If you’ve heard of Exotic Car Hacks before and doubted the “hack my dream car” concept, you’re not alone. I didn’t pay thousands of dollars to access their proprietary information, but I did research the strategy enough to understand it better and, more importantly, identify its serious pitfalls. Find out how I rode a sport bike for a year for free and how you can make better purchasing decisions using these tactics.
What Is Exotic Car Hacks?
Exotic Car Hacks is an “educational platform” designed to teach “enthusiasts a new way to own their dream car without losing money” and was created by Pejman Ghadimi. You may have seen one of the ads that says something like, “Why pay $250 a month for a Ford Focus when you can spend the same amount of money and drive a Porsche instead.”
Sounds pretty interesting, right? Well of course there’s a catch – actually a few. The concept relies on purchasing a vehicle that will either depreciate very little or appreciate in value over the time you own it. So, you have to be able to purchase a high-quality vehicle that is either rare or unique and desirable in some way.
But their calculation relies on the fact that you have to BUY your dream car first. Let’s say you buy a Porsche for $50,000 and it depreciates to $45,000 by the time you sell it 20 months later. You would divide the difference ($5,000) by how many months you owned the car (20 months). 5,000/20 = 250
So, after selling the car, you can say I drove a Porsche for almost 2 years with a cost of ownership of only $250 a month! And this would be the claim made by Exotic Car Hacks, however, before you get to this point you still have to buy your dream car the old fashion way. That is, have a good enough credit score to finance an exotic and pay the ACTUAL monthly payment. This is because “monthly payments” and “cost of ownership” are two completely different things and Exotic Car Hacks never explains this part!
Find out everything you need to know about credit scores, including how to access your credit reports and scores for free in our credit score guide.
So in our Porsche example for instance, my real monthly payment, the amount I’m actually paying a month for this car, would probably be around $700 a month. Once I sell the Porsche and make my money back, we use the formula above and then we are able to tell people that we drove a Porsche for 2 years with a cost of ownership of only $250 a month.
Of course, this doesn’t take maintenance into account, which would cost considerably more for a Porsche than a Ford Focus! Plus you have to have a lot of cash to be able to buy your dream car and then get most of your money back when you sell it. It also involves knowing which vehicles will appreciate in value over time or depreciate very little, which is what people pay thousands of dollars to Exotic Car Hacks to find out, although you could do your own research for free. Find out how to get the most money out of your automotive investment in our article.
How Did I Ride A Sport Bike For A Year For Free?
So how does this tie in with me and my motorcycle? Well, I paid cash for a Kawasaki ZX-6R and sold it for the same amount of money a little over a year later. Using my own knowledge of sport bikes, I picked a bike that not only could I get a great deal on (and I negotiated the price) but that was also in great condition and had low miles. So I knew that this bike would hold its value for at least a year. I also rode the sport bike for fun rather than as a daily driver, which would have racked up more miles on it. Thus, using the Exotic Car Hacks logic, which excludes the cost of maintenance, I rode a sport bike for a year for free since I got 100% of my money back after selling it!
How This Concept Can Be Applied To Other Purchases
The strategy of timing large purchases to minimize their depreciation, taking good care of the products and then reselling at or above the purchase price can be utilized for many things. Of course, the exotic car hacks strategy is not bulletproof and there is always risk involved. But on top of cars and sport bikes, the concept can be applied to other collectible items and even real estate. For example, if you’re thinking about purchasing a house, there are indicators that will minimize your risk and increase your chances of getting a great return on your investment detailed in our article, How To Buy A Home That Will Increase In Value.
So now, I hope you understand that despite what Exotic Car Hacks says, you will not own your dream exotic car by paying the same amount of money a month as you would if you bought an economy car. However, the financial logic is sound and if applied correctly will ensure you don’t lose money on your vehicle or any other asset during resale. So at the end of the day you’ll be closer to your financial goals and the dream car you’ve always wanted.
Financial freedom begins with good habits.Rebecca & Tiago, theloadedpig.com