3 Things To Do RIGHT NOW To Prepare Yourself To Own An Exotic Car In 2019
Exotic car ownership isn’t what it used to be, as broken down here in my free training. In fact, it’s much easier today to own an exotic than ever before because you no longer have to use your own money as I break down here.
It’s one of the biggest misconceptions of the century: that exotics are “unaffordable” and that you “must pay cash to really be able to afford one”. These small misconceptions have led people to never go after their dreams, as the cars they want seem so out of reach.
Most of my successful students who have adopted my new strategies of exotic car investing (rather than just being simply consumers of the system) have gotten their exotics as a result of very big step that many seem to miss, and that is “preparing” to be in the best position to get the absolute best deal possible on your first (or next) exotic.
Your ability to invest safely in an exotic car comes from your ability to be in a buying position at the time that the correct exotic is available.
This is a mistake many people make – waiting for the right car to pop up but then find their buying power isn’t where it needs to be, as they then scramble to find ANY way to go about buying it instead of the correct, safe, sustainable way.
Here are three important things you should do BEFORE being in the market for an exotic car:
1. Find out what your banking leverage is.
Apply for an exotic car loan using our list under Resources and discover which banks are willing to lend you what amounts based on the lending guidelines found in the course.
It is important to know which years and models you’ll be able to stretch from 84-144 months in order to know how much you can actually buy and what (if any) down payment structure you will need.
Knowing how much you can afford allows you to make offers with confidence and get the deals you want based on the ability to act fast. In the exotic car collecting and investing world, sellers are much more interested in the guarantee of money today than the possibility money tomorrow.
2. Narrow your choices to 3-4 cars that fit the criteria of your buying power.
Only focus on those, as your inability to buy higher will create distractions rather than focused decision-making. Become an expert on those cars by visiting forums related to them and also speaking with existing owners. More importantly, get familiar with options, color choices and anything else that can affect the value of the car.
An example here was when I went to buy my 2019 GT3RS. I believed that the “Miami Blue” was PTS (paint to sample / custom) color making it much more valuable, but the reality is that in 2016 it was, but in 2019 was only a rare color – NOT part of the PTS catalogue. That meant that while it made a car desirable, it also didn’t make it worth more money.
Understanding the nuances of the stickers and options on cars takes time and allows you to make better decisions when the right car shows up. Understand that most people won’t do this pre-work so as a result they will simply wait till the right car shows up and then invest time, meanwhile another person who is ready will appear make a real offer and scoop the car at the right price. You’ll lose if you don’t do your research.
3. Know your numbers, double check them, and stand by them.
Once you choose the car, options and the buying power is established, research your numbers so that you can make educated and worthy offers that, even if lower, still carry real weight. There is nothing worse than a cartoon throwing random lowball on cars worth significantly more.
The investing model is about projection – not extortion or stupidity. It’s about the range of numbers for a model and then making a valuation based on that range in order to make a solid offer that is valid for both parties.
So if you researched a car to be worth $64K and it truly is the fair value (not using irrelevant tools like MMR, KBB, etc.) then it makes sense to mark that as your number.
What a dealer or seller has bought a car for is completely irrelevant. What a car is worth to you IS relevant. So stop trying to justify deals by how close or below what someone’s cost is, and justify it based on your knowledge of numbers.
These three things, along leverage from our 5000+ members in our community should help you make better investing decisions as it pertains to exotic cars.
See you in the member’s lounge.