don’t understand why. It would appear to me a lot of answers to learning particular models are contained in those files and would help answer questions consumers have rather than wasting a salesman’s time on the repetitive.
One thing buyers have to consider is time value of money. Investments in the stock market have averaged roughly 10% (I'm actually being conservative) over many decades of time. Let’s assume average return in the future will be less than our historical norm due to global competition causing domestic companies to not grow as quickly as our previous 100 years. You can plug in any number one cares to use, I will pick 8% average on investments as i believe this is realistic.
If one pays $15,000 cash for a tractor, what would that money have compounded to if invested?
15k at 8% for 10yrs = $32,383
15 yrs = $47,582
20 yrs = $69,914
Obviously there is some value in the tractor if sold at say 5-10 years, but the further out one goes the bigger the discrepancy.....the power of compounding.
So does it make a difference if one pays say $3000 more than his neighbor?
Applying the same formula:
3k at 8% for 10yrs = $6476
15 yrs = $9516
20 yrs = $13,982
So one who pays $3000 more for the same item and plans to keep it 20 years will lose $13,982 for having done so if using the above numbers.
My point:
I’m reading some threads (and they are almost cut and paste words I read last year as well) that say don’t try to nickel and dime a dealer, or don’t worry about bottom line. YEAH RIGHT. I certainly would not consider the above example nickel and dime, yet I get the feeling many of the posters and/or dealers would have you believe so. Not targeting you Neil specifically, just the ludicrous idea that there is no room for negotiation so no point in bothering. I hope people realize what the true cost is. One can add in all kinds of other variables to the numbers, but my numbers are close and should cause consideration of why it is important to look at EVERY DOLLAR. I didn’t go back over my math but I believe it is accurate.
