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.
For 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.
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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
Hey Cool Car Fans,
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. 
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 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.
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.
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!
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.
As 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.
First 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.
I 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.
The 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!
The 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.
If 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.
Hey Cool Car Fans,