Go BottomNegotiating Price on New Tractor
 | mathews
Join Date: Jul 2003 Posts: 11 Virginia 
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2003-02-22 49769
I've never bought a tractor and wondered what the "dance" is with the dealer for new tractors. Is it like buying a new car, where everything is negotiable and I make a price offer, etc.? The handful of dealers that I have spoken with have quoted my prices when I have been out looking, but are they just quoting me list price? Do I respond with a lower price offer? Will I get a different quote somewhere else? I'd rather buy from my local dealer than save a little by playing several dealers off against each other, but obviously I don't want to give money away.
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| Pacesetter
Join Date: Jul 2003 Posts: 178 Maine
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2003-02-22 49770
There's usually some wiggle room. I would have the dealers give list and sell prices, then compare them. Some value tractors don't have any room to move pricewise. Some dealers are "willing" do deal more than others, but they all need to stay in business. I haven't found it to be the circus you get involved in when buying a new car. You need to spend some time shopping and looking. Soon you will get a feel for where you're at.
Pacesetter ....
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 | AC5ZO
Join Date: Jul 2003 Posts: 928 Rio Rancho, NM 87144 
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2003-02-27 50181
I believe that the NH TC30 and JD 790 are introductory tractors that do not have a lot of profit margin built in. They have done much to get these models down low in price. The other NH TC models do have some room for negotiating. You can always get a bigger discount by buying more equipment at one time in a "package deal."
There are some special discounts offered by some organizations. You can get a tractor for ~invoice+5%. NH tractors are descendants of the Ford line and Ford still has a deal called the A-plan where you can get a tractor for "invoice" and the dealer gets a 5% stipend from Ford for his trouble. To get this "Ford" discount, you have to have a paycheck stub that definitely shows that you are a "Ford Motor Company" employee.
Invoice is not the final price that the dealer pays for the tractor, so there is even some more margin built into that price. At the end of the year, the dealer's volume is calculated and a "volume discount" for the amount of total sales made during the year is defined. I do not know what the current numbers are, but this discount could be another 10% for a high volume dealer.
I used to sell NH, Ford, Allis Chalmers, and other farm equipment. It is not an easy business and the profit margins are not likely to make you rich, although you can make a living. The art of the deal is to find the price that the customer and dealer are both happy with.
One last note. I made more profit margin on used equipment and service than I did on new equipment when I was in this game. I got out because I finished a college degree in engineering and changed careers. ....
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| Jeff Earthwerks Unli
Join Date: Posts: 1
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2003-02-28 50274
I agree with AC about the Ford A-plan discount---that's why I bought my TC33D with Super Steer and svaed about $3800 over retail. The only thing I don't agree with is the "+ 5%". My dealer, the owner actually, wrote mine up and he showed me his dealer cost sheet, which is supposed to be "factory invoice" NOT "dealer invoice" which can be anything the dealer wants to make it. The dealer holds back 5% or gets reimbursed 5% for the total sale minus taxes.
New Holland allows only factory invoice pricing. The A-plan also applies to New Holland implements over $1000 so I'm told.
Does any body know if the A-plan covers "non-blue" stuff like skidloaders--dealer says "nnooooooo"! ....
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| AC5ZO
Join Date: Jul 2003 Posts: 928 Rio Rancho, NM 87144
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2003-03-01 50319
Perhaps I was not clear. What I was intending to say is that it is not hard for anyone to find a 5% over invoice deal on a tractor. The reason that I mentioned the Ford A plan is because the dealer will make a deal where his profit is the 5% payment that he gets from New Holland.
The invoice price that I was referring to is the factory invoice price, if you prefer. Factory invoice is the price before dealer volume discounts are applied. ....
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| AC5ZO
Join Date: Jul 2003 Posts: 928 Rio Rancho, NM 87144
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2003-03-01 50320
I am pretty sure that the A plan does apply to large implements like backhoe attachments and so forth as long as it relates to the tractor line. I do not know if it applies to the NH industrial line, but I suspect not.
The reason for the A Plan in the first place is that NH bought the Ford tractor division. NH already made hay handling equipment and the skid steer loader before that deal. During the deal, Ford negotiated a continued benefit for their employees in the A Plan purchase option. This plan may only apply to the former Ford items which would be the tractors in the NH line. ....
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