Car Negotiation Tactics from a 33 year old entrepreneur millionaire.

[LS13]

I am sure most of you guys are familiar with Delivrd and Tommy Mikula. Here is an episode where he try to find and negotiate a new Tundra TRD Pro from various Toyota dealerships. I know its not our Taco but the tactics deployed here all outstanding.



If you dont know this 33 year old millionaire businessman, heres his segment on CNBC

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[TacoBirdinNW]

These dealerships are wild. People must still be paying these markups ?

 

[DENNISD]

These dealerships are wild. People must still be paying these markups ?

I would guess there are. I used to be on a different car forum, and I would see people post some of their deals and mention how their payment didn't change much even though they traded for a more expensive vehicle. What they sometimes don't realize—or don't pay much attention to—is that the dealership simply extended the loan term to keep the monthly payment about the same. Even though the total amount they'll pay over the life of the loan is disclosed, I would guess a lot of people ignore that little detail.


I credit my mom for helping me make good car deals over the years. Back in 1988, I was thinking about trading my 1973 Charger for a new car. I didn't have the cash to buy one outright, and she convinced me to wait until I did.


So I set up a "car account" at the bank and started putting what would have been my monthly car payment into that account. Once I had enough saved to buy a new car, I'd start shopping around. Back then especially, cash was king. After buying the car, I'd continue putting a designated amount into the account, and after a few years, I'd repeat the process.


The biggest advantage was that I wasn't paying interest, and I think having to actually hand over the money made me much more careful about what I was willing to spend. I don't buy add-ons, I've never paid a dime over MSRP, and I usually start seriously dealing toward the end of the month or year, when dealerships are often more motivated to make a deal.


I think people tend to be less careful with money when they're focused primarily on the monthly payment rather than the total purchase price. Ironically, buyers who are willing to accept high markups, long loan terms, and expensive add-ons probably make it easier for guys like me to negotiate better deals.


To each their own, but to answer your original question: yes, I definitely think there are still people willing to pay those markups—and make some questionable financial decisions to do it. IMHO.

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