BONUS – Hacking Cars!
Financing
- Banks want to be able to lend money on cars – dispite that not making no sense… they just want the business
- They don’t like non steady income. Its going to be tough if you are self employed. If you are make sure your occupation is (CEO/president), have a stable residence, have income to support
- Go through loan reseller – credit union, broker
- To qualify for a loan, banks like to see up to 40% Debt to income ratio, three years of residency, three years of employment, loan history, and credit history.
- Focus on approvals, not rate shopping – remember we are playing the car value game instead of paying down car game that everyone else does
Building your credit
Start is with a credit card and use it for your usual expenses (food, fuel, etc) and pay the bill IN FULL, EVERY MONTH, NO EXCEPTIONS.
BONUS – if you have a friend or loved one who has exceptional credit with a long history, have them add you as an approved user on their oldest credit card account. Check out this resource.
Call your credit card providers and ask for a credit limit increase. Most allow you to do this online by updating your income on your profile. If you call on the phone, explain that you have a couple of big purchases coming up and you’d like to keep your business with <company name> if they can extend you a higher limit.
Pro tip: they don’t verify, but they do want to see progressive growth. If you applied and said your income was $30k, don’t try to say it’s $100k 6 months later.
A big part of your credit score is your “utilization”, meaning how much credit you have available vs your outstanding balances, so raising your credit limit and NOT using it will allow you to get that score up.
More types of credit lines on your account such as secured or collateralized loans. For example, car loans and home loans.
If you rent or constantly move around it can be a huge red flag to a lender.
“Auto Loan Ladder”
Once one hack at a given tier is complete (holding the loan for ~6 months, make every payment on time, and pay it off when your car is sold), you can be approved for 50-100% of that loan value on your next auto loan, assuming your income supports the monthly payments.
Tier 1: $30,000 – $40,000 range
Example Hacks: BMW M3/4/5/6, Maserati Quattroporte, Aston Martin Vantage
Tier 2: $60,000 – $80,000 range
Example Hacks: Nissan GTR, Porsche 911 Turbo, Mercedes G63
Tier 3: $90,000 – $120,000 range
Example Hacks: Lamborghini Gallardo, Audi R8 V10, Rolls Royce Ghost
Tier 4: $130,000 – $180,000 range
Example Hacks: Ferrari 458, Lamborghini Huracan, Rolls Royce Dawn
Not only does your credit score improve with every completed hack, but your available credit for secured loans goes up as well.
Buying Criteria
- between 3-6 years of age
- without accidents
- clean title
- clean service records
- have already depreciated their entire time depreciation
- haven’t changed values more than 5% up or down in last 24 months.
- have sat at least 90 days
- have at least one new generation stacked on top of them
- pass a comprehensive ppi
- no paintwork
- some instances ok if not on record
- specialty cars or exotics only