What % Discount

[Lloyd_E]

I am down to two dealers JD and Kioti. looking at spending around $56,000(taxes in) for tractor and implements. About $10,000 more than I wanted to spend. What kind of discount can/should I ask for on a cash deal. I was hoping 15%. That will get me within a couple of grand of original budget. Not happy but I can live with it. Or should I ask him to match original price I had in mind. My original budget was based on tractor quotes plus quotes on implements from 2-3 dealers.

TIA

Lloyd

 

[LoneCowboy]

Cash doesn't matter much anymore with tractors/cars/trucks/etc.
If you finance, they get a check from the finance company for the amount and the finance company deals with you. It's simply not a big deal. You should get a little because there is no BS, no financing, no paperwork, less time for them, but we're talking a few hundred here, not a few thousand.

You should put them to their best price and indicate you have cash and are ready to spend and see what they can do. some can (or will) do better, some won't.

 

[flusher]

I am down to two dealers JD and Kioti. looking at spending around $56,000(taxes in) for tractor and implements. About $10,000 more than I wanted to spend. What kind of discount can/should I ask for on a cash deal. I was hoping 15%. That will get me within a couple of grand of original budget. Not happy but I can live with it. Or should I ask him to match original price I had in mind. My original budget was based on tractor quotes plus quotes on implements from 2-3 dealers.

TIA

Lloyd

With the 0% financing deals (48, 60 months) that dealers are offering, paying cash isn't a big swinger.

Whether you can get the dealer to deal depends on the present incentives that he's offering. Two months ago a bought a new Mahindra 5525 (55 hp engine, 45 hp pto) with the ML250 FEL. The dealer incentives amounted to about 6% of the tractor/FEL price.

 

[Rara Avis]

Cash doesn't matter much anymore with tractors/cars/trucks/etc.
If you finance, they get a check from the finance company for the amount and the finance company deals with you. It's simply not a big deal. You should get a little because there is no BS, no financing, no paperwork, less time for them, but we're talking a few hundred here, not a few thousand.

You should put them to their best price and indicate you have cash and are ready to spend and see what they can do. some can (or will) do better, some won't.

Actually Cash is worse...because, in the case of John Deere, their financing wing doesn't get a piece of the action...

 

[BTI]

Cash discounts with Kioti are listed on their website.
Depending on the model the discount range between $600 and $1000

BTI

 

[jinjimbob]

For cash, you save between 300 and 600 dollars, + the 'discount' of not paying a finance doc fee.

 

[CurlyDave]

If you have cash, you should get whatever the best deal they will offer a credit customer plus a little bit more off because they know that you are buying the equipment today, no fooling around with credit approval etc.

Let them know you have cash & there is a competitive situation and ask them for their best price.

I would be willing to pay a bit more for Deere than Kioti based on reputation, both of equipment and of parts availability.

 

[sebert2007]

I agree with the others about percentage of discount for paying cash, but there are other factors, such as how long the dealer has had the equipment etc. I would offer 4 or 5 thousand less, who knows maybe they will take it and if not maybe they will split the difference. All they can do is refuse your offer.

 

[shimp]

the general rule for paying cash-

u tell dealer up front-dealer hikes price

 

[tjkadar]

You can get 23% off of John Deere if you are paying cash and a member of the USDF, USEF, AQHA, or the like.

 

[huskerfarmer]

To be honest most implement dealers might only make a few hundred bucks and not thousands like you think on most new equipment, for the most part they make the bucks on the used equipment. A 10%15% max discount is what i would aim for, depending whethey they ordered equipment and tractor on OEM programs, ask dealers on implements you are buying when thier pre-season order program is, this is the time you can take advantage of bigger discounts because thier major or shortline distributor is taking orders and offering the steepest discounts usually 3-9months before the season starts.

 

[Lloyd_E]

Huskerfarmer,

I am liking what I hear... from you. If I could get 15% discount on package. I would be happy... albeit, I would spend a little more than my initial budget, but would be happy.

Lloyd

 

[Spudland_Dave]

Personally...I'd stick to your guns on where you wanted to be financially. Like they say, the first thought is always the best thought....
When I did my deal a few months ago it was a Cash deal...dealer knew it up front, and I told him where I was looking to be $$$ wise. He held out for a week or so but eventually we made it happen. They knew once they called me it was a done deal...

 

[Taiser]

Yep cash is now taboo. Just bought a car, paid cash, one dealer was actually going to offer us a CHEAPER price if we financed?? What th....!?!? Ran didn't walk away from that deal.

I guess now they want you in hock with them to get that extra little percentage which adds up I guess if they find 100 suckers or so!

Anyhoo, yeah make your deal, prepare to walk away, you'd be surprised how often a DEALER will actually call you back if you stay away for a few days! They need to sell much more than you need to buy!

 

[AchingBack]

Right now, if cash is king anywhere, it would be on private party sales.

 

[Jeff244]

Don't know if I should open a new thread or not, but what kind of discounts can someone get on used equipment. I am in the market for a used dozer in the 30k price range. Prices are all over the pace. I checked out some machines last week and the dealer (used equipment dealer) sounded like they would only go down about 3 or 4 percent. I noticed that the Cat and Deere dealers that I checked out online seemed to want more in general than the used equipment dealers. So should I expect a bigger discount? I assume if I find a machine I like, I can just make an offer of 15% or 20% off the asking price and see what happens.


Thanks,
Jeff

 

[John_Mc]

My original budget was based on tractor quotes plus quotes on implements from 2-3 dealers.

How long ago did you do the research for that budget? I work for a steel wire company. The price of our raw material (steel rod) has doubled since Nov '07. Other steel has gone up similarly. It's got to be affecting tractor prices as well.

Still, I would not take your dealers opening offer as the final word (though I doubt his markup is a large as you hope).

John_Mc

 

[gamble77]

No...he won't see 23% up in his area...remember different regions demand different prices. tkadar your pricing most won't ever see...

In the U.S there is a 5% cash allowance on 5X25 series machines (which I am assuming he is pricing)...so some of you guys are a little off on the $300-$600 guess (5% of $50,000.00 is significant). I am not sure what the cash allowance is in Canada is currently.

Also remember guys that cash differnece on what most of you all on these boards are purchasing (CUTS) is MUCH different then AG pieces (especially w/JD) so you have to be careful when making blanket type statements just because your experience was one way. Good luck shopping!

 

[tjkadar]

Heywood up in Ontario was able to get 23% off MSRP for a 5425 in January. His discount was via the Member Plus Program for Equine Canada members. Down here, the USEF and AQHA have similar programs. We were offered the 23% discount via the USEF program but opted for 3 year financing instead.

My experience is limited to those two deals. I'm absolutely positive Nathan knows a whole heck of a lot more than I ever will about John Deere and how they price their equipment. If Nathan says my deal was extraordinary, I believe him.

I always knew it was a pretty good price. I just didn't know exactly how unusually good the deal was.

I bet 23% off is darned near better than what a dealer pays John Deere for the 5x25 series.

 

[EX3200]

Some of the incentive finance deals require the dealer to contribute a portion of the cost to "buy down" the rate. That's why sometimes the low-rate financing is coupled with a slightly higher price.