The Millionaire Mindset

107

Millionaire

Today

is a

GreaT

d ay

sTraTeGy 4-9:

avoid the common money mistakes

and rip-offs.

extended warranties

Many people get ripped off when they buy

electronics, appliances or automobiles by purchasing, and

often financing, the repair insurance and extended warranties.

This is 100% dealer profit. It is grossly overpriced. For every

person who benefits, I can show you 3,000 who have lost

money. Salespeople make huge commission rates on selling

extended warranties.

long-term financing

When you choose to finance purchases within 24

months, rather than 36 months or more, you will save thousands.

automobile dealer preparations

Never pay over-inflated delivery and dealer preparation and setup charges. These

fees range from $200 to $500. The car doesn’t need assembling once it arrives at the

dealership. They wash it and fill it with gas. Don’t pay. Buy somewhere else.

Fabric coating for seat covers

Never, never, never pay an auto dealer to coat your seat covers. It is a pure rip-off.

People have paid more than $300 for something that costs the dealer less than $2. Buy a

can of Scotchguardtm and do it yourself.

Financing automobiles

Never finance your automobile purchase at the dealership. A good finance manager,

who’ll earn $5,000 to $10,000 per month on financing commissions, will load your car with

high interest rates and extra warranties. They often make it sound as though you couldn’t

get the car without their “help.” If one person will finance the car, so will twenty others.

Find a better deal.

new Cars

Instead of purchasing a new car, you would be wiser to purchase the same car after

it is two to two-and-a-half years old. A new car depreciates 25% the moment it leaves the

dealership. A $20,000 car will be worth $15,000 to $17,000 within five minutes of driving

off the lot. Bad deal! Let someone else pay the depreciation and iron out all the bugs. Buy

a low-mileage car and save thousands.