how to find cars below market value That dealers are begging you to buy Using This Simple Trick (part 4)
Believe it or not, when I search for car deals online, I don't use any fancy tools.
I use the same exact websites and resources that you have access to.
These are the places that I frequently browse for deals:
• Cars.com
• AutoTrader
• eBay Motors
• CarGurus
• Car forums
• Facebook groups
When most people search for cars, they probably look at the cheapest ones first.
Let me be the first to say that cheapest does not equal the best deal.
What I do is very different...
First I make sure the car I'm looking at fits our car hacking criteria as covered previously.
The next step is the trick that no one knows.
I use what I call the 90 Day Rule.
The 90 Day Rule is the simplest and quickest way to know if a dealer is motivated to sell a car.
In order to understand why a dealer would be motivated, let me explain how dealers work.
Dealers finance their inventory with a line of credit called "floorplan", which is nothing more than a loan to help them acquire inventory.
The different between a traditional loan and "floorplan" for dealers is that interest is not charged for the first 90 days.
Once a dealer has held a car for 90 days, they get to the point where they are in a losing financial position and forced to move it quickly by any means necessary.
At the 90 day mark, not only does interest start to accumulate, the value of the car will have also depreciated further as well.
It's a lose-lose situation for them.
Take a look at the graph below to understand why the "90 Day Rule" is so important.
A dealer rarely wants to hold a car for more than 90 days so they need to make a deal happen or be forced to wholesale it at auction.
Remember that dealers are in business to make money.
What they'll do is make price adjustments every 30 days (sometimes more frequently) at the 30, 60, and 90 day mark.
Take a look at this 2018 Audi R8 that a dealer has dropped $16,092 over the course of 3 months.
It's safe to say that this dealer is motivated to get this car off their books ASAP and more than happy to work out a deal.
That is where us car hackers come into the picture.
Well you might be thinking....
"PJ, how the hell do I know how long a dealer has been trying to sell a car?"
That's easy my friend.
Carfax!
When a dealer lists a car for sale, it usually shows up on the Carfax report with the date of when it was listed for sale.
Take a look at this sample report below of a Porsche GT3 RS.
The very last update was that it was offered for sale as of 4/9/20.
If I was trying to buy this specific car, I'd want to wait until closer to 7/9/20 to make a move on it.
Now before you go yelling at me about needing to pay for a Carfax report each time... hold on a second.
Most car classified websites and dealer websites will have the vehicle's Carfax report available for FREE.
Here's an example right on Cars.com and AutoTrader...
NEVER ever pay for a Carfax report.
If a website doesn't show it, just simply ask the dealer to provide it.
An honest dealer with nothing to hide would gladly share it with you.
During this time you can also review the Carfax to make sure it is accident-free.
Marshall is one of my students who followed this method and was able to pick up a solid Jaguar XFR-S for $12k under market value on the 89th day.
If you follow this method of hunting for the deal, rather than the car, then it's virtually a bulletproof method to beat the dealer at their own game.
Best of all, you won't be 'hurting any feelings' since you know the dealer is already hurting anyways.
Don't forget that right now dealers are slashing prices left and right because of COVID-19.
In fact, I'm actively buying up as many cars as I can.
Some for investment purposes, others to add to my personal collection.
There is literally no better time to buy than right now.
But buying is only easy if you know you're getting a good deal or not right?
Well there's actually a specific number that is going to play a very important role in your calculations.
Knowing this "magic number" will be the difference if you end up losing money, breaking even, or making money when you sell.
On the next page I'll show you how to find this number so that you protect yourself from risking losing any money at all.
Copyright © 2020 Exotic Car Hacks. Legal Disclaimer
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.