I purchased a semi truck and trailer with no money down. Every owner operators told me it’s impossible. I have a not so good credit scores of 680. I’m not saying it was easy but if you want success, you need to be persistent and not give up. Successful people don’t give up. I’m not saying I’m successful not even close but from one truck and trailer I purchased, I now own a fleet of 6 semi trucks and trailers and also I now own 40 box trucks. Businesses are full of challenges, but once you break through those challenges you can reap success as well. I wish everyone here the best on their business endeavors. Never give up on your dreams, don’t let anyone steal your dreams.
I am glad it worked out for you but I get offered 18 percent interest rates at a 680. I know you are expecting to reap money back in to offset it but 2020 showed us anything can happen.
@@mojopimp2020 10% percent interest rates, and paid that off in two years, after I paid the first truck I went back to the same finance company and purchased the rest of the trucks including the box trucks, I put them under my business credit instead of my personal under an S Corp. Like most of the purchases, the first is always the hardest to get. It took me 21 rejections to finally found the one that was willing to give me a chance. My personal score now is 785, my business score under Dunn and Bradstreet is an (B). I believe you’re familiar with the D&B scores for businesses only. I rather pay a 10 percent interest and cash for an emergency purposes. Then pay the vehicle off as soon as possible. That’s what I did. To me in any businesses you have to know your intentions and exit strategy prior to getting into one. I’d learned from one of my business that I failed miserably that’s what got my personal credit scores so low. Than I learned to not use my personal credits to do business finances. Because if my business fails, in doesn’t affect my personal credits. That’s including credit cards. I separated my business credit cards from personal credit cards. My business cards are under my business entity not my personal name.
What I can tell you about auction buying: so I work on cars for a living and started a side gig with one of my customers who has a used car dealership. We are in Miami, so he lists his higher end cars on the platform and rents them out, whilst simultaneously listing them for sale. He purchases the vehicles through the auction and puts them on his floor plan. A floor plan is a line of credit extended to dealerships. It allows them to hold inventory and not make payments (or not accrue interest) for a determined amount of time (usually 90 days). So for the first 3 months he can have the cars generate revenue for free, and if all works out, he can then sell the car before the first payment is even due. He also uses his lot at the location to pick up and drop off. There have been several instances where the renter has returned to purchase the car or a car from him as well.
They do acrue interest. If the Floorplan in one of there audits finds out he is renting them they will cut him off. They do offer special flooring for rentals but the terms are ruthless and you can't pay them off early.
@@LynxStarAuto Is he still renting his cars on turo. Through his dealerships floorplan. I was thinking about doing the same and wanted to know if its still possible to do. Thanks for any info greatly appreciated.
*PEOPLE* Have your financing pre approved to better prepare yourself when in negotiations. No haggle dealerships stay away from them. Every car is negotiable! Also, *DO YOUR RESEARCH ON MMR (MARKET VALUE) Don't fall in love with a hunk of metal...fall in love with the deal! *HERE ENDETH THE LESSON*
When buying from a “dealer auction” like manheim, there is a different strategy methodology. Buying the cars at 20% off current retail price. Not having a car payment makes you more money each month. Insurance is less when you own the vehicle vs financing. Best of all, you can then sell you car after 1 year and still make an additional 15% over purchase price, also made money the entire year off the vehicle rented on Turo. So my opinion is if you buy a vehicle at auction you make a lot more money as long as you sell after 1 year. •You sell for 15% over the purchase price. •You make money every month off that car. •Insurance is lower. •no monthly car payment. It’s like parking your cash in a great stock. You will make 25% off your parked cash in 1 year.
Owning a car outright I'm pretty sure doesn't make your insurance cheaper. All it does is allow you to not carry full coverage or extra insurance premiums and what not that a bank financing your loan makes you hold. My truck is financed, but the credit union says I have to have no more than a 500 dollar deductible and full coverage. Paying it off doesn't make the insurance cheaper it just allows you to choose cheaper insurance. Not having full coverage on a rental vehicle in my opinion is pretty stupid.
This comment completely ignores the convo of tax advantages. You’re also ignoring cash on cash return. You sunk a bunch of money in. How long until you’ve made your initial investment back, and are actually net positive? If It takes the entire year and for You to Sell The car to be positive you don’t have cash flow. You have an asset holding company and are operating in a deficit all year for your expenses.
More money down does NOT mean a larger commission for the salesperson. And money down CAN affect approval by the finance company. Dealerships get paid in full by the loan anyway and the finance company takes over the liability immediately.
The bigger the down payment the smaller the monthly payment which is better for cash flow on an ongoing basis. The saving the down payment cash to have for a rainy day is a good idea in a general sense (cash is king) but it pays to think carefully about the benefit of securing a cash free deal up front versus the increased payments that have to be covered by rentals. Do you want an immediate cash squeeze or an ongoing cash crunch. In the end, you're "renting" the car- whether you buy or lease. Total of $ value of the payments - residual value /months owned = basic cost of the asset, lease or buy.
It’s simple if you feel pressure from a dealership get up and walk out. Be informed, be savvy, do you homework before your purchase and don’t give any info out until your purchase numbers are nailed down and agreed upon. Then you get into terms and finances, preferably come in with your own bank financing and watch the stealerships add ons. Watch the end numbers and the math that may change as they try to slip things in the deal at the end.
Had a friend buy a new supra and had to wait for it to show up. When they did all the paper work they added on like 20k in extras that they said were free cuz he specifically said he didnt want anything extra. So shady!
I agree 100%. The last time I bought a car they asked me what payment I want... Which they can always make work but stretching out payments, creative financing, etc. I said, I can make any payment work, I don't care what my payment is.. But what is the cost of the car. Yeah, they had to lay their cards out... Lol
I’ve been a auto salesman at several dealerships and I can tell you the down payment has absolutely nothing to do with the commission. The down payment is for YOU. It will lower your monthly car note and could qualify you for a lower APR
You would think or say that because you have no knowledge of 15 usc 1605 and what the responsibility of your actual position is lol but its not your fault, you just want a job
It's pretty much impossible to get a low APR at a dealer since they add 1-3% APR on top of the what the dealer offers after they shotgun (and temporarily ruin) your credit. Never finance at a lot whatever you do. There are plenty of banks and credit unions that will approve you before you even step foot on the lot.
This woman is actually my turo guru! I just wasn't feeling this video but she is awesome. I have 15 cars and 2 jet skis, some I purchased some I financed. But all I want to see say is build your Business credit! Everyone speaking on personal credit but didn't speak on how business credit is 10x more powerful. Peace
If you already have an approved rate it doesn't matter.....have done it both ways..... Do your financing first b4 buying....know your auto scores, which lenders use which scores...... Most people do it backwards.... There is only 2 numbers to focus on when buying a car....the 3rd takes care of itself if the first 2 line up
Great video! I financed my first 3 cars for Turo with $0 down. They made me enough cash flow that I could bought the next 2 with credit cards and just paid them off. I’ll do the same thing with my next cars.
What you’re actually doing is monetizing your credit when you’re doing a no money down lease or purchase. I agree with you , it’s better to keep your cash. I’ve greatly enjoyed your videos.......very well edited and subject matter intelligently selected and produced. I always wait to be reminded by you to click the like.....lol ....but now I’ve finally subbed, so you’ve got me for life. Peace
Great channel! I would like to disagree with you about sales persons commission. As a former new car sales manager, commissions don't come from the down payment. Commissions are based on net profit on the deal overall. I do agree that you should use other peoples money. Great job!!
That's true about the bank I just got approved for a $54,000 Dooley and they didn't want ask me for a down payment and we priced out four of the trucks all through the process not once was down payment brought up and I was getting it for 5% interest
Car salesman here for 2+ years . I totally agree with not putting money down on a lease but we don’t make any commission on down payment but the more money someone puts down the higher chance of holding gross profit which is were a sales persons commission is a percentage of the front gross profit. Dealers are willing to loose money on the front in hopes to make money on the back end which is finance department which is were most profit is made . There is a drive off due at signing is required which is typically first month payment acquisition fee plus tt&l. Not all dealers or sales people are vultures I’m pretty straight forward and honest in all my deals. Audi Downtown LA here! Love your videos btw might start a turo business some day!
Great video, I worked at a dealership for a while now and we are trained to block the no money down, just say you only have 20 dollars in your wallet you got that it nothing lol, GAP is always mark up- it’s only worth negative equity in it, and on a lease you have to have tier 2 cerdit but no money down is a higher monthly payment, personal fine with me putting 3000 to have 60 less a month for 36 is not worth it to me, and if you lease when it over just roll anything extra into the new lease, another way is to walk out and say I’m going to a different dealership they will beat whatever price just to get your business had it happen to me 9 times
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So I see buying outright works like this...Lets say a car 25k plus 2.5k tax so your out the door 27.5k. over 2 years of depreciation you sell it for 20k, loss of 7.5k. divide by 24 month, 312.5/ month loss. So basically whatever you make above 321.5 its profit. If you can lease this car for 312.5 a month with zero down then it comes out even.
Thank you for all videos you share! 3 quick questions: 1) Are you financing with personal credit or business credit? 2) How many cars do you have financed at any one time? 3) How do you get financed with a lot of existing car loans?
Alex: I'm sure you already know, a business can finance as many cars as it wants so long as the company can prove they can pay for them. As Therealjames100 mentioned, learn how banking works, and you'll know the answers to your question. Remember, banks love to loan money to successful paying people. I'm just saying...
Buying at an auction will always pay off when you buy it for way under market value! I'm not saying I buy them with my cash; I just want to be clear. Your investment vehicles should be bought through your business because you are working for a company; yours! Therefore, finance all your cars through your company, including auction purchases. PS: She's such a sweet girl. Folks, let's not be so harsh!
Where do you suggest people get personal insurance? We still need that. Turo's insurance only covers the car while it's on a rental. None of the insurance carriers I contacted (Geico, Progressive, etc) allow you to rent your car out. Their policies specifically prohibit that. Commercial insurers charge up $1,000 per month, per car. And they want to vet every driver before you give them your car. My fear is that I rent a car on Turo and the driver causes an accident and kills/injures someone. That person's/family's lawyer sues everyone in sight: your driver, Turo, YOU, and your personal insurance carrier. Your carrier is going to cry insurance fraud and won't defend you or pay out. Where does that leave you?
I went through the Pre-Approval process with Navy Fed to eliminate the sales hassle and anxiety I get when going to a dealership. So now I all I have to do is walk in with my Pre Approved check, select a car, test drive, negotiate a lesser amount, and close the deal. No additional credit checks or hard inquiries because Navy Fed already did 1 hard inquiry VS dealerships pulling up to 10 inquiries. However, I do believe putting down a down payment lesson what you’ll be paying for the car in the long run, as well as your monthly payment but it is not a requirement for NFCU.
You also never want to put money down on a lease you will never get that money back if there is a total loss with in the first year of ownership, put that cash into a high yield savings account and opt in for GAP which is usually $695-$895 for the duration of the loan, all dealerships make their money on the back end and dealer hold backs
Appreciate you for this video, looking for my third car after getting burned 2 times and suing the last dealership for my c300 Benz for negligence. Always do your research people and don’t just believe a carfax go thru auto check as well
hit up local credit unions and shop around they usually give better interest rates then banks & dealerships, you can ask them to get pre approved for however much you think the car will cost and then if you're pre approved you go to the dealership with a cheque essentially and since a cheque is like cash to the dealers you can prob talk them down to a lower price for the car compared to financing with the dealership!
My plan is to go with high mileage leases, then at lease end just roll over into new car new high mileage lease. And I always piss off the F&I folks because I decline all of their add-ins.
I'm considering a lease too... But why opt for high miles if your already expecting to roll into a new car purchase/lease at the end of original term. They'll waive any disposition fees, if you stay in the same brand family. Or sell it to Carvana, Groove, CarMax and have them pay off your lease end fees....
It’s illegal to request money down for a vehicle under TILA (truth in lending act) “Everything is based on Credit not credit score” but because no one knows or researches the laws of credit people are taken advantage of. IRS clearly stipulates how credit works if you know what to 🔍👀 (search) for. Ignorance of the law is no excuse
lol. this made me feel better, for real. thank you for being straight with things, buying cars, and actually knowing what you're talking about. exactly, to maintain a safety net. if you can put a down payment, while maintaining that safety net then, yeah, that's a good idea. but, most people can't do that. my opinion is to just pay higher amounts when you can to exponentially lower the over-all remaining balance on the loan. you know...don't buy those other toys when you get more money...just put it towards paying down the loan even more, while keeping that normal monthly payment constant. yeah. good stuff...
I like to put money down in order to lower the interest I pay. In most cases I will put 10% to 20% down, then pay the car off over the next year or two. Works for me.
I own a carlot. Salesmen do not get commission on down payment and no money down is for a minority of the population. To qualify for no money down you need to be at about 700 score or higher. For the rest banks want you to have "skin in the game".
I'm about to buy a car for Turo after the new year. I'm going to pay "cash" using my HELOC. The dealership doesn't need to know that, but it'll give me leverage to make a deal or I'll wait away and go to the next dealership. Get to your best offer, then walk out the door and see if they come running after your to sell you... Worth it. Even if you're not paying cash, you'll see if they really want to make a deal
This actually isnt the case for first time buyers its harder to get approved for a car $0 down as a first time buyer really the only way to get the car you want as a first time buyer at $0 down is by having a good to great credit score, and if your credit is not good then a down payment is good for u because by putting as much as you can down on the car that shows them your a serious buyer. A lot of dealerships do not approve first time buyers for new cars at $0 down so this information is inaccurate because it doesn't apply to everyone.
This maybe off topic but you are absolutely gorgeous. Also your knowledge in customer service pertains to many other lines of business other than Turo. I don't do Turo anymore but I tune in for just good business sense. Keep it up!
I've bought a few personal vehicles with Zero down and only put down money for tax, title, and license. My credit is almost 800 so maybe that's why they never hassled me. They WILL try to hike up the APR rate when you put no money down. You can circumvent this ny already locking in a loan rate with your local bank or credit union.
If you have excellent credit 0% down is possible. I watched my grandfather do it. But that's 2% of America. And if you have excellent credit, I doubt you would be on UA-cam looking for car advice. People with excellent credit and money don't need advice on how to purchase vehicles. They already receive the best offers. Ford has commercials EVERYDAY that says no money down. This lady has dropped plenty of game, this video is just a dud.
@@byronanthony7834 not exactly true. I do credit repair, but i get customers interested in leveraging their high credit scores (making money off it) vs just having it just to have it
I purchased a car with 0 down for Turo. I purchased it under my name not a llc as suggested in one of your latest videos. Is it possible to form a llc and switch it into the business name or do I need to wait for the next vehicle purchase? Lastly when I start buying cars under my business name will I need business car insurance or can I keep filing for Insurance with my personal name?
you need to buy under your business ! that way you can write that car off on your taxes.. and you do have more affordable insurance premiums , so you can scale your TURO business more efficiently
@@rchan2500 when I purchased my Mercedes it was what they call certified pre owned and the benefit of that was it came with the same factory warranty as a new car. So it was really a win win situation. It was only 2 years old same body style as current new models and got it at a fraction of the price with warranty.
@@youngking1435 as long as you are happy with it but personally I will also consider my exit strategy because finding someone to take over an old European car after couple years can be very tough
Hey I have 820 score on my credit report. Never take a loan out and always paying my card on time. Quick recap what do you utilize when you secured a loan with your local credit union or a bank and buy a brand new car with 0 down? What do you gain from it? Doesnt it usually means higher monthly if you put no money down?
This is how the numbers work with the auction car I bought. I paid 32k for a S class but it was value at 41k so I rented it out until my depreciation drop back to 32 k then I sold it , I made 11 k on it , that’s how I made mine.
I've purchased several vehicles with no money down, but it obviously depends on your credit score and the type of vehicle. The down payment has nothing to do with the sales persons commission, just FYI. I love when people suggest things that most people can't do. The typical bank/credit union will NOT finance a vehicle for your business entity or you personally without a down payment unless you have stellar income and credit. Thus 90% of people viewing this video will have to make a down payment. That's reality.
I put 5k down on a new corvette to get build my credit is not that good but only way to get the car was to put 5k down do I jus use that as the down payment
Damn! I just dropped $3k on a Jeep Cherokee, and $2k on my BMW 330e bad ass hybrid. It was a Crypto Loan, and It's already made itself back so it was Free, BUT still, I could have used that for something else. Great suggestion since who cares about the payment, since it will pay itself off. My Jeep rented within 1 hour of being listed, and it's already booked for 4 trips, payment covered, and insurance covered. I'm scared to list the Bimmer, because it's fast as hell, it's like a Tesla lite, and I'm still figuring out how to use it.
When you buy a car outright... you recoup some money in rental fees, but you sell it fast, like 90 days or less, for a profit. So that way you don't just have inventory sitting in a lot not making you money. I do this on a small scale and it works well in my town.
I manage a used car dealership and finance department. There are some instances where the bank does require a down payment based on the credit of the buyer. If your credit history is below average you should expect the bank to ask for some sort of down payment as collateral as they are taking the risk of providing a low credit individual with a large loan on this car. The bank needs to offset their risk of lower credit somehow by either lowering the loan to value percentage by collecting a down payment or very commonly by raising the interest rate.
You are right and Samiah does not fully understand financing. She is using her business credit that has developed over 6 years. Not her personal credit. By the way 700 is barely over average credit.
Most of this Advice is probably dealing with high end dealers ... Y'all gotta remember this women is a 6 figure women. But I have heard from a dealer before that he couldn't go down on the down payment because it's part of his commission. Now I know he was trying to play me. I'm a low income resident and young . So I'm always having to go through extra hoops . But now I'm gonna handle this bitches. Fixing to get me a car like next week zero down. I'm gonna do research on it more but yeah
Strategy I hear people talk about with auction cars is to buy at a discount, rent it out for a period of time i.e 6months to a year and sell it for more than they bought it for. Only works if your buying it for less than you can sell it for
The best way to buy a car from auction, is you buy the car cash. Either repair the car or buy as is. Get an inspection done by the credit union. You go to a credit union and get a Kelly blue book value loan on the car. And give them the title and you make payments on the car. In my opinion like you said the numbers don’t make much sense. The only way it’s makes sense is when your a mechanic and fix up a damaged car
I would disagree with you on this. More down more profit for you. You limit the risk with a down payment. Would you finance a new corvette for 1400.00 a month or 20k down and only pay 850.00 if it’s slow you you can afford to lower your rent, book it more and your good. I don’t have much Turo experience but I own an AC repair biz in Orlando and I buy service vans like crazy.
I get what you're saying, but in my experience cash is king. If they need to move inventory, they get the quick deal from your cash deal and move on to the next sucker
So here's my situation, I was approved for $15,000.00 by my credit union,right? BUT I brought in 2 different carfaxx sheets on vehicles that I am interested in. After the loan officer in my credit union looked at them,ran them through J.D. Power value app said that the bank would only pay for the VALUE of the car and for what it was booked for. One was a 2010 Lincoln Navigator that booked for $9,225.00 and was being sold for $9,995.00 ( OUT THE DOOR PRICE) was $10,094.00 including Licensing,taxes $ fees. The second one was a 2011 Chevy Tahoe that was selling for $13,500.00 but was booking at $12,800. I called my bank officer and said " They are willing to go from the $13,500.00 to the $12,800.00 however OUT THE DOOR price on that one is $13,904.00. I call my loan officer and tell her what the dealership told me and she asked " Do you have the $1,104.00 difference? to pay for your licensing taxes and fees?? I have to pay twice to get plates??
Good video, and lots of insightful nuggets, especially negotiating with the finance manager on your rate. However, two things that come to mind. It’s good to remember this video is for assumed good to great credit. 2nd, how does no money down impact an exit strategy when financing?
As a former Finance Manager for a new car dealer (while my compensation certainly appreciates your no money down strategy!) I need to tell you that your info is a misguided and frankly dangerous. For the purpose of cash flow of renting on Turo, no money down makes sense - however, you run the (very likely) risk of being upside down in the loan. In the event the car is totaled this could be a very costly mistake. Commission are not tied to down payment. They are typically a percentage of the gross profit of the sale and more frequently, due to shrinking profit margins from the internet, salespeople are often paid only on "volume bonuses". Meaning no commission, just higher bonus the more cars they sell.
Right I'm not a car salesman but common sense a person would know that a down payment has NOTHING to do with a sales person's commission! Commission comes from the sale of the car! The more they sell it for the better com! A down payment just reduces the amount financed so you aren't in the position of being upside down later! She likes to sound like she knows what she is talking about but needs to re-educate herself on auto finance! At least how a down payment works on a simple interest loan! Cheers!
0 down is the best . It’s better to pocket your money for emergency etc especially if you have great credit and low interest rate ! Because at the end of the day most vehicles depreciate whether you put a down payment up front or not you’re still gonna lose money it’s either you wanna lose couple thousands upfront or later 🤷♂️ later being the best option because let’s say you total the car the next day and they pay it all off or maybe not (get GAP insurance for as low as 400$ to pay the negative off) then you won’t lose all the big down payment you put down !
Down payment just lowers the car cost. It's not needed. It's like if the car is 60k. If you put 5k down its bow 55k. There's not much difference between 60k and 55k. It's not gonna really change the car note by much.
That down payment does not go all to the salesperson 😂, it simply lowers your Total balance, meaning you will get a lower payment and lower APR, of course it is not required at all and more if you have a decent credit!
False, the more you put down the cheaper your monthly payment when you purchase. If your purchasing a high end car to just have or Turo one want to have a manageable payment to maintain when the business is slow or just to have. Who cars how the dealers make their money, it’s their business. If your comfortable when the numbers it shouldn’t matter
I would think that most car dealers have a line of credit for buying cars at auction. For low end used cars you could use a Credit Union LOC, although the APR is going to be 8% or more.
I feel like leasing makes more sense from my own perspective coz for the most time maintenances are included which will be a cost that you will have to carry if you buy the car and cars nowadays are face-lifting and upgrading lighting fast and leasing allows you to get a new car after 2 to 3 years which keeps you competitive on the platform
@@lifewitmarkp6011 In terms of requirements, different dealership writes their own but I would say a good credit score helps a lot in both leasing and buying
I did not money payment either Dodge Journey 2016 and Volvo 2008 . Dealer trying scare me I have history credit . Low credit should put money down . But I very stronger I down put any money down . They keep me around 4 hour make me feel give up . And I walk out the manager pretend he will take care . And after 20 munites I got car . Funny part . They play game 4 hour for me pay down payment
Literally EVERY salesperson I've come across at a dealership asks me how I plan to pay for it...as one of their FIRST questions...great content, though.
I don't think your down payment has anything to do with salemans commissions only sales price of car purchased or lease does. Also with zero down you're essentially financing your tax on the purchase too which isn't ideal.
If the bank only approves you for 30k, and the price of the car is 33k... you tell me where the other 3k is coming from? That's the down payment we're asking for. (This usually applys to used cars)
I can tell you why people would be willing to buy a car up front for cash. Imagine I'm a house flipper and I decide to do Turo on the side. And let's say my house flipping business earned a net income of $300,000. If I let the year roll over without doing anything, I'll owe the IRS somewhere in the neighborhood of $90,000. However, if I went to an auction, purchased $120,000 worth of cars that I put on Turo, I have now reduced my net income from $300k to $180k and over the next few years, I have the opportunity to depreciate the value of those vehicles. So it's not just the income... It's also a tax shelter.
So, what I’m getting from the comments, from all the “experts” who’ve worked in the auto sales industry, is that each of you worked in a dealership that operated in a certain manner, that’s what/all you know, and as such appear to outright refuse to believe that other dealerships operate differently. It’s simply amazing reading these comments, from these auto sales people, stating protocols that are 180 degrees opposite of each other, but everyone claims that how they know it to be is THE way it’s done. Interesting!
You win every time because the car loses value but it is still worth money.. so a 108k c8.. still be worth 58 or on low 40's after 3 years finance still up! You made that +
*AUTO AUCTION Comment*: Auto auctions actually sell vehicles that are in great condition - Repossessions! Auto auctions like IAA allow people of the "general public" to work with car brokers (who have dealer, etc. licenses) and are able to get access to the auctions since *most of the time you and I won't be able to. Brokers cost about $600 for them to work with you to get a car you're looking at. I'm also working with a local garage to have them fix up a vehicle that needs a little work (and I do mean very little amount of work - only the hood needs to be replaced because of hail damage. Including part delivery, we're talking about 4-5 days)
Wait cant you just get a Car loan + draft check from your local credit union (since they have very low rates). Therefore no real need for a downpayment Instead, lets say you wanted to put 3,000 down originally, and your payments are $500/month but with this plan, you place the 3,000 in a separate account + autopay. Essentially buying yourself Time, no need to worry about making your next 6 months payments from your paycheck.
The advice given in this video is confusing. Are you saying that I should buy a car through financing with no money down ... OR are you saying that I should buy a car 100% cash with no financing?
Saimah you are wrong with all respect. You are missing to give out the reality of buying or leasing 10-30 cars with leverage. Unless you have been in business for 2-3 years nobody will give you a car loan under your business. It’s that simple. So if you are starting out you have no chance. Now try to lease cars under your personal name. How many cars can you lease? Not mentioning the risk of the debt and liability. The only way that type of leasing might work is to partner up with other people, get the loan under their name and give them commission for turo’s revenue. That leaves you with the last option of buying cars with cash whether third party or auction. Let’s put aside all the benefits of buying cash like getting a better deal and having a better cash flow and less headaches. That’s the only way you can start putting 10-20 cars on turo to start with. Yes it does take longer time to recoup your money but from second year it’s all profit. Of course even with cash you still have to run your numbers. My advice is to start with 10-15 cars with cash, meanwhile build up your company’s credit (open your llc and open tradelines). In 2-3 years you have built your credit, then you can go get as many as car using line of credit, dealership, sba or other products loans, lease under your company’s name and so forth. The sky is the limit. Leverage is awesome as long as you use it reasonably. But the first 2-3 years you get cars with cash and learn the business and make as much as money you can. Now, because you buy experience cars that would take lots of capital to buy and obviously is way harder to do so. I only do economy cars and it works great. Your videos are awesome btw keep going.
I’ll put the 5K on a new Corvette to get built that’s the only way they would start to build so what I did just leave that as a down payment and just like that’s all I have
As a car salesperson myself please don't give advice on topics if you don't know how it works. Your down payment is for you and many banks will require money if your credit doesn't alow for that large of a loan. I sell luxury vehicles and many customers would not be driving home in a new vehicle trying to put $0 down. The only thing a salesperson loses is a deal, nothing is chaing their commission amounts. It's win/win if you go home in a car and lose/lose if you refuse down payment but don't qualify
I want to get a used 2020 Tesla model Y. Right now no dealership will drop the price especially for a used car. Would you say a 1st car for turo is a Tesla model Y good? The problem is it’s really marked up by thousands.. I just figure if I do I can rent it for $100-110 per day and make that monthly easily. What’s your take on that? I’d like to get into the world of entrepreneurship on top of investing on other things.
I purchased a semi truck and trailer with no money down. Every owner operators told me it’s impossible. I have a not so good credit scores of 680. I’m not saying it was easy but if you want success, you need to be persistent and not give up. Successful people don’t give up. I’m not saying I’m successful not even close but from one truck and trailer I purchased, I now own a fleet of 6 semi trucks and trailers and also I now own 40 box trucks. Businesses are full of challenges, but once you break through those challenges you can reap success as well. I wish everyone here the best on their business endeavors. Never give up on your dreams, don’t let anyone steal your dreams.
yes but what is your interest rate?
I am glad it worked out for you but I get offered 18 percent interest rates at a 680. I know you are expecting to reap money back in to offset it but 2020 showed us anything can happen.
@@mojopimp2020 10% percent interest rates, and paid that off in two years, after I paid the first truck I went back to the same finance company and purchased the rest of the trucks including the box trucks, I put them under my business credit instead of my personal under an S Corp. Like most of the purchases, the first is always the hardest to get. It took me 21 rejections to finally found the one that was willing to give me a chance. My personal score now is 785, my business score under Dunn and Bradstreet is an (B). I believe you’re familiar with the D&B scores for businesses only. I rather pay a 10 percent interest and cash for an emergency purposes. Then pay the vehicle off as soon as possible. That’s what I did. To me in any businesses you have to know your intentions and exit strategy prior to getting into one. I’d learned from one of my business that I failed miserably that’s what got my personal credit scores so low. Than I learned to not use my personal credits to do business finances. Because if my business fails, in doesn’t affect my personal credits. That’s including credit cards. I separated my business credit cards from personal credit cards. My business cards are under my business entity not my personal name.
FYI. I learned elsewhere that these last two entries (talking about "Flixzone") are most likely sketchy "bots" seeking to obtain your personal data.
@kheam hem can u share insight of what financial company you went to and did your personal credit score matter ?
What I can tell you about auction buying: so I work on cars for a living and started a side gig with one of my customers who has a used car dealership. We are in Miami, so he lists his higher end cars on the platform and rents them out, whilst simultaneously listing them for sale. He purchases the vehicles through the auction and puts them on his floor plan. A floor plan is a line of credit extended to dealerships. It allows them to hold inventory and not make payments (or not accrue interest) for a determined amount of time (usually 90 days).
So for the first 3 months he can have the cars generate revenue for free, and if all works out, he can then sell the car before the first payment is even due. He also uses his lot at the location to pick up and drop off. There have been several instances where the renter has returned to purchase the car or a car from him as well.
They do acrue interest. If the Floorplan in one of there audits finds out he is renting them they will cut him off. They do offer special flooring for rentals but the terms are ruthless and you can't pay them off early.
@@helpyourfellowhuman Yeah it violates their TOS but like anything else in America risk/reward
@@LynxStarAuto Is he still renting his cars on turo. Through his dealerships floorplan. I was thinking about doing the same and wanted to know if its still possible to do. Thanks for any info greatly appreciated.
*PEOPLE* Have your financing pre approved to better prepare yourself when in negotiations. No haggle dealerships stay away from them. Every car is negotiable! Also, *DO YOUR RESEARCH ON MMR (MARKET VALUE) Don't fall in love with a hunk of metal...fall in love with the deal! *HERE ENDETH THE LESSON*
When buying from a “dealer auction” like manheim, there is a different strategy methodology. Buying the cars at 20% off current retail price. Not having a car payment makes you more money each month. Insurance is less when you own the vehicle vs financing. Best of all, you can then sell you car after 1 year and still make an additional 15% over purchase price, also made money the entire year off the vehicle rented on Turo. So my opinion is if you buy a vehicle at auction you make a lot more money as long as you sell after 1 year.
•You sell for 15% over the purchase price.
•You make money every month off that car.
•Insurance is lower.
•no monthly car payment.
It’s like parking your cash in a great stock. You will make 25% off your parked cash in 1 year.
Damn
Owning a car outright I'm pretty sure doesn't make your insurance cheaper. All it does is allow you to not carry full coverage or extra insurance premiums and what not that a bank financing your loan makes you hold. My truck is financed, but the credit union says I have to have no more than a 500 dollar deductible and full coverage. Paying it off doesn't make the insurance cheaper it just allows you to choose cheaper insurance. Not having full coverage on a rental vehicle in my opinion is pretty stupid.
Where can i find auctions in Hawaii?
@@ChristianMcLeodphotolicensed dealer only auction are available in Hawaii.
This comment completely ignores the convo of tax advantages. You’re also ignoring cash on cash return. You sunk a bunch of money in. How long until you’ve made your initial investment back, and are actually net positive? If
It takes the entire year and for
You to
Sell
The car to be positive you don’t have cash flow. You have an asset holding company and are operating in a deficit all year for your expenses.
More money down does NOT mean a larger commission for the salesperson. And money down CAN affect approval by the finance company. Dealerships get paid in full by the loan anyway and the finance company takes over the liability immediately.
Look into the TILA act down payments are illegal
Well the bank doesn't require it
@@kitevans1084 Yes, they often do.
The bigger the down payment the smaller the monthly payment which is better for cash flow on an ongoing basis. The saving the down payment cash to have for a rainy day is a good idea in a general sense (cash is king) but it pays to think carefully about the benefit of securing a cash free deal up front versus the increased payments that have to be covered by rentals. Do you want an immediate cash squeeze or an ongoing cash crunch. In the end, you're "renting" the car- whether you buy or lease. Total of $ value of the payments - residual value /months owned = basic cost of the asset, lease or buy.
Just bought a car and listed on turo. Fun fact.... I’m in Texas. Thanks Saimah
Congratulations!
Congratulations. Been looking for proof Turo does well in dallas.
Update?
It’s simple if you feel pressure from a dealership get up and walk out. Be informed, be savvy, do you homework before your purchase and don’t give any info out until your purchase numbers are nailed down and agreed upon. Then you get into terms and finances, preferably come in with your own bank financing and watch the stealerships add ons. Watch the end numbers and the math that may change as they try to slip things in the deal at the end.
Had a friend buy a new supra and had to wait for it to show up. When they did all the paper work they added on like 20k in extras that they said were free cuz he specifically said he didnt want anything extra. So shady!
@@shanem3012 as long as he didn’t sign on the dotted line for that added garbage and drive off with that bmw oops Supra then all is good.
@@XX-166 😂 bmw
@@stumpsteph2153 😂😂😂😂 that’s all it is.
I agree 100%. The last time I bought a car they asked me what payment I want... Which they can always make work but stretching out payments, creative financing, etc.
I said, I can make any payment work, I don't care what my payment is.. But what is the cost of the car. Yeah, they had to lay their cards out... Lol
I’ve been a auto salesman at several dealerships and I can tell you the down payment has absolutely nothing to do with the commission.
The down payment is for YOU. It will lower your monthly car note and could qualify you for a lower APR
You are blind to the scam of the car dealerships. Or, it benefits you.
You would think or say that because you have no knowledge of 15 usc 1605 and what the responsibility of your actual position is lol but its not your fault, you just want a job
@@loisa2458 litterally frad man down payment not needed.
That's why we go to Navy Federal. Their APR has nothing to do with whether you make a down payment.
It's pretty much impossible to get a low APR at a dealer since they add 1-3% APR on top of the what the dealer offers after they shotgun (and temporarily ruin) your credit. Never finance at a lot whatever you do. There are plenty of banks and credit unions that will approve you before you even step foot on the lot.
This woman is actually my turo guru! I just wasn't feeling this video but she is awesome. I have 15 cars and 2 jet skis, some I purchased some I financed. But all I want to see say is build your Business credit! Everyone speaking on personal credit but didn't speak on how business credit is 10x more powerful. Peace
How to obtain business credit?
NEVER LET THEM KNOW YOU'RE FINANCING until the end. Negotiate the actual price
GOOD LUCK negotiating for any vehicle that is in demand right now.
If you already have an approved rate it doesn't matter.....have done it both ways.....
Do your financing first b4 buying....know your auto scores, which lenders use which scores......
Most people do it backwards....
There is only 2 numbers to focus on when buying a car....the 3rd takes care of itself if the first 2 line up
What are the numbers to focus on?
Facts
Great video! I financed my first 3 cars for Turo with $0 down. They made me enough cash flow that I could bought the next 2 with credit cards and just paid them off. I’ll do the same thing with my next cars.
All those on personal credit or Business credit ?
What you’re actually doing is monetizing your credit when you’re doing a no money down lease or purchase. I agree with you , it’s better to keep your cash.
I’ve greatly enjoyed your videos.......very well edited and subject matter intelligently selected and produced. I always wait to be reminded by you to click the like.....lol ....but now I’ve finally subbed, so you’ve got me for life.
Peace
Great channel! I would like to disagree with you about sales persons commission. As a former new car sales manager, commissions don't come from the down payment. Commissions are based on net profit on the deal overall. I do agree that you should use other peoples money. Great job!!
Some dealers do put the down payment into a draw pot for the end of the day. Usually the mom and pop stores.
@@LynxStarAuto that's why you read the contract carefully and make sure your downpayment is going to the principal of the car.
@@aidenceja8755 🙏🏾 Amen
That's true about the bank I just got approved for a $54,000 Dooley and they didn't want ask me for a down payment and we priced out four of the trucks all through the process not once was down payment brought up and I was getting it for 5% interest
Car salesman here for 2+ years . I totally agree with not putting money down on a lease but we don’t make any commission on down payment but the more money someone puts down the higher chance of holding gross profit which is were a sales persons commission is a percentage of the front gross profit. Dealers are willing to loose money on the front in hopes to make money on the back end which is finance department which is were most profit is made . There is a drive off due at signing is required which is typically first month payment acquisition fee plus tt&l. Not all dealers or sales people are vultures I’m pretty straight forward and honest in all my deals. Audi Downtown LA here! Love your videos btw might start a turo business some day!
Great video, I worked at a dealership for a while now and we are trained to block the no money down, just say you only have 20 dollars in your wallet you got that it nothing lol, GAP is always mark up- it’s only worth negative equity in it, and on a lease you have to have tier 2 cerdit but no money down is a higher monthly payment, personal fine with me putting 3000 to have 60 less a month for 36 is not worth it to me, and if you lease when it over just roll anything extra into the new lease, another way is to walk out and say I’m going to a different dealership they will beat whatever price just to get your business had it happen to me 9 times
I ordered the new pet you have to put 5K down from even start to build what do I do now just saying that’s all I have
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So I see buying outright works like this...Lets say a car 25k plus 2.5k tax so your out the door 27.5k. over 2 years of depreciation you sell it for 20k, loss of 7.5k. divide by 24 month, 312.5/ month loss. So basically whatever you make above 321.5 its profit. If you can lease this car for 312.5 a month with zero down then it comes out even.
Thank you for all videos you share! 3 quick questions: 1) Are you financing with personal credit or business credit? 2) How many cars do you have financed at any one time? 3) How do you get financed with a lot of existing car loans?
Great questions. Let me know what the responses are! That info would actually be very helpful
Alex: I'm sure you already know, a business can finance as many cars as it wants so long as the company can prove they can pay for them. As Therealjames100 mentioned, learn how banking works, and you'll know the answers to your question. Remember, banks love to loan money to successful paying people. I'm just saying...
@@samanthapowell5882 how do you get business credit? Any resources would be very appreciated.
@@byronanthony7834 Yes me as well Brother
@@htclements4699 Well said🙏🏾Thank you
Buying at an auction will always pay off when you buy it for way under market value! I'm not saying I buy them with my cash; I just want to be clear. Your investment vehicles should be bought through your business because you are working for a company; yours! Therefore, finance all your cars through your company, including auction purchases.
PS: She's such a sweet girl. Folks, let's not be so harsh!
I have high respect that you are different than most people. You Dress respectable unlike most millennial women. you are a true business woman.
Great advice from a wise woman. Thank you!
Where do you suggest people get personal insurance? We still need that. Turo's insurance only covers the car while it's on a rental. None of the insurance carriers I contacted (Geico, Progressive, etc) allow you to rent your car out. Their policies specifically prohibit that. Commercial insurers charge up $1,000 per month, per car. And they want to vet every driver before you give them your car. My fear is that I rent a car on Turo and the driver causes an accident and kills/injures someone. That person's/family's lawyer sues everyone in sight: your driver, Turo, YOU, and your personal insurance carrier. Your carrier is going to cry insurance fraud and won't defend you or pay out. Where does that leave you?
Saimah this was the single most informative and to the point video I’ve seen all week, thank you
I went through the Pre-Approval process with Navy Fed to eliminate the sales hassle and anxiety I get when going to a dealership. So now I all I have to do is walk in with my Pre Approved check, select a car, test drive, negotiate a lesser amount, and close the deal. No additional credit checks or hard inquiries because Navy Fed already did 1 hard inquiry VS dealerships pulling up to 10 inquiries. However, I do believe putting down a down payment lesson what you’ll be paying for the car in the long run, as well as your monthly payment but it is not a requirement for NFCU.
Do have to have a certain credit score to get approved for navy fed
OMG! you are so smart, intellegent, sharp and powerful. I learned a ton of stuff, as Im about to buy a car next week. Thank you so much!
You also never want to put money down on a lease you will never get that money back if there is a total loss with in the first year of ownership, put that cash into a high yield savings account and opt in for GAP which is usually $695-$895 for the duration of the loan, all dealerships make their money on the back end and dealer hold backs
Yeah I’ve been scammed good. Put $5000 on a lease in 2018 and I honestly would go back and never do that if I could.
Appreciate you for this video, looking for my third car after getting burned 2 times and suing the last dealership for my c300 Benz for negligence. Always do your research people and don’t just believe a carfax go thru auto check as well
What about securing a loan before you go to the dealership.
hit up local credit unions and shop around they usually give better interest rates then banks & dealerships, you can ask them to get pre approved for however much you think the car will cost and then if you're pre approved you go to the dealership with a cheque essentially and since a cheque is like cash to the dealers you can prob talk them down to a lower price for the car compared to financing with the dealership!
My plan is to go with high mileage leases, then at lease end just roll over into new car new high mileage lease. And I always piss off the F&I folks because I decline all of their add-ins.
I'm considering a lease too... But why opt for high miles if your already expecting to roll into a new car purchase/lease at the end of original term. They'll waive any disposition fees, if you stay in the same brand family. Or sell it to Carvana, Groove, CarMax and have them pay off your lease end fees....
You are so honest and kind, I thank you for your support.
Dropping jewels off the top while driving. Absolutely legendary
It’s illegal to request money down for a vehicle under TILA (truth in lending act) “Everything is based on Credit not credit score” but because no one knows or researches the laws of credit people are taken advantage of. IRS clearly stipulates how credit works if you know what to 🔍👀 (search) for. Ignorance of the law is no excuse
very interesting thanks for sharing!
lol. this made me feel better, for real. thank you for being straight with things, buying cars, and actually knowing what you're talking about. exactly, to maintain a safety net. if you can put a down payment, while maintaining that safety net then, yeah, that's a good idea. but, most people can't do that. my opinion is to just pay higher amounts when you can to exponentially lower the over-all remaining balance on the loan. you know...don't buy those other toys when you get more money...just put it towards paying down the loan even more, while keeping that normal monthly payment constant. yeah. good stuff...
I like to put money down in order to lower the interest I pay. In most cases I will put 10% to 20% down, then pay the car off over the next year or two. Works for me.
Thank you, I’m NEVER putting money down again…
I own a carlot. Salesmen do not get commission on down payment and no money down is for a minority of the population. To qualify for no money down you need to be at about 700 score or higher. For the rest banks want you to have "skin in the game".
I Bought 2 Cars With No Money Down n 520 Score. The Interest Was Just High, I Refinanced A Year Later , With a Local Bank
@@rugensclement4356 that's amazing. What bank?
Yes, what bank ??
@@helpyourfellowhuman people dont like sharing info like that lmao.
I'm about to buy a car for Turo after the new year. I'm going to pay "cash" using my HELOC. The dealership doesn't need to know that, but it'll give me leverage to make a deal or I'll wait away and go to the next dealership.
Get to your best offer, then walk out the door and see if they come running after your to sell you... Worth it.
Even if you're not paying cash, you'll see if they really want to make a deal
This actually isnt the case for first time buyers its harder to get approved for a car $0 down as a first time buyer really the only way to get the car you want as a first time buyer at $0 down is by having a good to great credit score, and if your credit is not good then a down payment is good for u because by putting as much as you can down on the car that shows them your a serious buyer. A lot of dealerships do not approve first time buyers for new cars at $0 down so this information is inaccurate because it doesn't apply to everyone.
Where do you leave your turo cars parked if you have a fleet?
Wow you learn something new everyday. Thank you for the information
This maybe off topic but you are absolutely gorgeous. Also your knowledge in customer service pertains to many other lines of business other than Turo. I don't do Turo anymore but I tune in for just good business sense. Keep it up!
Former car salesmen here, down payment does not go towards commission
I've bought a few personal vehicles with Zero down and only put down money for tax, title, and license. My credit is almost 800 so maybe that's why they never hassled me. They WILL try to hike up the APR rate when you put no money down. You can circumvent this ny already locking in a loan rate with your local bank or credit union.
Oh by the way......YES you do need gap insurance!
Thank you Saimah for your valuable information. You've inspire me, keep up the good work. For it is very valuable. May God richly bless you always 🙏
I was a finance manager it has nothing to with commissions it has to deal with getting the deal bought from the bank.
So... How often did you see 0 down sales?
@@kenapotheosis7026 it happens depending on the manufacturer. If your credit has to be very strong you can do it.
If you have excellent credit 0% down is possible. I watched my grandfather do it. But that's 2% of America. And if you have excellent credit, I doubt you would be on UA-cam looking for car advice. People with excellent credit and money don't need advice on how to purchase vehicles. They already receive the best offers. Ford has commercials EVERYDAY that says no money down. This lady has dropped plenty of game, this video is just a dud.
@@byronanthony7834 not exactly true. I do credit repair, but i get customers interested in leveraging their high credit scores (making money off it) vs just having it just to have it
@@kalstonii I completely agree. The credit game is what makes America great!
Great knowledge, as always. Thank you Saimah.
I purchased a car with 0 down for Turo. I purchased it under my name not a llc as suggested in one of your latest videos. Is it possible to form a llc and switch it into the business name or do I need to wait for the next vehicle purchase? Lastly when I start buying cars under my business name will I need business car insurance or can I keep filing for Insurance with my personal name?
you need to buy under your business ! that way you can write that car off on your taxes.. and you do have more affordable insurance premiums , so you can scale your TURO business more efficiently
Great tips. I'm about to buy my first turo car and this helps.
If you are buying a car for personal use it is best to buy a car 2 years old let the customer before you take the 20% depreciation hit first
That’s true if you are okay with the expense for future maintenance and repairs especially for cars that always have little glitches like Range Rover
@@rchan2500 when I purchased my Mercedes it was what they call certified pre owned and the benefit of that was it came with the same factory warranty as a new car. So it was really a win win situation. It was only 2 years old same body style as current new models and got it at a fraction of the price with warranty.
@@youngking1435 as long as you are happy with it but personally I will also consider my exit strategy because finding someone to take over an old European car after couple years can be very tough
I've never put money down for any car I've owned. My credit is only 650 and it's never been an issue. Currently have a telluride and a 21' k5 .
Hey I have 820 score on my credit report. Never take a loan out and always paying my card on time. Quick recap what do you utilize when you secured a loan with your local credit union or a bank and buy a brand new car with 0 down? What do you gain from it? Doesnt it usually means higher monthly if you put no money down?
This video was really helpful, you seem very knowledgeable. Thank you for this great information!!
This is how the numbers work with the auction car I bought. I paid 32k for a S class but it was value at 41k so I rented it out until my depreciation drop back to 32 k then I sold it , I made 11 k on it , that’s how I made mine.
I've purchased several vehicles with no money down, but it obviously depends on your credit score and the type of vehicle. The down payment has nothing to do with the sales persons commission, just FYI. I love when people suggest things that most people can't do. The typical bank/credit union will NOT finance a vehicle for your business entity or you personally without a down payment unless you have stellar income and credit. Thus 90% of people viewing this video will have to make a down payment. That's reality.
I put 5k down on a new corvette to get build my credit is not that good but only way to get the car was to put 5k down do I jus use that as the down payment
Damn! I just dropped $3k on a Jeep Cherokee, and $2k on my BMW 330e bad ass hybrid. It was a Crypto Loan, and It's already made itself back so it was Free, BUT still, I could have used that for something else. Great suggestion since who cares about the payment, since it will pay itself off. My Jeep rented within 1 hour of being listed, and it's already booked for 4 trips, payment covered, and insurance covered. I'm scared to list the Bimmer, because it's fast as hell, it's like a Tesla lite, and I'm still figuring out how to use it.
When you buy a car outright... you recoup some money in rental fees, but you sell it fast, like 90 days or less, for a profit. So that way you don't just have inventory sitting in a lot not making you money. I do this on a small scale and it works well in my town.
I drive Uber in the weekdays and I Turo my car for weekends. I pay off my cars pretty fast .
Always giving power tips. This is why she's better than her haters. These other UA-camrs are scam artist.
I appreciate the kind words :)
I manage a used car dealership and finance department. There are some instances where the bank does require a down payment based on the credit of the buyer. If your credit history is below average you should expect the bank to ask for some sort of down payment as collateral as they are taking the risk of providing a low credit individual with a large loan on this car. The bank needs to offset their risk of lower credit somehow by either lowering the loan to value percentage by collecting a down payment or very commonly by raising the interest rate.
You are right and Samiah does not fully understand financing. She is using her business credit that has developed over 6 years. Not her personal credit. By the way 700 is barely over average credit.
Most of this Advice is probably dealing with high end dealers ... Y'all gotta remember this women is a 6 figure women. But I have heard from a dealer before that he couldn't go down on the down payment because it's part of his commission. Now I know he was trying to play me. I'm a low income resident and young . So I'm always having to go through extra hoops . But now I'm gonna handle this bitches. Fixing to get me a car like next week zero down. I'm gonna do research on it more but yeah
Strategy I hear people talk about with auction cars is to buy at a discount, rent it out for a period of time i.e 6months to a year and sell it for more than they bought it for. Only works if your buying it for less than you can sell it for
Listening to you educate is amazing 😍. I just started following, but your info is really helping so thank you 🙏
The best way to buy a car from auction, is you buy the car cash. Either repair the car or buy as is. Get an inspection done by the credit union. You go to a credit union and get a Kelly blue book value loan on the car. And give them the title and you make payments on the car. In my opinion like you said the numbers don’t make much sense. The only way it’s makes sense is when your a mechanic and fix up a damaged car
I would disagree with you on this. More down more profit for you. You limit the risk with a down payment. Would you finance a new corvette for 1400.00 a month or 20k down and only pay 850.00 if it’s slow you you can afford to lower your rent, book it more and your good. I don’t have much Turo experience but I own an AC repair biz in Orlando and I buy service vans like crazy.
I get what you're saying, but in my experience cash is king. If they need to move inventory, they get the quick deal from your cash deal and move on to the next sucker
Wow, thank you for the info. First time on your channel and I'm looking forward to getting more tips going forward.
You are so informative! Thank you for sharing your knowledge, experience and advice ❤️
So happy you find it useful 😊
So here's my situation, I was approved for $15,000.00 by my credit union,right? BUT I brought in 2 different carfaxx sheets on vehicles that I am interested in. After the loan officer in my credit union looked at them,ran them through J.D. Power value app said that the bank would only pay for the VALUE of the car and for what it was booked for. One was a 2010 Lincoln Navigator that booked for $9,225.00 and was being sold for $9,995.00 ( OUT THE DOOR PRICE) was $10,094.00 including Licensing,taxes $ fees. The second one was a 2011 Chevy Tahoe that was selling for $13,500.00 but was booking at $12,800. I called my bank officer and said " They are willing to go from the $13,500.00 to the $12,800.00 however OUT THE DOOR price on that one is $13,904.00. I call my loan officer and tell her what the dealership told me and she asked " Do you have the $1,104.00 difference? to pay for your licensing taxes and fees?? I have to pay twice to get plates??
Great info!
Thank you very much.
Nikolas
Good video, and lots of insightful nuggets, especially negotiating with the finance manager on your rate. However, two things that come to mind. It’s good to remember this video is for assumed good to great credit. 2nd, how does no money down impact an exit strategy when financing?
Now you tell me. You are a genius. I just purchased a car cash for Turo, I wish I would’ve have seen this video before I did so. 🤦🏾♂️ 😂
Me too, my Dumbass watched this video before and still put $10K down a car... SMH 🤦🏿♂️
very knowledgeable on this matter, thank you
As a former Finance Manager for a new car dealer (while my compensation certainly appreciates your no money down strategy!) I need to tell you that your info is a misguided and frankly dangerous. For the purpose of cash flow of renting on Turo, no money down makes sense - however, you run the (very likely) risk of being upside down in the loan. In the event the car is totaled this could be a very costly mistake.
Commission are not tied to down payment. They are typically a percentage of the gross profit of the sale and more frequently, due to shrinking profit margins from the internet, salespeople are often paid only on "volume bonuses". Meaning no commission, just higher bonus the more cars they sell.
Right I'm not a car salesman but common sense a person would know that a down payment has NOTHING to do with a sales person's commission! Commission comes from the sale of the car! The more they sell it for the better com! A down payment just reduces the amount financed so you aren't in the position of being upside down later! She likes to sound like she knows what she is talking about but needs to re-educate herself on auto finance! At least how a down payment works on a simple interest loan! Cheers!
0 down is the best . It’s better to pocket your money for emergency etc especially if you have great credit and low interest rate ! Because at the end of the day most vehicles depreciate whether you put a down payment up front or not you’re still gonna lose money it’s either you wanna lose couple thousands upfront or later 🤷♂️ later being the best option because let’s say you total the car the next day and they pay it all off or maybe not (get GAP insurance for as low as 400$ to pay the negative off) then you won’t lose all the big down payment you put down !
Down payment just lowers the car cost. It's not needed. It's like if the car is 60k. If you put 5k down its bow 55k. There's not much difference between 60k and 55k. It's not gonna really change the car note by much.
That down payment does not go all to the salesperson 😂, it simply lowers your Total balance, meaning you will get a lower payment and lower APR, of course it is not required at all and more if you have a decent credit!
False, the more you put down the cheaper your monthly payment when you purchase. If your purchasing a high end car to just have or Turo one want to have a manageable payment to maintain when the business is slow or just to have. Who cars how the dealers make their money, it’s their business. If your comfortable when the numbers it shouldn’t matter
I would think that most car dealers have a line of credit for buying cars at auction. For low end used cars you could use a Credit Union LOC, although the APR is going to be 8% or more.
Which is better? Buying or leasing?
I feel like leasing makes more sense from my own perspective coz for the most time maintenances are included which will be a cost that you will have to carry if you buy the car and cars nowadays are face-lifting and upgrading lighting fast and leasing allows you to get a new car after 2 to 3 years which keeps you competitive on the platform
@@rchan2500 thanks for the info. What’s the requirements of getting a lease? Is it different from buying it?
@@lifewitmarkp6011 In terms of requirements, different dealership writes their own but I would say a good credit score helps a lot in both leasing and buying
@@rchan2500 thanks 4 da info bro 💯
I did not money payment either Dodge Journey 2016 and Volvo 2008 . Dealer trying scare me I have history credit . Low credit should put money down . But I very stronger I down put any money down . They keep me around 4 hour make me feel give up . And I walk out the manager pretend he will take care . And after 20 munites I got car . Funny part . They play game 4 hour for me pay down payment
Literally EVERY salesperson I've come across at a dealership asks me how I plan to pay for it...as one of their FIRST questions...great content, though.
I don't think your down payment has anything to do with salemans commissions only sales price of car purchased or lease does. Also with zero down you're essentially financing your tax on the purchase too which isn't ideal.
correct
But you can refinance after the year to get that lower rate
Thank you so much for sharing all this information!
Good credit and good DTI ratio gets you a car without a DP....pretty simple...
Correct but something most people don’t know about
@@saimahsexperience very true.....financial side should be first concern b4 the car
If the bank only approves you for 30k, and the price of the car is 33k... you tell me where the other 3k is coming from? That's the down payment we're asking for. (This usually applys to used cars)
Doesn't the down payment help to lower your car payment????
I can tell you why people would be willing to buy a car up front for cash.
Imagine I'm a house flipper and I decide to do Turo on the side. And let's say my house flipping business earned a net income of $300,000. If I let the year roll over without doing anything, I'll owe the IRS somewhere in the neighborhood of $90,000.
However, if I went to an auction, purchased $120,000 worth of cars that I put on Turo, I have now reduced my net income from $300k to $180k and over the next few years, I have the opportunity to depreciate the value of those vehicles. So it's not just the income... It's also a tax shelter.
I love using Turo!!!
So, what I’m getting from the comments, from all the “experts” who’ve worked in the auto sales industry, is that each of you worked in a dealership that operated in a certain manner, that’s what/all you know, and as such appear to outright refuse to believe that other dealerships operate differently. It’s simply amazing reading these comments, from these auto sales people, stating protocols that are 180 degrees opposite of each other, but everyone claims that how they know it to be is THE way it’s done.
Interesting!
You win every time because the car loses value but it is still worth money.. so a 108k c8.. still be worth 58 or on low 40's after 3 years finance still up! You made that +
*AUTO AUCTION Comment*: Auto auctions actually sell vehicles that are in great condition - Repossessions! Auto auctions like IAA allow people of the "general public" to work with car brokers (who have dealer, etc. licenses) and are able to get access to the auctions since *most of the time you and I won't be able to. Brokers cost about $600 for them to work with you to get a car you're looking at. I'm also working with a local garage to have them fix up a vehicle that needs a little work (and I do mean very little amount of work - only the hood needs to be replaced because of hail damage. Including part delivery, we're talking about 4-5 days)
Its based on your credit score if you got bad credit its hard to get a car with no money down.
Wait cant you just get a Car loan + draft check from your local credit union (since they have very low rates). Therefore no real need for a downpayment Instead, lets say you wanted to put 3,000 down originally, and your payments are $500/month but with this plan, you place the 3,000 in a separate account + autopay. Essentially buying yourself Time, no need to worry about making your next 6 months payments from your paycheck.
The advice given in this video is confusing. Are you saying that I should buy a car through financing with no money down ... OR are you saying that I should buy a car 100% cash with no financing?
With financing :)
Saimah you are wrong with all respect. You are missing to give out the reality of buying or leasing 10-30 cars with leverage. Unless you have been in business for 2-3 years nobody will give you a car loan under your business. It’s that simple. So if you are starting out you have no chance. Now try to lease cars under your personal name. How many cars can you lease? Not mentioning the risk of the debt and liability. The only way that type of leasing might work is to partner up with other people, get the loan under their name and give them commission for turo’s revenue. That leaves you with the last option of buying cars with cash whether third party or auction. Let’s put aside all the benefits of buying cash like getting a better deal and having a better cash flow and less headaches.
That’s the only way you can start putting 10-20 cars on turo to start with. Yes it does take longer time to recoup your money but from second year it’s all profit. Of course even with cash you still have to run your numbers.
My advice is to start with 10-15 cars with cash, meanwhile build up your company’s credit (open your llc and open tradelines). In 2-3 years you have built your credit, then you can go get as many as car using line of credit, dealership, sba or other products loans, lease under your company’s name and so forth. The sky is the limit. Leverage is awesome as long as you use it reasonably. But the first 2-3 years you get cars with cash and learn the business and make as much as money you can. Now, because you buy experience cars that would take lots of capital to buy and obviously is way harder to do so. I only do economy cars and it works great. Your videos are awesome btw keep going.
They make their money from financing, extended warranty and service .
been learning a lot from your videos. i wish your audio was better though!
I’ll put the 5K on a new Corvette to get built that’s the only way they would start to build so what I did just leave that as a down payment and just like that’s all I have
As a car salesperson myself please don't give advice on topics if you don't know how it works. Your down payment is for you and many banks will require money if your credit doesn't alow for that large of a loan. I sell luxury vehicles and many customers would not be driving home in a new vehicle trying to put $0 down. The only thing a salesperson loses is a deal, nothing is chaing their commission amounts. It's win/win if you go home in a car and lose/lose if you refuse down payment but don't qualify
Luxury vehicles aka 200k km Honda civics
I want to get a used 2020 Tesla model Y. Right now no dealership will drop the price especially for a used car. Would you say a 1st car for turo is a Tesla model Y good? The problem is it’s really marked up by thousands.. I just figure if I do I can rent it for $100-110 per day and make that monthly easily. What’s your take on that? I’d like to get into the world of entrepreneurship on top of investing on other things.