Category Archives: Cool Cars

Beware Of The Accuracy Of Car Websites And Reviews

Hey Cool Car Fans,

I decided to start 2017 off by writing an article about the plethora of car websites online with “information” about getting a deal on vehicles and online reviews.  There is a popular old saying, “there’s a sucker born every minute” and this is really true when it comes to what you read online.  Granted, I have an online blog here, so people could probably say the same thing about me, but the difference is that I am actually licensed to buy, sell, trade and lease vehicles for a living and I’ve been doing it for the past twelve years.

ONLINE REVIEWS

Let me start though by talking about online reviews.  What a joke most of this information has turned out to be.  I know of a dealership that rips people off constantly and they earn a ton of money selling cars.  They “inspect” their cars, advertise their cars as “inspected”, but most of their vehicles are rusted out from the East Coast and they don’t actually fix them.

They just advertise that they have a “90 point inspection” done on the vehicle, which is true, but they don’t pay to repair them.  In some cases, they don’t even do an oil change or they may only do an oil change on the vehicle.  When a person goes back to complain they tell them that they purchased the vehicle “as-is” and to have a nice day.

Some disgruntled people will go and write a bad review about them, but they don’t care.  The salespeople have their friends and family write reviews for them or they write them on their own under an alias.  Their good reviews outweigh their bad reviews, so they look like a great place to buy a car.  How is the online website like Google going to monitor that?  They can’t and do they really care?  Think about it.  The reality is that you could buy a car that is a piece of junk if you buy from that particular dealership based on their reviews.

On the flip side, you see people who are extremely unreasonable write negative reviews about repair shops or car dealerships that are really quality businesses.  I know of a repair shop in Denver that has been around for 40 years and they specialize in doing clutches at a pretty reasonable price.  They will even use upgraded materials like Kevlar that can last longer for only about $100 more than an OEM clutch.

Recently, I read a review online that blew my mind.  Some disgruntled guy wrote…

The quality was excellent–HOWEVER they tried to charge me sales tax on MY components which were brought in for reconditioning, which is labor only. This is NOT legal under Colorado State Law, and they IMMEDIATELY developed an attitude when informed of this fact. Will NOT use them again.

Really? This guy brought in his own parts for “reconditioning” and they charged him sales tax of 7.65%?  I bet his bill was about $200, so he had to pay about $15 in sales tax and he took the time to rate this shop one-star on a popular website.  He even said, “The quality was excellent”.

This guy failed to realize that most shops won’t even let him bring in his own parts.  The repair shops want to use their own parts, so it’s amazing this shop did that for him and then he pounds them online over sales tax?  Wow.  How many people won’t bother reading the actual review to realize that an unreasonable guy gave this long-term shop a one-star rating and they will miss out on using a really good shop for their service.  Once again, I take online reviews with a grain of salt because most of them are B.S.

CAR PRICING ONLINE

Let’s shift gears quickly and talk about one of my favorite things that you will see online today.  There are so many websites now telling people what they should be paying for a vehicle.  And most of the time it’s really comical.  I’m not going to mention the websites directly because I don’t need the heat from their lawyers, but you will know who they are.  The websites that tell you whether you are getting a fair market price or a value price or what the dealer price should be.

I ran an Internet company for three years before becoming The Cool Car Guy twelve years ago.  Guess how we made our money on the Internet?  We sold ads.  And the more visitors we would get to our site the more ads we could serve up and the more ads we served up the more money we made.  Do these sites actually sell cars?  No.  Do they really care if they tell you that you should be paying $25,000 for a $30,000 car?  No.  Why would they?  They have zero risk for giving you poor information.  It’s on the same level as fake news.

These websites often pull data from the dealer auctions for example or previous sales on their website, but that really means nothing.  Does their algorithm that they are using stop to say, “This vehicle had frame damage we need to adjust the price and notify our visitors.”  or “This vehicle was in two accidents and was priced less.” or “This vehicle has $5,000 in hail damage that wasn’t repaired.” or “This same vehicle is missing a front fender and the tires were bald and the sunroof was cracked and leaking water.”? Do their websites take any of this information into consideration?  No.  They can’t!  It’s simply taking an average of all recent sales data and telling the visitor that they should be paying $25,000 for that $30,000 vehicle because they have all the “data”.  It’s ridiculous because the data isn’t completely accurate.

It can’t be because sometimes a dealer will low-ball someone on a trade and the person will take their low-ball offer.  Now, they paid $16,000 for a vehicle that is running through the dealer auction for $22,000 that they can sell for $20,000 and earn $4,000.  Does this now mean that these vehicles that are retailing for $25,000 should be selling for $20,000?  This is the brain damage that these websites are creating in the marketplace because of mis-information and just spitting out “data”.  Ever watch Pawn Stars on television or some of the car shows where someone wants $10,000 for their vehicle and they offer them $5,000 and they take it?  It happens quite a bit nationally, but it’s not reality because some dummy gave away their vehicle.

You get to run around trying to buy a $30,000 for $25,000 and telling the local dealership or a private party, “Website so and so says I should be paying this, so that’s the most I am going to pay.”.  Does website “so and so” own that vehicle you want?  No.  Does website “so and so” actually sell cars or just advertise cars for sale?  How does website “so and so” get paid?  They sell advertisements or you have to pay a fee to list your vehicle on their website.

Are all cars that are the same make, model and year the same?  Ever been in a used car that looked like a family of rats lived in it or was a rust bucket compared to one that is car show worthy?  Are they worth the same?  Do these websites really care if the vehicle sells or if the visitors get the wrong pricing information?  No.  It’s not like you are buying the vehicle from them.  They have absolutely no skin in the game and there are zero regulations to make sure that their information is accurate.

What should you really do to get pricing for a vehicle?  See what the vehicle is really selling for online and if it fits your budget great.  If not,  you probably have to adjust your budget based on the actual condition of the used vehicle.  You are far better off going to NADA.com and KBB.com and pull the data with the options to see what the retail and wholesale value is for the vehicle.  This is what banks use to loan money on vehicles, so it’s much more real data.  If you are under retail and close to wholesale than you’re probably getting a good deal.  You should compare both book values though because sometimes even they miss it.  Some banks use Kelly Blue Book and some use NADA, so if you are financing the vehicle, find out which your lender is using.

In the end, a vehicle is worth what the owner is willing to pay.  A few years ago there was an article about a 1956 Mercedes-Benz 300SL Gullwing that was unrestored and it sold at auction for $400,000 more than a restored one brought.  What’s the website that the buyer could have gone to see if he got a good deal on that vehicle?  You can see details on this vehicle purchase at Gooding & Company’s website.

Obviously, the vehicle was worth what the buyer was willing to pay for it.  This is one of the reasons why I often enjoy selling historical or classic cars more than more modern vehicles to clients.  Most of the time the buyers and owners are much more reasonable about the vehicles they are looking to purchase and sell.

_________________________________________________________________________

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com that is a licensed car dealership in Lone Tree, CO.  He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

 

Why I Am Excited About The Future Of Formula One Racing

Hey Cool Car Fans,

If you’ve ever watched F1 racing you know how cool these cars are and recently a Colorado billionaire, John Malone of Liberty Media purchased the rights to Formula One racing.  If you’ve never seen Formula One racing let me share with you from a cool website called Zeroto60times.com how fast these race cars are and you’ll see why I am excited about the future of this sport.  Especially, if we can get some more Formula One racing here in the United States.

“Formula 1 cars are some of the fastest and radically accelerating vehicles on Earth and are considered by many car enthusiasts to be the pinnacle of motorsports. Today’s F1 0-60 times are exponentially faster than predecessors of even a couple decades ago. Formula One race cars have been recorded to reach 0-60 as fast as 1.6 seconds, however the typical range for modern day F1 cars is between 2.1 to 2.7 seconds. The 2007 Honda RA107 f1 race car goes 0-100 mph in a blistering 4 seconds flat.  The 2015 Infiniti Red Bull RB11 Formula One race car jets 0 to 60 in only 1.7 seconds, and perhaps even more impressive can reach 190 mph in under 10 seconds.  Although top fuel dragsters hold the top spot for fastest accelerating race car class, the F1 race car boasts a range of superior performance stats. F1 0-60 times are extreme, however so are their ability to perform incredibly tight high speed maneuvers, decelerate and reach impressively high top speeds. Under hard braking or cornering a typically F1 car will pull 4g’s, which is over 4 times as much as a 2014 Corvette Stingray Z51 would do which produces a max of 1.03g in hard cornering. The power to weight ratio of F1 race cars would actually allow for better performance, however current traction technology limits the capability to improve these current stats. Most F1 cars weigh around 1,300 pounds with the driver and boast over 750 horsepower. In other words, the power-to-weight ratio of formula one race cars is credited for the spectacular acceleration.” – Zeroto60times.com

These cars are super cool, but the race series is not winning over new fans and that’s a problem for the future of the Formula One racing.  John Malone’s Liberty Media has agreed to buy the racing series in a deal that values it at $4.4 billion, plus debt that will take it up to $8 billion.  That’s big bucks for a racing venue, but this is Formula One racing, which is the Super Bowl of race car driving and a global audience.

Since the announcement was made back in September other news reports have said that they intend to put spending caps on race teams.  This is a great idea because Formula One has been dominated by Red Bull and Mercedes Benz.   This is because they can spend $400 million or more on putting together a racing team and other teams have been spent into ruin trying to compete, which has created an unfair advantage for smaller teams.  It’s not a big win for the fans when two teams can dominate the racing circuit with better technology and loads of cash, so it will be interesting to see how it all shakes out with the new owner.

I don’t expect that Formula One will be huge here in the United States, but we might get some Grand Prix races in some larger cities like New York and Los Angeles out of it.  I’m hopeful that in the coming year we’ll see some changes with the new ownership and that more of the races will be available to watch and follow because it’s a really cool sport.  I’m including a cool video that is under ten minutes that I found on Youtube to check out below.

I want to thank all of my clients for a great 2016 and I am looking forward to 2017 and what it has to bring.

_________________________________________________________________________
Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant who owns CoolCarGuy.com that is a licensed car dealership in Lone Tree, CO.  He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

A Tale Of Two Classic Porsches

Hey Cool Car Fans,

I often get requests from clients to help them find a good deal on a specific classic car and I’ll usually start out by searching through the dealer auctions.   Recently, I was cruising through the auction and I spotted a couple of Porsche 356’s from the early 1960’s that I decided to showcase here and write an article about.

One of the reasons why I selected these two vehicles is because of the incredible disparity in price between the two vehicles.  I wanted to use this article to illustrate the fact that no two vehicles are ever the same, especially when it comes to classic cars.  Much like a piece of a artwork the beauty is in eye of the beholder and what has gone into the creation of the vehicle.  Many factors come into play from vehicle restoration, make, model, year, original miles, overall condition, who did the restoration, color, popularity, scarcity, etc.

First I spotted this 1962 Porsche 356B that was yellow and black with about 100,000 miles on the vehicle.   The description of the vehicle didn’t really say much about it though.  This vehicle was being priced around $72,000 with auction fees and shipping.  Here’s what they had to say about it, but let’s get some more research on this year and model as well.

The Listing: “WOW New 356B Original Rust free pans, new paint excellent interior Super 90 Spec Engine, Sport Exhaust, Carrera Tail panel & much more. Some details still awaiting completion but wanted to get these stunning pictures out there.

Porsche 356 History

“The 356 was created by Ferdinand “Ferry” Porsche (son of Ferdinand Porsche, founder of the German company), who founded the Austrian company with his sister, Louise. Like its cousin, the Volkswagen Beetle (which Ferdinand Porsche Sr. had designed), the 356 is a four-cylinder, air-cooled, rear-engine, rear-wheel drive car with unitized pan and body construction. The chassis was a completely new design as was the 356’s body which was designed by Porsche employee Erwin Komenda, while certain mechanical components including the engine case and some suspension components were based on and initially sourced from Volkswagen.” – Source: Wikipedia

One of the reasons why the 356 is popular is because it was originally created by the son of Ferdinand Porsche and it’s a cool body style.  In addition, it’s an extremely popular Porsche model and is claimed to be the world’s largest classic Porsche club of all the models.  They also are popular for rally and racing car events as well.  What about the 1962 though compared to the 1960?  Actually, there were not huge changes in these vehicles from 1960 to 1962 since the biggest changes to the 356 actually occurred in 1959.

“In late 1959 significant styling and technical refinements gave rise to the 356 B (a T5 body type). The mid-1962 356 B model was changed to the T6 body type (twin engine lid grilles, an external fuel filler in the right front wing/fender and a larger rear window in the coupé). The Porsche factory did not call attention to these quite visible changes with a different model designation.” – Wikipedia

The second vehicle I spotted was a 1960 Porsche 356B convertible, which I’ve put some photos in this article of as well.  This vehicle was a complete restoration with an asking price of around $189,000 with auction fees. The first 1962 Porsche that looked like a pretty sweet ride was being listed at around $72,000 and this one was being listed at around $189,000.  That’s a big spread in price.

Why the massive difference in price for a Porsche convertible compared to a coupe that was originally built within two years of the other one?  Let’s look at how this one was listed and described compared to the other one because this vehicle is a complete restoration and you can see the difference between the two vehicles.

The Listing: “1960 Porsche 356 B Super 90 Convertible Signal Red Tan Leather Interior 1600cc Super 904-Speed Vin/Serial: 87746 Full Restoration in 2014 500 Miles Since Restoration Rust Free Body Rebuilt Drivetrain Solex P114 Carburetors New Clutch New Brakes and Suspension 12-Volt System Leather Trimmed Seats Leather Trimmed Door Panels Leather Trimmed Dash Detailed Undercarriage New Seals and Weather Stripping Constant refinement has always been the watchword at Porsche but the new-for-1960 356B represented a marked leap forward in both mechanical and cosmetic features. Most notably the traditional dropped nose and slanting headlight covers gave way to a raised front bumper and fenders and more upright headlights. The T5 body style also introduced such new details as opening front quarter windows except on the Draus-bodied Roadster so named to appeal to the fast-growing American market. Famed photojournalist Jesse Alexander described the 356Bs new T5-series body as a rather drastic face lift that will come as a shock to Porsche owners all over the world but today it is symbolic of Porsche excellence. This superb Drauz-bodied 1960 Porsche 356B T5 Roadster is presented fresh from a three-year no-expense-spared nut-and-bolt restoration completed in 2014. After being stripped to bare metal the rust-free body was finished to high standards of fit and finish and expertly painted in Porsche Signal Red. In addition to all new seals weather stripping and exterior trim it features excellent glass chrome and canvas top Concours-standard detailing including the undercarriage and a crisp clean Tan interior with leather-trimmed seats door panels and dash pad square weave carpets and fully functioning controls and instrumentation. The restoration included rebuilding a Super 90 1600cc flat-4 engine with Solex P114 carburetors. The transmission was also rebuilt and a new clutch installed; the completed driveline now has approximately 400 miles of use. All steering linkage brake system and suspension components have been restored or replaced and the electrical system upgraded to 12 volts. This marvelous collector-grade 356B Roadster is offered with the Porsche Certificate of Authenticity.”

I think these two vehicles really illustrate why there can be such a difference in price for the same type of classic cars.  In the words of Donald Trump, the next time you contact me about a classic car you can see how the difference between cars can be “huge”.

_________________________________________________________________________

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com that is a licensed car dealership in Lone Tree, CO.  He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Who’s Building Your Car These Days?

Hey Cool Car Fans,

It is amazing how global the automotive industry has become over the years as we have watched prices of vehicles skyrocket.  Isn’t the idea that if you manufacturer something in another country you should be paying less?  We’ve seen that with calculators, computers and digital watches, but apparently not with cell phones and automobiles.

In some ways, the consumer has been hoodwinked into paying way more for less value than what people would expect to be paying for vehicles today that are being outsourced to other countries.  Many of the vehicles today are more expensive than what people used to pay for a house or what they can still pay for a house in some parts of the country.

Car loans have gone from three and four years to five and six year loans as common and even seven and eight year loans!  I have helped people do a five year lease on a used vehicle to get a lower payment, so that they can roll out early based on depreciation, which is still better than an eight year loan.

Let’s look at the new 2017 Chevy Bolt for example and who has been involved in creating this new vehicle.  According to Wikipedia the Chevy Bolt was created in conjunction with LG.

“The Chevrolet Bolt or Chevrolet Bolt EV is an all-electric subcompact car developed by Chevrolet in partnership with LG Corporation.[3] Production for the for model year 2017 began in November 2016.[4][5]

Isn’t LG known for making televisions, washers and dryers?  The Chevy Bolt though is an EV (electric vehicle), which other than the batteries may have a motor that could last 20 years like your electric dryer.  If you have read CoolCarGuy.com for any length of time you know that I believe the electric vehicle is the ultimate in planned obsolescence.

I love the awards many of these new technology electric vehicles get too.  I’m not sure that many of us have ever even heard of some of these awards, but they sound really good.

“The Chevrolet Bolt won several awards including the 2017 Motor Trend Car of the Year award, the 2017 AutoGuide.com Reader’s Choice Green Car of the Year, Green Car Reports Best Car To Buy 2017, Green Car Journal‘s 2017 Green Car of the Year, and was listed in Time Magazine Best 25 Inventions of the Year of 2016.[10]

Call me a skeptic, but when I sold windsurfers back in the mid 1980’s and computers back in the early 1990’s I remember the magazines giving awards to the companies that I was selling for numerous times because they were huge advertisers with the magazines.  Of course, I’m not saying this has happened here, but I take awards in the automotive industry with a grain of salt.

Getting back to who is building your car today though, if we read a little further about the Chevy Bolt we discover that not only is LG in South Korea involved in manufacturing the motor, battery and drive unit, but the former car company Daewoo was involved in the design of the vehicle.  The only thing that is Chevrolet about the Bolt is the brand name and that it is being assembled in Detroit, Michigan.

“The Bolt was designed by GM’s Korea studio (formerly Daewoo Korea), as B-segment size[28] on its own platform, and does not share elements with the GM Gamma platform cars Chevrolet Sonic/Spark/Opel Corsa.” – Wikipedia

I don’t know if this is a great vehicle or not since I haven’t driven one yet, but I find it fascinating that this vehicle has an MSRP of $37,495 for an all electric vehicle.  If you subtract a federal tax credit to encourage people to buy electric vehicles than the price drops to $29,995 for the MSRP.  The reasoning behind this vehicle is to avoid paying for gas and that most people are only driving about 40 miles a day, but you have to spend a ton in fuel to justify the cost.  It is still going to be a pretty good seller for Chevrolet I’m sure with the increased interest in electric vehicles and all of those award that it’s received – lol.

You could get a 2000 BMW Z3 similar to this one (I’m not selling this one, just showing an example) that I spotted through the Manheim dealer auction that gets great gas mileage and has about 77,000 miles for less than half the price of a 2017 Chevy Bolt.  I would take an older BMW hands down personally, but I recognize they are not in the same category.  My point is that there are some great used vehicles out there that you don’t have to spend $30,000 on with a tax credit to get a cool car.

I’m not trying to pick on the 2017 Chevy Bolt in this article, although it probably seems that way, but I am really just trying to make the point about who’s really making your vehicle.  The fact is that so many vehicles are being outsourced today by all of the manufacturers that you really have to do some research to find out who’s designing, manufacturing, assembling and building your vehicle before you plunk down your cash.

Maybe you don’t really care either?  After all, Chrysler Jeep is owned by Fiat, Mercedes Benz for a while owned Chrysler, so if you own an older Chrysler it could very well have some Mercedes Benz technology in it.  Ford owns Mazda and used to own Land Rover and Jaguar that are now owned by Tata Motors out of India.  Some of the Land Rovers were a disaster for repairs, while Ford owned them.  Nissan is owned by Renault and we’ve seen a number of changes in those vehicles over the years compared to when they were strictly Japanese and the old Datsun brand.

We’ve all seen the issue of recalls with airbags over the past year with a number of manufacturers.  Vehicles are costing more money, but are people really getting more bang for their buck?  I think it depends on the vehicle, even the vehicle within the same manufacturer. Which is why it’s important to do some homework before you purchase an expensive vehicle and know what you’re really getting.

It’s one of the reasons why many people contact me about getting older cool cars, like that BMW and customizing them with navigation, upgrading the interiors and modernizing them with newer technology.  They can often do this for far less than what they are going to pay for a new vehicle that at times feels more like they should have a “made in China” sticker on them.

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Should I Buy or Lease That Luxury SUV?

Hey Cool Car Fans,

I have clients from all walks of life and often times I’ll have clients contact me about buying or leasing a luxury SUV.  For example, Maserati is introducing a new SUV in 2017 called the Levante that will be available in both a diesel and a gas powered engine.

This is a super cool, high-powered SUV with up to 430hp in a twin-turbo V6 motor.  The Maserati website describes this vehicle as follows…

“The Levante is an SUV like no other, embodying the passion, the sophisticated engineering and exclusivity that have distinguished every vehicle engineered and crafted by Maserati in the heart of Italy since it was founded in 1914.”

This should be a popular SUV for a very specific market segment and it’s a super cool ride, but it also has some serious competition.  Jaguar has the F-Pace that they have rolled out, which is less money, but is smaller in size.  There is the tried and true Porsche Cayenne that is another high performance and well made vehicle.  The Jeep Grand Cherokee SRT-8 that has plenty of horsepower and Jeep has been making the SUV forever.  The always popular BMW X5 that is available in a number of configurations that has been around for a long time as well.  Meredes-Benz with their assortment of SUV and the Tesla Model X that is the new SUV from Tesla to name just a few of the options available from luxury car companies.

The problem though is when a manufacturer rolls out a new product, like Maserati and Jaguar are doing, do you really want to be the guinea pig and purchase the vehicle?  I wouldn’t recommend it.  I didn’t say I don’t like these vehicles.  I think they are really cool, just like many of the others I’ve mentioned in this category.  I would just suggest leasing a first release vehicle like the Maserati, the Jaguar or the Tesla and letting the leasing company share in the risk.  This is because we don’t know what the depreciation is going to look like over three or five years for a newly released vehicle.  It gets even more sketchy with the Tesla because many people want the electric vehicle for the tax incentives, but it’s hard to unload a used one without the appeal of a tax incentive.  If you lease it you can drop the keys, walk away, fix your costs and tell the leasing company the vehicle is theirs and to have a nice day.

The reality is that we can look at a three year old Infiniti QX80 and know what they are selling for today.  You can purchase or lease it and have a good idea about what it will be worth when you’re ready to unload it in the future.  We have no idea what to expect from a Maserati Levante or the Jaguar or the Tesla and how they will depreciate over the next three to five years.  We also don’t know how they are going to depreciate in relation to the competing vehicles that have a solid track record.

If you lease the vehicle, you’re allowing the leasing company to share in that risk with you and this is what many people don’t think about.  They only look at the monthly payment or that they don’t want to lease a vehicle compared to purchasing a vehicle because some financial guru, who knows nothing about cars, told them not to lease.  They are not looking at the overall risk and costs involved.
________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

How To Lower Your Car Payments

Hey Cool Car Fans,

Many times people will decide that they want to purchase a home, but their debt to income ratio is too high.  They may have a great job and the income and they have even saved for a down payment, but their car payments are preventing them from being able to purchase a home.

The first thing that we can do is refinance the person’s current vehicle and lease it back to them that can sometimes really lower their payments.  I recently had a client who was able to lower their payment on a 2012 Infiniti QX56 from over $800 a month down to $422 a month by leasing the vehicle, instead of continuing with her current payment structure.  Being able to lower her payments really helped her with cash flow based on her financial situation.

Many people have lifestyle changes and they don’t look at this as an option.  For example, if a person can lease a vehicle and have a lower payment than they have money available for qualifying for a home or funding an investment grade cash value life insurance policy.  This can be a great strategy that will allow someone to put money away that they can use for other funding options.

As a licensed life insurance agent in the State of Colorado I can show people how to leverage the benefits of dividend paying whole life insurance from a mutual life insurance company.  One of the tremendous benefits of these products is that a person can invest in a policy, have a death benefit and build cash value to borrow against in the future for opportunities like financing their own vehicles without credit and at really low interest rates.  There are huge benefits to this strategy that I won’t go into detail here, but it’s an example of how if you can lower your car payments you can have other financial opportunities available to you.

I’ve had a number of people who have refinanced their vehicles by either financing or leasing them to lower their payments, but another option is to trade out of the current vehicle and into another vehicle.  This is another strategy that many people don’t think about and they miss out on a way better financial opportunity.

400For example, many people are told by the television and radio “financial gurus” never to lease a vehicle, but what if you have an opportunity to buy a home at a great price?  Let’s hypothetically say that you have a $600 a month car payment that is holding you back from qualifying for a home, but you only need $200 more a month in cash flow and you would qualify for the purchase.  What if you could get out of it, lease something similar in a different brand and have a $400 a month payment for three years with miles that would work for you?  That’s $2,400 a year, which over three years is $7,200 in savings.  This is money you can use for other opportunities or save for the future.

Let’s assume that you are $4,000 upside down though to get out of your $600 a month payment?  That is still $3,200 in savings over three years with much better cash flow, when you subtract the $4,000 from the $7,200.  This is what many people don’t think about.  What if you are able to purchase a home for $10,000 less because of the market in your particular area and you can now do that because of your improved cash flow?   Suddenly, that $4,000 in negative equity on the vehicle that you rolled into a lease makes perfect financial sense because you immediately saved $10,000 on the home purchase.  Over three years, the home you purchased is probably going to appreciate in value as well.

“Typically in the U.S., property prices rise 3.5 percent per year, Humphries says, and since about the middle of 2013, they’ve gone up 6 to 8 percent a year.” – Source: USNews.com

“The median home value in the United States is $189,400. United States home values have gone up 5.5% over the past year and Zillow predicts they will rise 2.9% within the next year.” – Source: Zillow.com

This is just one example of how it can make sense to lower your payments using a lease, trading out of a vehicle and purchasing or leasing a different vehicle or even doing a refinance for better cash flow.  As I mentioned already, I also show people how to use this type of a strategy to put the additional savings into an investment grade cash value life insurance product that also goes on the asset side of a balance sheet.  This can allow a person to put money away over three to five years and begin building a stronger financial foundation for themselves.

The bottom line is that sometimes it can make more sense to finance or lease a vehicle and lower payments depending on a person’s unique financial situation.  Everyone’s situation is different and people have life changes, including divorce, health concerns, retirement, credit challenges or opportunities that they want to take advantage of, so I have found that there is rarely a one-size fits all solution.

It’s honestly never a cut and dry statement such as “you should never lease a vehicle” or “you should never refinance a vehicle” or “you should never buy whole life insurance” like so many of the “financial gurus” like to claim.  Sometimes it makes perfect sense.  I’ve seen many people really improve their financial situation by restructuring their automobiles and the way that they go about financing or leasing them.

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2008 BMW M5 Sedan – Consignment SOLD!

Hey Cool Car Fans,

Recently, I listed a really cool 2008 BMW M5 sedan on consignment for a client and I decided to feature it here at CoolCarGuy.com and put some photos of it online.  I had to feature this vehicle because most car enthusiasts are familiar with this vehicle and it’s 500hp V10 power plant under the hood. This is a really cool vehicle and it’s pretty much stock from BMW other than the exhaust that he did an upgrade on.

The Exhaust

The exhaust was done at BDM Performance Exhaust and my client had them put Magna flows on and change out the tips to single oval shapes to match the contour the rear bumper, which gives is a slick look from the backend. 

Year:2008
Make:BMW
Model:M5
Trim:Sedan
Mileage:50,041
Stock #:JB8762Xc
VIN #:WBSNB93578CX08762
Trans:Automatic
Color:White
Interior:Leather
Vehicle Type:Sedan
State:CO
Drive Train:RWD
Engine:5.0L V10 DOHC 40V

The 2008 BMW M5 had an original base MSRP of $86,675 according to Edmunds.com and a 1/4 mile track time of 12.8 seconds at 115.1 mph and it took 4.5 seconds to get from 0 to 60 mph.  As I mentioned it has 500hop and 383 ft lb of torque.  This bad boy will get up and go, but the M5 doesn’t really feel like a fast car, which is the beauty of it.  It’s more of a sleeper where people believe it’s just another 5 series sedan, but it’s actually a monster on the highway.

The E60 M5 was the world’s first production sedan to feature a V10 gasoline engine.  At the time the M5 was released to the public it was the fastest 4-door production sedan in the world, which you would probably suspect it to be.  It had a five year run from 2005 to 2010.

If you’re looking for a fun pre-owned vehicle in this $30,000 price range this is a fantastic car to consider and I don’t expect it to last long.

2008 BMW M5 Sedan Vehicle Options
  • Air Conditioning
  • Electronic Parking Aid
  • Power Seats
  • Alarm System
  • Extra Keys
  • Power Trunk Lid
  • Alloy Wheels
  • Fog Lights
  • Power Windows
  • AM/FM
  • Front Air Dam
  • Rain Sensing Wipers
  • Anti-Lock Brakes
  • Front Power Lumbar Support
  • Rear Airbags
  • Automatic Climate Control
  • Front Power Memory Seat
  • Rear Defroster
  • Automatic Headlights
  • Front Side Airbag
  • Separate Driver/Front Passenger Climate Controls
  • Aux Audio Jack
  • Heated Exterior Mirror
  • Side Airbags
  • Back Up Sonar
  • Heated Seats
  • Side Head Curtain Airbag
  • Bluetooth
  • High Intensity Discharge Headlights
  • Steering Wheel Mounted Controls
  • Bucket Seats
  • Interval Wipers
  • Subwoofer
  • Cargo Area Tiedowns
  • Keyless Entry
  • Sun Roof
  • CD
  • Leather Seats
  • Tachometer
  • CD Changer
  • Leather Steering Wheel
  • Telematics System
  • Chrome Wheels
  • Limited Slip Differential
  • Telescopic Steering Column
  • Cruise Control
  • Locking Differential
  • Tilt Wheel
  • Daytime Running Lights
  • Navigation
  • Tinted Windows
  • Driver Airbag
  • Owners Manual
  • Tire Pressure Monitor
  • Driver Multi-Adjustable Power Seat
  • Passenger Airbag
  • Traction Control
  • Electrochromic Exterior Rearview Mirror
  • Passenger Multi-Adjustable Power Seat
  • Trip Computer
  • Electrochromic Interior Rearview Mirror
  • Power Locks
  • Trunk Anti-Trap Device
  • Electronic Brake Assistance
  • Power Mirrors
  • Vehicle Stability Control System

If you are looking for a fast BMW with plenty of room for five people, amazing horsepower and speed look no further than this nice BMW M5 sedan.

Price: $31,000

Cool Car Guy RatingExtremely Cool

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2015 Mercedes Benz GLK350 4Matic Used Vehicle Lease

Hey Cool Car Fans,

Recently, I had a former client contact me about getting out of her 2013 Nissan Rogue lease and into a “luxury” vehicle this time around, but she wanted a low lease payment without having to put a great deal of money down.  I know that many people see the low lease payment offers on television and they believe the dealerships that they can lease an $35,000 to $50,000 vehicle for under $400 a month with nothing down.

However, what most people discover is that in the fine print of the advertisement the manufacturer wants more money down or have an annual mileage restriction of 10,000 miles or even 8,000 miles.  If you drive 15,000 miles a year for three years and you purchased an 8,000 mile lease than your vehicle will have a vehicle that is three years old with 45,000 miles and you told the leasing company that you were only going to drive 24,000 miles a year.  This happens all the time!

The salesperson tells the person not to worry about the miles because at the end of the lease they can buy it out, but what if the leasing company bet wrong on the residual and the residual is $26,500 and the vehicle is selling at auction for $24,000?  You get to buy it for $26,500 or $2,500 more than what the vehicle would actually trade for.  This is still better than being over your miles by 21,000 miles at $.25 a mile, if you give it back to the leasing company where they will cream you for $5,250 in additional depreciation, plus any additional damage the vehicle might have as well.  Which is why it’s important to purchase the right miles to begin with or get as close to where you think you’re going to drive as possible.

The Used Vehicle Lease Option

Why do people buy used vehicles?  Because they want someone else to take all the initial depreciation on the vehicle when it drives off the showroom floor.  When you lease vehicle you are paying for the depreciation and the leasing company is setting a number on what they believe the vehicle is going to be worth, two, three, four or five years from now.  They are taking an educated guess and rolling the dice that the vehicle is going to be worth X if you put on X number of miles during the term of your lease.  As I just mentioned, many times the leasing company will be wrong and that’s a benefit for you!

What if my client had purchased the Nissan Rogue and after three years she wanted to get out of it?  In her case, she had backed into her husbands vehicle with her car and did about $500 in damage.  On top of that though, Nissan had bet wrong so the vehicle was worth about $2,000 less for trade value than the residual value was, so if she had financed it for five years and wanted out she would probably owe about the same as what her residual value was.  Now she could just give it back to the leasing company, cover the

A used vehicle lease transfers some of the risk of ownership of a used vehicle back onto the leasing company again and this is an awesome concept that you are probably not going to hear about from a franchise car dealership.  They are in business to do new vehicle leases because the manufacturer wants them leasing new cars and not leasing used cars.

You can now see the benefit of how a used vehicle lease is similar to purchasing a used vehicle. Much of the depreciation has already taken place, so you are able to transfer some of the risk of driving that used vehicle onto a leasing company.  If the vehicle gets hit with hail or in an accident, while you are driving it and you own it than you get stuck with the bad CARFAX report and I get those calls all the time from people trying to figure out what to do with their vehicle with the bad CARFAX.

A Lower Payment & A Lower Residual Value

When you lease a used vehicle, like the pictures of this 2015 Mercedes Benz GLK350 AWD, that I ran lease numbers on for my client, a great amount of depreciation has already taken place.  For example, I ran a scenario with 12,000 miles a year instead of the 8,000 or 10,000 on a similar manufacturer’s lease with only $1,000 down, plus the first payment and 12,000 miles a year.  The numbers below are based on approved credit and you need a minimum of a 680 FICO to qualify for a used vehicle lease with most leasing companies.

This is a vehicle that I could purchase at the Dealer Auction for her with about 30,000 miles on a 2015, so it still has the remainder of the four year factory warranty from Mercedes Benz.  If she was to lease this vehicle using the estimate that I ran, which could be less depending on what I can purchase this vehicle for or one like it for through the auction it would be a very affordable lease.  It could be slightly more, but I’ve been doing this for 12 years and I’m pretty good at estimating, but I will drill down a specific vehicle for her if she decides to go in this direction.  I’m not sure why someone wouldn’t want to do this?  There is very little downside and it can be great for people in business.  Not everyone knows how to structure these leases properly though, so if someone tells you they know how to do used vehicle leases it doesn’t mean they will have the same results.

You can see the Base Payment, which is what dealers normally quote before sales tax is added to the lease payment.  Also be sure and look at the residual.  So if she were to decide to lease this really cool vehicle for 48 months she can buy it out at the end of the lease for $15,400, which is below wholesale based on sales at the Dealer Auction of 2011’s with about 78,000 miles like this should have at 12K a year.  Which is a case where if she were to put more miles on the vehicle than what she purchased she could find herself in a safe position based on the depreciation that already took place.  This is also a simple interest lease, which is another discussion all together.

TermAdjusted Cap CostResidualBase PaymentSales Tax %Sales Tax AmountTotal Payment
24$30,445.00$20,583.00$467.057.85$36.66$503.71
30$30,445.00$19,521.00$419.097.85$32.90$451.99
36$30,445.00$18,459.00$386.737.85$30.36$417.09
42$30,445.00$16,929.00$373.927.85$29.35$403.27
48$30,445.00$15,400.00$363.877.85$28.56$392.43
54$30,445.00$14,132.00$351.127.85$27.56$378.68
60$30,445.00$12,863.00$340.677.85$26.74$367.41

 

This is a payment that many people can afford and put more money into their savings or an investment vehicle, a business venture, use for their household expenses, while still driving a late model Mercedes Benz.  How cool is that!  A person could be driving a 2015 Mercedes Benz AWD SUV for less than what they would pay to drive an American or Japanese Import. Which is why I’m The Cool Car Guy.

If you want to have me run some scenarios for your situation and have me assist you in finding a different vehicle just send me an email at the address below.
______________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

How To Use A Network Marketing Business To Make Your Car Payment

Hey Cool Car Fans,

Jaguar Lease AdAs The Cool Car Guy, I consult with people from all walks of life about buying, selling, trading and leasing vehicles.  I have been doing this full-time for about 12 years now and I have bought and sold millions of dollars worth of vehicles.

Some of my clients have enough money to write a check for a new $100,000 Porsche Cayenne or a $65,000 Lexus and other people are barely making ends meet.  I have other clients who have just filed bankruptcy and they are starting over financially and need more money.

I thought I would write an article about how if you’re in the camp with too much month at the end of the money, you could be building a Network Marketing business to make your car payments for you.  Even if you’re not struggling financially to drive a better vehicle, but you’re like me and you would much rather leverage your personal brand and create another income stream you may find this article and concept of interest.

Obviously, this article isn’t going to be for everyone, but if you want to have an open mind I’ll give you a really cool way to let a third-party and a business help you make your car payments.

Real Life Clients

2007CorvetteFirst of all, let me explain that I have clients who are using this strategy and have their own Network Marketing businesses where the company sends them checks each month.  I have multiple clients who are earning an income in Network Marketing and they are using their part-time and full-time businesses to make their car payments for them.  I subsidize driving my vehicles using this concept as well because it is simple to do.

Several of my clients will lease or purchase new vehicles on a regular basis since their Network Marketing companies are making the payments for them.  I’ve also found that most people would be driving a better vehicle if a third-party was making the car payments for them.  If you had an extra $500 to $1,000 a month coming in from a sideline business to make your car payments wouldn’t you drive a better vehicle?

Product Endorsements

We have all seen commercials with Peyton Manning or Tiger Woods driving a Buick or Matthew McConaughey driving a Lincoln.  If you haven’t seen these, I’ve dropped one of them into this article for you to check out.  Actors and athletes are always getting paid to endorse vehicles or other products for money.  So why wouldn’t you want to do the same thing and get paid for telling other people about a product or service?  Do you think these celebrities need more money and to drive free vehicles more than you do?  I doubt it, but they understand the power of leverage.

What if you could earn an additional $500 or $1,000 a month from an online business and use that money to make your lease or car payments?  What if it costs you about $100 a month to get back about $500 a month using a legal business strategy and sideline business called Network Marketing?  The concept that I’m going to share with you in this article will work with a number of Network Marketing companies.  However, just like all cars are not the same, all Network Marketing companies are not the same either.

I have met numerous people who do not like Network Marketing or are very negative about it because of a bad experience or they have beliefs based on irrational prejudices. For example, I know people who will never buy an American car because of an experience they had with an Anerican car company back in the 1980’s, which is not rational based on changes in technology since the 1980’s. It is the same type of mindset when people immediately discount Network Marketing without further investigation.

How It Works

Mercedes S-ClassI know of a Network Marketing company that you can join for as little as $25 to become a Distributor, along with a small one-time purchase of about $100.  After that you can get on auto-ship for some of their products each month that they will automatically send to you and they include free shipping if your order is over $50.  Each time you have a monthly order and other people who have ordered, they will send you a check.

In order to qualify for commissions in a Network Marketing company you need to have a minimum monthly order or personal customer sales. Many people get hung up on this aspect of building a Network Marketing business, but if you think about it logically it makes sense that if you are in business then products should be moving through your business.  I wouldn’t be The Cool Car Guy if I never sold any vehicles to people.

There is a typically a minimum of about $100 a month in products that you need to sell or purchase for your personal use in order to qualify for commissions and get paid by the company. I have found that most companies will pay you about 35% on an initial order for people you refer to their company and another 7% to 8% on their repeat orders.  This is usually within the first three levels of their compensation plan that I will illustrate in more detail in this article.

1980_fiat_spiderThe purpose of this article is to show you how to drive a better vehicle and let the sideline business make your car payments for you.  You are not trying to build this Network Marketing business as a “get rich quick” scheme, which is another turn-off about Network Marketing for many people. You could use it though to buy a really cool car!

I like the idea of getting paid on your own website and the website of others, which you can do with Network Marketing.  How many people were referred to Facebook or Twitter and they never got paid from those companies for their referrals.  Here’s a practical example of what I’m talking about and the power of Network Marketing to create additional income.  A person told me about a Network Marketing company and their products that I could use for running marathons.   I have since used their products for years.

The person who told me about the company earns 8% on my orders every month, some months I order $200 or $300 in products from this company, so that person gets a check from the company for about $16 or $24 every month on just my orders.  All they did was tell me about the company and their products and I joined and started ordering their products.  If they have ten or twenty people like me they are earning several hundred dollars a month to make their car payment from a very simple sideline business.  That’s pretty brilliant if you think about it because they are using leverage to let someone else pay for their vehicles.

A $500 To $1,000 Car Payment Scenario

BMW LeaseThe biggest benefit of a Network Marketing business is that you not only get paid on people that you tell to use the products, but you can get paid on the people your Distributors tell as well.  That’s the whole concept and real benefit of networking.

For example, let’s hypothetically say that you put a little effort into your business and you told ten people to join your team and become a Distributor and they each have $100 a month going through their business in product purchases or sales. We’ll assume that your ten people are not as ambitious as you, so they each tell five people and those fifty people each tell just two people, so you would have 100 people on the third level of your business.  You would have a network of 160 people that you could get paid on each month and you only told ten people yourself.  I’m not promoting that you try to become a millionaire doing this venture or that you quit your day job or drop out of school.  I’m explaining that you can use this business model to make your car payments and drive a better vehicle.

How much money would a Network Marketing company pay you, if you ordered $100 in products from the company to qualify for commissions and all of the other orders totaled $100 per sale?  Your business model would look like the following matrix and you can see how the commissions can add up quickly based on the power of duplication.

Hypothetical Example of Building a Network Marketing Business

  • 10 x $100 – $1,000 x 8% = $80
  • 50 x $100 – $5,000 x 8% = $400
  • 100 x $100 – $10,000 x 7% = $700
    • Total: $1,180 commission check.

That’s an easy lease payment on a Maserati, Jaguar, Mercedes or BMW for telling ten people how they could be letting someone else make their car payments for them and helping them to tell a few other people as well.  It’s not magic.  You’re not getting rich off of this concept.  The reason why those “celebrities” are getting paid money to endorse cars on television is because they are reaching millions of people with their advertisements.  That one commercial on YouTube has been viewed over 3 million times. I don’t know about you, but I like looking for ways to let someone else make my car payments for me.

What Do You Have To Lose

ghibli leaseIf you are happy with making your own car payments than just ignore this article and this concept.  Don’t change anything in your life, but if you know somebody struggling to make ends meet than send them this article.  I’m not making any income guarantees or claims here, but simply sharing a concept on how this can work for you or anyone else for that matter.  Take it or leave it as information you can use or discard.

As I mentioned earlier in this article, all Network Marketing companies are not the same just like all automobiles are not the same.  There is a big difference between a Porsche 911 and a BMW 3 Series in performance, fuel economy, seating, handling, horsepower, etc.  If you would like more information about the company that I’m working with just get in touch with me by sending me an email and I’m happy to discuss this concept with you in more detail personally.  You can also direct people to this article and leverage my website to work on creating your own income with this concept.  I have a vested interest in wanting you to succeed and have this work for you, so that you’ll call me for your next vehicle as your income starts to grow.  You can do this type of venture part-time or full-time and there are tax benefits available to business owners that your accountant or CPA can discuss with you as well.

If you’re interested in pursuing this further and use it as a tool to make your car payments send me an email at the email address below.  If you would like to discuss other ways to lower your car payments, get out of your lease or current vehicle or anything else related to vehicles you can reach me at the address below as well.
______________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Buying A Vehicle After A Bankruptcy

thebkcourtHey Cool Car Fans,

One of the biggest issues that people face when buying, trading or leasing vehicles is when it comes to financing.  I’ve seen a bank or a credit union offers someone an interest rate of 11.99% with a 665 and 710 FICO Score from two different reporting agencies and then I submit it to another bank and that bank approves the same person, the same vehicle and the same structure for 6.25%, which is half what the other lender was going to do the loan for.  In addition, they may have different stipulations, such as proof of income or proof of employment or proof of residence or references, while another bank only asks for a copy of the driver’s license.  That same bank though with a different buyer could do the exact opposite of the first bank based on their credit history and the entire structure of the vehicle purchase.

When it comes to people who have filed bankruptcy, one of the biggest mistakes that I see people make is that they get multiple offers from credit card companies offering to rebuild their credit.  The person thinks, “This is great and more is better because I need about five different trade lines to get my credit score back up.” and the next thing you know they have opened up a bunch of credit cards and installment loans to rebuild their credit and then they go to try to buy a vehicle.  They end up getting declined because their debt to income ratio is too high or they have to come up with an excessive amount of money down to get the bank to buy the loan.  It’s not a bad idea to get a credit card after having a bankruptcy discharged, so that a person can start rebuilding their credit again.  However, they don’t want to fall for all the offers because banks like people who have filed bankruptcy and discharged their debt and they know that they can’t file bankruptcy again anytime soon.

The other thing that people do is they get extremely picky about the vehicle they are purchasing as though it is the last vehicle they will ever own.  I can typically get someone approved with credit challenges or even after they have filed a bankruptcy with a number of lenders, but the lender isn’t just looking at the person and their credit.  The lender is checking out the amount of money they are putting down, the type of vehicle they are buying, their employment history, if they have a co-signer or not, how long they have been at their residence, so there is more to getting financed than just the vehicle.  When people work with me, since I don’t inventory vehicles I can take a client to the Dealer Auction or get something out of the rental fleet that is often much better than what they will find on their own walking the car lot and at a better price.  The key though is that it has to be a vehicle that the bank is willing to take a risk on or have enough money down that the bank won’t care.

In other words, someone can actually get a pretty cool car after their bankruptcy and get financed, if it is structured correctly and they are working with a consultant who is willing to take the time to help them find the right vehicle at the right price.  The interest rate is going to be higher initially, but there is no reason why someone can’t refinance their vehicle after 6 to 9 months.  Through my relationship at the dealership where I have my license I have access to lenders who specialize and work with people who have credit challenges, even bankruptcies, so keep that in mind if you know someone who is having  a hard time getting financed because of their credit.

A really good friend of mine who I run marathons with is actually an Executive at a bank that specializes in getting people funded who are currently in a Chapter 13 or have a discharged Chapter 11 bankruptcy.  There are definitely options available for people to get a vehicle and rebuild their credit after a bankruptcy or even if someone just has poor credit.
________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy