Machinery Purchase

[D.S.S18]

After a week of deciding and thinking, looking at options with the dealer such as split invoice / finance etc

we decided to purchase a tedder, initially our enquiry was for a mower and tedder.

within a week we had 18 phone calls from the rep asking what we were doing, even though after many times saying 'thank you very much, we'll ring you'

ordered said tedder on Monday, asked if they required a deposit, he didn't know, rang back Wednesday telling us it was cash or cheque on collection, took us abit by surprise after we said we'd just buy it outright (presuming month following delivery invoice)

were a young couple in our mid twenties, just getting going and buying what we need as we can - don't have a loan etc, most suppliers know our situation and if a big purchase or short of cash happy to accept split over 2 months. in fairness apart from a tractor, this is our largest cost purchase yet.
we use this dealer for 80% of our spares and only look at 1 or 2 options for a big purchase eg Kuhn V Vicon, this isn't our usual point of contact as it's all changed.

is it normal for a dealer to ask for cash or cheque on collection?

 

[bumkin]

After a week of deciding and thinking, looking at options with the dealer such as split invoice / finance etc

we decided to purchase a tedder, initially our enquiry was for a mower and tedder.

within a week we had 18 phone calls from the rep asking what we were doing, even though after many times saying 'thank you very much, we'll ring you'

ordered said tedder on Monday, asked if they required a deposit, he didn't know, rang back Wednesday telling us it was cash or cheque on collection, took us abit by surprise after we said we'd just buy it outright (presuming month following delivery invoice)

were a young couple in our mid twenties, just getting going and buying what we need as we can - don't have a loan etc, most suppliers know our situation and if a big purchase or short of cash happy to accept split over 2 months. in fairness apart from a tractor, this is our largest cost purchase yet.
we use this dealer for 80% of our spares and only look at 1 or 2 options for a big purchase eg Kuhn V Vicon, this isn't our usual point of contact as it's all changed.

is it normal for a dealer to ask for cash or cheque on collection?

some want a deposit to show good faith some reps seem quite casual as to if you buy or not

 

[Lazy Eric]

I’ve known a few dealers wanting payment on delivery of new machines recently, or whole goods as they call it.
So it’s not unusual, don’t take it personally.

 

[David.]

At least you found a dealer who is keen, usually criticised for not returning calls.
Often payment within 7 days on big price items like machinery.

 

[Dave W]

Firstly this isn't a comment whatsoever on the op.

Days gone by there was a significant amount more trust in the industry.
Farmers would take a machine and pay when the milk cheque came etc.
Nowadays it just seems more and more people are either time wasters or fraudulent.

I've done 12 deals in machines this year alone where a price has been agreed and invoice sent only for the purchaser to then disappear not to be seen or heard from again.

Again no comment on the op but I can see why dealers are getting more sceptical.

 

[Happy]

None of the dealers I use are month following delivery on new machines these days.
Pretty much all demand payment on receipt of invoice which usually comes within a couple of days of machine being delivered.

 

[Johnnyboxer]

You won't drive a new car off the forecourt unless paid for (and cleared funds) or the finance documentation has been signed ....would you ??

 

[DieselRob]

Payment on delivery for big ticket items, although my last 2 purchases totaling around 6500 I had to chase the dealer for an invoice which came about 6 weeks after the machines

 

[The Son]

Payment on collection, or before on big ticket items, its the norm these days I am afraid.

 

[nick...]

Bought a new plough last year,ordered in March and paid a 10% deposit despite dealing with dealer for 50plus years.when it arrived at dealers the rep would not let me have it till id taken a cheque in to make full payment.done this and had plough delivered and fortnight later we got an invoice for payment in 28 days.this really pee'd me of.cant imagine the big boys get this sort of thing
Nick...

 

[marco]

I don't really understand the question, when I pick up a piece of equipment I wright a cheque hookup and off I go. Why would any buisness in this day and age let a piece of machinery out the gate then having to go looking for payment a month later?

If it's on finance surely that would be sorted before the machine is released?

If as a dealer you'd be foolish to let a brand new piece of equipment out the door then have to take it back used. How many farmers would sell a tractor and say "sure pay me in a month"? Not many id say

 

[Will Wilson]

Did you not get a written quote outlining payment terms?

 

[neilo]

I bought a new Tedder, on finance, last summer. The deal was agreed with a handshake, after the finance terms were agreed with an agent over the phone while I sat in his office. Machine was delivered the next day, and the finance agreement wasn’t signed off, or the dealer paid, for nearly a month.
I bought a new mower from the same dealer yesterday, exactly the same way.

Obviously not big ticket items like tractors, but nice that some still deal with a handshake.

 

[An Gof]

Normal terms for new machinery with dealers I deal with is invoice on delivery/collection with payment due in 7 days.

 

[Guy]

My 2p

The only 2 bad debts I have for selling whole goods (new machines) are customers who assured full payment a week/2 weeks after delivery . I don’t know any other industry that expects a £10,000 Machine to be purchased by a dealer, PDI’ed, delivered, a tiny margin added, looked after, with just a promise of a payment when they have the money. No offence to the OP but I think payment on deliver or collection if fair for everyone.

 

[RhysT]

Our last tractor purchase was close to our vat quarter end, the dealers wrote us the invoice, we were then able to claim the vat back and after that we paid for in full.
We were local and had purchased another tractor from them 18months previously, which went up in smoke so they knew we had insurance money to pay for the new one though!

 

[vantage]

Its been the norm here to pay for smaller items on delivery,larger items paid for pre delivery for years. Can't see why you would expect credit from a dealer,thats why I have an overdraft facility,some people have money in the bank,or use a finance agreement.

 

[Al R]

Bought a new machine 2 years ago off a dealer i’d Never met/dealt with, had the machine and invoice arrived a month later.
Bought another new machine off a friend who worked at a dealer, invoice came 4-5 weeks after the machine had been delivered. Other machines I’ve had off people I’ve dealt a lot with have come and invoice 1-4 weeks later. No finance on any of them mind.

I can definitely see why some dealers want payment pre delivery or on delivery as I’ve dealt with enough people that wouldn’t pay for feed until 6-18months later.

 

[ffukedfarmer]

I would expect to pay for a machine or sign the finance documents before it is released.

 

[Galcam]

I would expect payment on delivery but what would happen if the machine is in an accident, gets damaged or causes damage to person or property. Is the dealer still the legal owner of the machine since no money has changed hands and who gets sued?