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| But it is true. You are correct that the discount goes to the buyer, not the dealer. What that means is, to use the example figures I used, one buyer paid $1000000, the other paid $850000. For arguments sake let’s say that the dealer didn’t cater to the guy buying multiples and made the same profit margin for both combines. In other words like you said the $150000 difference was all due to the multiple deal.
In those 2 deals one buyer basically gave an extra $150000 to parent company because the parent company did not give it back to the buyer. One buyer has $150000 more invested in the combine.
When it comes time to trade he would have to be given $150000 extra to have the same cost per acre as the multiple buyer. Or he would have to accept the same trade in value as the multiple buyer and incur the much higher per acre cost due to losing the extra $150000.
Also, while as I previously stated I am using made up numbers I personally know an operation that is at a much higher percentage of savings than 3-5%. It is much closer to the figures I quoted. | |
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Class 10+ Combine Depreciation. Specifically X9 and new AF11
