Buying Advice Do dealers generally contribute something off msrp tractor price?

[Huckleberry Ranch]

Hi all. I could use some advice. I知 thinking of buying a 2020 MF 2760.

It has a list price of $34,900. (Loader, bucket, HST, 58 hp).
MF is offering a $4000. discount for cash , which I would use.

So far, the dealer has only offered 10% off of dealer add ons such as the top and tilt, etc.

We have not negotiated any dealer contribution and I am wondering if I should make an offer and what type of percentage off msrp is would be reasonable to expect.

Thanks for your help.

 

[nards444]

not sure how tractors work. But with cars theres much more money for the dealer in add ons vs the actual car. People seem to think with cars there a lot of chicken and there isnt. once dealers get to invoice on cars theres only about 3% left for them. Tractors are probably about the same.

 

[Industrial Toys]

I guess a dealer is always in the tough spot of never knowing if someone is ready to buy or just kicking tires.

We have in the past indicated that we were shopping various brands, and maybe the dealer we were speaking with was more money than the rest. See how they respond. If you can't have an open and "reasonably" honest conversation with a salesperson, I wouldn't do business there.

Ask if they expect any sales or promotions coming along soon. They probably would rather sell a tractor today. I have used that approach on a bunch of stuff and got unexpected discounts. It's a different way of saying, I don't want to pay what you are asking but I am looking to buy.

 

[CalG]

Packaged up with a bundle of accessories and implements you might be pleased, but there is no margin on the bare tractor. The Mfg. squeezes from one side, and the customer squeezes from the other.

Ask too much, and you will put him out of business.. Then what?

 

[BleedingOrange]

Packaged up with a bundle of accessories and implements you might be pleased, but there is no margin on the bare tractor. The Mfg. squeezes from one side, and the customer squeezes from the other.

Ask too much, and you will put him out of business.. Then what?

What do you mean when you say the mfg. squeezes from one side ? All I have ever seen is a MSRP. The dealer can ask whatever selling price he wants to ask, but usually if other dealers selling the same product see that one dealer is offering to sell it for less than MSRP, they usually get ballblacked, and other dealers don,t want to do dealer trades etc. with them. My nephew got 2 quotes on trading in his BX2360 for a BX2370. 2 steelerships owned by the same family. One was run by the old man, one by the son. The sons quote was 2K cheaper for the exact same deal. Not hard to figure out which one he dealt with. I ended up doing the same deal with the son as well, even thou he was about 30 kms farther away than the old man. Interesting to see that the son works on volume, the old man stuck in the 80s wants to sell at MSRP.

 

[jeff9366]

We have not negotiated any dealer contribution and I am wondering if I should make an offer and what type of percentage off msrp is would be reasonable to expect.

Threads like this appear regularly, if not frequently.

For tractor sales in California and New England a token dealer discount. You probably have all the discount you can expect in discounted options.

You are in California. High cost of business and max CONUS tractor freight.

For tractor sales in Alaska and Hawaii, strictly MSRP on everything.

Tractor prices are lowest in the Southeast, through which most compact tractors are imported, assembled, then depoted.

 

[nards444]

What do you mean when you say the mfg. squeezes from one side ? All I have ever seen is a MSRP. The dealer can ask whatever selling price he wants to ask, but usually if other dealers selling the same product see that one dealer is offering to sell it for less than MSRP, they usually get ballblacked, and other dealers don,t want to do dealer trades etc. with them. My nephew got 2 quotes on trading in his BX2360 for a BX2370. 2 steelerships owned by the same family. One was run by the old man, one by the son. The sons quote was 2K cheaper for the exact same deal. Not hard to figure out which one he dealt with. I ended up doing the same deal with the son as well, even thou he was about 30 kms farther away than the old man. Interesting to see that the son works on volume, the old man stuck in the 80s wants to sell at MSRP.

What he means is the manufacture leaves little room for profit margin at MSRP. Dealers actually buy inventory its just not given to the dealer. Often times dealers are actually taking loans from the manufacture to purchase that have various rates terms etc. So for example Tractor X MSRP for 21000, the dealer might be purchasing it for 19000. Dealer has fees to sell that tractor like overhead, employee wages, gas etc. So thats how they are squeezed. There isnt some 50% mark up on tractors.

 

[fried1765]

Packaged up with a bundle of accessories and implements you might be pleased, but there is no margin on the bare tractor. The Mfg. squeezes from one side, and the customer squeezes from the other.

Ask too much, and you will put him out of business.. Then what?

"Then what?"
Then: Buy a tractor somewhere else!

 

[Huckleberry Ranch]

I want to thank you all for the input.
I did make an offer and they lowered their price $500. So we made a deal.

I added a 3rd function up front and a bolt on tooth bar.
They will add water to the tires to 50% and tell me wheel weights won’t prevent side tip over due to half the weight being above the axel.

Again, thanks for the advice.