5 Reasons Why the Faraway Tractor Dealer is Cheaper than My Local Guy

Поделиться
HTML-код
  • Опубликовано: 10 сен 2024

Комментарии • 68

  • @tomedgar4375
    @tomedgar4375 3 года назад +5

    When i bought my John Deere, the local guy was trying to pocket the $500 rebate on attachments, I drove the 125 miles to reward their honesty

  • @jimreitz768
    @jimreitz768 4 года назад +5

    This happened to me last year. Saved $4k on a compact tractor buying it out of state. Local dealer said he couldn’t even buy it for the price I was paying for it.

  • @peacocklandmgmt3719
    @peacocklandmgmt3719 4 года назад +2

    In 2014 I was quoted $8,000 more by my local dealer for a 85 hp cab tractor loader combo than a dealer 200 miles away with trucking included. The local dealer had 2 in stock at 2 different locations. The distant dealer had none in stock and would have to send a build order to the manufacturer. Both tractors were stock with no added options. There was also one other dealer quoting the lower price much farther away.
    After being given my local dealer's quote I couldn't get the entire sentence out of my mouth when I told them I could get the tractor much cheaper somewhere else and the salesman named the other dealership! Never asked what the other dealer's price was and no attempt was made to offer me a better deal.
    In the two previous years I had spent nearly $20,000 on a smaller tractor and attachments and several thousands dollars on parts over many years on the tractor the above replaced.
    I've since purchase nearly another $10,000 in attachments from the far away dealer and have saved another $2,000.
    I get all my parts from the local dealership and have needed field service twice and they always treat me very well,
    Just this spring they were $6,000 higher for the same tractor in the 100 hp version a friend's business purchased. They went with the local deal, but there's other factors involved influencing their decision I'm not at liberty to speak about.

  • @volfanandy
    @volfanandy 4 года назад +2

    Mike, you are spot on here regarding pricing. Compact and subcompact (60HP and below) are very sensitive to all the factors you mentioned. Another reason for discounting may be a result of Dealer Floorplan and age of the tractor. Most tractors are on a “floorplan” program between the dealer and a third party (bank). Usually there are terms like 270 days no interest. After that the dealer may have to begin paying what’s called “curtailment” payments in addition to interest for every month after the grace period ends. Some dealers will discount these tractors to get them “off the books”.

  • @LameWolff
    @LameWolff 4 года назад +2

    Loved #5. I'm a firm believer in dealing locally whenever possible.

  • @lopin890
    @lopin890 3 года назад +2

    Hi Tractor Mike.... live in Oregon, been looking for a 35hp Branson tractor...(no LOCAL dealerships)..closest is ~150 miles away... they quoted me a price for a 2020 Tractor and Bucket... I kept checking other dealerships around the country.... found a PACKAGE DEAL in a southern state dealership (been in business 30 years) that includes a 2021 Tractor, Bucket, Brush Hog, Box Blade, dual axel trailer with ramps AND SHIPPING for almost 2k less than the dealership in Oregon quoted for JUST the tractor & bucket .... WHAT???? I KNOW, CRAZY !! (plus, the tractor has a 6 YEAR WARRANTY!!)
    REALLY GLAD I DID DUE DILIGENCE BEFORE MAKING MY PURCHASE!!!
    🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸Bottom line....RESEARCH, RESEARCH, RESEARCH!!!!!! 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸

    • @MikeDPlxztc
      @MikeDPlxztc 3 года назад

      I'm looking for that same tractor I'm in North Florida do you mind telling me where you got it please? Oh and if you could how much did you pay for that package deal?

  • @gregb2144
    @gregb2144 4 года назад

    Good points on buying local! In my area dealers ,whether auto,ATV,or tractors have firm prices. Example is my Honda ATV. Received email from far ATV dealer , then called my local Honda ATV dealer and asked if he would match or come close to the price? After giving the price ,his response was " i can not match those guys in Mississippi , i'm in south Louisiana. He knew from my price where the other dealer was from! His best offer was $1,000.00 plus higher! Local guy wouldn't budge from his price. My local guy asked to be considered for service, parts when i needed. So call to Mississippi dealer and off I went! Three hour drive and 180 miles one way!
    i do buy parts from the local dealer when needed. Like set of front CV joint boots and oil and filters for my 2010 ATV. Very reliable product, low maintenance.

  • @justadbeer
    @justadbeer 3 года назад +1

    The difference between the two dealers I priced our new B2650 at were quite a bit apart from each other. So much in fact, that it covered the cost of multiple implements (almost) We got that tractor with a land plane, pallet forks, and a tiller. The higher price guy wanted me to come back and give him a chance. We said no and went with the local guy who gave us the great deal

  • @jimpikul8551
    @jimpikul8551 4 года назад +1

    Real valid points, Mike. Thanks for posting. And when push comes to shove, the local guy is a lot easier to tow to then someone in a different area code.

  • @johnmedlin5894
    @johnmedlin5894 4 года назад +1

    Great explanation Mike, thank you for sharing your knowledge. I did just that, bought from my local dealer simply because they are local, he provided great customer service, and excellent service after the sell. He went out of his way to find me the tractor that I wanted because he didn't have it on the lot.

  • @ramitchell1054
    @ramitchell1054 4 года назад +2

    Hey Mike. A lot of what you said is true, but haggling giving the purchaser a sense of satisfaction is total BS. Having to haggle in order to get a fair price only gives the impression you are dealing with an unethical dealer. In today’s world, the buyer knows a fair price up front. When the dealer offers a higher price, the buyer is automatically convinced the dealer is trying to cheat them. There is no satisfaction in arguing a dealer to a fair price. I bought a new tractor last month. My wife asked the local dealer (20 miles away) several months ago if people negotiated on price. “Oh, no. The quote is the acceptable price.” When we bought, I got a quote from them and a dealer 46 miles away. The local dealer quoted less than they did several months ago, but still higher than the more distant dealer. There was no haggling, I dealt with the honest dealer and got great service. My neighbors had also all bought from the distant dealer. It’s hard to believe that trying to fleece customers is a great business model. Low price and good service drives volume which increases bottom line profit. Some dealers get it. Others struggle.

  • @swampwhiteoak1
    @swampwhiteoak1 4 года назад

    One more possibility is the same model and features, but in a non-current inventory model. I bought the same exact tractor watching the calendar and the dealer offered this option for a tractor that had been placed in inventory at a different dealer where they had no demand for this model. It was only a few months older than what was on my dealer’s lot. I saved an extra 5% off of our already agreed price. The dealer made a little extra too.
    I told my dealer in advance that i wanted to buy the tractor right after Christmas and have it delivered before the end of December to put it into service in that calendar year. The money earned interest all year, but the tractor sale is credited for the same calendar year for depreciation and expensing.
    And yes, I have a great relationship with my dealer.

  • @mattcanfield6384
    @mattcanfield6384 4 года назад +1

    When I bought my Kubota L last year the high volume dealer neatest me were way cheaper than local 1100 $ to be exact worth the extra drive for me another good video thank you Mike

  • @MLJenkins
    @MLJenkins 4 года назад +2

    You should do a video on how to negotiate the price of a tractor if it is industry standard practice to negotiate. I personally hate negotiating, just give me your best price and if I like it I’ll buy otherwise I’ll get a quote from someone else.

  • @donniebargo964
    @donniebargo964 3 года назад

    You were talking about the low end or high end tractor models. I have found that the simplest ones usually give less problems. Less stuff less trouble

  • @DougFrantz
    @DougFrantz 3 года назад

    I work in the auto industry in sales. We see these too. Do you see any of the following?
    Advertising done with all available rebates vs general rebates. If you get a discount for being in different organizations... do you use that in the ad price and work back up or without and add too... different strategies ... but effective for people just shopping online before calling.
    Destination charges: Some states allow dealers to advertise without the destination charge, others require it. It doesn't matter if it's included with MSRP... it can be added to advertised prices even after being shown as a discount.
    Prep fees... do you include the cost of setup in the advertised price or add a prep fee at the end.
    Finance press... some dealers sell cheap but then work hard to mark up rates or push warranties with higher than normal mark up.

  • @garrytalley8009
    @garrytalley8009 4 года назад

    Very informative and on the money. Myself I always buy local or close by with a dealer with and excellent service record. Luckily the dealer I deal with is a pretty high volume dealer with a good location just out of the city limits. The sales manager is very good and always helps choose the right attachment for the tractor. Not so with some of the other dealers in the area. You should buy where service is good because they will service you better if you buy from them. But not all dealers even service the people they sell to all that good. Beware. Good video as always.

  • @doghouse416
    @doghouse416 3 года назад

    I just bought a 6075 from another state, I saved over 2 g's in sales tax alone, and since my local dealer treated me like I was not important enough to answer my questions,....he lost the sale. I also got a 3 year bump to bump warr, and who cares if I have to have them send me the parts, I can fix anything, and if it's catastrophic (which I have only seen from misuse) I can load it on my semi and take it to them.

  • @MyClutteredGarage
    @MyClutteredGarage 4 года назад

    Great info. I only priced between two local Kubota dealers and they were within $100. I actually bought from the higher priced dealer even though they wouldn’t budge $1. Thanks for the great content. -Ed

  • @gwtill
    @gwtill 3 года назад

    What do you mean, there in no Santa Clause??? He bought me a new iPad. 😂

  • @semco72057
    @semco72057 4 года назад

    I purchased a new tractor in 2002 and it was part of a deal which the dealership locally had going on at the time and for that reason I ended up buying from them since I got a trailer, box blade, and bush hog with the tractor. When I went back to the same dealership to buy another tractor there was no deals and I ended up paying much more just for the tractor alone with no attachments. I purchased the other attachments from this company because of the deal I got from them the first time I dealt with them and how I was treated.

  • @wildbill23c
    @wildbill23c 3 года назад

    My local dealer is a high volume dealer, so he's got lower prices than a dealer 30 miles away just due to his sales...this past year has been horrible, been trying to get a Kubota BX tractor but they haven't had any in stock to go check out, they're selling faster than they can prep them and get them out on the lot, as soon as they get one, get it prepped its on a truck and headed to a customer LOL. Now is NOT the time to buy.

  • @chevyon37s
    @chevyon37s 4 года назад

    Can’t blame the guy for going and buying a John Deere baler. He ended up with a better baler in the end!
    A $2500 price difference in a week from what you were quoted from the same dealer just feels so scummy as a customer. As a dealer I would have let the customer know, but tried my best to honor the quote price. Also tried to let the customer know that the price could/ will change when the promotion ends very soon.

  • @thehobbytimefarm4049
    @thehobbytimefarm4049 4 года назад +4

    It just amazes me at the lack of customer service that you get these days.... I went to S&H Farm Supply in Rogersville with the purpose of buying a hay Tedder , I have bought there before (a new Polaris and Hay Rake) went to the salesman that sold me the Polaris (the hay rake I bought from another salesman cause the salesman that I bought the Polaris from was not there)after waiting an hour to talk to him He looks at me and says " why don't you ask the other salesman that you bought the rake from" I'm not going to play petty games with them so I left and will take my money else where someplace that wants my business. SORRY S & H Farm Supply but you just lost a customer !!

  • @RockhillfarmYT
    @RockhillfarmYT 3 года назад

    Been binge watching your content
    Well done

  • @comlbbeau
    @comlbbeau 4 года назад

    A tractor purchase, at least for me, is a long-term proposition. A few hundred dollars difference amortized over the time I own a tractor is practically nothing, so unless there's a drastic difference in price I'd go with the dealer that I feel most comfortable doing business with.

  • @stevenandrews6627
    @stevenandrews6627 3 года назад

    Very useful information.👍

  • @cogentdynamics
    @cogentdynamics Год назад

    Wow, great insight!

  • @RockhillfarmYT
    @RockhillfarmYT 3 года назад

    Just heard you say southwest Missouri. Are you in the Springfield area?
    I’m near Joplin

    • @TractorMike
      @TractorMike  3 года назад

      Yes! Thanks for watching! I jumped over to your channel and it looks like I need to take some time to watch your videos.

  • @bobdavis6103
    @bobdavis6103 4 года назад

    When I bought my tractor it was from a large volume dealer some distance from where I needed it in North Florida. While local dealers have been responsive they always ask if I bought it from them which makes me think I would have been treated a little better if i had.

    • @loerber
      @loerber 3 года назад

      In my experience it's usually it's so they can just look up the model/serial number etc easier in their computer...

  • @jimputnam2044
    @jimputnam2044 4 года назад

    Mike you did only touch on the warranty end of it. I worked at a car dealer for a long time and you don't get rich doing warranty work, so if you sell to far away people they can get warranty at any dealer, they do not have to go back to where they bought it. So we get the sale and someone else is left with warranty claims.

    • @seabrookthemagnificent9580
      @seabrookthemagnificent9580 4 года назад

      Well, that explains it. I recently purchased an 8 ft flail mower via the internet from an outfit called WOODMAXX. The unit came with a 2 year warranty on the typical defects in material and workmanship.
      The mower was cheap in price, and I got what I paid for. When I tried via phone, e-mail, and posted letter to get a replacement for a failed part, the company would not respond. I managed to get a welder to make a modification that now works okay, but I tell ya, I will
      only buy agricultural equipment from a local dealer from here on out. Even if it costs a lot more.

  • @hugostiglitz8465
    @hugostiglitz8465 4 года назад

    Hi Mike, nice video. Actually Kubota does mark their tractors with the year and month..look at the engine serial number on the first two digits. Mine starts with an "a" indictating year 2010 and "s" for September..just gotta look into things

    • @MessicksEquip
      @MessicksEquip 4 года назад +1

      Engine sn does not correspond to the tractor year

  • @stumppiler1002
    @stumppiler1002 4 года назад

    Good, honest information.

  • @joshuabeemer4062
    @joshuabeemer4062 2 года назад +1

    How about #1:
    Some dealers are just greedier than others...

  • @Mr3030man
    @Mr3030man 4 года назад

    Competition affects price, but in my state there is no sales tax on agricultural equipment.

  • @hphillips7425
    @hphillips7425 4 года назад

    I made an hour drive and got a better price. I also found out my local dealers were each holding back on 2 factory rebates.

  • @phillyfathead
    @phillyfathead 4 года назад

    Always great info!!!

  • @lowercherty
    @lowercherty 4 года назад

    Where I live, 80 miles away IS the local dealer. Not many farms around here.

    • @lowercherty
      @lowercherty 3 года назад

      Found out the local Cat dealer, 5 miles away, sells Massey Ferguson through Agco, but he's set up to work on things like 240 ton mining trucks.
      The nearest Kubota dealer (70 miles) is primarily a Bobcat dealer. The nearest JD dealer (75 miles) sells primarily lawn mowers and Polaris toys.

  • @michaelthompson7570
    @michaelthompson7570 4 года назад

    good tutorial here!

  • @alanross3435
    @alanross3435 4 года назад

    Hey Mike, So I take it there is no MSRP sticker on new tractors?
    What is the bottom line a dealer has to make on a compact tractor? Great video as always thank you bro!🇺🇸✌🏻️

  • @WestKYCrappie
    @WestKYCrappie 4 года назад +1

    Hey Tractor Mike, I have recieved a 4 foot brush hog and when I went to change/fill my gearbox oil, I found it had grease in it and not oil. Can the brush hog gear box be run with grease and not oil?

    • @danstevens2204
      @danstevens2204 4 года назад +1

      Some are filled with a type of grease that turns into liquid when it warms up (when in use) you’ll find it in other gearboxes on agricultural machinery as well.

  • @robertoswalt319
    @robertoswalt319 4 года назад

    Great video explaining some of the rationale used by dealerships in selling their products.

  • @ccthepope
    @ccthepope 4 года назад

    I hate haggling prices!

  • @d.a.ballou9740
    @d.a.ballou9740 4 года назад

    I would also think that the far away dealer might be figuring that he will never have to work on it because the owner would probably go to the local place for service. Therefore maybe the price would be cheaper. What do you think about that Mike?

  • @mikeflieg155
    @mikeflieg155 3 года назад +1

    Does anybody ever wonder why their local dealer is cheaper?

  • @daveschmidt5713
    @daveschmidt5713 3 года назад

    Which compact tractor brands have the shortest delivery times?

  • @oldretireddude
    @oldretireddude 4 года назад

    Would there also be a different shipping charge between dealers in different areas?

  • @frediebuwang1049
    @frediebuwang1049 4 года назад

    thats a burn for all the ads

  • @stephenbeard9882
    @stephenbeard9882 4 года назад +1

    Mike, looks like you haven’t been able to get a haircut either. I’m about to shave mine off.

  • @cjselby651
    @cjselby651 4 года назад

    You never know when you may need warranty work. I bought a Kubota last fall and was all excited to get working on it this spring. In April I received a letter in the mail informing me of a recall and to stop using it. My brand new shiny tractor sat in the barn for a few months while my dealer waited for parts. When looking for my Kubota I got in touch with all of the dealers within 100 miles of me. The closest would not deliver for free and had no give in price or anything. The dealer I bought the tractor from was just a bit further out and has been awesome. They delivered the tractor for free, when I informed them of the recall they kept in touch while they waited for parts then when they got word the parts were on the way they came out and picked up the tractor. I could not imagine how this would have went down if I had a dealer far away. Am sure a local dealer would have helped but glad I didn't have to go through that. When they were done with the tractor the service dept manager called to inform me it was on the way home. I wanted to save money when I was first looking and thought about a dealer quite a ways away but am glad I didn't. I never thought I would appreciate a dealer as much as I do now as I thought soon as I bought the tractor that would be the last time I would visit them unless it was just to pick up parts.

  • @KrazyKajun602
    @KrazyKajun602 4 года назад +1

    Mike I have a question, I priced a tractor brand X and he wanted $23k for it and it had either 3.99 or 4.99 financing, but if you got the 0% or .99% then the price was $27k. I have never heard of this, I had never had to pay more because I got 0%.

    • @tomedgar4375
      @tomedgar4375 3 года назад

      Happens all the time in the car business, similar to paying points on a home loan.

    • @jiemda3
      @jiemda3 3 года назад +1

      Its smoke and mirrors. I opted for the interests rate and payed off within a year. Payed less than the 0% interest scam.

  • @terrycastor8299
    @terrycastor8299 4 года назад

    Mike, just because one may buy from a non-local dealer doesn't mean all service and warranty work has to go to the original dealership, does it? What if one moves a hundred miles from where the tractor was bought?

    • @carlpeterson7218
      @carlpeterson7218 4 года назад

      This is part of the "burning bridges" issue that Mike talked about. Yes, a local dealer can and does often work on a tractor bought non-locally. However, when someone buys the tractor 200 miles away because of the price and then takes it to the local guy for warranty work, the local guy isn't going to be too favorable to working on it, in part because warranty work is often a break-even proposition once reimbursement sets in. So if the local guy didn't make money on the original deal and the customer isn't "his" customer to take care of, he has an opportunity cost vs. doing cash work (and making more money on the transaction) or taking care of his own customers (which has a long-term value for their next purchase).
      So yes, in theory the customer can take the unit to the local dealer for warranty. And most dealer agreements require dealers to do warranty work on the brands they sell, so most dealers won't outright refuse to do the work. However, you'll probably find that warranty work for non-customers goes to the back of the line.
      As far as moving, I think dealers are usually more considerate of that situation, but all of the above could still pop up if the selling dealer is one who frequently causes issues for the now-local dealer.

  • @RagsdaleCreek
    @RagsdaleCreek 4 года назад

    👍👍👍👍👍
    God bless Stay safe

  • @davidparadis490
    @davidparadis490 3 года назад

    Shame on the dealer if he doesnt ask the customer if he's financing...also, if you're financing through your own source, you are a cash buyer for the dealer.

  • @dustyvanbrocklin4731
    @dustyvanbrocklin4731 4 года назад

    It’s just like a car dealership

  • @brucealvarez9263
    @brucealvarez9263 4 года назад

    Tractors, cars no difference. The dealer knows how much they want out of the deal. You get a discount on the new and the trade in is priced low. Or the trade in gets priced higher but the discount on the new is less. The buyer still parts with the same amount of money.
    Sales tax can be interesting. In VT if you pay less tax in another state than you would in VT you owe VT the difference.