Can You Negotiate When Buying a Tractor?
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- čas přidán 24. 07. 2024
- Can you negotiate when buying a tractor? The answer, a couple of years ago during Covid, when demand was high and inventory tight, was "no". But that's all changed. 3rd Quarter tractor sales numbers are out from the Association of Equipment Manufacturers and we're starting to see an inventory problem in small tractors. So, especially with the time of year it is, I would think that dealers will be motivated to negotiate now, more so than any time since 2019.
The numbers tell us that under 40 hp tractor sales in the U.S., through three quarters, are down 11.2% from last year. Of course, last year, the supply chain was still getting back to normal. If you go back and compare to the last year before Covid, 2019, we've seen a dip in demand and an increase in supply. In 2019, there had been 130,616 compact tractors sold year to date, this year we're at 125,047. Beginning inventory in September was 89,653 in 2019, it was 97, 269 this year and starting to be a concern.
We see a similar trend in the 40-100 hp tractor market. Sales through the 3rd quarter are down 7.7% from last year to 45,660 units. Compare that to 2019's number of 45,040 and we're actually up in sales of mid-range tractors. Inventory is at 39,961 units this year, compared to 34,170 in 2019.
Sales of tractors over 100 hp are up 7.7%, articulated tractors are up 43.3% and combines are up 25.3% from last year. Sales of anything related to crop production are brisk, and inventories, if anything, are low.
Which brings us to our question today, can you negotiate when buying a tractor? If I were a dealer for small and mid-range tractors, I'd find a way to try to nail down every customer that came in my door right now, especially considering the slow times for small tractor sales are November, January and February. When we roll around to the spring rush, if dealers are not aggressive, they could be looking at some aging inventory. We may not be in a full-blown buyer's market yet on compact and mid-range tractors, but that's definitely the direction we're headed. If that's what I was shopping for, I'd search until I found a dealer who was willing to negotiate!
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Your spot on, my father had a great relationship with an IH dealer from the late 1940’s after he returned home from the Pacific.
That dealer earned my fathers trust and kept that relationship and trust till his health failed and he eventually closed his dealership in the early 1980’s.
My dad bought numerous equipment from him and also trusted the parts and mechanics there.
Those were the good days.
I just purchased a used 3 point blade. I found it on-line 450 miles from home. It was just what I was looking for, in excellent condition and priced fairly. I already had a trip planned that would take me within 100 miles from where it was located. When I got there, I didn't even try to negotiate. It was a fair price and I had no leverage. He knew that I had just driven 100 miles out of my way and was looking at another 100 miles to get back to where I was. Driving 200 miles extra without a purchase because I didn't save $50 or $100 wasn't going to happen.
Now if I were looking to buy a new tractor, it would be a different story. Having the knowledge of sales and inventory numbers puts me in the driver's seat when it comes to making a purchase.
Thanks for the video
Good video and lots of good information Mike. You are exactly right about negotiating with dealers. But it’s like a lot things now days… they don’t make good dealers like they use too. I’ve come to realize they don’t make people or anything like they use to. Knowing how to talk to people and being honest goes a long ways. Thanks for the video Mike.
LinemanG
Great information as always!
Good tips. Thanks for sharing.
When I bought my latest tractor, after negotiating with the dealer and got a price I could live with, last thing I said was , “ why don’t you throw on a hydraulic top link in for the negotiated price and let’s call this a done deal”. He agreed and we made the deal! Once you get the best price, ask for something else that is not expensive, but will save you some money! Never hurts to ask!!!!
Mike, you are exactly right. As Zig Zeigler once said "People don't buy from salesmen, they buy from people they like." If you're a salesman and you're not going to work with me even as little as a free hat, then you're 98% surely going to see me walk out that door without a receipt in my hand. And if you get an attitude with me, then I will waste your time right up until the contract and then tell you to shove it. Just something you dealerships out there need to keep in mind. The customers, or potential customers, either keep you in business, or run you out of business.
Good advice Mike. That is one reason I look around and the dealer is the last one I check
Great video Mike!! I have a great salesman at my dealer who I have sent many other buyers too because he does exactly what you talk about!!! And also when I did have a issue the dealership owner took care of it and ate the cost when the manufacturer wouldn’t back up the product that was a known issue
I buy big farm machinery items and yes i do the part to Negotiate for something being a set of front weights on a tractor or new pedal tractor for my nephew . Or some nice hoodies and jackets and a steak dinner , also plant tours and a Milwaukee Brewers Ball game . Each time i tried to get something different to push the dealer a bit on what they could do . And yes the relationship that was built has just came to a close with my current salesman after 18 years just started a lawn mower and grew to millions of dollars in Equipment, Service and parts . But He did introduce me to his replacement today so we will sit down with the new guy and have lunch and get to know each other some. Will be interesting to see if the torch can be carried on
Good advice Mike....thats why I'm still here !😊
Hopefully this means I can get a good deal. Closing on the sale of our first business November 1st and planning on purchasing a tractor with a loader and backhoe and all the implements I need as soon as the check clears. That will be a the best birthday present I will ever get.
Tractors in my area have gone up 30-40% in the last 3-4 years just like in the automotive industry and everything else however most wages haven’t gone up as much. But people are still buying even with the higher interest rates, but not me. I was ready to buy a new tractor this year but there seems to be little wiggle room on price negotiation.
Very good point.
The problem is most of the tractor dealers now are these “mega dealers”. You don’t have a lot of the family owned businesses that care anymore.
Excellent
You are exactly correct Mike. I bought my tractor and every implement I have with the exception of two from my dealer and that was because he did not carry those items. They have always been fair and willing to earn my business.
When I bought in August of 2022 (JD 4052) I ask about dealing a little. They told me to pound sand. said we don't care if you don't buy it someone else will. Since all the dealers in my are are own by to huge corporations, and the other dealer would not call me back, I had no choice. But like you said I buy other things I needed from other places. I will never buy anything from them again.
Any reason you HAD to have a JD? When my dealer wasn't willing to work with me I bought a Yanmar YT347. It's got the same engine as a 4044R, but 6 more PTO HP because the I-HMT is so much more efficient than JD's HST. The FEL capacities are a wash, but the 3PH of the Yanmar is rated for 256 more pounds of lift at 24". The Yanmar dealer was closer and isn't run by a bunch of d!cks who think you're wasting their time unless you are buying a $300k Combine. I simply wanted to see a 2038R early in my search and they flat out refused to even try to locate one unless I signed a purchase agreement and put down a deposit. They don't deserve your $$ if they treat you like dirt.
The only thing there is in my area is JD with in a half hour drive. Hour away you can find Kubota. Was not a fan of those because of the foot pedals @@Noah_E And I was not going to have it hauled hour or more away when service time came.
I've bought many vehicles, including tractors, over the years. In fact, I just bought a truck last month. Day in and day out, the salesman is my best friend. However, I believe one of the points you made in todays video is WAY off base because, when it came time to negotiate the price on that truck, we DEFINITELY weren't friends! I got the truck for what I was willing to pay and we do still talk to each other so, I guess I didn't beat him up too bad lol!
Anyone who doesn’t haggle is a fool.
You don’t get what you deserve, you get what you negotiate.
My Mahindra dealer offered me a price below the website. Maybe b/c I was a return buyer. But it was a good price.👍
Exactly!
Thanks for the informative video Mike!
I was wondering if you have ever made a video on FEL float how to set up and use?
I just found out that my 2005 Kioti CK25 HST has it after 9 years of owning it ( bought used ) 😂 the manual doesn’t say anything about that feature. There’s many youtube videos on the subject, but you’re my go to guy when it comes to tractors ( notice what I did there 😂) anyway can you help a brother out? Keep the videos coming! ☮✌🏻
Hi , Mike does have a video out about your current situation..to make my answer short and to the point.he said it's better to purchase a tractor with attachments that you need already installed, being if parts are available or modifying the tractor if needed to fit the loader that type of things get really expensive fast...hope that helps
@@michaelc9128 Thanks for the reply.
I looked in your index for such a video, I’ll look more closely this time! Alan
If a salesman ever told me that the price is the price I'd tell him the door is the door... and my money is staying in my pocket.
I don't care how on fire the tractor sales are, if the salesman / woman wont negotiate its a bad deal. There is always something that can be done, even if it is free oil and an oil filter, a new branded hat, etc.... When I negotiated my last purchase, the salesman dropped the price on a hot, in demand truck 4%, made 2 small repairs, filled the tank with diesel, and gave my kids each a candy bar. I'll do business with him again, he cared. He made an effort and was honest, he wanted my business that day and in the future.
He made more effort to ultimately loose money from his own pocket.
I agree. I've been on both sides, I grew up inside a dealership my Granddad owned and in later years I've dealt with a bunch of other dealers . First off the sales staff in most of these bigger dealers are idiots, they've been though the sales training but have no real world experience with what they are selling, and an experienced person can tell.
My local JD dealer is the worst. they get a lot of trades in and every so often one of their trades on the lot will spark my interest. Every single time they will have used tractors priced over market and no negotiate much at all, even after you show them they are priced over market. The dealership is owned by a big corporation that has probably 50+ dealerships. The corporate philosophy is to price used tractors however they do (which is based on what they paid for the trade and not actual market) and once a year they will just have a big auction and sell any used inventory that hasn't sold. What happens is their idiot sales people give too much for trades when trying to sell a new piece and a whole lot of used inventory ends up going to auction.
Was trying to get $1500 off a 30k tractor and they want move so I walked away because l already have a tractor so I will just keep the one I got
Any experience with RK tractors? Looking for a 40+ hp tractor with front end loader, box blade, rototiller, grapple and brush hog in the near future.
From initial numbers I’m seeing. They are much cheaper, just wondering if they are made that much cheaper than the bigger brands? TIA.
They're made by TYM and we don't have a strong dealer in my immediate area so I don't have any first-hand experience with them. Sorry to be no help!
Thanks. Figured it was worth a try.
Mike I hear what you say, but in todays world if a salesman, from electronics store to farm tractors are working commission ,the customer is SOL. I never met one yet who would not skin his mother to make a sale..Just saying.
I get tired of getting treated poorly when i am tractor or implement shopping just because I am a gal
How can I get more profitable investment in the market? Is this pump shorts getting wrecked and liquidated, or any indication of whale, corporate treasury buys?
You actually need an expert trader assign by a registered company to help you out. I currently trade with Mrs Nancy Williams Laplace. I think she's the best when it comes to Investment.
Please how do I contact her?
Nancy Williams is the key to robust profits. I'm currently on my fourth trade. Started off with a low and now my wallet unbelievable!
She often interacts on Telegrams, using the user name written below
@Nancy18
That's her username
In this economy no one is coming off the price...
People wanting to live out of town. No clue what they're in for. Buy a tractor, typically not big enough to actually get anything done but " hey, I have a tractor " . Gp back town where you belong 😢