Price Check John Deere unbelievable trade-in offer

bz1 · May 6, 2011

I thought about calling JD but in the past I have in regard to resolving issues with another dealer and even though I keep hearing that JD manages their dealers quite closely they just keep telling you that they don't have anything to do with what dealers do or don't do and always just refer you back to them to fight it out. I really don't think they would know anything about what kind of sales strategies a dealer might be using. If I was told that this was a JD corporate promotion then I certainly would have contacted them to see if all was well. This is only a one dealer thing and really I think just a single salesman thing. He said that he is taking a risk that he can make out on the deal for his dealership. That's totally his problem not mine. Thanks for all the well wishes. Truthfully however, I just left my career job because I was forced to retire early. I wasn't sure if I was financially OK to retire and I would never have found a comparable job in my field without having to move my whole family. I suppose people would say I'm a rather devout Christian and I took the chance at starting a consulting business and trusting God that he would provide and He has. You would not believe all the great financial deals He has thrown right in my lap to make life easier while waiting for my pension to start. And the fact that I'm getting more pension than I ever thought possible (how often do you hear that these days?) I know He doesn't always bless us financially but in my case he's made it all happen in unbelievable ways. So maybe I should buy that lottery ticket huh?

fredhargis · May 6, 2011

bz1 said:
So far I'm still happy! If they show up with anything less than promised they won't get a penny from me. Someone tell me I'm not nuts. BTW, he is planning on making two more similar deals only it will cost the buyer $750 instead of $500. He said he just can't be as agressive on the next two used machines he needs on his lot.

In the end, all that matters is that you're happy. Congratulations! I am really doubting whether raising the price to $750 from $500 will change the number of us ready to sign up...

CinderSchnauzer · May 6, 2011

Congratulations of scoring a fantastic deal.

Hope you held out for "free delivery"

Chilly807 · May 6, 2011

I'd say you're on the receiving end of a good deal. It's also possible that Deere is discontinuing the 2520 next year, and has discounted existing stock to dealers.

Again, it simply may be that the salesman wants to build his personal customer base, and is comfortable cutting the profit margin to do it. Let me put it this way, the next time you're either buying a new tractor or referring someone who is, who will you suggest they go to see? That's assuming this deal works out as advertised, and I think it will.

Sean

chipsndust · May 6, 2011

bz1:

Pay no attention to the old women and JD haters.
Congratulations on your new tractor, and may the blessings continue to flow.

browny · May 6, 2011

Congrats on your new tractor. Sounds like you have all of your bases covered. Plus, you still get to use your old tractor and put hours on that. Good deal.

grsthegreat · May 6, 2011

bz1 said:
Update: Went to dealer today and we both signed the standard JD purchase agreement. This agreement is the same one I signed for the last two machines I bought except it has my trade-in listed. It simply says they are selling me a "new" 2520 tractor with "new" 62D mower deck and "new" 7 foot Frontier back blade for $16.5K. In trade I am giving them my used 2520 with 390 hours, my used 62D deck, and my used back blade for a total trade in allowance of $16K (I paid $16.9K for my machine 3 years ago). Total unpaid balance is $500 plus $34 state sales tax payable upon delivery of package. The line that lists the payoff value of my trade in says $0 (no loan balance). I wanted this signed because now I have the deal spelled out in writing. The serial numbers of neither machine are on the document yet, that will be added when the balance due is paid and the new machine is in. The purchase agreement has the factory order PO number listed, he showed me the factory PO on the computer for a new 2520 with deck. The 62D deck will arrive in two weeks, the tractor is schedule to arrive on June 5. No money will change hands until the package is in place and delivered. The salesman again asked if I was OK waiting until June to get my tractor because if not he'd give me the new one on the lot as soon as the deck arrived. I can't see how I can go wrong on this. I think I know enough to recognize a new tractor and new implements when they show up. I don't pay a thing until my new package arrives at my door and they load up my old stuff. I think this is going to work out. I appreciate all the warnings because I have been considering them all but I just can't see a down side to this. The best explanation I've seen on this is simply that by doing this deal with a past customer they are essentially selling a new machine at a reduced price while at the same time getting another customer to go green by offering a nice used machine. Two happy customers, no embarassing price cutting, and lots of good press as we all talk about it. Think of it this way, hypothetically lets say the dealer would normally make $4K on the sale of this package, i.e he pays $12.5K for it. He gives me a new machine for $500, takes my old one and sells it for maybe $14K. He might even already have a buyer who he knows will take the used one. He essentially sold the new machine for $14.5, still made $2000, made two sales, and has two happy customers instead of only one. Not as much profit as normal but might make sense under some circumstances to make sales and gain customers. As long as he knows he can get more than his cost of a new machine out of my old machine this deal makes him money. I'm curious Rick Wallace whether this makes any sense to you as a dealer. I have a friend who sells cars and he said he's seen this kind of thing many times. So far I'm still happy! If they show up with anything less than promised they won't get a penny from me. Someone tell me I'm not nuts. BTW, he is planning on making two more similar deals only it will cost the buyer $750 instead of $500. He said he just can't be as agressive on the next two used machines he needs on his lot.

well sounds cool. glad it all worked out well for you :laughing: :laughing:

piller · May 6, 2011

I heard a John Deere ad on the radio today, something about a $2500 rebate on CUT's with two implements. Perhaps your dealer is getting this cash in the deal. See:
Homeowners - Special Offers - Compact Utility Tractors

Gale Hawkins · May 6, 2011

pillar solved this riddle. :thumbsup: Now we know why they delayed signing of papers and wanted the old blade too.

Text from his link.

Save $2,500 USD on a 2520 Compact Utility Tractor or Save $1,000 USD on a 2320 Compact Utility Tractor when purchased with two or more John Deere or Frontier implements offer available May 3, 2011 through May 31, 2011. Available at participating dealers in the United States. Prices and models vary by dealer. Offers available on new equipment and in the U.S. only. Sales made to government agencies, company direct sales or other businesses/agencies that participate in John Deere's Special Discount Program, and businesses that participate in John Deere's Rental Business Program are not eligible. Prices and savings in U.S. dollars.