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.

 

[bsquaredMTB]

I'm sure this guy is REALLY good at what he does if he's a millionaire, but I watched that first video and didn't really see anything other than shopping around for the best deal. Admittedly I didn't pay 100% attention to the entire video but from what I can tell, he just shopped around and didn't settle for a bad deal. Am I missing something here? I don't want to sound like I'm hating on him because he's obviously been very successful. Just curious if I was missing something with his tactics.

 

[TacoBirdinNW]

I'm sure this guy is REALLY good at what he does if he's a millionaire, but I watched that first video and didn't really see anything other than shopping around for the best deal. Admittedly I didn't pay 100% attention to the entire video but from what I can tell, he just shopped around and didn't settle for a bad deal. Am I missing something here? I don't want to sound like I'm hating on him because he's obviously been very successful. Just curious if I was missingsomething with his tactics.

Had the same thoughts.
I've met a number of people (at work and such) who don't even know how to shop around, so it could be just that ? And if that's the case, I'm about to get rich

 

[OminousSkitter]

I'm sure this guy is REALLY good at what he does if he's a millionaire, but I watched that first video and didn't really see anything other than shopping around for the best deal. Admittedly I didn't pay 100% attention to the entire video but from what I can tell, he just shopped around and didn't settle for a bad deal. Am I missing something here? I don't want to sound like I'm hating on him because he's obviously been very successful. Just curious if I was missing something with his tactics.

The video is essentially an advertisement for his company and how great he is. It doesn't explain negotiation tactics like the title says.

Tl;dw
Guy has company to get you a good deal for $1000. He uses his previous work experience at a dealership for things like what the markup normally is and how much some managers are willing to budge, does market research for competing prices, and combines those when asking for a lower price.

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