Is John Deere offering 0% for 60 months?

[ctlguy]

Just curious. Presumably the credit is being obtained through Deere Credit.

1. Why would JD dealers have the last word on the length of the loan if Deere Credit is providing the financing?
2. Why would the local JD dealer object to a 60-month loan if the financing is provided by Deere Credit?

Sheer speculation on my part, but perhaps the dealers get some sort of incentive for sales with shorter-term financing.

Your ideas?

Steve

I will chime in as well, there are 2 programs. as mentioned earlier what Deere publishes to the public and what they publish to their dealer groups. This is not the same from region to region, nor is it the same from dealer group to dealer group. I personally believe it boils down to Deere's desire for there to be only large multistore dealer groups. These dealers will get the cream of the crop in finance support where the smaller groups will not and can be much more difficult for them to fund the extended finance programs. You can ALWAYS get long term zero percent notes it is just a matter of cost and who is going to pay those costs. Market share items can also drive what Deere will kick in, unfortunatly unless they are over 40hp (i think) then they are not market share driven.

 

[AKfish]

I will chime in as well, there are 2 programs. as mentioned earlier what Deere publishes to the public and what they publish to their dealer groups. This is not the same from region to region, nor is it the same from dealer group to dealer group. I personally believe it boils down to Deere's desire for there to be only large multistore dealer groups. These dealers will get the cream of the crop in finance support where the smaller groups will not and can be much more difficult for them to fund the extended finance programs. You can ALWAYS get long term zero percent notes it is just a matter of cost and who is going to pay those costs. Market share items can also drive what Deere will kick in, unfortunatly unless they are over 40hp (i think) then they are not market share driven.

Appreciate the information and your perspective on the finance programs.

On the face of it, the incentives or lack of incentives that Deere provides to it's network of dealerships appears to be discriminatory at best and illegal at it's worst.

I'm no expert in Commerce Law but unequal, biased and prejudical extension of this type of financial agreement with dealership's can restrict market access and unfettered commerce. Some dealer's and dealership's are "more equal" than other's and given financial means to secure a competitive advantage in the marketplace.

Maybe I've "missed something" and simply fail to see how this situation best serves the public and the economy.

Certainly past history with market concentration and anti-competitive business practices have served to better the overall economy and provided the consumer with the best product for their money... :confused2:

Yep... that's always made for smooth sailing - for everybody! :thumbsup:

AKfish

 

[ctlguy]

Appreciate the information and your perspective on the finance programs.

On the face of it, the incentives or lack of incentives that Deere provides to it's network of dealerships appears to be discriminatory at best and illegal at it's worst.

I'm no expert in Commerce Law but unequal, biased and prejudical extension of this type of financial agreement with dealership's can restrict market access and unfettered commerce. Some dealer's and dealership's are "more equal" than other's and given financial means to secure a competitive advantage in the marketplace.

Maybe I've "missed something" and simply fail to see how this situation best serves the public and the economy.

Certainly past history with market concentration and anti-competitive business practices have served to better the overall economy and provided the consumer with the best product for their money... :confused2:

Yep... that's always made for smooth sailing - for everybody! :thumbsup:

AKfish

I was pretty basic in my statement but I don't believe that I stated that I thought the fees where different for different dealers. I don't think it is unusual that larger dealer groups get more $'s back from their vendors. I never stated how I thought this helped the economy....:confused

 

[ctlguy]

I re-read my first statement it does look like I made it sound like the fee's where different. Discresionary spending is probably different.

 

[ctlguy]

my bad, must be getting late and I am BABBLING,

 

[JDOneDay]

On the face of it, the incentives or lack of incentives that Deere provides to it's network of dealerships appears to be discriminatory at best and illegal at it's worst.

I'm no expert in Commerce Law but unequal, biased and prejudical extension of this type of financial agreement with dealership's can restrict market access and unfettered commerce. Some dealer's and dealership's are "more equal" than other's and given financial means to secure a competitive advantage in the marketplace.

I don't see anything discriminatory or illegal in what they are doing (or what we think they are doing). Many companies do similar things, why do you think you can buy products cheaper at Walmart than your corner store? They are giving the best deals to those dealers that move a lot of product for them. Look at what happened with car dealers, they got rid of the small ones because it was too costly to support them. In this case they can offer better deals to larger dealers/networks because of the volume of business they do.

 

[Gobblin Tom]

Don't forget about the $1000 off of the 2320 or the 2520 if you buy 2 attachments or more plus you can play the Deere game and get another $50-$100 off. My dealer here told me the 72 month was 2.9% didn't get a chance to ask about the 0% for 60 months, the dealer I was talking to is in Ohio.

 

[AKfish]

I don't see anything discriminatory or illegal in what they are doing (or what we think they are doing). Many companies do similar things, why do you think you can buy products cheaper at Walmart than your corner store? They are giving the best deals to those dealers that move a lot of product for them. Look at what happened with car dealers, they got rid of the small ones because it was too costly to support them. In this case they can offer better deals to larger dealers/networks because of the volume of business they do.

You might ask some of the smaller dealer's how they view the "competitive advantage" that the larger dealership groups receive...?

Walmart huh...? I seem to recall watching a very interesting 60 Minutes expose' about Walmart.

Model company, that! Great for mainstreet - great for employees... not!

AKfish

 

[JDOneDay]

You might ask some of the smaller dealer's how they view the "competitive advantage" that the larger dealership groups receive...?

That would not be my concern. It is in my interest to have JD be a strong company not any individual dealers. My advice to the smaller dealers would be to do what they can to sell more product and get the incentives. That is what being in business is about, trying to grow and succeed.

Walmart huh...? I seem to recall watching a very interesting 60 Minutes expose' about Walmart.

Model company, that! Great for mainstreet - great for employees... not!

Employee conditions or concerns is a totally different issue. Walmart buys in huge quantities which allows them to get their stock cheaper from the manufacturers.

 

[AKfish]

That would not be my concern. It is in my interest to have JD be a strong company not any individual dealers. My advice to the smaller dealers would be to do what they can to sell more product and get the incentives. That is what being in business is about, trying to grow and succeed.

Employee conditions or concerns is a totally different issue. Walmart buys in huge quantities which allows them to get their stock cheaper from the manufacturers.

Many business organizations make efforts to "even the playing field" and provide financial assistance to the smaller market share distributors that enable them to grow. From the sound of things - Deere is doing just the opposite. It's "tilting the playing field" and making it more difficult for the smaller guys and easier for the bigger dealer groups to compete and grow.

I understand the Walmart paradigm... So do the remaining small and mid-size businesses on "mainstreet".

AKfish