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| For the most part, this is a good time in agriculture and equipment is selling strong; which also means the buyer is providing a good profit for themselves and their operation. These times make up for all of the bad years when everybody struggles. But I can assure you, dealers are not making anywhere near the 20%+ margin on modern new or used equipment, that somebody mentioned before. Somebody making that kind of profit is short-term in the industry and putting their own nails in their coffin. I am not saying it never happens, but that is not the norm. More like 4 on new and 8-10 on late used. With that being said, most dealers I am familiar with operate with the mindset that the parts and service departments provide the margin to keep the doors open, and if the sales department break even, all is good. | |
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Dealer profit on used equipment
