Understanding The Fundamentals Of Car Hacking

Understanding car hacking puts you ahead of 99% of the population. Once you "get it," there's not going back to buying or leasing cars the normal way

On this page, I'm going to cover 3 major components of car hacking:

  1. How car hacking and  depreciation works
  2. How to find desirable cars below market value with the "90 Day Rule"
  3. How to strategically buy cars with no money down with zero risk of losing money.

How Car Hacking And Depreciation Works

I probably don't need to tell you that a BMW 3 Series and Lamborghini Gallardo are not the same car. 

But what most people don't know is how they depreciate differently.

Everyone just assumes exotics are depreciating money pits, but nothing could be further from the truth. 

The graph below shows the depreciation curve for a BMW 3 Series over over 10 years starting in 2009.

As you can see….

The price starts at $35,000 in 2009.

Then you’ll see a very gradual, mostly linear downward trend.

In 2019, that same BMW 3 series is now worth less than $10,000

Over 70% of its value has depreciated in a 10 year time frame.

Now's let look at the depreciation curve for a Gallardo LP560.

As you can see, this is a very different looking curve than the BMW.

It's not so linear. 

Whereas the BMW will eventually be worth close to $0, the Lamborghini's curve actually bottomed out in 2020 and is actually going up now.

Now let's zoom in a little more into 2020.

Yup, the Gallardo's value is actually going up as of May 2020.

And this is in the middle of an economic crisis with COVID-19. 

Once it has reached it's bottom value based on time, only condition and mileage will continue to drive the value down.

So why does this happen?

Why do normal cars like the BMW 3 Series follow a linear depreciation curve while exotics like the Lamborghini Gallardo LP560 level out and actually increase in value?

Two reasons: 

  1. Exotic cars have a following and will always be in demand (unlike normal cars). 
  2. Exotic cars are not mass produced. (some models have ceased production, which further drives up price due to its rarity).

Remember, you can only hack a car when its depreciation curve has already bottomed out like the Gallardo example above.

How To Find Desirable Cars Below Market Value

The key to making car hacking work is making sure you only buy cars that are below market value. 

You can use the following sites to start looking for cars:

  • Cars.com
  • AutoTrader
  • eBayMotors
  • CarGurus
  • Car Forums
  • Facebook Groups

But you need to know what to look for...

You can't just go looking for the cheapest cars possible like everyone else.

This is where my 90 Day Rule comes into play. 

The 90 Day Rule is the simplest way to tell whether or not a dealer is motivated to sell a car.

How the 90 Day Rule Works

A dealer will typically reduce the asking price of their listed car every few weeks (30/60/90 days) to attract the right buyer.

Once they have had a car for 90 days, they start losing money on the car and need to dump it so they can buy new inventory that will make a profit.

This is because most dealers finance their inventory on what’s called a FloorPlan, where they pay zero interest for 90 days while the car is on the lot.

After the 90 days, their interest payments start kicking in and they need to dump the car so they don't have to pay interest. 

That's where you swoop in to take it off their hands.

How to Buy Cars With $0 Down and Zero Risk of Losing Money

On the last page I talked about my Wealth Transfer strategy. 

Wealth Transfer is the transfer of money into an asset that can easily be taken out at full value, so little to no cash value is lost or additional income is produced.

(e.g. buy a Lambo at $200k and be able to resell it for $200k)

There are two keys you must understand to use Wealth Transfer  properly.

  1. Bottom Cash Value (BCV)
  2. Risk Exposure

Now, the key to not losing money on cars is to buy them at or as close as possible to their Bottom Cash Value.

Bottom Cash Value definition: The absolute lowest value an exotic car will go, based on its depreciation schedule.

If you buy above Bottom Cash Value (which even I do sometimes, it's not necessarily a bad thing) it’s important to understand your Risk Exposure.

Here's a simple equation for you to remember:

Cost of purchase – Bottom Cash Value = Risk Exposure

I know I know, I hate math too.

But I promise this is simple stuff.

Here's an example.... 

Let's say you buy a Lamborghini Gallardo with a bottom cash value of $85,000 and you paid $90,000...

This means you risk exposure is -$5000.

However if you buy a Ferrari 459 Italia with a bottom cash value of $140,000 and paid $120,000...

This means your risk exposure is +$20,000.

The key to successful car hacking is buying as close to Bottom Cash Value as possible.

2 Easy And Free Methods To Calculate Bottom Cash Value

There are 2 easy and free ways to calculate bottom cash value:

Method #1: You can submit a sell/trade-in form online for exact car (year, make, model) you want to buy.​

Catsexotics.com is one site you could use. But shhh...don't tell them I sent ya ;)

Method #2: You call up a dealer and say something along the lines of,

“Hey Mr. Dealer, I have a [YEAR, MAKE, MODEL] for sale on consignment at another dealer and I am looking to move it. Here is the VIN number. Please let me know how much to take this car off my hands TODAY.”

Either method works and their answer is your Bottom Cash Value.

A Real-life Example Of How Car Hacking And Bottom Cash Value Works (In 7 Simple Steps)

Now let's tie together everything we just talked about in just 7 simple steps.

For example....

1. You find a motivated dealer with an exotic for sale, like a 2014 Maserati GranTurismo.

2. It's been sitting on the lot for 75 days with an asking price of $70,000.

3. You monitor the car as it gets closer to 90 days and notice the dealer discounts it again down to$65,000.

4. You research (using one of the two methods above) and discover the Bottom Cash Value of that Maserati is $55,000.

5. You make an educated offer of $58,000 so that you save $7,000, while the dealer makes $3,000. Win win scenario.

6. You secure the car with NO MONEY DOWN financing with a preferred bank or credit union.

7. After 6-12 months, you can resell the car for the same $58,000 you paid since you’ve already factored in future depreciation.

How are you able to resell the car for the same price 6-12 months later? 

 The reason you're able to resell the car for the same price is because your goal will be to sell to a private party (not a dealer).


You could sell it back to the dealer, but then the dealer would only pay you BCV and you'd likely lose some money.

 But even if you do sell back to a dealer, it would still be cheaper than leasing or conventional buying. 




Bing bang boom.

And just like that.

You bought a Maserati, enjoyed it for 6-12 months, and sold it back without losing a single penny.

THAT is how car hacking works.

Car Hacking is simply buying the right exotic car, at the right price, so that ownership can be exited fast with very little or zero financial loss.


Now you own the car of your dreams.

But what about all the other costs?

Like insurance.

And maintenance.

Must be crazy expensive, huh?

Everyone thinks exotic car insurance is gonna cost you $500-1000 per month.

But it doesn't have to be that way.

Let me show you why on the next page...

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DISCLAIMER: The results stated above are my personal results. Please understand my results are not typical, I’m not implying you’ll duplicate them (or do anything for that matter). I have the benefit of practicing car buying for over 10 years, and have an established following as a result. The average person who buys any "how to" information gets little to no results. I’m using these references for example purposes only. Your results will vary and depend on many factors …including but not limited to your background, experience, and work ethic. All business entails risk as well as massive and consistent effort and action. If you're not willing to accept that, please do not continue.