Internet sales?

Anonymous Poster · May 18, 2003

I have been searching around my area for a nice green or orange tractor. Orange seems to give you more for your money but are not as readily available. I saw an ad in this classified for a BX22 at Emerich Tractor in New York advertised for $14999.00 did all the appropiate paperwork over the phone and got financing in order. We are good to go except he hasn't any right now expects them by May's end. Should I wait seeing that his deal beats all by $3000.00 with all the attachments we ordered? Plus is this dealer a real dealer has anyone else had any experiances with him? I am very leary of sending $$$ to an address that I have never visited. Plus time is money so by June 1 I will need a tractor and may need to look around. Local dealers wont touch the deal they cannot see how they can sell for that price.

Carl_NH · May 18, 2003

Oildude4,

Emerich is a real dealer, as others have bought from them. Do a search on TBN for Emerich to see other responses.

On waiting for delivery, time is money, and only you can determine what that is worth. Also shipping costs and need or desire for local service outweigh the difference in cost for many buyers.

That said many here have had good experiences in long distance transactions with other 'internet' dealers. It is a personal choice.

Good luck in your decision.

Carl

icat · May 18, 2003

As far as waiting goes, there are only 9 business days left in May (holiday weekend takes one). I'm pretty sure you'd be had pressed to find anyone who wouldn't wait that long for $3000. Unless you can use the tractor during the week, then the only time you'll really be without is this coming weekend - which is a holiday anyway.

As far as money goes - if the financing is through Kubota then you have no worries (and I can't imaging going anywhere else for financing with the deals Kubota has).

On your local dealer pricing - different dealers have different MLB costs (material, labor, burden). If they feel they can not profit from the sale then they will need to pass on the deal. I sell computers and I often "walk away" from a sale when I can't turn a reasonable profit. Got to cover cost or I'll go out of business.

I haven't priced BX22's so I don't know if your deal is a good one or not. But if you've got a dealer who can't touch the price, then it's probably a good deal. I e-mailed and contacted 5 dealers for quotes on my L3130. That's about the minimum number I would suggest for "price shopping". Might send out a few more requests for bid and see what else you can stir up locally.

GaryG · May 18, 2003

That sounds like a great price for a BX22 right now. The tax savings should cover the shipping up to you. What implements are you getting beside the loader & backhoe? That is a very good price for just the BX22TLB.

Rick Jay · May 18, 2003

GaryG,

( The tax savings should cover the shipping up to you.)

I don't think I'd plan on saving anything with the tax. Massachusetts is one of the states that expects one to pay sales tax on out of state purchases. Now, if you don't tell 'em, you might get away with it. But the more paper trails you leave (a large purchase, financing, insuring, shipping, etc.) the better the chance that the Mass. D.O.R. will find out about it. Especially in these times, and with a neighboring state, you're really asking for an audit. Then, they'll nail you for the tax AND penalties AND interest.

The Mass. D.O.R. folks are not known for their friendliness. /forums/images/graemlins/frown.gif

~Rick

Rick Jay · May 18, 2003

Here's a link that mentions the "use tax" due in Massachusetts if an item is purchased out of state.

Mass. D.O.R. link

As Snuffy Smith used to say: "Dang revenooers!". (O.K., I'm probably dating myself on that reference.)

~Rick

GaryG · May 18, 2003

Do they try to collect sales tax on mail order purchases? Even California doesn't try to do that. I thought there was a federal court that threw out a case where a state tried to collect taxes on a purchase in another state. It is difficult to avoid taxes on cars that have to be registered. I did not think tractors were registered anywhere. I have seen several dealers making that part of the sales appeal. I sure would fight it.

Rick Jay · May 18, 2003

GaryG,

( Do they try to collect sales tax on mail order purchases? )

Trust me, I have NO experience in this area and will deny that I ever purchased anything out of state to avoid paying tax. /forums/images/graemlins/crazy.gif

O.K....revenooer's gone? I believe most people in any state that has such a law make purchases in other states without submitting the "use tax" to their home state. However, the law does seem to be quite clear that it is, in fact, due if not paid in the state in which it was purchased.

Automobiles are a no-brainer...they nail you for those without even working for it when you register it. A tractor could be a different issue. I believe banks are required to report transactions over $10,000, loans require filing in the state where the owner lives, insurance forms just might generate some interest too! Then, heaven forbid, the tractor is involved in an accident and during the investigation of who rightfully owns the piece of equipment, it will become obvious that the tax wasn't paid.

In this day and age, with all the electronic "snooping" that can be done with just a couple of keystrokes, one is taking a gamble that they won't get caught. IF you're the gambling type, then more power to you. (My limited exposure to the Mass D.O.R. was not pleasant...and the error was THEIRS, not mine. But trying to correct it was a nightmare.)

Personally, I decided to support my local dealer, and that included paying the taxes due to the great Commonwealth of Taxachusetts. The shipping charges (from a well-known internet dealer) would have been about 60% of the tax. I figured the more "secure" route was to stay local. I did use those distant dealers to negotiate a better price. However, if I had to pay shipping AND Mass. tax, my local dealer offered me a better price.

I'm not a lawyer or accountant or CPA, just a lowly Electrical Engineer, so this is way out of my specialty. I don't have deep enough pockets to try to fight any of these issues, so I just try to follow the rules as best I can. Pretty boring, I know. /forums/images/graemlins/crazy.gif

My $0.02. (I hope I don't have to pay my "use tax" on that too! /forums/images/graemlins/grin.gif Actually, I guess you will, if you "use" my advice. Make your checks payable to Mass D.O.R. mail to: P.O. Box..... /forums/images/graemlins/grin.gif)

~Rick

rsatter22 · May 18, 2003

In Ohio, we are to declare out of state purchases on our state income tax returns each year, so the state gets the taxes with the income taxes.
RDS

DougM · May 19, 2003

So I live in Ohio and do I pay taxes on all internet purchases

Well...... /forums/images/graemlins/wink.gif /forums/images/graemlins/tongue.gif

If any one has a good idea on how not to pay taxes....

I wouold like to hear more PLEASE

Doug