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Nw Iowa | I think we are both chasing the same dog, but fact remains that MUd deals are open to anyone, it is not a closed club deal. You want to buy enough equipment, you get the discount. Dealer has to buy the used, believe me, I have been on other side. So incentives go to buyer, dealer puts x amount in used and that is end of it. When we were in the business, MUD deals tended to be least profitable deals, deals that tended to bloat our inventory, and harder to move equipment because of the size. People always think it is some kind of special deal. You go to dealer and want to buy so much equipment there is a schedule they can look up and tell you what percent discount you will get. Than it is a matter of signing your name or writing a check. If I remember MUDs we’re not figured on list price but a formula closer to net. So a million dollar list would not be used but a lesser number closer to net. I am abit rusty but it is all public information, you can ask your dealer what program is now.
They work great in a up market when machinery is short, but they don’t work worth a darn in a market like we have now. Guys that have equipment paid for don’t care if they trade or not but guys that have it financed to the wall, trade price is usually less than payments until it stops. So now they make payments that for most part they have more in than what auctions are selling for. And a lot of times the interest free short term turns into a full market rate which just bites even more. 30% down in markets like this isn’t enough equity to just sell the equipment and get out, even with the extra discounts. Once again even 10% MUD discount would be a huge amount of equipment. Edit Deere is very strict on farmers banding together to do these kind of deals. Dealer can be held accountable after the deal so no games.
Edited by jdironman 9/12/2024 07:20
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Class 10+ Combine Depreciation. Specifically X9 and new AF11
