Is "exotic car hacks" legit?

[Briangumble]

I came across this guy on social media that claims to teach people how to make money flipping exotic cars. Anyone know if this is legit?

[nosirrahx]

You can make great $ if you start with a lot of $, don't need to flip instantly, have insanely good buy side connections, loads of knowledge on prices and wrenching and have a network of potential buyers.

Everyone else will lose $.

[induced_drag]

You can indeed buy and own an exotic and have it cost very little money if you do it right. But, you have to be able to buy it cash, and hope nothing goes wrong with it.

You have to be familiar with the markets and vehicles. If you are financing it is a much more dicy proposition. You are not going to be 'flipping' cars and making money if you finance. But you can own one for not much more than if you bought a nice car. AGAIN....if nothing breaks.

I had an R8 and struts went out, $9000 repair and I had to have a tran rebuilt $11,000. Mind you, this on a car with only 30k miles. Luckily I am a resourceful guy and I can do just about any work to a car myself.

I have a gallardo right now. Not uncommon to go through clutches every 10-15k miles. 7-8k to replace.

It is the reason I will never buy a McLaren since they are about impossible to work on even for a good exotic indy mech. Too much proprietary stuff.

In my opinion, you should only attempt this if you can buy the car cash and can handle a 20k repair if it comes up. If you dont have to use it, you get lucky.


The REAL money is made on limited production vehicles. But you have to spend about 1,000,000 with a manuf buying various models over time and show brand devotion. Then you get on the list to buy a Ford GT which is worth 500k more than you pay for it the day you pick it up. But you spend 1-1.5 million in the HOPES of getting that status. Same thing with Lamborghini or Porsche...etc.

Here is a great vid on the subject

[nosirrahx]

You can indeed buy and own an exotic and have it cost very little money if you do it right. But, you have to be able to buy it cash, and hope nothing goes wrong with it.

This part is true. One of my better friends does this for a living. He connects people with cars you can own for one season (June to September) and walk away spending slightly more than mandatory costs of ownership (gas, insurance ....).

He also does this for himself. He is in and out of 3 to 5 cars a year and usually makes a little $ in the process. He is super connected though so he has access to prices and cars that are simply out of reach for most people.

[induced_drag]

This part is true. One of my better friends does this for a living. He connects people with cars you can own for one season (June to September) and walk away spending slightly more than mandatory costs of ownership (gas, insurance ....).

He also does this for himself. He is in and out of 3 to 5 cars a year and usually makes a little $ in the process. He is super connected though so he has access to prices and cars that are simply out of reach for most people.

I have a very good friend who is a dealer. I can buy directly through Manheim auctions. (largest auction house in the country...world I think).


Believe it or not even buying whosale there are not huge margins on these cars. Where money is made is at dealerships who take in trades. Most exotics sell at auction with about a 10k margin. Which is nothing, after a 900-1200 auction fee, and all the other costs (say transport and any work it might need...etc).

For the private buyer, the margins of owning the cars and flipping for profit is complicated by having to pay tax on purchase. Depending on where you live, this can be expensive. (and it cuts deeply into the bottom line).

If you get a dealer license, then you dont have to transfer ownership and can legally transfer title when you sell without having to pay tax. But then your hobby grows to having to run a 'legal' dealership.

Best deal for individuals are though private sellers. If you shop around with cash in hand, and wait, you can sometimes buy a car for 15-20k under market being in right place at right time. Say a seller has to get rid of car.

Personally I have just enjoyed having fun cars, so I have bought through auction. I recently bought an Gallardo w/ 14k miles on it. Pretty much show room new. I bought from Riverside CA Manheim. After shipping, I am probably about 7k under retail. But I have put 5k in the car in new exhaust and getting ready to get PPF done. But I got the car I wanted.

I drove my R8 for a year and put 5k miles on it, and basicly sold it for what I had in it even though I had some pricy repairs. Pics below the gallardo of car.

[nosirrahx]

Personally I have just enjoyed having fun cars, so I have bought through auction. I recently bought an Gallardo w/ 14k miles on it. Pretty much show room new.

I'm thinking about buying my next fun car used. My RS7 is closing in on 65,000 miles and I have a buyer lined up. I would love to jump to a Panamera Turbo S hybrid for my next fast 4 door.

I wont ever sell my Evora 400 but as soon as I have no mods available for my NSX I will jump ship. This year I added meth and a front axle lift and it looks like next year there will be intercooler and turbo upgrades. I don't expect anything more after that so a 2022 sale is likely.

Its a massive long shot but I am hoping to see a hybrid based on Audi's inline 5. That engine has insane potential and if you were to add a mountain of EV torque to it you could easily eclipse the R8/Huracan.

[Briangumble]

I have a very good friend who is a dealer. I can buy directly through Manheim auctions. (largest auction house in the country...world I think).


Believe it or not even buying whosale there are not huge margins on these cars. Where money is made is at dealerships who take in trades. Most exotics sell at auction with about a 10k margin. Which is nothing, after a 900-1200 auction fee, and all the other costs (say transport and any work it might need...etc).

For the private buyer, the margins of owning the cars and flipping for profit is complicated by having to pay tax on purchase. Depending on where you live, this can be expensive. (and it cuts deeply into the bottom line).

If you get a dealer license, then you dont have to transfer ownership and can legally transfer title when you sell without having to pay tax. But then your hobby grows to having to run a 'legal' dealership.

Best deal for individuals are though private sellers. If you shop around with cash in hand, and wait, you can sometimes buy a car for 15-20k under market being in right place at right time. Say a seller has to get rid of car.

Personally I have just enjoyed having fun cars, so I have bought through auction. I recently bought an Gallardo w/ 14k miles on it. Pretty much show room new. I bought from Riverside CA Manheim. After shipping, I am probably about 7k under retail. But I have put 5k in the car in new exhaust and getting ready to get PPF done. But I got the car I wanted.

I drove my R8 for a year and put 5k miles on it, and basicly sold it for what I had in it even though I had some pricy repairs. Pics below the gallardo of car.

Those are some nice cars. Love the Lambo and the R8. You live in Riverside? I'm in Colton so kinda close by

[Ladiessman217]

Depends.

Car YouTubers that restore broken damaged cars make most of their money on the videos.

People still in 2020 have not gotten the memo that it's not really about views.

It's watch time and cpm that counts.
There are channels with 100k subs that make 1 grand on every video.

That being said the true value is in getting "rare special" models of current supercars.
At least for "Flippers".

For instance the last generation Ferrari f12. An average car pretty good sound good power but nothing limited.
The car has dropped in value but bottomed out in recent time. Will probably at some point gain in value but only very slowly.

However, if you were to have an allocation back then for the F12 "TDF" which is the rare special track focused version... Good God that thing cost 500k or so and is selling legitimately for 1M +
Meaning a flipper value of 50% which is unbelievably rare.
La Ferrari had these insane appreciations as well.

Guys like Shmee150 have managed to make a business out of that stuff.
He leases / finances cars with direct amortization of cost through videos ( Ie he balances this out that way) and drives cars basically for free like that.
Makes money on sponsorship deals and advertising.

Dude is in a Win Win situation. 3ven got a Senna recently. Which gained 30% in value..

Cars for private people is always and will always be a huge minus business.
For business people leasing is perfect, nothing better.

[Jax05]

Depends.

Car YouTubers that restore broken damaged cars make most of their money on the videos.

It's funny they also rarely drive any of those rebuilt exotics...because taxes are a bitch on a $150k car.

[induced_drag]

No one wants a 'rebuilt' exotic anyway. The only people who consider a rebuilt are people who cant afford the cars in the first place. There are so many downsides, they get tough to list.

The two biggest are:
-You cant finance them so when you sell, you can only sell to cash buyer.
-you cant insure the value of car (only liability). There are some insurers that will do 'stated value' policies, but they run about 4-5x the cost of a normal policy and good luck getting paid if the car is a total loss.



In exotics, even a 'minor' accident on the carfax will drop value 15k or more. People who buy these cars dont want ANY accident. No paint work...nothing.

You are much better off buying the highest mileage car you can find vs a 6k mile rebuilt title. The market to sell your car after will be much wider.

It is so funny also people buying a wrecked lambo or ferrari off carpart thinking they got a 'deal' only to find out the parts alone to fix are 30-40k. Stay as far away from rebuilt cars as you can.

[induced_drag]

Those are some nice cars. Love the Lambo and the R8. You live in Riverside? I'm in Colton so kinda close by

No I am in south east US. When I was shopping for the Gallardo, I was looking nationwide. Riverside Manheim has a lot of high-line cars. (just have to factor in shipping).

The R8 I bought out of auction in Atlanta. Pennsylvania Manheim has a HUGE high-line as do a few in South Flordia.

[DrFeeIGood]

1) The big cost of these "hacks" that nobody seems to address is the tax when buying the car. In my county it is 8%, so $8k on $100k. That is already a deep hole to climb out of.

2) Some "address" this tax by telling you to register the car in MT or some other state through an LLC. While this will work, it is blatantly illegal in most states/counties. So yes you can save that tax money by breaking the law, good idea.

3) The hacks also don't address the fact that you can't just go out and get a loan for $100k on a 2010 audi R8. You need decent income, cash down, excellent credit AND a history of higher end car purchases/financing. You can't jump from a $30k camry to $100k R8 for example, the guys selling the hacking never point this out either.

All that being said, yes you can drive an exotic for little money if you buy the right car at the right price, keep miles reasonable and the car in good shape. A perfect example would be a 2015 Huracan for $150k, drive it 3000-5000 miles and you could prob sell it for your purchase price. Your only cost would be maintenance, gas, taxes, insurance, finance costs (if you went this route) lets say $15k altogether, flip it in 12-18 months, $833-$1250 per month to drive a lambo, not cheap, but better than most would think.

[nosirrahx]

No one wants a 'rebuilt' exotic anyway.

I'd only buy one as a track car and even then only if the rebuild did not involve the frame in any way.

[induced_drag]

1) The big cost of these "hacks" that nobody seems to address is the tax when buying the car. In my county it is 8%, so $8k on $100k. That is already a deep hole to climb out of.

2) Some "address" this tax by telling you to register the car in MT or some other state through an LLC. While this will work, it is blatantly illegal in most states/counties. So yes you can save that tax money by breaking the law, good idea.

3) The hacks also don't address the fact that you can't just go out and get a loan for $100k on a 2010 audi R8. You need decent income, cash down, excellent credit AND a history of higher end car purchases/financing. You can't jump from a $30k camry to $100k R8 for example, the guys selling the hacking never point this out either.

All that being said, yes you can drive an exotic for little money if you buy the right car at the right price, keep miles reasonable and the car in good shape. A perfect example would be a 2015 Huracan for $150k, drive it 3000-5000 miles and you could prob sell it for your purchase price. Your only cost would be maintenance, gas, taxes, insurance, finance costs (if you went this route) lets say $15k altogether, flip it in 12-18 months, $833-$1250 per month to drive a lambo, not cheap, but better than most would think.

Very good points and agree on most all. The harder part where we may disagree slightly is being able to rack of 3-5k miles and flip for same price. I think you really need to find a super buy and that is possible. Dont forget, the car will be a year older, and more miles (which these cars are very mileage sensitive). But for the most part, you are correct, that it can be done for less than you think.

JUST HOPE NOTHING GOES WRONG And it is not hard to be up against 10k repair bills at the drop of a hat. A lot of guys levering into to these cars dont plan on that stuff. Like I said, if you are going to buy an exotic, you to feel comfortable you can peel of 20k if the need arises.

An example from the gallardo are 7k for a clutch or the front lifting struts which often leak cost about 9k to replace 2 struts. VERY common failure point.

I'd only buy one as a track car and even then only if the rebuild did not involve the frame in any way.

VERY true and what a fun way to enjoy one of these cars. I saw a 2010 gallardo GT3 track car for sale recently. With spares I think they wanted 89k. Would be a fun way to spend some free time!

[Jax05]

1) The big cost of these "hacks" that nobody seems to address is the tax when buying the car. In my county it is 8%, so $8k on $100k. That is already a deep hole to climb out of.

2) Some "address" this tax by telling you to register the car in MT or some other state through an LLC. While this will work, it is blatantly illegal in most states/counties. So yes you can save that tax money by breaking the law, good idea.

3) The hacks also don't address the fact that you can't just go out and get a loan for $100k on a 2010 audi R8. You need decent income, cash down, excellent credit AND a history of higher end car purchases/financing. You can't jump from a $30k camry to $100k R8 for example, the guys selling the hacking never point this out either.

All that being said, yes you can drive an exotic for little money if you buy the right car at the right price, keep miles reasonable and the car in good shape. A perfect example would be a 2015 Huracan for $150k, drive it 3000-5000 miles and you could prob sell it for your purchase price. Your only cost would be maintenance, gas, taxes, insurance, finance costs (if you went this route) lets say $15k altogether, flip it in 12-18 months, $833-$1250 per month to drive a lambo, not cheap, but better than most would think.

I think the only person that addresses those points is Ed Bolian in one of the VinWiki videos, particularly the financing and taxes part.

[induced_drag]

I think the only person that addresses those points is Ed Bolian in one of the VinWiki videos, particularly the financing and taxes part.

Yep, his channel is very good.

I looked into the montana LLC thing. My state has not really cracked down yet, but what I figured out was that it was not something I wanted to do.

It also would cause my insurance to more than tripple. Right now, believe it or not I only pay 720/year for the gallardo. (5 cars on policy and all other insurances w/ State Farm). This is a policy with maximum liability un-under insured motorist 250/500 (state min is 20/50). I have another liability umbrella so my cars have to carry max liability with umbrella kicking in over that.


If I did the montana LLC thing, you have to get a 'corporate' policy. Would have been over 2k/year. You can get some policies a little cheaper but they are very mileage limited and limit where you can drive the car and for what purpose.


"Easy" money in the car game does not really exist. You really have to start out with the cash to buy, and hopefully buy the right car and not have anything go wrong. If those above are met, yes, my R8 cost me less to drive for a year than my mini-van. (factoring in all costs and depreciation).

[Antonio519]

In IL, $1500 is the most you pay in private party sales tax no matter the cost of the vehicle

It's buying from a dealer that will fuk you up.

Tax on a used car doesn't make sense to me anyway lmao, brb taxing everything you sell used.

[Jax05]

In IL, $1500 is the most you pay in private party sales tax no matter the cost of the vehicle

that's why IL can't afford to fix those chitty roads? lol

I'm jk of course. In MO they'll tax you a percentage regardless of whether it's dealer or private, and basically be like "if he dies, he dies".

[bluejaptor]

Here's how hacking cars work based off the principles taught in ECH. I can't speak about other methods, only the experience I have of going through ECH.

Btw ECH doesn't make its money off Youtube so wouldn't consider it a main revenue stream from Youtube. They make their money from online courses and training. He also has a service where he helps you find cars. That's just one of his businesses. Take it with a grain of salt. I'm not affiliated with them in anyway, just have experience with their stuff. I lurk this forum because I love cars so I thought I'd chime in.

Here's how it works:

1. Find cars that are the best deals, not what you want. This prevents you from making an emotional decision in getting into a car that isn't really a deal
2. You want to find cars that have the best combo of where it's sitting in terms of depreciation and price. The most important aspect is what packages the vehicle has, the exclusivity, rare combos, etc. This is where you can net big time. Also, this is where taxes aren't an issue because of what you're buying and selling.
3. It's not about making money. It's about driving a nicer vehicle for a lower monthly payment. Example: Driving a 2014 cayenne GTS turbo for $220/month for 6 months versus driving a new base x5 for $750/month for 3 years on a lease. Which is more fun to drive?
4. Doesn't apply to just exotics. Also applies to luxury vehicles and vehicles in demand.
5. You don't buy a car to pile on the miles. You also don't buy a car to keep long term. Putting a couple thousand miles on a car (luxury or exotic) is the best because you're planning on selling. There are some exceptions to the rule though (Raptor for instance).
6. Financing comes down to good credit. You MUST leverage credit. It's not about buying cash. There are plenty of good lenders out there. If you have a business, makes it much easier + helps with taxes. This is taught extensively in the program and the ******** group which unfortunately you have to buy to get into.
7. There are cars that pop up every week that are really good buys. You just have to be willing to look for them.
8. You don't need to be a dealer.
9. It's always good to build positive relationships with dealers so you can work out better deals. I used to think that going to a dealer was like going to war. This changed my perspective entirely. When you go into it with a solid business relationship, they treat you differently.
10. Get your own financing. This makes it FAR better to get deals because they know you're serious. You don't even have to use your financing, but showing that them you already have financing means they're willing to move a deal faster. You need good credit.
11. You're looking for cars that have been sitting for a certain window on lots. 60-90 days as dealers just want to move them at that point and are willing to negotiate. So you can keep an eye on cars as soon as they appear on lots, and understand that the deal is coming up within 2 months or so. You don't have to wait this long but this is a good rule to follow.
12. PPIs are crucial. Find a car with good maintenance history. Not rebuilt. Not salvaged. No accidents. These have the best resale value (obviously)

Trying to remember some more. Just know that if you are going to "hack" cars, you have to treat it like a business. Otherwise, just use the principles to get the best deal, keep a car for 6-8 months, sell it, and buy another. The goal is to just lose as little as possible by finding the right deal.

Some great vehicles to look out for so you can research the best years and depreciation numbers
S63 amg
Aston Martin V8 Vantage (great first hack)
V12 Vantage
Maserati Quattroporte
Ferrari 458
GT-R
M4
Gallardo
Aston Martin DBS
R8 v10
Acura NSX (newest gen)
Bentley Continental
Viper GTS
Mclaren 570s
G63 AMG

Cars that don't apply that are considered in demand:
Teslas
Range Rovers

One that might surprise you that is a solid long term hack (keep it for a year, rack up the miles on it)
2017+ Raptor

Not all of the above are exotics as you can see. Just wanted to point out that it's not about the vehicle as it is about demand, depreciation, pricing, value, etc.

[LtGoose]

[SteadyFlexOnU]

You can indeed buy and own an exotic and have it cost very little money if you do it right. But, you have to be able to buy it cash, and hope nothing goes wrong with it.

You have to be familiar with the markets and vehicles. If you are financing it is a much more dicy proposition. You are not going to be 'flipping' cars and making money if you finance. But you can own one for not much more than if you bought a nice car. AGAIN....if nothing breaks.

I had an R8 and struts went out, $9000 repair and I had to have a tran rebuilt $11,000. Mind you, this on a car with only 30k miles. Luckily I am a resourceful guy and I can do just about any work to a car myself.

I have a gallardo right now. Not uncommon to go through clutches every 10-15k miles. 7-8k to replace.

It is the reason I will never buy a McLaren since they are about impossible to work on even for a good exotic indy mech. Too much proprietary stuff.

In my opinion, you should only attempt this if you can buy the car cash and can handle a 20k repair if it comes up. If you dont have to use it, you get lucky.


The REAL money is made on limited production vehicles. But you have to spend about 1,000,000 with a manuf buying various models over time and show brand devotion. Then you get on the list to buy a Ford GT which is worth 500k more than you pay for it the day you pick it up. But you spend 1-1.5 million in the HOPES of getting that status. Same thing with Lamborghini or Porsche...etc.

Here is a great vid on the subject

Proof of your cars dont be a ****

[induced_drag]

Proof of your cars dont be a ****

Is that comment to me or Ed Bolean? I posted a few pics. Not sure what you are getting at.

[induced_drag]

LOL.

He already posted pics.

This is the best pic I have. Neet to trim those giant sequoias in my side yard though.....

[induced_drag]

LMAO.



asdf

I figured that he might even want more proof, so I was going to do a spoon pic. Just had not exactly figured that one out yet.

BRB, shopping amazon.

[ralphlaurenbrah]

I have a very good friend who is a dealer. I can buy directly through Manheim auctions. (largest auction house in the country...world I think).


Believe it or not even buying whosale there are not huge margins on these cars. Where money is made is at dealerships who take in trades. Most exotics sell at auction with about a 10k margin. Which is nothing, after a 900-1200 auction fee, and all the other costs (say transport and any work it might need...etc).

For the private buyer, the margins of owning the cars and flipping for profit is complicated by having to pay tax on purchase. Depending on where you live, this can be expensive. (and it cuts deeply into the bottom line).

If you get a dealer license, then you dont have to transfer ownership and can legally transfer title when you sell without having to pay tax. But then your hobby grows to having to run a 'legal' dealership.

Best deal for individuals are though private sellers. If you shop around with cash in hand, and wait, you can sometimes buy a car for 15-20k under market being in right place at right time. Say a seller has to get rid of car.

Personally I have just enjoyed having fun cars, so I have bought through auction. I recently bought an Gallardo w/ 14k miles on it. Pretty much show room new. I bought from Riverside CA Manheim. After shipping, I am probably about 7k under retail. But I have put 5k in the car in new exhaust and getting ready to get PPF done. But I got the car I wanted.

I drove my R8 for a year and put 5k miles on it, and basicly sold it for what I had in it even though I had some pricy repairs. Pics below the gallardo of car.

Damn from your posts in this thread supercars seem like a straight ripoff. I had no idea the maintenance was THAT outrageous. I couldn’t justify owning one of these unless I made over 1 mil a year.

[induced_drag]

Damn from your posts in this thread supercars seem like a straight ripoff. I had no idea the maintenance was THAT outrageous. I couldn’t justify owning one of these unless I made over 1 mil a year.

They are not a rip-off, they can be expensive to fix and generally require a lot more maintenance. As and example, the car I bought has 14k miles. At 6600miles there is a maintenance receipt for 12,500. Looks like it had a new clutch put in that early. (not the craziest thing ever in these cars) plus a few other things.

On some later model exotics, when the time comes for a brake job, be prepared to write a check for 25k+. Carbon ceramic breaks are not cheap. A Gallardo is 'cheap' by comparison with only about 5000 for a brake job.

Yearly services run about $1600 and larger services are obviously more. Oil change is $400-500..for reference.

"rip off" is relative. If you enjoy cars, it is hard to explain how much fun they are. No, they are not practical....but neither is a boat.

IF you buy the right ones, at the right price AND nothing major goes wrong, you can own one that after you sell might cost you less to own than if you bought a new camry. But it is a roll of the dice. One error code or failure and that will all change.

No guarantees in life...but if you play with expensive stuff, it often breaks.

But it sounds like this, which is a hell of a lot of fun

[induced_drag]

Here is a great vid about what it 'costs' to own and exotic from guy not trying to 'sell a dream'.