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The Secret Hacks Rich People Use to Buy Cars - YouTube
Channel: Donut Media
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(upbeat music)
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- Being poor is expensive,
and that makes buying
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a reliable car hard for a lot of people,
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but more often than
not, the people getting
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the deepest discounts also
have the deepest pockets.
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We're talking thousands
in savings the average
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car buyer never sees.
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So how do they do it?
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What are the secrets
of the rich car buyers
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that help them get super
cars for super cheap?
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Today on WheelHouse,
we're going to break down
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the top five ways rich
people get cars for cheap,
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and maybe even find out us broke boys
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and girls can do the same.
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(upbeat music)
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sponsoring today's video.
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Our friends at Omaze wanted to give you
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Pontiac GTO, good luck.
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(piano music)
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- As much as car dealerships
are ingrained in our society.
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Most people don't know how they work.
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(pensive music)
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- [Nolan] When a dealership buys cars
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directly from the manufacturer,
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they're looking at some
pretty hefty price tags.
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It takes an incredible amount
of capital to buy an entire
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parking lot's worth of new vehicles.
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And the dealership
needs some leftover cash
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for operating costs.
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So what do they do?
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Well, the same thing
anyone who wants something,
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but doesn't have the cash does.
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They open a line of credit?
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(atm machine ejects money)
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The dealership agrees to take
a bunch of cars on loan that
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they think they can sell.
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Allowing the dealership
to keep their own capital
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available for other business operations
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like payroll and service center costs.
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But just like with any loan,
there are terms involved,
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and that includes monthly interest.
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The longer that loan is not paid in full,
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the more expensive each car
really was for that dealership.
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So how do they pay back that
loan and get interest back?
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Well, that gets passed down
to you and I, the consumer.
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you might be thinking
Nolan, what does this
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have to do with rich people?
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Well, I'm going to tell you.
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This is the first way rich
people get cheaper prices.
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(suspenseful music)
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A wealthy person with
stacks on stacks on stacks
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is going to walk down into dealership,
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lay down a fat down payment, if not buy
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the car outright and
help generate capital for
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the dealership to pay back
those loans pretty quickly
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avoiding additional
interest on that vehicle.
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Therefore, the dealerships
will be willing to cut
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all kinds of deals with
that buyer offering
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all kinds of incentives for
getting that car off the lot
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and free the dealership from
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their loan as quick as possible.
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The credit check will be solid.
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No chance the payments won't be made,
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and they can rest a little
easier about the floor plan
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financing interest still looming
over the rest of the lot.
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So if you're a solid bet,
because you've got mad money,
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you have the upper hand
in these negotiations,
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but being flushed with cash,
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isn't the only way to have the upper hand.
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Another way to get a good
deal, if you can afford it
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is to own a company.
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Sounds easy enough, right?
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Who doesn't have an LLC these days?
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Uh, I don't.
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If you do have an LLC,
you're golden when you go
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to buy your next car, because
there are so many ways
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this cuts your final price.
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First, let me just say
two words, "company car",
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(door swivels and shuts)
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(soft rousing music)
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Buying the car through your
company, using company funds
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will have no impact on
your personal credit,
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which is a good baseline to start from.
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It will make it company
property, but along with
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that designation comes
tax deductions like crazy.
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If you have a tax advisor
who knows anything about
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what used to be called
the "hummer loophole,"
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you can take up to a 100% deduction.
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Why is it called a hummer loophole?
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Well, because the bigger the
car, the bigger the deduction.
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(upbeat music)
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- [Nolan] The two vehicle
types under consideration are
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light vehicles and heavy vehicles.
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Light vehicles refer to anything that
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weighs under 6,000 pounds.
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You'll hit April tax time with a
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depreciation limit on those.
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If you choose a larger SUV
truck or van, one say between
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6,000 and 14,000 pounds, tax
code section 179 gives you
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a much larger deduction cap on that.
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(upbeat music)
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Just to give you example,
if you buy a heavy truck for
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$95,000 and you're in the 35% tax bracket,
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meaning pretty wealthy,
your deduction could
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reduce your taxes by $33,250.
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(sound of coins dropping)
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(machine register rings)
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Holy Sh**!
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So does that mean donut
could buy, I don't know,
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a Hennessy mammoth 1000 and write it off?
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Hmm, interesting.
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Of course, all of this
is dependent on lots of
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strict IRS tax codes and allowances,
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and things an average buyer is probably
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not going to understand, but
if you have enough wealth
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to afford a very fancy tax professional,
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they can definitely guide you
into some significant savings.
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An advantage someone who uses online
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tax software on April 14th,
probably doesn't have.
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And I use that example because
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that's basically what I've been doing.
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And if you're thinking Nolan,
buying a heavy duty car
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rules out everything I
would even want to drive.
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Think again!
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You know what else sits
squarely in that category?
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The Mercedes G class.
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(upbeat blues music)
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- [Nolan] One Mercedes dealer
I found, even has a page
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blatantly advertising
the deduction savings,
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which if you're going to use on the
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Mercedes G63 AMG six
by six, clocking in at
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one and a half million
for the super pickup,
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uh, you might want to look into it.
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Actually, a lot of luxury
SUV dealerships do this.
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I found a page for Land
Rover talking about their
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tax deductions and how to do that.
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I believe the Lamborghini Urus qualifies
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for a heavy duty vehicle.
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I believe the Audi SQ8 also qualifies.
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I'm not sure if the Tesla model X does.
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We can look into that.
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(keyboard typing)
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Like this is a reason you see
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[Nolan} so many 'gatti
SUV's in LA and other
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metropolitan areas because a lot of people
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are using them for tax deductions.
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Even though the law was
created for farmers,
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in the first place to buy heavy trucks.
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Now it's being used by wealthy
yuppies in the Palisades.
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Another nifty loophole to
save money while buying and
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registering a car is
to use your company to
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register the cars out of State.
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See, that company you have is
paying off in so many ways.
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This sounds shady and truth
be told, it sort of is.
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No matter what State you actually live in,
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you can in fact, own a car registered
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in a state like Montana,
where there's no sales tax.
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Delaware, New Hampshire or Oregon plates
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are also great, If you can get them.
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that's kind of the gist of it.
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We actually did a whole
video on this subject.
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You can click right here.
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[Nolan] Most of the time when you see a
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super car or RV with Montana
plates, it's actually
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a rich person from a different state
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who does think they're better than you.
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(Upbeat hip hop music)
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[Nolan] Another way that
rich people can get cars
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for free is by having a lot of clout.
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Now I know this isn't just
something you can go do,
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but being an influencer has its upsides.
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Influencers get paid serious
bucks by car companies
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just to post a quick pick of
them with the brand's vehicles.
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It happens all the time on social media.
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There probably isn't a day that goes by
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that you don't see this kind of stuff.
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As the years have passed
though, the price tags
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or posts have grown, and
this source claims that
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one car company paid $300,000 for just
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a few photographs from
a specific influencer.
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Again, it's not a
discount or directly just
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giving them a car that we know of,
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but much of that cash could buy
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a few of whatever you want to drive.
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That would buy a lot of BMW
MT's or two mammoth 1000's.
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While all those loopholes
are great for the rich.
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What about the rest of us average people
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without companies or fleets?
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Well, according to one
anonymous ex-car salesman,
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there are a few things that
might help you get closer
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to the price you want on the car you want,
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even if you aren't wealthy.
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- [Nolan] First ask for what you want,
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even if you think it's too low,
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be honest with yourself about your budget.
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Always remember that the sticker price
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isn't the final price of the car.
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There are a lot of factors that go into
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the actual cost you'll owe,
including financing, fees
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and any add-ons, like floor mats.
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Can you afford it now? Be honest.
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Be prepared and know when to walk out.
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A lot of people just assume
they're getting as good a deal
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as they can get, but that's
never actually the case.
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They'll probably call you
back with a better deal.
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Car dealers are very good at
putting you under pressure
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and making you feel like you
got to buy a car right now.
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Otherwise your dad will
die. That's not true.
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Your dad will be just fine.
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You can walk out and the
car will most likely still
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be there, unless it's like a Corvette C8
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or a Hyundai Santa Cruz.
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Either way, I'm still going
to be buying used cars
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for the time being.
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Or not buying a car at all because uh,
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it's really expensive right now.
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And I'm not in that 35% bracket yet.
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(keyboard typing)
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(pensive music)
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(horse neighing)
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- [Narrator] It's been years, but...
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(laptop slams shut)
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... the comment still haunts me.
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more HRSPRS? Was it even possible?
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(loud thud)
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How much horse is too much horse?
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(pensive music)
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I had to know!
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(explosion)
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Test after test. Failure after failure.
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I began to doubt that I'd ever
find out. Then it happened.
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- I think I have it.
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I THINK I HAVE IT!!!
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I've done it. I've done it.
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HRSPRS are infinite.
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HRSPRS are infinite.
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- So saddle up, boys and
girls, and hit the trails
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with this 100% scientifically accurate new
[588]
HRSPRS shirt available
right now at donutmedia.com.
[592]
And it features everything
that you need to know
[595]
about pure equine muscle.
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Now, a real horse, that'll
cost you thousands of dollars.
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But this pony is 29.98.
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Which is way less than $30.
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Go ask your mathematician uncle.
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(upbeat techno music)
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- Hey, we've got a lot of cool merchandise
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on our website at donutmedia.com.
[615]
Get yourself a hoodie.
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You know, it's starting
to get cold out. I assume.
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Not here in LA. It's
hot here all the time.
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Speaking of social media, if you'd like to
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follow me on social media,
hit me up @nolanjsykes.
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Follow donut @donutmedia.
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Be kind, save your money.
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See you next time.
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