JD 5E and 5M pricing

[Slippy]

I am looking at the 5E and 5M tractors and have done the build your own app on the jd web site. Wondering what generally can be expected in the way of discounting by the dealer off the msrp. Any thoughts or specifics would be appriciated.
Also, any ideas on the average value of a 2008, 5525 with 700 hrs, cab, 3 remotes and loader?

 

[AKfish]

I am looking at the 5E and 5M tractors and have done the build your own app on the jd web site. Wondering what generally can be expected in the way of discounting by the dealer off the msrp. Any thoughts or specifics would be appriciated.
Also, any ideas on the average value of a 2008, 5525 with 700 hrs, cab, 3 remotes and loader?

I've got a 2011 5075M. IIRC - final discount was around 15% - it worked out somewhere in the range of 15-18%. But, there was shipping ($3K) and trucking (~$300) so, I'd have to go over the invoices again.. but, anything in the range of 15-20% is in the ballpark.

There's more margin for dealer's to work with on the high-end M models than the E's; typically. Although, with the big marketing push from Deere on the new, cabbed E's - there might be more incentives to work on a better deal on the E's right now.

All you can do is.... ask!

AKfish

 

[Chickengrower]

I priced an open station 5085m at 3 different dealers. 2 were right at 16% off and 1 was 20% off. One of the higher priced dealers agreed to match the best deal i found if i would go with him. Also, I got them to throw in a couple items at their cost. (Mower hood and a grapple) In every case they would have had to order the tractor.
I was a signature away from getting an M but I ended up going with a 5093e though. I was afraid of the IT4 stuff on the M. Plus I'm not a high hour user. The M's are awesome though. I really don't think you can go wrong either way.

 

[Slippy]

I have now gotten some pricing. Seem to be right in the 15% off MSRP range. Still looking.

 

[cheoah]

Slippy, I've never owned a 5x25 before but I hear good things about them. I would think the market value is strong for that tractor. Check the online sales sites and get an idea of retail there. Curious why the switch to the E from current machine?

 

[danedgington]

In March a 5083e new with can, loader, power reverser, and extra rear hydraulics was 20.3% off of the build your own price delivered to our place. Cash buyer

 

[Slippy]

The 5525 is a little light and a little short on hp for what I use it for. It also is not quite wide enough between the wheels for my hay windrows. I have already set the wheels out on it. It is a really nice tractor and if I did not have the hills to work with the loads I need to pull it would be fine. I had a 100 hp tractor and got rid of it and picked up the 5525.
I have checked all the sales sites and the tractor is still at about the same value as it was about a year ago when I purchased it.
I was thinking anything above %20 would be a decent price. May need to sell my tractor instead of trade in.

 

[T Dew]

When I was shopping for a new tractor a couple of months ago (E and M series) I noticed they were all about 15%-20% below the build price on the JD site. I think I could have done a little bit better the price, but I also like to maintain a good working relationship with the dealer. I think I ended up in the 16% range on a M series, but I would have to check the invoice to be certain. I think if you can do above 15% it's about right. Of course, the closer to 20% you get the better it is for you and the more jealous you'll make us.

 

[dstacy]

When I was shopping for a new tractor a couple of months ago (E and M series) I noticed they were all about 15%-20% below the build price on the JD site. I think I could have done a little bit better the price, but I also like to maintain a good working relationship with the dealer. .

THIS is well worth a few hundred dollars. I told my dealer that I was willing to pay more than the cheapest quote I got but I wanted him to do the best he could. They appreciated my honesty and threw in a buddy seat and a horn kit to sweeten the deal.
I need my local dealer. They have to turn a reasonable profit in order to survive. I also want my local dealer to be happy when they see me and want to do business with me. My tractors always get priority service, are clean when I get them back, and I'm always well taken care of at my dealer. Don't think for a minute that your local dealer doesn't put the customers who act like idiots, or buy their tractors somewhere else, on the back burner when it comes to service.

 

[AKfish]

THIS is well worth a few hundred dollars. I told my dealer that I was willing to pay more than the cheapest quote I got but I wanted him to do the best he could. They appreciated my honesty and threw in a buddy seat and a horn kit to sweeten the deal.
I need my local dealer. They have to turn a reasonable profit in order to survive. I also want my local dealer to be happy when they see me and want to do business with me. My tractors always get priority service, are clean when I get them back, and I'm always well taken care of at my dealer. Don't think for a minute that your local dealer doesn't put the customers who act like idiots, or buy their tractors somewhere else, on the back burner when it comes to service.

I couldn't agree more... I've seen the "dark side" of dealer behavior first hand!

The key element here is "reasonable profit" and the differences between what your dealer believes is "reasonable" versus what dealers in other areas of the country find is reasonable.

The basis for what defines reasonable are the "price quotes" for the tractor and equipment you're looking to buy.

It pays to shop around...

AKfish

 

[Slippy]

One would think that they would always put their best foot forward in hopes that you will continue to be their customer, become a customer in the future, and make other purchases and have service done even if you don't buy today. This is potentially my first tractor purchase from this dealer, but they have done service for me in the past and have been excellent with turn around and workmanship. Price, well shop rates at dealers are almost always higher than private mechanics in my experience.
This process is as bad as buying a new car, except their is not enough information about actual costs, dealer kick backs, etc. I agree with the concept the dealer needs to make some money. Thats what keeps a business going.
If you think about it, without knowing the numbers, you could get a 25% discount and they could still make a "reasonable profit".

 

[vtsnowedin]

If you think about it, without knowing the numbers, you could get a 25% discount and they could still make a "reasonable profit".

I don't know how you could say that without knowing the actual invoice price plus shipping the dealer had to pay to get the tractor to his lot. I have just the one recent experience at buying JD and the 15 to 18% discount for a no trade sale rings true but I have no idea of what was left for the dealer. The next JD dealer down the road went bust this year and was sold off at auction so the profit margin isn't all that wide.
If you abuse your JD dealers and drive them out of business you will be stuck going some other color but you don't need to be their sole source of support.

 

[Soggy Bottom Outdoors]

I priced a 5075E open station, with canopy, 2wd, no loader, at my local Deere dealer, $25000. I was willing to write a check but the salesman said, NO CASH DISCOUNTS. I kept shopping.

 

[AKfish]

It's all about sayin' no... the sales person, the manager, the owner, the BUYER. If there's not enough profit in the offer or if you know that you can buy the same tractor at another dealer for less money - it's a big, fat NO! Can't do that - ain't interested..

Always takes at least 2 agreeable parties to make a deal.

That said; I bought a new JD in '08 for just over 24% below MSRP. I was very happy. The salesman was happy. My local dealer was NOT happy. A year later, the shop foreman says to me - "ain't no way we can stay in business if all we make is 7% on a sale"! Ok, that's why they said no.

The dealer in Georgia thought 7% was just fine!

AKfish

 

[Dadnatron]

The reason 'long distance' dealers are willing to sell at a lower price is because you are 'found business'. You are not their typical sell. You are not local, and they are unlikely to get more business from you requiring their overhead, ie workforce, building etc. You are essentially a 'free' 7% to their bottom line. You 'pop up' and give them money out of the blue. You didn't and won't cost them anything.

Whereas your local dealer has to advertise, pay the guy to 'sell you' answer questions, stock that $2 fitting, etc. Your local dealer is likely to sell the guy from GA a 7% tractor, because for that sale, it cost your local dealer 'nothing' to make. They guy called up, said 'this is what I want, what can you do for me' and they quoted the price.

This is the same for cars etc. You can almost always get a better deal purchasing in another city, with a call to the 'fleet manager' with your exact model and options. You are a 7% who fell into his lap, and they will almost always take that deal.

But you won't engender the 'good will' of buying locally, and that might cost you $$$ and TIME down the road.