Dealers Not Accepting Some Brands on Trade

[LouNY]

There is a Massey dealer not to far from me in Albany NY that says the same thing in his ads.
Tractors are almost a side line to him as he is large in the construction equipment lines.

 

[ruffdog]

The dealer has no service manuals, parts availability is questionable, and knowledge of trade is limited on some brands ..........why would they pay top dollar for that?

 

[Slowpoke Slim]

This is not surprising. Dealers having a hard time selling their new inventory don't want used tractors that are less expensive competing. Now that brands are getting better, many don't want their customers to see the quality side by side as it undermines their false narrative about competitors being junk.

When cars from Japan started to make inroads, dealers tried the same thing. Either no trade or horrible pricing to dissuade the trade.

This right here.

It's also hard to keep up the false narrative of "resale value" being lower, when you could have two comparable brands, in comparable condition sitting side by side in the used tractor row. Could lead to some awkward silence from the poor sales guy.

 

[Slowpoke Slim]

The dealer has no service manuals, parts availability is questionable, and knowledge of trade is limited on some brands ..........why would they pay top dollar for that?

Whoever said tractor dealers paid "top dollar" for trade ins?

 

[Rustyiron]

This is not surprising. Dealers having a hard time selling their new inventory don't want used tractors that are less expensive competing. Now that brands are getting better, many don't want their customers to see the quality side by side as it undermines their false narrative about competitors being junk.

When cars from Japan started to make inroads, dealers tried the same thing. Either no trade or horrible pricing to dissuade the trade.

I'd bet it's more of a (percieved) information and parts availability issue for the dealer. Weather that's a valid concern locally or simply an impression proven or not in the dealers opinion. Unfamiliarity with a product, parts or company makes "NO" a safe answer.

 

[ddbackhoe]

I’ve been noticing that some tractor dealers won’t accept TYM, LS, Branson, Bad Boy, or Mahindra tractors on trade. That may make it more difficult to sell/trade your tractor if you own one of those brands. Are these dealers being uppity about their brand or do you think they have legit business reasons for doing so? I’ve never seen a car dealer not accept another brand before so why do tractor dealers do it?

Do these dealers accept the other brands for repair? Hard enough finding a good mechanic these days, finding one willing to work on just anything? parts ordering can be a hassle too. Imagine splitting a tractor then finding the X thingy is broken and it takes over a week to acquire one. Now you have a service bay locked down waiting on parts and you really cant charge the customer for 40 hours of down time. Sometimes its best to just say no.

Also a difference between selling AG and Cut/scut.

 

[Goose1776]

Do these dealers accept the other brands for repair? Hard enough finding a good mechanic these days, finding one willing to work on just anything? parts ordering can be a hassle too. Imagine splitting a tractor then finding the X thingy is broken and it takes over a week to acquire one. Now you have a service bay locked down waiting on parts and you really cant charge the customer for 40 hours of down time. Sometimes its best to just say no.

Also a difference between selling AG and Cut/scut.

THIS…
I know for a fact, that a couple dealers local to me, will not take certain brands in trade, because they do not service them, and do not want to take the time to try to service them, because there is not enough money in it.
And since they don’t service them, they don’t want to resell them on the lot, because if something goes wrong with the tractor, it comes back bad on the dealer…
Rather than insult a customer with a low below auction priced trade in value, it’s easier to just not take them in trade at all…
Has nothing to do with being “uppity” or worrying that customers will see a better “value” on the lot compared to a different brand.
It’s about the bottom dollar, and dealer reputation.

 

[2manyrocks]

There's a certain new car dealer sales model that is focused on selling new units and having a shop that can perform warranty service. Some new car dealers will take older cars as trade ins, but wholesale them off immediately to used car dealers or auction houses.

With tractors being so heavy to transport, I'm not aware of there being any large scale wholesale auction houses for tractors as there are for cars. So I'm guessing tractor dealers might take newer, lightly used tractors in trade if they can get them cheap enough, but they are going to screen out units that they think they may have trouble selling if there's no way to effectively wholesale them at auction house.

In 2022, dealers could sell new tractors faster than they could get them. The economy hasn't declined enough for tractor dealers to get much past that mindset, yet.

 

[tacticalturnip]

There was a time back in the 90's that if you had a Kia, Hyundai, or Daewoo, you'd have a hard time trading it in. Dealers didn't want them, not here in Maine anyhow. The build quality wasn't really there at the time, and dealers that didn't sell and service new Korean cars didn't want them. The Korean auto industry has come lightyears since then. I suppose you could compare those cars to the Korean tractors from the same era, but much like the auto industry, you can't really compare them to the machines produced today.

I presume any dealer claiming they won't take a modern Korean tractor in trade has some underlying issues, and I don't want to deal with that. A proper dealer would at least offer you a low ball trade-in, or suggest you sell your machine outright 'to get more for it.' Why would you just outright alienate a portion of your potential customer base from the start?

Idiots, I suppose.

 

[Torvy]

With cars you also could have financing problems with some brands. When I did auto finance, we stopped doing Suzuki and a few other brands due to concerns over valuation.