I guess it all depends on the dealer overturn on tractor sales. I have a dealer close by that sells tractors, boats and lawn and garden equipment. He has inventory sitting for a long while sometimes. It's just the way it is. Make sure everything works and make sure your warranty starts the day you pick it up!
Friendly advice
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I understand the exchange rate game, but I think you're wrong about them not using some form of floor planning. It's been that way here is the US for over 100 years.
What brought it about was Henry Ford and his Model T. When it was just banks doing lines of credit to the local dealers for inventory and Old Henry wanted to slam the competition in a local market, all he had to do was make a big deposit of Ford cash at a local bank and tell the bank President "Don't loan my money to my competition"... Line of credit evaporated.
Other OEM's had to step up with their own line of credit to dealers in the form of floor plans and it's been that way since.
Do the quick calculations about the amount of cash that local dealership has tied up in 120 units, in a town of 40,000 people, and tell me again how there's not some sort floor planning going on.... Hard to believe a local business would tie up that kind of cash with no guaranteed ROI, or timeline to even begin to calculate the payback period on the inventory investment even if it is in Canada. You guys still operating on capitalism?? We use calculators a lot down here to figure out that sort of stuff
What brought it about was Henry Ford and his Model T. When it was just banks doing lines of credit to the local dealers for inventory and Old Henry wanted to slam the competition in a local market, all he had to do was make a big deposit of Ford cash at a local bank and tell the bank President "Don't loan my money to my competition"... Line of credit evaporated.
Other OEM's had to step up with their own line of credit to dealers in the form of floor plans and it's been that way since.
Do the quick calculations about the amount of cash that local dealership has tied up in 120 units, in a town of 40,000 people, and tell me again how there's not some sort floor planning going on.... Hard to believe a local business would tie up that kind of cash with no guaranteed ROI, or timeline to even begin to calculate the payback period on the inventory investment even if it is in Canada. You guys still operating on capitalism?? We use calculators a lot down here to figure out that sort of stuff
I'll share this with you guys from the land of the Maplel Leaf, but for pete sake don't let it get out to the guys in Ottawa.
There are several States down here that charge Inventory Holding Tax(IHT)...
In other words, your business gets taxed on whatever inventory you have on the lot/shelf on December 31. Most anything a business sells to the public is subject to the tax. Don't know about other States, but here in MS, anything that is floor planned is not subject to IHT because technically the business does not own it.
That's why nobody shops for Christmas early down here. "YEAR END CLOSEOUT SALE", "SUPER CHRISTMAS SAVINGS SALE".... It's not out of their kindness of heart, they're dumping inventory before DEC 31
There are several States down here that charge Inventory Holding Tax(IHT)...
In other words, your business gets taxed on whatever inventory you have on the lot/shelf on December 31. Most anything a business sells to the public is subject to the tax. Don't know about other States, but here in MS, anything that is floor planned is not subject to IHT because technically the business does not own it.
That's why nobody shops for Christmas early down here. "YEAR END CLOSEOUT SALE", "SUPER CHRISTMAS SAVINGS SALE".... It's not out of their kindness of heart, they're dumping inventory before DEC 31
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