Don't Get Tricked: How Car Dealerships Manipulate Monthly Payments

Car buyers beware: Dealerships often inflate prices by focusing on monthly payments. A recent video by car-buying advocate Tomislav Mikula highlights this common tactic. Mikula recounts a personal experience where he negotiated a deal, saving $12,000 off a $30,000 Toyota Prius. However, he reveals that the majority of this discount was due to a longer loan term, not a lower initial price. He explains, "Dealerships love to negotiate monthly payments because it seems like you're winning." Mikula's client, who was comfortable with a $500 monthly payment, ended up with a deal that was $380 per month with no money down. This is significantly better than the initial offer of $640 per month with $3000 down. Mikula advises buyers to use online auto loan calculators to determine a comfortable monthly payment and then negotiate the total out-the-door price to avoid being manipulated by dealerships.