Buying A Vehicle After A Bankruptcy

thebkcourtHey Cool Car Fans,

One of the biggest issues that people face when buying, trading or leasing vehicles is when it comes to financing.  I’ve seen a bank or a credit union offers someone an interest rate of 11.99% with a 665 and 710 FICO Score from two different reporting agencies and then I submit it to another bank and that bank approves the same person, the same vehicle and the same structure for 6.25%, which is half what the other lender was going to do the loan for.  In addition, they may have different stipulations, such as proof of income or proof of employment or proof of residence or references, while another bank only asks for a copy of the driver’s license.  That same bank though with a different buyer could do the exact opposite of the first bank based on their credit history and the entire structure of the vehicle purchase.

When it comes to people who have filed bankruptcy, one of the biggest mistakes that I see people make is that they get multiple offers from credit card companies offering to rebuild their credit.  The person thinks, “This is great and more is better because I need about five different trade lines to get my credit score back up.” and the next thing you know they have opened up a bunch of credit cards and installment loans to rebuild their credit and then they go to try to buy a vehicle.  They end up getting declined because their debt to income ratio is too high or they have to come up with an excessive amount of money down to get the bank to buy the loan.  It’s not a bad idea to get a credit card after having a bankruptcy discharged, so that a person can start rebuilding their credit again.  However, they don’t want to fall for all the offers because banks like people who have filed bankruptcy and discharged their debt and they know that they can’t file bankruptcy again anytime soon.

The other thing that people do is they get extremely picky about the vehicle they are purchasing as though it is the last vehicle they will ever own.  I can typically get someone approved with credit challenges or even after they have filed a bankruptcy with a number of lenders, but the lender isn’t just looking at the person and their credit.  The lender is checking out the amount of money they are putting down, the type of vehicle they are buying, their employment history, if they have a co-signer or not, how long they have been at their residence, so there is more to getting financed than just the vehicle.  When people work with me, since I don’t inventory vehicles I can take a client to the Dealer Auction or get something out of the rental fleet that is often much better than what they will find on their own walking the car lot and at a better price.  The key though is that it has to be a vehicle that the bank is willing to take a risk on or have enough money down that the bank won’t care.

In other words, someone can actually get a pretty cool car after their bankruptcy and get financed, if it is structured correctly and they are working with a consultant who is willing to take the time to help them find the right vehicle at the right price.  The interest rate is going to be higher initially, but there is no reason why someone can’t refinance their vehicle after 6 to 9 months.  Through my relationship at the dealership where I have my license I have access to lenders who specialize and work with people who have credit challenges, even bankruptcies, so keep that in mind if you know someone who is having  a hard time getting financed because of their credit.

A really good friend of mine who I run marathons with is actually an Executive at a bank that specializes in getting people funded who are currently in a Chapter 13 or have a discharged Chapter 11 bankruptcy.  There are definitely options available for people to get a vehicle and rebuild their credit after a bankruptcy or even if someone just has poor credit.
________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

 

How To Get Money For Your Business Or A Business Loan

2015RangeRoverBlkHey Cool Car Fans,

As The Cool Car Guy, I am an automotive consultant for motor vehicles (like some of the sweet vehicle photos I included in this article), as well as auto loans. I also have the ability to broker business loans that I’ll be discussing in more detail below.  A number of my clients own businesses often times they will own a vehicle free and clear or they may have equity in a vehicle that they may want to use as collateral for a loan.  I’ve helped people get money out of their vehicles for a number of uses.

Some vehicles are easier to get loans against than others depending on the year, make and model of the car or truck.  Traditional lenders like to use the NADA or Kelly Blue Book value to place a loan against a vehicle as collateral, so that they have a third-party telling them what the vehicle is worth. 1967Corvette It can be more difficult with classic or custom cars because there are fewer lenders that loan money on these vehicles.  Most of the people who have me track them down these type of vehicles, like a 1967 Corvette pictured to the right, have arranged financing most of the time or are paying cash.

I’ve also had a number of people who will contact me each year, usually from a referral from their mortgage lender to refinance a vehicle that they have a high payment or higher interest rate on, so that they can reduce their debt to income ratio.  I can even turn their used vehicle finance into a lower lease payment, depending on the miles on the vehicle, year, make and model, which can help them get into a home or obtain financing for their business, when their debt to income ratio is too high to qualify for the financing they are looking to secure.

1959CorvetteWhich is why I decided to write an article about this topic here at CoolCarGuy.com, for clients who may be looking for business financing or for people surfing the web that are looking for creative financing options for their existing business.

Maybe someone owns a business and they have a chance to get an extremely rare, fully restored 1959 Corvette with 400HP and an LS2 Corvette Engine like the one pictured above.   I recently saw this one running through the dealer auction and a business owner may want a short term loan for $140,000, because they are pretty sure that the vehicle is going to be worth even more than that 5 years from now or they just gotta have it.

1959Corvette3Most of the time business loans can be difficult to get, even if you’ve been in business for a number of years.  I’ve teamed up with a company called David Allen Capital to be able to offer small businesses with the capital they need to grow their businesses.  By offering this service, I can build a relationship with a business owner and assist them with all of their automotive needs, whether it is fleet vehicles or their own personal vehicles.

How Do DAC Loans Work?

Unlike traditional banks, DAC judges the health of the business based on the cash flow – not just credit scores. They have an in-depth understanding of small business, that can enable a business owner to get a loan that they need to buy inventory, purchase new equipment or launch a marketing campaign.  In fact, these are true business loans – not merchant cash advances.  And they are loans that range from $10,000 – $500,000 and these are short term loans of 4 to 24 months in length.

1959Corvette2These are daily fixed micro-payments, so no worry about large monthly payments and an approval decision is typically in ONE BUSINESS DAY, with FUNDING in as FAST AS 3 BUSINESS DAYS.  Again, this is something that is not for everyone reading this article, but I wanted to write an article about it because I’m a broker for this company as well.

What Are The Minimum Requirements For Approval?

A business needs to be doing at least $100K or more in annual revenues, so they only loan to existing businesses producing cash flow today and have been in business at least  4 months and doing at least $10k per month in sales (showing as deposits in business bank accounts).

The amount they can get approved for is generally equivalent to monthly sales revenue.  And the amount they will have to pay pack is generally 1.2-1.3x what they borrow.  Example, $100k will usually have $120-130k payback over term of loan.  Loans are 4-24 month terms and generally average between 6-15 months.

What a business owner does with the money is up to them!  For example, if they are doing $200k per month as a grocery store, then they can borrow about $200k and use it to buy a house, buy a classic car from The Cool Car Guy, buy another store, remodel, invest in something else, pay taxes, etc. etc.

The most common uses are to purchase inventory or equipment, expand or remodel, purchase another business, launch a marketing campaign or hire additional staff.

DAC lenders have loaned over $10 billion to thousands of small businesses.  If you would like more information or to get started you can visit www.DavidAllenCapital.com and simply enter in my name, John Boyd and my Broker ID: 100504507, so that they know that you came from my website and I sent you there.  You can get more information at that site and I would recommend checking it out if you’re looking for short term funding for your business.

If you’re a regular at this site or you’re just visiting and you know a business owner who may be in need of capital for their business send them to this article and have them check it out.  It’s simple and fast to qualify and see if their business is a fit for one of the lenders, who are looking to loan money to small businesses.
________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2001 Porsche 911 Turbo Custom – Consignment

Porsche1Hey Cool Car Fans,

A good client and friend of mine owns this 2001 Porsche 911 Turbo that he customized and asked me to help him sell recently.  I get requests like this quite often, but I don’t always post them here on CoolCarGuy.com, but I wanted to put this one on my website because it’s a really cool car.  If you’ve never driven a 911 it’s a really fast and fun car to drive and this one in particular has some very unique attributes that I’ll explain in detail here in this article.

Year: 2001
Porsche2
Make: Porsche
Model: 911
Trim: Turbo
Mileage: 73,200
Stock #:JB686639c
Porsche4
VIN #: WP0AB29921S686639
Trans: 6 Speed
Color: White
Interior: Leather
Vehicle Type: Coupe Porsche7
State: CO
Drive Train: AWD
Engine: 3.6L V6 DOHC 24V TURBO

Porsche5Porsche is a fantastic brand of automobile, one of my favorites since I love the German engineering, but many times people will overlook them because they are concerned about the cost of repairs and not being familiar with the brand compared to other sports cars.  There are many repair shops in most parts of the country that specialize in german vehicles, like BMW, Audi, Mercedes Benz and Porsche, so you don’t have to go to the dealership to get work done on the vehicle.

For example, I had a client with an older Porsche Targa one time that had some oil leaks.  He took it to the dealership and they wanted $12,000 to do the repair, which was absurd.  I took it to a local shop in Denver that I knew about and we were able to get the oil leaks taken care of with a warranty on the work for about $2,800. Many people would have paid that dealership the $12,000 and then told their friends how expensive it was to own an older Porsche Targa or they wouldn’t have fixed the oil leaks.

Porsche3I also suggest to Porsche owners that they consider joining a local car club, like the Porsche Club of America for example at only $46 a year.  It has been around for over 50 years with over 100,000 other Porsche Members and it’s a fantastic resource for Porsche owners and enthusiasts to get more involved with the brand and meet other Porsche owners in their area.

Below are some of the options that you will find on this 2001 Porsche 911 turbo, if you’re interested in purchasing it for your collection or as a replacement for your current vehicle.  In addition to these options, my client also did some additional work to the vehicle that I will talk about below this chart.

2001 Porsche 911 Turbo Vehicle Options
  • Air Conditioning
  • Extra Keys
  • Power Windows
  • Alloy Wheels
  • Fog Lights
  • Rear Defroster
  • AM/FM
  • Front Side Airbag
  • Rear Spoiler
  • Anti-Lock Brakes
  • Heated Seats
  • Satellite Radio
  • Automatic Climate Control
  • Keyless Entry
  • Steering Wheel Mounted Controls
  • Aux Audio Jack
  • Leather Seats
  • Sun Roof
  • Bluetooth
  • MP3 CD Player
  • Tachometer
  • Bucket Seats
  • Navigation
  • Tilt Wheel
  • Cassette
  • Owners Manual
  • Tinted Windows
  • CD
  • Passenger Airbag
  • Tow Package
  • Cruise Control
  • Power Locks
  • Traction Control
  • Driver Airbag
  • Power Mirrors
  • Xenon Headlights
  • Driver Multi-Adjustable Power Seat
  • Power Seats

Porsche6Here’s some additional information about the custom features of this 2001 Porsche 911 Turbo that the owner sent to me that I’m putting in this article:

By Design Automotive:  Re-built and upgraded Tial Alpha 1668 turbo’s. Garrett/Tial WG kit. 5 bar fuel reg. GIAC 97 octane custom ECU tune. Dyno’d at 534hp. Forged inlet pipe. 12 lb Flywheel. BR series coil over’s eight and rebound adjustable. BR series coilovers with height and rebound adjust ability.

Storm Performance Stage II water methanol kit. Porsche 997 Conversion. Porsche 991 Carrera white full body repaint. Xenon front tail lamps and rear tail lamps. Porsche 997 GT2 aero kit. Roderick 19″ staggered Porsche8wheels black. Kenwood DNX690HD Info-Nav unit with Bluetooth, DVD. Steaming, Digital radio for Android & Apple. J. L Audio Slash v2 Series 300/4v2.4-channel car amplifier 75 watts RMS x 4.

If you’re interested in getting more information about this vehicle and to find out if it’s still available, just send me an email or give me a phone call.  You can schedule an appointment to check it out, but I will need 24 hours to notify the owner.

Price: $49,995

Cool Car Guy RatingExtremely Cool

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

2009 Audi A6 Quattro Prestige Residing In Montana

SAM_0820_resizedHey Cool Car Fans,

In February I had an Audi Fan, we will call him Mark, call me about a 2009 Audi A6 Prestige that I had for sale that another Audi client of mine had traded for a newer Audi A6 Prestige.  It was a pretty sweet ride with about 82,600 miles on it at the time and it was priced to sell at $15,300. I don’t know if you have checked the prices on a new Audi A6 Quattro Prestige, but if you visit Edmunds.com they start at $62,500.  I bring this up because I want to make a point about buying used luxury vehicles like Audi’s, BMW’s, Mercedes-Benz and even Acura’s.

About the same time that Mark was coming down to pickup this sweet Audi A6, I had another client who was looking for a Ford Ranger Pickup.  I went out to the Denver Auto Auction to bid on a 2010 Ford Ranger XLT Extended Cab with four-wheel drive and about 65,000 miles and I stopped bidding at $15,700!  Now stop and think SAM_0814_resizedabout that for just a minute.  That little “bean can” of a pickup truck sold for more through the dealer auction wholesale than what I was retailing an Audi A6 for online.  How incredibly stupid is that?  One vehicle sold new for about $21,000 with a 6 cylinder motor and the other sold new for over $55,000 in a Prestige with a supercharged 3.0-liter V6 and 300hp, along with amazing luxury and amenities.  Autoblog had a great review of this vehicle back in 2009, but think about picking up a vehicle that in 2016 is starting at $62,500 for around $16,000.

Now I get this question all the time from people, “Aren’t Audi’s and other luxury vehicles expensive to repair?”.  Compared to what?  I just had a 2007 Dodge Ram Diesel truck that I was going to have to put brakes on after the right caliper seized up and the cost for front brakes was ridiculous.  Let alone putting on new upper and lower ball joints, a water pump and serpentine belt and other repairs.  I spend a ton of money fixing vehicles each year and I can tell you from experience that they are all expensive to repair, especially if you don’t have people you can go to that can save you money on repairs.  Have you SAM_0815-2_resizeddone head gaskets on a Subaru lately with the 2.5 motor?  If you haven’t and you own one, you probably will at some point and it’s not cheap.

The quality of the components are better on high-line vehicles, like this Audi and they last longer, plus if you get in an accident you’re not being protected by a body that is a step above tin foil (I’m joking, so don’t send me hate mail) in some of these “fuel efficient” vehicles today.  I’ve seen so many vehicles go through hail storms in Colorado and it looks like they have been chipping golf balls at the car.  That can happen to any vehicle, but I’ve seen a Mercedes go through the same hail storm as a Toyota and one has no dents and the other has thousands of dollars in required repairs.  Why do you think that is?  Because one is using more expensive and better materials plain SAM_0819_resizedand simple.

Mark is a serious Audi enthusiast though, who has owned numerous Audi’s and he has had great success with the brand.  Which is another thing that many non-automobile enthusiasts and “price only” shoppers lose out on big time.  I’ve saved so much money over the years by knowing the “car geeks” of particular brands.  The guys who can tell you that on a 2011 BMW 335xi you might have to replace the oil filter housing or a water pump.  That information is great to know going in and if you know guys who can do it for less you will save money.  Mark was thrilled to get this Audi A6 after a few other people had come to look at it and quite frankly were “clueless” about what they were buying.

I would say that you get what you pay for, but today that is not always the case because vehicles are really expensive.  Which is why I encourage SAM_0823_resizedmore people to look at the luxury brands all the time because on the used market there isn’t as much demand as there is supply and you can be driving a pretty nice ride for about the price of something that sold new for half the price.  And like I said, you can get plugged into a club or find guys like Mark who can save you time and money when it comes to repairs because they know these vehicles.

He sent me a few photos of his new ride that I’m posting here , so he sent me some photos and an email that stated the following…

“John

 Not the greatest backdrop however I wanted to get you some. I spent the weekend washing SAM_0822_resizedclay barring then waxing her. Christine doesn’t care for the gray wheels so I’m looking into repowdercoating the bright silver. We needed spacers to run the rims and I had a set of  25 mm. ones, but they made our studs a little short so we ordered 15 mm.  These were shot with the 25’S on the front and nothing on the back. By weeks end it should be all set up. I will forward more in a prettier setting.

Thanks again

Mark”

That’s why I love what I do!

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Can You Get Rid Of Negative Equity On Your Vehicle

Hey Cool Car Fans,

2015 Chrysler 300C Platinum

2015 Chrysler 300C Platinum

I am always amazed by some of the articles that I read from financial gurus, like one guy who recently wrote in an article on the topic of negative equity that “If you have negative equity in your vehicle, you shouldn’t be trying to buy a different vehicle.” Really?  That is really ridiculous because every used vehicle is different.  That is a bit like saying that if you are losing money on a stock in the stock market that is dropping in value, you should never sell it, but just wait until it comes back someday.

What if the vehicle you are upside down on is a piece of junk that you keep having to sink money into a financial black hole at the repair shop?  How is that a financially wise decision?  I see it happen to people more often than I care to because every vehicle is different.  Like the person I recently spoke with who purchased an old Isuzu Trooper for $2,000 on Craigslist and now they are into it for $8,000 after repair bills and it’s still not running well.  There is a shocker!  They asked me what to do and I told them to sell it and cut their losses.

Many of these “financial experts” advise their students to drive around a 1995 Honda Civic that they found on Craigslist for $500 to “save money”, while they are earning millions from their books, radio programs and television appearances.  I doubt that they are driving around a junk car like they want all of their listeners to drive around.  I digress, but here’s my two cents on negative equity.

First of all, there are ways to get rid of negative equity.  Especially if you know how to structure a lease properly and you can find the right new or slightly used vehicle that can carry the negative equity into the lease.  This way you can get a payment that won’t kill your budget, while getting a new or newer vehicle that is under warranty.

2015RamRebelRecently, I looked at a deal on an AWD Chrysler 300C that could bury as much as $9,000 in negative equity using a unique lease program that had to be done outside of the manufacturer.  I also saw a deal on a four door RAM 1500 truck that had a similar program that could bury around $6,000, or even more depending on qualifications, in negative equity using a third-party lease program.

That’s pretty significant and the benefit is that at the end of the lease a person can start over, while having a late model vehicle that isn’t going to be breaking the bank on their wallet or breaking down on the highway.  I have also done a number of leases on late model used vehicles to bury negative equity that goes into the lease structure, so that at the end of the lease term the person has eliminated their negative equity. Most of the time people will buy out the vehicle at the end of the lease since they are typically in an equity position instead of a negative equity position at the end of the lease.

Let me state clearly though that not everyone knows how to do this just because they work at a car dealership.  There are many horror stories about “leasing”, which is why people tend to shy away from them.  If you are not working with someone who knows what they are doing, you can get burned and end up still having your negative equity at the end of the lease.  And just because someone calls themselves an auto broker or a finance manager doesn’t mean that they have a clue about how to properly structure a lease for maximum benefit.  I know owners of dealerships who have told me that they have no clue about leasing and are as ignorant as the average person off the street.  In fact, you can have the same payment on the same vehicle with two different leasing companies and one has more money going toward interest, while the other is going more toward lowering the purchase value at the end.

This doesn’t mean that leases should be avoided though.  People lose money in the Stock Market all the time, but that doesn’t mean that there are not people earning money on the same stock that someone else lost money on.  It all depends on the knowledge and expertise of the person who is involved in the transaction.  Leasing is not the only option, but I have eliminated negative equity with financing the right vehicle as well.  I just think that leasing works much better most of the time because you are not dealing with the full amount of the vehicle like on a finance.

So, if you know someone with negative equity and they are frustrated about their situation be sure and let them know that there are potential solutions available to them to solve their problem.  Their only option is not necessarily to keep driving their vehicle until they have eliminated all of their negative equity.  It is dependent on the entire situation and the structure though, including the amount of negative equity, the condition of their current vehicle, their credit, job history, money or no money down, required monthly payment and what they are willing to drive to solve their problem.

________________________________________________________________________

John Boyd

Auto Consultant – John Boyd: The Cool Car Guy

John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

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