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Dealerships
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150pilot
Posted 9/14/2024 08:03 (#10889807 - in reply to #10888719)
Subject: RE: Dealerships


New London, Wisconsin
c_mayer - 9/13/2024 07:11

Jim Beam - 9/13/2024 08:06

That usually happens when you have an unrealistic value for yours or it's something that has a very limited market.



I will disagree...2 large dealership chains in this are have year limits for anything they will consider on trade. No consideration for what it is, just a model year limit.

We once took 9 units on trade for a new seed tender because the local Deere dealer wouldn't consider any of them, individually or the lot, so we were glad to do it...and what's even better is the Deere salesman and store manager SENT a customer to buy the highest priced trade in seed wagon from us a day later. We laughed a while about that one!

Their loss, I would rather have a whole lot full of cheaper trades, 10 year old combines and tractors, hay, tillage, etc than I would 25 3 year old combines...but what do I know!!
Chris


Chris is right. But there is also another factor. For easy math let's say you buy something for $100,000. The dealers machine invoice, freight, interest, and dealer setup add up to $96,473.21. If he skips your trade, he has cash flow. If he takes your trade, he needs to finance it to keep it on his lot. Nobody likes to pay interest, especially at current rates and declining values. Equipment that has a birthday on a dealer lot costs more than they can ever get back. For him to want it, he needs to sell it within 3 months at a good profit. Most buyers know what items are worth, at least at a retail level. Rather than argue holding costs, sales commissions, and lot rot. (it doesn't look as nice as when it came in) which all add up. It's a lot easier to say no thanks to trades.

To Chris's point. When I sold equipment years ago, I made more on the trades than I did on the original sale. But you can too if you really learn your market.

I personally can only think of one time I ever traded anything in. A car. I normally sell stuff myself. Yes you have tire kickers with ridiculous offers but I just weed them out and move on.

Jim
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