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Oregon | Generally, it works one of three ways with multi-unit deals around here.
1. The dealer wants to move units, so he will estimate the number of hours the used units will have when the new units arrive- and he takes the risk of underestimating hours or missing the date of delivery. Generally, because the used units are sold- outfits will run them hard until they leave. This incentivizes the dealer to deliver new units ASAP and pick up the used units.
2. The multi-unit deal specifies the estimated hours on each used unit at the time the new units arrive and includes a $/hr. adjustment for the actual hours at time the new units arrive.
3. If trade values soften / the chain dealer is trying to push down trade value by controlling all of the franchises around you, some of the multi-unit customers have shifted to selling their used units directly to their neighbors and not trading anything. This set-up works out well if the neighbors want the units because the farmers - and not the dealers, benefit from the transaction margins. | |
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