Price Check Dickering on price

[Jordanbear]

So what's the protocol on this?
I'll be leaving out names on purpose.

We've been looking at tractors for a few months, figured out what we want, and it's actually sitting in our barn, on trial.

We get to the part of making the offer, and our slightly lower bid is sort of brushed over. We said to them (which was what we'd said at the beginning) "we were planning to spend around X'. This is about $3000 less than the original quote.

We are prepared to put down 50-60% in cash. Does this make a difference?

They countered with a $500 "veteran/public servant" discount, and said that they might be able to get some funds ($500-800) directly from the mfr.

We had been quoted a price before the tractor was on the lot, when it arrived we got it on trial right away.

Last night we got a call saying that they'd made a mistake in the quote, and in fact the tractor had several features that were not included in the price we'd been given. They said this was their error.

What they would "do" for us, was the following: Not add on the extra costs. Continue to give the $500 veteran benefit. NOT give the MFR discount. So the price we'd end up with was $500 less than original quote.

We sort of see what they are doing, but if the dealership is going to eat the costs of the mistake (ie, not quoting us the correct price to begin with - I think it was about $1500) why not give us the mfr. money?

We're not really into the months-long dickering process that some people go through - a friend took a year to buy his tractor and ended up with an enormous deal, but he was willing to go back once a month, to a guy he'd been doing business with for years, and do the "are you going to sell me a tractor today?" Well, are you going to give me what I want?" "No, far too much - how about this", Oh, I couldn't possible do that for ya - etc etc.

That's really not what we want to do. But, their rationale isn't making sense to me - if the mfr is giving the discount, it shouldn't be coming out of the dealers' pocket - so *I* think they should still give it to us.

Any comments?

 

[Golfgar4]

I haven't quite reached the point that you're at, but I've always figured that when I do, I'm going to have at LEAST two other quotes from other dealers in my hip pocket. This way, I should be able to play one against the other to get the best deal I can get.

Have you contacted other dealers (of the same make) to find out what they could do? Are you really locked in to this dealer, or is there any flexibility with choice? Sometimes if you absolutely feel the need to deal with a specific dealer, for whatever reason, you have to accept the fact that maybe you won't get the best deal that's out there.

 

[cowboydoc]

The dealer will get the mfg. discount. When you buy the tractor the mfg. will cut the dealer a check for the rebate.

 

[Tractors4u]

Even if the dealer gave you the tractor at invoice or cost, they still get dealer incentives. Some you may know about, some you don't. When I bought my 4310 one dealer informed me that he could sell me the 430 loader for less than the 420 due to incentives. Also there was an incentive that would knock off, I think $400 if I bought 2 pieces of equipment with the tractor. Like Gary said, get a couple other prices from other dealers on the same tractor. Make sure that everything is the same. I don't know if you are planning on a loader or not, but there are light duty buckets and heavy buckets for example that can be the difference in price. If you are getting zero % financing, make sure that they have included the dealer participation charge in that price. As for 50-60% cash down. I layed 55 - $100 bills down and it made no difference in the price. Maybe if you paid for the entire tractor in cash they might be swayed a little.

 

[Bob_Skurka]

50% to 60% down is not that big of a deal. You either pay cash or you finance, it is like being pregnant or not pregnant. If you finance 90% or 50% the finance company comes into play and they take a cut. The best deals are always cash deals. If you are going to finance, you might want to go to the bank, take a home equity loan (tax deductable most of the time and typically at a low interest rate) and then pay cash for the tractor. The price of the tractor will come down.

As for the added cost options and the dealer eating those but not giving the manufacturer's money. It is a 6 of one, half a dozen of the other arguement. The cost of the tractor went up with the options, the dealer keeps his margin by keeping the manufactuers money. He doesn't make more, he just maintains his margin.

I just bought some bedroom furiture for a surprise Christmas gift for my wife, the local store had 0% 2 year financing. They quoted a price on the bedroom set of something like $8000. I asked if they could do better, they said not if it was financed. I asked if they took cash (not credit card because there is typically a 3% to 5% credit card fee). For cash they said they'd come down in price. It came down a couple thousand dollars. I went to a different store, but ARMED WITH PRICES FROM THE FIRST STORE, got the bedroom set for about $5000 cash, delivered without sales tax (internet order out of state). Two days ago I wanted a new snowblower, so I called the NH dealer 8 miles away, and across the state line. He quoted me $1595, plus tax for a Buhler Farm King. I had just checked the Outdoor Power Store website, they are in my state so I'd have to pay tax, their price was $1199, plus delivery, plus 6% sales tax, and when I called them it was out of stock and not expected in. Back to the local guy, I told him that O.P.S. had it on their website for $1199 and would he come down for cash. After a bit of haggling, I got it for $1400, delivered, and with no sales tax because we formalzed the deal over the internet which made it tax exempt since it came from out of state. I bought a new tractor this summer (because everyone needs to have 3 or 4 at a time?) and got price quotes from MULTIPLE dealers in state and out of state. I bought local, but only AFTER he matched the terms and prices of the out of state guys . . . and in each case, financing jacked the price up because the dealers hand over the paper to finance companies and lose margin so I ended up just paying for the tractor.

The net effect in all 3 transactions is that I had ANOTHER price in my back pocket and I was NOT financing. Financing really screws up deals. If you need to finance, consider the home equity loan or consider going to an installment loan from your bank, it will likely be at a lower interest rate than financing or it will allow a greater discount in the tractor price that, when the time value of money is factored in, will be lower than the interest cost.

The dealer needs to make money on his sale, but you need to play with other dealers and understand the costs of financing to keep your dealer honest and your price as low as possible. Understand that financing raises everyone's costs.

 

[Dave___in___CT]

Hi...


As already said... get 3 written quotes...

I wrote up a specifications sheet listing everything in detail... including model numbers...
Gave it to 3 dealers... telling each, 2 other dealers are getting the same thing... and I'm ready to buy... and price is important to me... but not the only factor...

Quotes varied ~$4,000... on a ~$27,000 purchase...

I took the lowest quote from the dealer 180 miles away from me... gave it to the next lowest quote dealer near me... and asked if he could match it or come close...
He couldn't come within ~$2,000...

So I bought from the lowest quote dealer 180 miles away...

While price was a major consideration... there are several other things that affected my decision to go with this far-away dealer... one being the tractor will be kept close by them during most the warm months...

Good luck...


Dave...

 

[Bob_Skurka]

I had more than a $2000 spread on a $12,000 tractor. I also got bids on OTHER BRANDS that were DIRECTLY comparable in size, power & features. So when I finally cut my best deal, the dealer knew he was matching a distant dealer but still was not sure if that was low enough to win the sale because he had the competitive model from another brand to worry about.

Comparison shopping is necessary. But be fair about it. Can't really bid a Chinese gear tractor against a Japanese with hydro. Match up the HP, the hydraulic flow rates, the 3pt lift capacities, frame size/strength, transmission, etc. Apples to Apples comparisons will help you. If you go into the Deere dealership and ask him to bid against a Jimna you aren't even in the same league for comparision on features.

 

[songhunter]

If I had gotten a quote from the dealer for a price and taken the tractor on a trial basis, then received a change in the quote from the dealer, I would take the tractor back to the dealer as soon as possible. Even if the dealer mishandled the quote and wanted more money, I would not pursue the deal any more.

When the dealer sees the tractor coming back he will either make good on the original quote or take the tractor back. Either way, you come out ahead.

What if you tried the tractor out for a while, then went back and offered the dealer less than you had originally planned?

 

[normde2001]

"Last night we got a call saying that they'd made a mistake in the quote, and in fact the tractor had several features that were not included in the price we'd been given. They said this was their error."

That is what is known as "low balling", a typical auto dealership/used car lot "come on" to get you hooked. You can ignore it and accept their deal, or tell them you are aware of the tactic and move on to another dealer. There is also "high balling" where they quote an inflated price to see how you react, and as you are walking out the door, they quote the real price which now sounds low to the buyer.
I would return their tractor, tell them you will think about it, and get some more quotes.

 

[Bob_Skurka]

Just out of curiosity, what tractor is in the garage and what equipment is on it and what is the asking price?