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Question about dealer "buyback"

Discussion in 'Business Fundamentals' started by D Industries, Nov 16, 2012.

  1. D Industries

    D Industries Junior Member
    from Ohio
    Messages: 15

    Just had a question, and I'll try to keep it short.

    My boss bought a Kubota RTV1100 from a dealer where a friend of his was a salesman
    This was not the closest dealership
    The closer dealer found out after we ordered basic service parts and was irate
    They then offered to take our RTV in on a trade in on a new model (ours had 50hrs, new 3hrs)
    They even offered to pay for the first service and switched over all the lights, turn signals, flashers, and plow wiring and mount that we had put on. ( yes i checked the serial number and other things over thoroughly!)

    Anyone have any insight as to why they would go to such lengths to do this?
    Besides advertisement as their name is on the side or Kubota HQ being picky about dealer territories, I have no idea. Just curious.
     
  2. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    they need that machine to come in for service or trade and then they are going to get paid the commision the other dealer made on the sale. The other dealer pays this not kubota. Its selling outside your territory, costs the dealer if they get caught. There is a time frame when it expires....say after 90 days the first dealer wont have to pay out if he is caught.

    Its b.s. I would tell that 2nd dealer to go pound sand and stop trying to be a snake.
     
  3. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    Protected territories......oh boy dont get me started!

    I drove for 60 hours non stop to save almost 40 grand on a excavator. My dealer tried to tell me i wasnt allowed to buy it. The next time a dealer tells you " we only make a few grand if that on this sale" call b.s
     
  4. D Industries

    D Industries Junior Member
    from Ohio
    Messages: 15

    But what was the downside of trading even for a new machine?
    It had that 'if it seems too good to be true it is' but we couldn't see a downside so we went with it. Just still kinda felt like we got screwed somehow tho!
     
  5. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,245

    I love how your dealer said you were not allowed to buy it. The only person that tells me I can't buy something is my wife. I had a plow dealer get mad at me for buying plows in Illinois. There price was $1300 cheaper per plow then my local dealer. Some dealerships are snakes and it pisses me off when they give consumers a hard time when looking for a deal. The whole scenario seems fishy/
     
  6. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    no down side for you. You get a great deal but your buddy who you went to for the original purchase is going to get screwed beyond belief. Dealer 2 is mad they lost the sale and now they want to make dealer 1 pay for it. You didnt go to that dealer to get a cheaper price or jump over any ones head, you went to a friend to purchase a machine. Thats what you should be allowed to do.

    Dont screw dealer 1. Thats my vote.

    Call out dealer 2 on this and tell them to improve their ethics.
     
  7. D Industries

    D Industries Junior Member
    from Ohio
    Messages: 15

    Alright thanks for the input. Couldn't shake that feeling like we were getting played. Dealer 2 even said they wouldn't have taken all the old equipment we had on trade so it wouldn't ha e matter. Ill let my boss know dealer 2 is just ****** and didn't screw us over, just his friend.
     
  8. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    his friend didnt screw you guys over either? is that what your thinking?
     
  9. D Industries

    D Industries Junior Member
    from Ohio
    Messages: 15

    No sorry. That dealer 2 wasn't doing anything bad against us, but kinda bad against his friend that works for dealer one. Lol sorry kinda confusing.
     
  10. Paul D

    Paul D Member
    Messages: 37

    Dealer 1 wouldn't play ball and now you'll be rewarding him by letting him screw dealer 2 for playing?

    Doesn't sound right to me. :confused: