Trading 1026R for new 1025R?
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    Pedals2Paddles's Avatar
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    Trading 1026R for new 1025R?

    I've had my 1026R for a year now. It's been a workhorse and I've gotten a lot done with it. But I'm getting a little tired of fixing other people's problems on it. I really didn't know what to look for when I bought it used. If I knew then what I know now, I would have passed on it. The price was good, but one little thing after another is kinda negating that. I could keep it and drive it into the ground, but then it will be worth nothing. So I'm thinking about trading it in for a new 1025R. That way I have a clean slate and nobody else's neglect to keep fixing. So anyway, I've emailed 3 of the area dealers for pricing. Heard back from two of them.

    WTF is this dealer participation / market development fee?

    One of the dealers has the tractor for $12,000 and the other for $13,250. Both have the 120R loader coming in at $3800 including setup and fees. And both have the 60D with mulch kit coming in at $2800 including setup and fees. List price for the tractor, loader, and mower is $20,040. So out the door with all fees and discounts before tax I'm getting at best 7% off list. Seems crappy when I've read about people getting 10-15% off list.

    What room do usually have to debate and haggle?
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    rtgt's Avatar
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    Quote Originally Posted by Pedals2Paddles View Post
    WTF is this dealer participation / market development fee?
    What I understand is each dealer has a market area. Based on your address if you are not in that dealers market area then certain incentives cannot be applied to the deal.

    To me it sounds like it is something JD does to prevent us from "shopping around".

    Someone else might be able to better explain it.


    As far as the trade, you'll have to weigh what you figure the maintenance / repair costs of your current tractor are compared to the cost of a new tractor.

    Certainly worth at least looking at the numbers.

    Maybe you could wait till after the season starts to dwindle and they still have machines to move before the new ones get there.
    jdforever and PJR832 like this.
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    Their fiscal year ends at Halloween, so the next 2 months will be your best time to buy. They need to move out stock and they have more incentive to give you a good deal. I ended up with aboutb17% off on mine last year and I dont feel like any amount of dealing would have gotten me any more. This year the same dealer is sitti g on a TON of 1025r models. The problem is that I am prici g a 2025r and they may not be AS willing to flex on somethi g so hard to find. I think youbare in the drivers seat. Dont be afraid to shoot low but be prepared to sign if they take it.
    Ray
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    martincom's Avatar
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    Depending on how much Ag market your dealers have, that will impact price. Such as what price point futures, grain and corn are trading at. If the price is down, farmers will not be purchasing new equipment and this will make dealers and their sales people hungry. Likewise, to a lesser extent, the time of the year, whether near harvest or planting.
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    coaltrain's Avatar
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    I know I am old school with a lot of things but I feel you would do a lot better face to face rather than with email. These dealers probably field dozens of emails like yours every week. How do they know who is serious and who is not? I bet they get a very low response rate from these people so why waste time working up a good deal?

    Even a phone call. It seems everyone and their brother has a phone in their pocket all the time - why not use it?
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    Pedals2Paddles's Avatar
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    I was going to stop by the closest one on my way home from work today or tomorrow. I know they have stuff sitting on the lot that wouldn't be ordered from the factory. So I suspect you're right about maybe doing better in person.
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    I'll chime in with my 2 cents. I would clean your tractor up and take some pictures, including the hour meter. Hopefully your phone or camera posts the date the picture was taken. Negotiating doesn't get any better than face to face. In central Ohio, a 15% discount is easily attainable. Do your homework before visiting your dealer. Know what your trade is worth, or at least know what you are willing to take, and being prepared to buy on the spot is your greatest asset.

    Good luck and keep us posted.
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    I emailed three different dealers for quotes when I was looking. Two of them never bothered to respond. I bought mine from the one who did. Now the salesman that got back with me even said they get a lot of tire kickers, but it paid off for him. When you snooze, you lose. I do the same when I buy cars now. I think they are a little more motivated to give you a decent quote to get you down to the lot in person in my opinion. Then when you get there, if they give you static you whip out the phone or online quote on them.
    Last edited by jimmylh; 08-20-2019 at 12:38 PM.
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    A couple things I found out. I have a cousin that was the manager over several JD dealers and he gave me some info when I was buying my Z950R.

    I went to the local dealer (part of a chain) a couple miles from work. I never entertained the dealer (standalone store) a couple miles from my house as they burned that bridge with me. As I later found out this was fine as I would have wasted my time at the local dealer. The on part of a chain owns almost all the dealers in 60 or so miles from me except the one near my house. If I went to one of them and tried going to another store, they would just pull up my quote from the first store and give me the same price. So it didn't matter what dealer I bought from. They also transfer machines between stores. Once I had an initial quote I called my cousin.

    My cousin being the manager over several stores (different chain though) could also pull from any of the stores. I told him what I wanted and who I was working with but didn't share the quote at that point. To get one from my cousin's closest store would have been about a 2hr trip each way. He gave me a call back with a number and it was a bit higher than the chain price near my work. I told him the figure that I had a quote for and he said, "Yep, you got a good price go buy it there because it is below my cost." In the end I went back but beat him up a bit more on the price and got it a little cheaper yet.

    From talking with my cousin he pointed out a few things to me. There are different types of JD dealers. You have the big AG operations in corn belt like the chain that my cousin works for. They sell combines and big tractors. This little stuff and even the commercial mowers are little to none of their business. He said in the Z9xx line across all their stores, over the previous year they sold maybe 10 of them. Of those most were probably thrown in for free so some farmer that came in and bough 5 brand new combines and wanted a new fancy mower that was green so it matched his tractors and combines. That is his market. Then you have dealers that are in the suburbs that specialize in smaller X Series and may be the smaller ZTraks. That is what the dealer close to my house is. They might have a 1 series but most is the X3xx, X5xx and X7xx as that is what they sell along with some of the smaller ZTracks but those are rare. The dealer chain that I worked with is one that he knows. They specialize in a little bit of the AG stuff in some of the stores but many are in the hobby farm belt a little out of the big city. So they have a lot more 1, 2, 3 and 4 series machines. They also have a major contract with a ton of golf courses not only in MN but most of the 5 state area. They are huge in lawn cutting. They also have a lot of commercial mowing operations as well as cities and counties that buy mowers. I commented that I knew that about the golf courses and that the sales manager I was working with happened to mention he just ordered another 125 Z9xx machines but if I went with a new order it would go in on the next batch as those were all sold. My cousin just laughed. He went on to say that is why he can't touch the price that I was quoted. John Deere sells machines to dealers based partly on volume sold. I don't remember if he gave me exact break down on volume but lets say a dealer sells 1-25 units, they pay one amount. 25-50 then they get a volume discount and the per unit price drops. This dealer chain is selling hundreds of these units and that pushes their prices way down to where there is no way he could possibly compete. Then he said, if you want a combine, I could probably beat his price.

    So, the point is a couple fold. There are computers so if you are shopping between dealers that are part of the same chain, you are likely wasting your time. They will just print off the same quote you got at the first dealer rather than taking the time to spec everything out. Unless you go in and give them a false name. If they are a different chain then go for it. If you are down to two dealers and one is full on AG stuff you probably won't get as good of a price compared to one that is in that hobby farm belt with lots of 1, 2, 3 series machines. Get too close to the city and the price will likely go back up as they are going to move more X Series stuff than 1 or 2 series. Look at what they have on the lot and the one that seems to have that volume in the SCUT and CUT is probably the best bet for the best price. After all that it comes down to incentives that are ongoing. There seem to be some that are seasonal. You could also get lucky and your sale might be the one that pushes them to the next level in that buying volume discounts. Of course no way to know that. But either way, the dealer that sells the most of the desired machine, can get the best price. I also don't know how loosely they package the volume discounts. For instance do both 1 and 2 series machines count toward the volume discount? There isn't much for options in the 1 series machines but look at how many different machines fall in the Z9xx. You have the E/B, M and R then all the different engine and deck sizes. If 1 and 2 were combined, what is it 5 different models? If each series was separate then 2 different machines in the 1 Series and 3 in the 2 series. If that was the case it would be hard to hit volume discounts. Not sure about that.
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    rtgt's Avatar
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    Quote Originally Posted by sennister View Post
    There are different types of JD dealers. You have the big AG operations in corn belt like the chain that my cousin works for. They sell combines and big tractors. This little stuff and even the commercial mowers are little to none of their business.
    Bingo.

    I had a dealer a couple miles from my house in TN. I tried to trade my 2305 on a 2720. They wouldn't give me the time of day. Wouldn't even give me a price on the trade. Flat told me they didn't want it.

    Find a dealer that has lots of 1 & 2 series tractors.
    Taking the easy way is what makes rivers and men crooked.

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