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