In my experience there’s one thing that is consistent in every deal hunter – the addiction to find good deals. Something inside just compels us to go out and find a deal, and when we do there’s a huge rush of excitement. Sometimes that’s a good thing because it can drive you to a great price and you’ll make huge margins on your flips. And sometimes that’s a bad thing because you might find yourself wanting a deal so badly that you’ll leave money on the table or overpay for a car.
One way you can avoid the trap of overpaying for a car is to be willing to walk away if the seller won’t come down on price. When you go to look at a vehicle make sure you have a number in your head that is the maximum amount you’ll pay for the car and stick to that number. That helps to keep the part of you that’s craving a deal at bay so that you can make a rational, emotion-free purchase. If you don’t get the car for the number that you had in your head, just walk away. Say to the seller “Thanks for showing me the car but I’m only willing to pay $X for it. I have the cash and can buy right now, but I understand if you won’t take that for it.” Then leave. Sometimes that will be the end of the story and you’ll never hear from the seller again….but sometimes the seller will take your offer on the spot. You’d be surprised how often you’ll get a text or phone call on the drive home from the seller that has reconsidered and is now willing to take your offer.