Jeanne - Simme Valley":28cd3mbj said:
Bez - rent, huh? What a great idea!! hadn't heard that before. Not sure if it's done around here, but I'll check it out. Been doing some phone calling checking on the TL70. They moved it to their dealer that's lots closer AND they lowered the price to $19 - looking a lot better already! I know someone who WORKS at that dealer - so I'm putting a call in to him.
I used to run a pretty big CASE IH outfit in Alberta a lot of years ago - we would rent out tractors to serious buyers - not lookie loos.
You learn who is who in the zoo pretty quick.
If they liked it and bought it we subtracted the rent money off the purchase price. If they brought it back we reduced the price of the tractor by a portion of the amount of rent money we made.
We always made more cash money on rent than we did on re-sale - so we liked to do this.
Used to move a lot of tractors - especially the used stuff. The real tough equipment would go to auction if it sat in the yard for more than four months.
The way the economy is today you might be surprised at the deals you can wrangle. Use your imagination.
To a sales guy on a small basic salary, a draw (he might be in the negative) and around 2.5% commission, a sale is a sale is a sale. He might even help you a bit with some ideas. All you have to do is ask!
Real small dealers may not have a floorplan financed by a major credit company - they may buy and sell out of their bank account. But the big boys play with finance companies - they do not like to use their own money - so, the more used equipment in the yard, the more finance charges for long term "in the yard" pieces. They are expensive and need to be moved.
True triple net profit on equipment is not as high as people think - they need to move equipment to keep the cash flow going. In tough times the major players put out some pretty good programs for the dealers - lots of behind the scenes discounts. You might ask about any new programs coming out from Case, NH and JD for new equipment - sometimes the dealer will pass them on - sometimes not.
Never hurts to ask about "programs". If they play dumb - get up and walk out - you do not want to deal there - no matter how good you think they have been in the past.
If a tractor has been sitting in the yard for more than six months - depending on the Brand - good chance the dealer is paying some sort of financing on it - he will want to move it as it is costing him money. If you see a lot of pics of tractors with grass around them in the advertisements next spring - just after the snow is going - you know he will be getting hungry to move them. They sat there all winter and cost him money.
Have fun
Bez+