Posted by kyhayman on August 25, 2010 at 06:33:40 from (75.104.128.54):
In Reply to: Dealer Markup posted by GAC on August 24, 2010 at 20:13:14:
New equipment 20-30 pct, parts 20-50 pct, used equip at least 50 pct up to 100 pct seems to be the very broad rules of thumb I've heard. Most of the variablity be in used stuff and trade ins. A couple of places I deal with I've heard them say on used stuff that they've got to make a thosand bucks on every used item they sale. To figure trade in they take low estimates sale price minus estimated repairs times 2 minus carrying charge for 2 years on the lot, minus 2 years depreciation, minus the 1000 they want to make and thats what they can give on trade in.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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