The Iced Coffee Hour - Lucky Lopez | The Auto Loan Apocalypse

Episode Date: July 10, 2022

Lucky Lopez is an entrepreneur, youtuber, car dealership owner, and automotive expert for TV. Lucky thinks the car market bubble is about to pop and claims that if banks keep loaning the way they are, this issue could parallel that of the 2008 housing crisis. Check out the Patreon! https://www.patreon.com/icedcoffeehour  SUBSCRIBE TO LUCKY LOPEZ: https://www.youtube.com/c/AutomotiveLifeTV Add us on Instagram:  https://www.instagram.com/jlsselby https://www.instagram.com/gpstephan https://www.instagram.com/alex_nava_photography Official Clips Channel: https://www.youtube.com/channel/UCeBQ24VfikOriqSdKtomh0w For sponsorships or business inquiries reach out to: [e-mail] GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & SEE MY STOCK TRADES - USE CODE GRAHAM: http://www.public.com/graham  MY NEW COFFEE IS NOW FOR SALE: http://www.bankrollcoffee.com/ The Equipment used: https://tinyurl.com/y78py5g2 Audio Equipment Used In Podcast: Rode NT1, Rodecaster Pro The YouTube Creator Academy:   Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF  For Podcast Inquiries, please contact [e-mail] *Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Welcome back to the Ice Coffee Hour. My name is Lucky Lopez at Automotive Life. And so far, the Ice Coffee Hour podcast has made $239,000, $6333.3. That's the closest guess we've ever. $2,332,300. Ooh, what do I win? A high five, man. Thank you so much for coming on the Ice Coffee Hour.

This is a trip because we've been friends with you for, I don't even know how long, maybe a year, right? Yeah, technically it was a year when we went to Barrett Jacks. And actually, they just reached out to me. They're like, are you guys coming? Are you guys coming? because Hubey was there again. Yeah. And it's already been a year.

That's crazy. Just flew by. It's insane. We've hung out a ton in this past year. And something with your sector of your business has been going crazy. That's why we brought you on. We think you can explain something going on with the car bubble. The auto market bubble.

Car values have gone up more by the way than real estate, the S&P 500, collectibles. People don't realize that cars, these last two years are up. I think it's 33%. Yeah. No, I think it's even higher. I think it's... No, used cars, it's 33%. New cars.

They have above MSRP purchase prices, like the new Corvette of $50,000, $60,000. I tried to buy one of the new Ford Broncos, and they want $35,000 over MSRP. And a brand new Ford Bronco is like $37,000 was the one I was looking at. So it's almost the same price as the car, which just blows my mind. People don't realize that back when COVID first hit, you would have been best off just buying a whole bunch of used cars over stocks or real estate. Yeah, outperform. like crypto, stocks, everything else. I remember when the pandemic first hit,

I had a few dealerships reach out to me, and they were doing fire sales. They were so afraid that the banks are going to shut down, everything's going to end. So my friends were giving away trucks and all this stuff. And then all of a sudden, they ran out of trucks. The supply ended, and then they started buying everything else, and the numbers just shot up through the roof.

Blew me away. So what's your experience going into this, like your credibility in terms of, like, what you see? Can you tell us how you're involved in the auto industry? Okay. So I've been in the automotive business for over 20 years. I've had multiple dealerships here in Vegas, auto repair shops, owned a few rental car companies. And what I currently do now on my channel is basically teach people how to set up their automotive business.

And so still today, to keep my feet wet to make sure I don't look like a fake guru, I always try to go out and still buy cars, still wholesale, still broker, still buy paper, stuff like that. And what we've been seeing is just astronomical. This is the first time ever in history that a depreciating asset like a car is actually going up in value for the last two and a half years, which just blows my mind. And the whole thing about, I guess, the market right now is people feeling that there's this big shortage, there's this big belief that there's not enough cars coming out of the factory. And it's completely the opposite. Every chip manufacturer we talk to is currently building. If you call Chevy right now and say, hey, you know what, I need a new computer for my 2022 Chevy Corvette. call them.

They'll get it in like seven days. So when we showed people this online and we showed a few of the news conferences I did, they were blown away. They thought that everything was backward. The only place I know that has backwarded parts is Tesla because Tesla's not the greatest which we can get into. You also hate Tesla. You say it's like your least favorite car make ever, right?

Yeah. I mean, I like the car. They're the first to market with a lot of the great stuff that came out, the self-driving, going 100% electric. So I do commend them on that. But they tried so hard. to be a tech company and an automotive industry. And it's just, it's such a pain in the butt

because like if, you know, like your Lexus has issues, we can literally walk in. I can, hey, I got this car, here's the VIN number. I can pick up the parts. If they don't have it, they'll tell me when it comes in. Try doing that at Tesla. I have friends that have literally been waiting weeks, if not months, and Tesla will not tell them

when their parts are coming in. If anybody's ever crashed to Tesla before, dealt with this, they totally know what I mean. It's impossible to get parts. And then if you try to do service, you usually want to call a service rider, explain our, problems are issues. You guys using the apps, I don't know how you do it. It's like, yeah, pick up

my car. Where's your car? I don't know. It's somewhere and it's dead and ran out of juice. And it's like they got to pick it up from wherever you actually got to direct them to it. And you got to stand there with your phone. So it's just a few things that are not very convenient and they're trying to buck that system of using automotive professionals in their system, which I kind of understand they want to make it different. But if you want somebody working on your car, I'm sure you'd probably feel better if somebody worked on multiple cars for multiple years. When I was talking to some of these Tesla tax and I was like oh what did you do before were you like at Ferrari Mercedes BMW Jaguar Ford oh no I was I was an engineer for um you know like Cisco systems and I'm like

so you did like software setups and and everything else I'm like yeah and I was like then what are you working on Tesla's he's like oh it's very simple we just we they don't fix anything you just replace and so it kind of blew my mind so I'm sure I'm gonna get a roasted in the comment section from all the Tesla fans because I know you guys have a bunch of them but it's completely different from most dealerships they don't like to share information Like when I was fixing Spencer's car, I can look up online and say, if you crashed your lotus, I can tell you how many hours is going to take off your bumper, where I can get the parts, how far back ordered it am, and give you an accurate quote on how to fix your car.

Tesla does not share any of this information. So when I'm calling like, hey, like, especially if the car is wrecked, I don't know what was there before. And I'm like, hey, I need to get some bolts and parts. What was here before? Can I get a diagram? Isn't that because Tesla likes to repair their own cars, though? 100%. They really, really want to do their own thing and repair their own cars.

but they're running into the big problem of, you know, there's not a Tesla facility, you know, in a lot of states and a lot of cities. So then they're subbing them out to other people. So I have a friend that's in California that does Tesla repair. And he's a certified shop through them. And it's still a pain in the butt to get parts and to work with them. So during COVID, which cars did you see have the biggest increase in value? What do people want the most?

I was actually shocked. I figured it was going to be like luxury SUVs or luxury cars. it was trucks, hands down. Anything that makes money. I've never seen Dodge, Ford, Chevy, and even some of the Nissan trucks, and sprinter vans, just absolutely explode in price. You know, usually trucks, we use them for work.

We beat them up, and they take a beating, and they depreciates a little bit, but trucks usually hold their value. I mean, these guys were asking for $60,000 over on a GMC Denali, which I was just shocked. I'm like, this is just a truck. I know it's a nice truck, but why $60,000 over? And they're like, well, you can't get them.

even though they got 13 of them sitting right there on the lot. I think that those were really big hit, and then also anything that was kind of rare, like your Tesla now, some of these like Ford Shelby Mustangs, they didn't make a lot of them, so they just shot up. Anything with limited amount of inventory blew up.

Even my Audi, like I've owned it for a year, put 17,000 miles on it, and it's worth more today than when I bought it a year ago. Now, here's a question for you. Why wouldn't the auto manufacturers see this? that people are paying these prices. Why don't they just say, all right, well, that's the new price now. We'll just make fewer of them and sell it at that price.

That's, so I talk about that on my channel, and it's kind of like a conspiracy thing when people ask me, well, there's a shortage, there's a shortage. And I'm like, if you're producing 100,000 cars and grossing $30,000 over MSRP, why would you make 300,000 cars and break even and have to give them away? Because I remember two years ago, we were getting stuff back of MSRP,

They were literally giving us vehicles. Like when I bought my Mercedes, I literally got it for less than wholesale. And then when this happened, like you can go to Ford, Chevy, whatever else. You'll see that the lines are moving smoothly. The only actual, I guess, supply shortage that I've seen was wiring harnesses for European vehicles because the main manufacturers in Ukraine. But I believe that's why they're doing that. And the sad thing is it's not even the manufacturers.

The manufacturers give the suggested retail price. It's the dealers. They get to set up whatever. market price they want to. So a lot of people keep blaming like Ford, Honda, Chevy Toyota, and it's actually the dealers, the franchisees that are adjusting the prices. How do dealers work? Exactly.

Because I know it's kind of a complicated, more than what meets the eye complicated situation, right? Yeah. Right now, the way dealerships work is very old school, but it is sought out and it works and it functions. But I'll kind of go into this. Right now, everybody's trying to do what Tesla is doing. Tesla is doing direct to consumer. I saw Ford is copying that too.

Ford is the first one that made a separate LLC that's going to try to do their EV vehicles, but still service them at their Ford dealers. So this way they don't get sued by their franchisees, which is going to happen. But the way dealership works is, you know, you make a contract with somebody like Ford, and you say, look, we want to sell your cars. When you sign that contract, you have to uphold a certain standard of not only your building, but also a service department. You've got to buy so much in parts every month.

And then you also got to get so many cars allocated. So if you love everybody wants trucks, they're all fighting for trucks. But you still have to buy the Ford escapes, the Ford focuses, the EVs, whatever that's not popular, you still have to buy because that's part of your contract of being a Ford dealer. But with that, if you have good customer service, you have really high reports and people are happy with you, you get specialty vehicles like Ford has SVT, so the Ford GT. You weren't allowed to sell those unless you were a dealer with a really high CSI report, which all your customers raved about you and they thought you're really good.

But when it comes to dealers, I do admit that the way they function is very outdated, especially when it comes to finance. I can literally tell you a million horror stories of how financing works. Because when we tell people, even like when I have my dealership here, and I would tell them how it works, they never believe me.

And now that I talk about it on the channel, people still laugh, but finances probably the one thing. Let's talk about finances because when I saw your video originally, I did a lot of research into everything, that you said. And what I found the most surprising was that it's common to get a loan up to 130% of the car's value. So if you have a car jack that you want to buy for $10,000, you could find a bank who will finance that car for $13,000, 30% more. And the reason is because they add in the sales

tax, the registration, the titling fees, and all the other miscellaneous stuff, up to 130%. And I'm thinking, how are they doing that with a car that loses 20% as soon as it drives off the lot? And all of a sudden, a person knows 50% more than what the car is worth within like a week. Yeah. How could you explain like the process of this? Yeah. So that's, that's actually the average now, 130%. We have some banks that go up to 170% of LTV, which is just mind-blowing.

What's, yeah. The way they did it is they were saying they were adjusting for inflation because as you guys know with the pandemic and the vehicle shortage, all the started rising up in price. So what the banks did, the dealerships did to combat is like, well, if I'm paying, let's say the cars worth $25,000. If I'm going to the auction and paying $25,000, I still got to make a profit. So then I would show this slip to the bank and say, I need to get more money. I need to make $5,000, $6,000 on this deal. Can you finance it up to 150% of LTV? And at that time, the government was pretty much obviously giving people stimulus money and they were backing all these loans. So they're like, yeah, just go ahead. And I've never seen banks change their

lending so quickly and so freely where before like even when I bought my right they didn't even ask me for a proof of income they didn't ask me of proof of residence they just kind of bent the rules and traditionally we only do that if the customer has good credit and a good history and what happened during the pandemic is they just literally let the floodgates go so if you had let's say you were a waiter and you made $2,500 a month you know and you just let's say become a plumber and now you're making $35, $40 an hour. Normally, what we would do is we would say, okay, that's an actual profession. We would give you more loan to compensate for your new income. If it's something like seasonal work or something that's temporary, like stimulus money, we don't ever give you more money

because we know that that's only temporary. It's going to go back down to normal. Well, during this pandemic, they were like, oh, well, this guy's making $4,000. His spouse make it $4,000, and they're not paying rent. And they're putting 20, 30% down. Let's just give them 150, 10060%. And they're just giving away all this money, these overinflated numbers, and the banks were just taking it because they figured, okay, if worst case scenario happens, we're just going to bundle this paper, you know, get a AAA rated, sell it out to somebody and either let one of the banks. Is there no oversight? Is there no one who has a standard on these loans?

And they say, this person is getting money from unemployment. They cannot afford this once that runs out. There's not like an authority. There is. Every bank kind of governs themselves. There's FDIC has regulations for certain types of lending, like predatory lending. it came really big. Back in the day, I could sell you $100,000 car for $300,000,

and there's nothing you could do as long as you signed a contractor on the hook. Now it's got to be somewhat in a certain range where we can't oversell to you. But I believe after this, they're going to make a lot more regulations. Now that the default rates are going up and banks are seeing this, they're starting to pull back their books. But yeah, the banks regulate themselves. And a lot of these banks, if they get their money from like Wells Fargo, Bank of America, they have to abide by their guide rules.

But there's so many of these hedge funds and, and bigger money that's private money that's investing into these banks, they can write whatever they want. It kind of sounds like the 08 housing crisis. It does for cars. Yeah. 100%. Like we were making that joke.

It's like, you know, they, at least back then, you know, people were losing their repos. I think it was like that. It was about 14% 135 was the repo rate back then. But people, you know, were so upset on their houses. That's why they let them go. Now we have people that have houses, but they actually have equity. But you look at the cars. Once that market starts to dip,

Like right now, retailers are talking about it's slowing down. Less bank loans are being given. Interest rates are going up. People don't have the money that they used to. So now all these dealers are stuck with this overpriced inventory and we're watching them. The numbers go down. And I think that's one of the hottest topics that I talk about is like you could see it

come down. And I hear people, well, the dealer won't go down on his price. I'm like, give it time. It's happening. We've seen all the repos like the video you guys saw. It's all piling up. But I think it's going to come to full ahead, probably within the next three to six months. When we talked about it about six months ago, people thought it was weird and, you know, tinfoil hat and a whole thing shebang.

Now, when I'm starting, like, with news companies asking for interviews and people are sharing my stuff like on Reddit forums and Twitter, now it's like it's kind of nice to see that the cracks, the foundation are showing. People are actually scared and people like yourself and your guys' channel that are more well known are talking about it because it's going to be a really, really big deal. So what's your prediction on what will happen? My thing is I honestly believe that we're going to have probably not a big collapse like. like the house market it's going to be like a 20 30 percent dip but it's not the price of the car that's going to scare everybody it's the ability to finance once these banks like you know what mortgage and stuff like that a lot of them were government back they were able to pawn them off whatever else a lot of these automotive loans are not like that they're not backed by the government they're sold

to these hedge funds people got them in their mutual funds you know so they're just sitting there and if they default the banks when they show that much of negative equity in their portfolio they're going to stop lending they're going to make it extremely strict just like they did after the housing market where I'm going to go off your income and you could only afford what I can say you can afford. And that's what basically people are pushing themselves in the doing is to being governed by people because the access of, you know, I know people, I won't mention names here in Vegas that live in a $1,000 a month apartment but drive a $200,000 car.

Why? Amazon presents Jeff versus Taco Truck Salsa, whether it's Verde, Roja, or the orange one. For Jeff, trying any salsa is like playing Russian roulette with a flame thrower. Luckily, Jeff saved with Amazon and stocked up on antacids, ginger tea, and milk. Habaniero? More like habanier, yes. Save the everyday with Amazon. We got to name names. We got to know. Who is it? I know. It's that guy. But that's like some of the stuff that we're seeing. And so that shouldn't happen. But I believe that that's probably going to be the next step is if this collapses as bad as what they say it is,

I think that government's going to step in just like the last time we're predatory lending and they're going to change a lot of it. But I think it should be like that. To me, that seems reasonable that there should be a standard that says if you don't make a certain amount of money, you shouldn't qualify for this payment. Yeah, I mean, there's pros and cons to each of that. It's just like at the end of the day, if you make, let's say, 20 bucks an hour, but you have $200,000 in the bank and you want to buy a Lambo for $300K, I mean, to me, you have the down. payment you should be financially sound enough but the bank's going to look and cheap like this guy only makes 20 bucks an hour why are we why are we going to take us 200k and he's not going to be able to afford the payment we know you can you could be successful you could be rich you could be on social security and they still

won't take it they're even bucking like um the original loans they used to ask for like your bank statements your w-2s some sort of paper trail you know to justify that they stopped asking that because um when the bill of rights came out with this new federal uh credit protection where it's predatory lending, if they know that you make too much or you don't make enough and they don't give you the loan, all these banks are worrying about getting sued because they'd rather give you a $30,000 car and if you fail, that's on you. If you succeed, great. But if they show that they did some sort of malfeasance or they were judging you by your income or your character or your race or whatever else, they get like a $30,000 fine from the FDIC. And so that's some of the stuff that they're really,

really scared about. So it's weird. It's like they want you to verify everything, but then they want to push the documents out and sell the car and not have to worry about who they're selling it to. So what do you think that's going to do to car values? Let's start with new cars. Oh, geez. So, you know, we talked about how the MSRP, people are asking like $20,000, $30,000 over it. Just last week, we were able to get a Lamborghini Huracon or Technica here in Vegas, nothing over MSRP. I can get a new Corvette, nothing over MSRP. A lot of the allocations, they were talking about how, oh, it's going to be 18 months. It's going to be 24 months before you get your car. now we're down to like eight, 12 months.

So I believe that the market's going to start cooling down. Already, like if you drive by Sahara, you can see the lots are full of cars. You know, there are some spots here in the United States that have low inventory, especially when it comes to the northeast. They just, I don't know why they just don't have a lot of cars here. Or the West Coast, we have these massive lots, so they just stack three, 400 cars, just leave them. You know, and if you watched my video, a lot of these banks and even some of these dealerships

have holding yards. So even though they do have inventory. Sometimes we don't show you everything like if you look at my lot you'd never guess how many cars I got I got a hundred and fifty cars But that's like I said, it's just from back there I put a few up online Yeah, few at the auction and I think that's what's gonna so do you think the worst case scenario for new cars then is just selling at MSRP? That doesn't seem that no That's the that's the price is like I said it's it doesn't seem that bad until the people try to go buy them when their rent is doubled the gas is doubled their insurance is doubled and they're trying to maybe a afford a $600 car payment, that's what they qualify for. Maybe this new car that's at MSRP is $750.

Now they're not going to qualify for it. That's my big worry is that people are not going to qualify for these types of vehicles anymore because of they're going to get stricter. They're going to ask for more down payment. They're going to ask for better stability. Because a lot of my banks, like as a dealer, every few months we get a notification from our lenders, hey, we want to do 2015 and above. We want to stay carers 100,000,000 miles and below.

we don't do maybe Mercedes or we don't do anything rare like sobs they'll send you out these structures to let you know what to lend on how to set it up and i've noticed that we used to get these maybe once a quarter we're getting these things every two to three weeks now of we're not doing this anymore we're not doing 84 months we're not doing 2.9 percent we're going back up to 3.5 minimum job time instead of one month it's six months so little by little it's like i said it's starting to show and bubble to the surface but the problem is the public won't see this for another three to six months. It's the dealers and the people inside the industry that are seeing it now,

but they will never sit because they're the ones that are holding all the inventory and they don't want to get stuck with a bunch of overpriced stuff. What about used cars? Used cars, here's the problem. If you're buying something under $12,000, I think those cars are going to go up. Because once, just like in 08, that's why I started selling like more cheap affordable cars is because people can't afford those $30, $40, $60,000 cars after their credit shot, after they don't make as much money or their debt to income is not what it's supposed to be.

So anything under 12 grand, I believe, is going to hold its value if not go up. Like your Miata, you're going to laugh. And two years from now, I bet you it should it be worth double what we bought it for? You know, it's just, I think it's almost already there, you know, but it's, that's what we're seeing is people that normally didn't have money during that stimulus time, they got those back checks that were getting $5,000, $15,000 at one time. They were buying all cheap affordable cash cars. So there are some people that were smart after the 08 recession that, like, I'm not

going to get myself in debt. I'm going to buy something cash, own it, and have no bills. So when people ask me, what's the hardest cars to get? It's cheap cars. I mean, Alex knows. I've been trying to find him a truck forever. You know, when we were looking for your Miata, it's anything that's affordable is super, super expensive. And it's almost like doubled, you know, where before I could get you that Miata for like two grand. Now it's like four, actually now, now it's like $6 to $8,000 for a decent one, you know, without being beat up. Now, what about cars like the four GT, or, like collector cars like an SLS, AMG, a Z8. All of these cars have gone up like 50 to sometimes they've doubled.

Some of some, some I have tripled. The Dodge Vipers now. Oh my gosh, nobody wanted those cars for years. And now I'm looking at the values and bring a trailer. They're selling it ridiculous amounts right now. Yeah. With specialty cars like yours, I hate to say it. It's only worth what somebody's willing to pay for it.

The more where they are, obviously, they're going to hold their values. you, but what we've been seeing is a lot of people liquidating a lot of their, uh, their collections. You know, like you, like your 4GT, I would just keep it because even if it drops 20, 30 percent, I would still get it because you'll never know when you'll be able to get another one. But we've seen a lot of the exotic cars like Barrett Jackson was just here, hundreds of cars go up, bring a trailer, cars and bids, all these places. Um, one interesting statistic that I saw that was saying that 50% of the buyers on bring a trailer and cars and bids are dealers.

Now, I can't confirm this. I've seen, yeah, so I watch those bids religious. I have so much fun. Sometimes I'll send Jack the cool ones. We'll all watch it together with Alex too. And I click on the profiles of the people that are bidding on the cars. And I'm like, what are they buying? Some of them, you know they're individuals when they bought very specific cars.

Yeah. And maybe they're building a collection of like only buying red cars. And like, they're all red. But then some I've seen that they're buying, like 30 cars a month, and they're all in like different price points. And sometimes I feel like are they bidding on behalf of someone else who just hires them to go and buy these cars? You're saying they're dealers?

Yeah, most of them were dealers. Like I was shocked. Like when I put my smart car up there, I figured it's a fun toy. Somebody just wants to buy it for fun. I'd say about 80% of those when I was messaging them back and forth and some me up on Instagram, they're all dealers. What are they going to do with it? Flip it?

Oh yeah. One guy said that he was going to finance some guy for $35,000. And I was like, you're going to sell the smart car for 35 grand. And he's like, yeah, he goes, I got a guy. He's got 10 grand cash. He just can't afford it. And the bid right now is like 11 grand. I was like, you know, that's what you want to do.

But there were so many dealers like that had inside deals with banks, just kind of like what I have, where we could finance almost whatever we want. Now, how does that work? Let's say they're bidding on behalf of a person like that. What's to say they don't win the car and then the person backs out? That's the problem. That's why I don't do auto brokering. When people ask me, like, why don't you go to the auction and show me how to buy cars or take me with you? I want to buy a car. It's not worth it because that's what they do.

Got it. They'll back out. I don't like the color. I don't like the smell. You know, I thought it'd be nicer in person. So, yeah, that's the run, the risky run. But a lot of these dealers, they just had a blank check, you know, with the stimulus money and PPP loans. Like, I'll tell you what, that's what I think that drove up the high line prices.

Because I remember the same thing. We bought a Viper for like $38,000. I think that thing sold just recently for like $70,000, $80,000. I've been trying to buy a DeLorean for like six months. I can't even touch them. They just, they, I've ever seen them for like $10, $15,000, $20,000. Now, not even running, 30 grand. It's interesting because we got the Lotus Rapped.

Check out the Graham-Stefhan after-hours channel. We're going to post there sometime soon. But anyway, we'll throw up a picture here from Purple Flair Raps. And I was talking to the owner. And I said, how's the business going? And he said that people are preparing right now for a recession, and they're buying fewer cars. They're spending less money customizing their cars.

and like he in my opinion is one of the perfect people to talk to on this because he sees it first hand when you're spending money in a car rap chances are you're doing well enough to spend you know whatever on a wrap but when people are scaling back on that and they're preparing for this um and at the same time that you're seeing people selling off a lot of those cars like a lot of the four GTs are being sold them bring a trailer and it makes me kind of think hmm they're all selling these cars why why are they selling them um so i could definitely see us potentially heading in that direction where people are beginning to sell off their cars just to prepare for maybe what might happen. Yeah, I think that that fear is already out there.

And especially a lot of people learned after 08 where I remember the economy is great. The government said the same thing. The economy's great. We're going to keep booming. There's no problems. And all of a sudden it just fell out. And so now, like, same thing with me. I'm trying not to listen to different people, like trying to influence my decision, like

whether to sell cars, buy cars. But my advice would be if you can afford it, like year 4G, You love it. It's your dream car. It's actually my dream car too. I would keep it. I wouldn't get rid of it. Have you found the car market to be a leading indicator of bigger economic problems or like a following? I usually do because we talk about the subprime auto market. Like that's one of the things that when we start to see repos piling up, we start to see defaults. That's usually the first indicator of us like the economy's slowing down. The jobs are not as great. So we like I said, we're kind of talking about this on my channel about six months ago and everybody's like, man, we're struggling to hire people. And I'm sure. you guys have seen like you know we're dying for people we're trying to hire mGM grand was offering bonuses a lot of my friends own restaurants were offering bonuses was it last month month before stopped like instantly everybody put hiring holds they stopped doing it a lot of these tech companies are laying off hundreds of people if not thousands carvone laid off what is it 2 500 people which we have to talk about them too that's like the worst but that's one of the things that we see is we

see that about six months to a year before like the real estate market when people started defaulting on their cars and letting them go. We were wondering why so many people were doing it. We figured it's because they were buying too many houses because everybody we knew, even the Walmart Greeter owned three homes in Vegas, you know, from those ninja loans. But we started seeing all these people letting their cars go and we didn't think anything of it. We're just like, we're just going to buy these and turn on and sell them. And then it just slapped this in the face. You know, thank God I was able to liquidate a lot of them, but a lot of my friends, they didn't come back from that. They lost a lot of money. So I do see that that's kind of the main indicator of what's going on. Because people, I think now

instead of the other way around, they'd stop paying their house, get their car, and then just drive around their car. Now I think it's the other way around. They're just going to get rid of their cars and keep their house because they got equity. Because why pay $40,000 for a Dodge Charger when you could see one in six months from now selling for $25,000 at a dealership for half the price

and half the car payment? I feel that's what's going to happen. People are going to start letting stuff go and buying it back for cheaper, just like it was in the 08 with houses. Now, you're mentioning Carvana. Could you explain what's going on with them? So Carvana is another one of those companies that wants to be a tech company first and then a car dealership second, which the theory sounds great.

It was like the darling of the stock market a while back. And so I personally dealt with them on several occasions when about maybe about four years ago, we used to fix their cars. My dealership was right across the street from drive time, which is also owned by the same family. It's a father and son duo. And so they would buy the cars. Carvana would pay to fix them. and then after they fixed them, they would sell them to drive time, and then they would pay for like little minor repairs and send them back.

And I'm like, why these guys taking such big losses? You know, and they're not making any money on these cars. Why are they selling to drive them? It doesn't make any sense. So we just thought new company, they made mistakes with buying. They didn't have any qualified employees. They were buying stuff virtual online. So they're one of the first ones to do that.

So we're like, okay, it's just learning pains. Well, fast forward three years later, nothing has changed. You know, if you're one of the biggest automoters, automotive companies that's buying and selling cars to people, you know, you want to be, to have the smartest people in the room. You want to hire the best qualified people. When you go to most Carvana stores, there's no store. It's just a person driving around a truck. The buyers for the cars. It's usually maybe a guy that's never really bought a whole lot of cars. They just go around and just pick up cars that you enter online. They look at the calculator,

which we'll show you here, just come up with some formulated plan on how much it's worth, and you just pay you for it. I have videos where we sold cars. cars to Carvana that were just absolute junk and they were paying us you know three four five thousand dollars over market value and the kid wouldn't even start it like we gave them the keys and you know we put like squeaky toys in the sea and like funny stuff on the steering wheel just so it'd it'd be funny when he walked in he just looked at it okay that's the car I'm like yeah as like here's the title okay here's your check and just walk back in didn't start it didn't look at it and it blew my my mind and then that was the beginning of the end because when we made that video they started

being sued by multiple people. People are selling flood cars, damaged cars, salvaged cars. People were duplicating titles and duplicating vins, which that's why they were getting sued, like, in Texas and Chicago, because they were selling people stolen cars. So imagine buying a car from a reputable, massive dealership, you know, and then finding out that it's stolen and the feds come banging on your door because the GPS says it's over here, or they tried to go get it fixed at a dealership, and they ran the van, and they found out it was stolen. So they had multiple lawsuits. And then on top of that, as a dealer, you know, you're supposed to be in charge of your paperwork. So if you buy a car from me, I'm on a time limit. I got to get you your title or the bank,

the title within 30 days. And they don't hire anybody that does title clerking. They always send it out to some third party company. So they got their license almost pulled in Texas, Illinois, and Florida because of that. They're actually, they got, they were able to grace by it. They had to buy back. I think it was like 200 cars from people. But now they're being sued again because people have been waiting six, seven months. They still haven't gotten their plates. They still haven't gotten their titles. And the scary thing is, is they lose about $25 to $3,500 per car on every transaction. So their joke was, we're going to buy Adessa, which is a major auto auction. If we buy this auction, we're going to be able to lower our costs by $1,000, by shipping and by repairing

your cars. But if you're losing $2,000 a car, it doesn't matter if you save $1,000, you're still upside down a grand. And so, they did that just for another round of funding just to basically kick the can down the road. So I don't even know how they're doing this, but we were talking about this when their stock was, I think it like 310. And we're just like, oh, man, if I'm not much of a trader, but like, if I could short him, I would short the hell out of them. And next thing you know, I think it's now, what, $27, $26, you know, is what their shares

are trading at. And the worst thing is, is they keep getting bailed out by these companies. And it blows my mind how people were just so blindly giving these people money. You're like, oh, this is legit. We're just taking a market share. That's the tech way. Market share, market share. We don't have to show you anything that makes money, just market share.

So bad. Zillow was doing the exact same thing when they were buying properties. It was the Zillow instant offers where basically you could go on, you type in your address, you give them information, and they'll spit you out an offer. And they'll buy your house, cash. And all they'll do is they'll send one rep to go and just, you know, take a visual once over, make sure everything's fine. Make sure the roof is there.

But yeah, but people started reporting that Zillow was, paying 5% over what people were getting in terms of their offers. An already inflated value, Zillow will come in and beat that by 5% just to buy the property. And people started reporting on Reddit first before they discontinued. People showed that they would sell their house to Zillow instant offers. They would wait a month. They'd see Zillow list the house on Zillow, no offers, and then they would reduce the price below what they paid for it.

Yeah. And so people were joking, be like, well, I'm going to sell. my house to zero instant offers so I could buy it back cheaper. But basically, the whole business model was broken because the people that they hired didn't care. I mean, they were just hiring so many people who just had had a quotas to fill, I'm sure. It's just like, okay, we got to buy X amount of houses to buy market share. And that's how they spun it. Yeah, it's a temporary loss, but we're going to take over the market with instant offers and people are going to use us. And then they discontinued that. Yeah. And so that was their leverage. Like, well, if we buy an auction house, we could control

the flow of vehicle. So if we overpay for a car too much, we'll just take it to the auction and get our money back. And they are literally losing their ass on every single car. And the worst thing is, is I think that their last round of funding

got turned down. I think they were trying to go after like another $110 million. I think they only got approved for, I think it was like 80 million. And so now they're like basically running on just a very bare-bones skeleton crew trying to get as much money,

but they're still losing. They're saying it's even more. Now it's $2,700 average per car. So if they keep losing this money, I don't see how they're going to last within the next six months to a year. But that's what most of the news outlets wanted to do that video. That's what they all wanted to interview about was they're all betting the same thing. They called it a Ponzi scheme.

So I didn't say it, but that's what they believe that it is because all their loans. I thought it was a lead gen for their loan company because they own Bridgecrest and another company that does all their loans. And so, you know, think about it. If you're getting a billion dollars in loans at average, let's say, five to eight percent, I mean, the interest you're going to make on that is just astronomical. So even if they file bankruptcy on Carvana, they can hang out for the next three to five years and make all that money, not including that the father and the son were selling off stock at the $300 peak as it rode its way down. They stopped selling because they pretty much ran out of stock.

So it's very interesting. If you get time, look up that. It blows my mind. I'm not much on that end, but when I saw what they were doing, I'm like, nobody's noticing this. And now everybody's just like, oh, my God, it's a sham. It's a sham. And I'm like, I should have said about a year ago.

Wow. How do people make money from this? Oof. Well, I can't give out financial advice, but I can say that if you were going to short or bit against anybody, I would definitely do any type of major institutions in like this ally. Alli has their own.

They're publicly traded, right? Mm-hmm. Like they're, I remember their CEO went on TV saying that they're doing great and they're, they have the highest prime loan default rate out of all the banks from what I saw on a bank sheet. Yeah. It's them, Wells Fargo, Bank of America, then like a bunch of these other little small banks.

So I think that right there, like I said, we know that subprime lenders are going to have repos because they just, they're more riskier with their loans. But when you start seeing prime lenders, people that are getting like 2, 3, 4%, start defaulting on their loans. Yeah. And for a bank like Ally,

how much do they have in loans in relation to everything else? Now, don't they just package their loans and resell them? Every bank, and that's one funny thing that I explained another person, they didn't believe me. Every bank keeps a chunk of their portfolio to make interest off of, but a lot of them bundle the paper and they sell it to other banks because they don't want the risk. So if they think the paper is risky, they'll bundle it and they'll sell it to another bank. And the funny thing is, is every bank gets allocated so much money every month, every quarter to lend and they got to lend it because if not, they won't get the next chunk of money or the next chunk of money

will be a little bit less. So the way I describe it is almost like musical chairs. You know, well, I'm going to buy this paper from Graham, and I'm going to make 3% or 2% and then I'm going to hold it for six months. And then I'm going to sell it to you, Jack, for another maybe one point, two points, whatever else. And it just keeps going around in circles. Everybody that we didn't do enough loans, let's go buy some portfolio. And they just keep literally moving it around and around. And eventually when the music stops and, like I said, the prices fall, now your portfolio

assets are worth, you know, about 75% of what the actual portfolio is. That's when they're going to be screwed because nobody's going to want to buy it. they're going to buy it for 50 cents on the dollar and no with no interest back in and they're going to be like, oh, well, I don't want to sell it for that because I paid, you know, Jack X amount of dollars for it. And that's it. And that's like I said, that's what's going to lay to all the banks really tightening down and no longer lending. And that's what scares me is the prices are going to be the prices. But when the lending stops, then it doesn't even matter what the prices is because if the banks are not lending and they're so afraid of this, it starts with cars and it usually work its way up to

commercial loans, real estate. And because a lot of the, the big banks don't care. It's the small banks. Your local credit unions, your everything else like that. If you look like at America First Credit Union here, majority of their assets are in auto loans. I think their auto loan portfolio and their housing portfolio are almost like matched side by side, you know, but they do that because they make more interest and make more

money off of cars. That's why a lot of people like to buy car paper. That's why a lot of these hedge funds buy that. But now it's like I said, now it becomes, yeah, it's more money, but now it's a riskier asset because when it's depreciating, and two, like, these people are driving them off, crashing and not having insurance on them. So that's kind of what's going on with that. Hey, Ontario.

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Please play responsibly. If you have questions or concerns about your gambling or someone close to you, Please contact Connix Ontario at 1866-531, 2,600, to speak to an advisor free of charge. BEDMGM operates pursuant to an operating agreement with iGaming Ontario. How are you trying to make money off this? What are you doing differently? What I'm doing right now is I've been working a lot directly with banks to put in offers, to purchase cars directly before they go to the auction.

So most banks, they don't like to sell to dealers because dealers, most of them are, most Most dealers are assholes. So, you know, and you could say a few naughty words and we'll bleep them out for the children who watch the iced coffee hour. Yeah, most of the dealers are not very nice guys. And so they don't like to deal with them because they're always low-balling and stuff like that. So the banks have to get three competitive bids or ticket to auction. So I'm one of the few people that are able to go to these dealers and buy some of these

cars. And normally I buy cheap cars. I don't like to extend myself any further because cheap cars, they're cash. They move quickly. I take them to the auction. I can sell 20, 30 of them every week, not have any headaches. But recently, as you guys seen, we've been getting these exotic cars left and right. All these people that had PPP loans that took 100K of their PPP loan, put it down on the Rolls Royce and never made a payment.

You know, that's more of the stuff that we're starting to see now, which is really scary. Could you talk about that? Because I see you going to L.A. And you post these pictures of these cars, like, you know, a kind of crashed as to Austin Martin, Rolls Royces, Audi's, really nice cars. and you're buying them and bringing them back. A few you've explained were repos, and you've shown up and the guys is like, here's the keys, I get it.

Can you explain how you do this, how you're involved in this? And how does someone get the ability to go and do that? Well, first, you've got to be a dealer or not a broker. That's the very first thing. The next thing is building a really strong relationship with a bank or lending institution. Because a lot of the banks, they're not dealers.

They don't care about any of that. They just want to get rid of the asset. To them, it's not a car. It's just a pain in their butt. The sooner they get it off their books, they can go out and lend more money. So what I do is I'll go to like a repo yard or a holding yard, and I'll try to get a hold of the banks first before they go to the auction.

And I'll try to say, look, I'll buy all those cars at once right now. I'll just write a check and try to get everything I possibly can. They show me what they owe, you know, how much money they're upside down in it, whatever else. If I can pay a little bit more on some cars and save a little bit of money on the other cars, then I'll buy the deals. And I think that's why a lot of the banks like me, because no dealer ever wants to overpay for a car.

They'll overpay at the auction. But if they buy a car from a friend or a bank, they always want to lowball them. And so that's one of the things that I try to do is to purchase every single thing from them directly. Now, when we actually go out to do repos, like some of these companies, if I physically go out there and help them repo the car,

because some of these banks are back east. Or it's like a small mom-and-pops bank or credit union, they don't have the facilities or the personnel to do it. So we'll literally go door knocking for them. We'll knock on the door and we're always nice. Hey, you know, we're here with so-and-so bank. They told us that, you know, you're going to be surrendering your car today. You know, can I get the keys?

Thank you so much. Is there anything in the car you need to get? Most of the people are pretty chill. Wait, so they know ahead of time that you're going to be there. You don't have to show up because I've seen videos on TikTok where the guy pulls up in a truck is like, all right, we found the car. And they're parked outside of a restaurant. They tow the car and the guy goes, yo, what are you doing with my car?

Yeah. So you ask them instead of like. Okay. Okay, just for full transparency, when it's my loan and I had my dealership, unfortunately I did it the other way. I would show up on my tow truck and I would just snatch the car up. I wouldn't even talk to them because every time I try to be nice and civil, they would want to start fights, pull out guns.

I had one guy sick his dog on me, you know, some guy. How did that? Okay, what happened when he sicked his dog on sick the dog? Oh, I feel bad. It's probably maybe it would look bad. But when the dog jumped, I literally just threw him up over me and he just flew over the truck. And so it was a small? Was it a small dog?

No, it was like some pit bull mixed something. How do you go over the truck? Oh, because as soon as I saw him, I just literally just freaked out and went like this and he just continued on floating. Oh, yeah, he was already in there. Well, no, was he fine? I didn't want to check. I was more worried about getting in the car and getting out of there before I got bitten the ass or shot. He said, sick him.

Yeah, no, he literally grabbed the dog and went like this and threw him, and the dog jumped in here. And I just went over there. I had another guy. He threw a Molotov cocktail in the car and caught up. He threw a Molotov. I was like, did this guy just, like, sit there in his kitchen and actually cook this up? Or was he just, like, sitting outside with it? But all of a sudden, we look back and I see a bottle break.

I'm like, oh, this guy just threw a bottle at the car. And next thing you know, my, it's called the spotter. It's the guy behind me that finds the car in a regular car. And then I come in a tow truck. He's like, dude, the car's on fire. The guy threw something. I think it was a Molotov cocktail. I was like, are he serious?

We pulled over. Car burnt to a crisp. And then the guy, the guy tried to sue us because it was full of his kids gear, his baby seats. and his music equipment, everything else. The personal property. Yeah, and I'm like, you caught your own car on fire. And then he tried to call the insurance company to get claimed to get paid. And then we told them that he did it.

So they paid us. They didn't give him any extra. Wow. Yeah, I mean, unfortunately, I got way too many stories of those. I want to hear some more stories. Yeah, tell us another story. Oh, geez. God, what can I tell you?

So what about, like, personally endangering stories? Where your life was threatened. Lucky, that's what Jack is getting at. Yeah, like, so one time we went to go pick up this. this and this one's going to laugh because this one's super embarrassing but it's pretty hilarious so we had this guy that um wanted we had this really cool on those uh ford um explore minivan that was all pimped out of TVs had all this stuff it's a rare kind of van truck thing it's hard to explain but it has a folding out bed in the back it's made for camping right so we're like okay this is going to be cool we're

going to snatch up this car because i was trying to be nice to the guy he wouldn't answer my phone calls so i'm like i'm just going to pop the car so i wind up pop in this car and i'm driving out of the way All of a sudden, the doors fly open. This guy is butt naked with, like, two other people in the back of this van. And one of the, I said, this bigger guy rolls out and falls out of the van, but naked rolling in the middle of Desert End and Paradise. And I'm, like, trying to take off with the car. And all of a sudden, the cops pull us over.

We wind up getting arrested that night because they said we did it, like, ill-lawfully. But that one, I guess, wasn't really that threatening, but it was just absolutely hilarious. I've never seen somebody naked, like, fall out of the back of a van. but I've had like you know one of be gangbangers pull out guns I had a pimp one time pull out a gun on us and told us we can't take his car What do in a situation like that?

I usually pull my gun out No are you serious? Yeah I'm not gonna get shot Yeah but don't you just say You'd take the car? Yeah You know because most of these guys Have never pulled the trigger

So they're willing to risk that Like take the chance Because you don't know these people It's kind of hard It's like if I throw some in your face You're gonna want to go like this So as soon as I see it That's the first thing I do

So that sounds as a lot of Or like if you pull out a gun, or if not you, but the other person, do you like aim it or do you? Can we call it a boomstick from now on? Yeah. Oh, yeah,

okay. Yeah. So if someone pulls out a boomstick and they point the boomstick at you, do you just like point it back at them or do they just show you a gun and then you show them a gun? Sometimes if they do the little flexing the showing, then I'll show mine boomstick or I'll actually like if they pointed at me, then I'll point back.

But that's, those are, Why would that be worth taking the chance? Wouldn't you say that they point a boomstick at you? All right. You know what? Let me leave. Call the police to handle it another way.

I'll be honest with you. That's stupid. I don't recommend anybody doing that. It's just it was more of a reaction thing. So what happened in these two instances where you guys had each of your booms stick? Oh, you're going to, on the one guy, the pimp, he actually came, paid the car off in full, apologized and brought me rolling smoke barbecue. you said he just broke up with his girlfriend he lost his main girlfriend and he was really

heartbroken and upset and frustrated that was probably the nicest one the other guy um he called the cops on me but when the cop showed i guess he had like two warrants out for his arrest and so they they ended up taking him away i thought i was going to go to jail because i admit i was like i did point a gun at him but he pointed one at me first or boom stick at me is it true people do this thing oh yeah like i had the thing like we we used to have these crazy like um offsite sales and We used to do like these crazy giveaways. So I used to give away a car like once a month like to do something funny. And we actually have people that will show up because they see all the people.

They think there's a lot of money. They'll try to show up and like, you know, point the finger thing like, hey, man, I got money. I know you got all these people's tax returns in the bank. Give it to me. You know, it's funny. At one time they did it with my dad. My dad just told him to get out of there and he threw a chair at him and the guy who ended up running away, which I don't recommend doing that. But it's one of the things of the business I don't like.

That's why I want to. The repo part. The repo part. the being you know like the people are super aggressive like i love the the giving cars away with a funny contest we used to do that we whoever sang the worst song we give you a car um if you throw a football through hoop would give you a car you know uh just funny stuff but then you get the bad things where you have people like that's the thing everyone thinks dealers are bad and they're horrible people for every one bad dealer there's 10 000 bad customers um i'll tell you some of the bad stuff like

we've had people like lie to us about um their bank check stubs the they'll give us fake ones, they'll give us a fake social security number. It's called the CPN. They'll give us this number. We'll run it. Oh, everything's good. This person's got good credit. All of a sudden, two weeks later, the bank calls me, hey, lucky, this loan, it's not legit. These people have fake documents. I'm like, oh, crap. So the bank wants their money back. Now I got to go find the car. Most time when these people commit fraud, they just disappear with the cars. So why is that fall in you? So every dealer has to sign an agreement with a bank. So, and this is the part that people don't know about. And this is why people like, why was the dealer so mad? Why won't he lower the price?

It's because as a dealer, we're on the hook for, depending on your recourse, it could be a one payment to three payment recourse. So if you as a consumer doesn't make the first three payments and you just take off, I have to give the bank 100% of the money back and I have to chase you for it. But as long as they make the first few payments, then we're in the clear. But a lot of these people, they don't. And that's what we're seeing now. A lot of people are first, second, third payment defaults. Or the one thing is if they give you fraudulent documents and they can prove it, then they can kind of. back a year from now and say, hey, this document was fake. This is not a real driver's license.

We need our $30,000 back. And you're like, well, I don't know where the guy is. It's been a year. The car's gone. Maybe it's in Mexico or Canada or something. And we have no recourse. Have you ever just completely lost cars? Hundreds. What happens? Do you have insurance for that? It's all over the pocket. When people ask me, like, because that was one of the reasons I left the business is because everybody thought we were rich. When you have like 200 cars on your lot and you're selling cars and you see all this stuff. They're like, man, lucky you're doing really well. You got all this money. I was broke. I'm not even going to lie. Most dealers will lie. I had two million

dollars in flooring lines, which is lines of credit. We were constantly paying payments. Every time you drive by a dealership, think of like each car on their lots costing of $500 to $1,000 a month. And then every month we lose maybe one, maybe two cars, whether somebody steals them, somebody does bank fraud and pulls us over. You know, I've, man, like I said, They do whatever it takes. They'll run off with your cars. I've had people I had to chase down on test drives. Like nice old people.

Oh, we just want to drive it around. Okay, no problem. Folks here, go ahead, drive it around, feel safe. Let me know what you think. And this older couple, I think they're in their 80s, they drove out my car to Mexico. Wow. They left it on a bus stop and said,

sorry. I left the note. Did they just need a ride? Probably they were broke and needed a ride. Who do you send to go pick it up in Mexico? We have repo companies all over the U.S. So we just tell them to pick it up and take it to a local auction because by the time I fly down there or ship it back, it just wasn't worth the headache or the problem. But that's some of the stuff that we have to deal with, you know.

And the worst thing is, is like we dealers will be more aggressive. They'll tell us that we need more money down. We have to do this. And people like, dealers are so mean and rude. Like a lot of people don't realize if you have, let's say your first time buyer and I'm selling you that 2020, 2020, 20, 20, 20, camera we were talking about. If you have good credit, okay credit, the bank is probably going to charge me like maybe $1,800. to buy your deal. But if you have bad credit,

they could charge me up to $2,000, $3,000, and then on top of that, they'll add two to three month recourse. So now I was hoping to make maybe $3,000 on the car, but if your buy fees, $2,500 for the bank to take your loan, I'm making $500. I got to pay my sales guy commission of $500, my finance person of $250,

and I have, you know, office personnel that needs 10% plus overhead. That's why I hated the business. It's like the banks made all the money. One thing I've never understood about car dealership, is you talk with the sales rep and then you give them a price you're comfortable paying the car let's say it's it's listed at $30,000 and you say I can do $28,000 and then they go and they talk to their manager right like like what is that interaction like and also how do you actually come upon a price they were able to agree on for the car is there a price floor that is the base that you can hit as a consumer how can you find that price floor

oh that's the problem a lot of dealerships just play a lot of stupid games I never did that like when you know like advertising like you looking for a car and you see, oh look, this car's $30,000. That's the car I want. So you go drive there. It's 30,000 like origination plus dock fee plus destination plus service conditioning, reconditioning, whatever fee. So now it's $38,000. And you're just like, that's not what I wanted.

I wanted this for $30. So that's the first one. So I never did that. If my car was $35,000, it's $35,000. I put it on there. I didn't care if car gurus told me I was overpriced. Craigslist Facebook Marketplace, I'd rather have you show up knowing the price. That was the first step.

But a lot of dealers, I'll tell them, hey, look, with your credit and what I bought the car for, I need to make X amount of dollars, this is what I'm going to charge you. I need to get $32,500. You tell buyers that? I would show them. And what was their reaction? You think it was actually, it worked in your favor? Yeah, because it wasn't bullshit.

I was like, you know, hey, this is what it is, folks. If you have good credit, I could go down to $31. But you have bad credit. Bank's going to charge me $1,500. And sometimes I'd even show them, look, this is, this is what it is. This is what you're charging me. And sometimes they'd freak out and they had no idea. Most people don't know how it works.

That's why I try to talk about it on my channel. But like most of these dealers, how can I get gross? How can I get the most money? So instead of making your, I'd rather get you pleasant in and out in an hour and you tell all your friends about me. I only made $1,000 off you, but hopefully you'll tell, you know, grand, then you'll tell Alex, you know, and go so on and so on. These guys, they don't care. The old dealerships of the guys that, like, used to send you Christmas cards and stuff like that, those days are gone. These guys just want to rip your head off, bury you in a car, and then kick you down the road and just,

it's not their problem. Me, I'd rather make sure you're happy. Don't put you too far into debt. So this way every year you can come back and buy another car for me. That's what I want. And a lot of dealers got away from that. They got really focused on the gross.

I was more of on the volume model like Walmart. So what about when the sales rep goes and speaks with a manager? What are they trying to establish? Does the sales rep already know the price floor for the base? They can tell the car for. Yeah. Well, sometimes some dealers will tell the salespeople, but some don't because they don't want the salespeople to give away the car.

Yeah. And so I have a feeling if they really knew they would automatically just come back down to that price because they don't care. They want the sale. Yeah. Any type of tension. They're like, the customer's like, oh yeah, this car is 32,000. 32,000.

Okay, 2850. You know, it's like they want to avoid that. So on a let's say a $30,000 car or a Camry, let's say it's, it's, it's, you know, 35 or whatever. What is the price? What would the price floor be about for a car of that price? Usually you take about 10%, 15% off of that. So let's say if you. he put it out for 32, they're probably into it like maybe 28.

28, you know, but that's why, like, people don't understand car business is still a business. They got to make money. I hated it when people were like, where you're making 500 bucks. I'm like, are you kidding me? I go, would you wake up in the morning and take on all this debt and talk to people like you for $500? And I used to love telling them that. They would get so mad.

People like me, I was like, yeah, you're sitting here yelling at me, being mean to me. Because I was just to go out like my, my commercials, that's why I started doing YouTube. But another reason is because I had these funny commercials. So I always wanted to make people laugh and jokes. So when they came into my dealership, they were smiling instead of like angry and mad and don't talk to me. I don't want you to sell me anything. I'll get you when I need you. Okay, no problem, folks.

I'll be standing right over here. Let me know whatever you need. I get yelled at more. Hey, good morning, folks. How are you guys doing? You know, go get bent. Get out of here. Kick rocks.

You know, and I'm just like, dude, you're in my business. I can be a jerk. Because I think you're trying to sell them something. Yeah. So if you're nice, it's like, oh, he's buttering me up. He's going to try to extract money from me now. Oh, yeah. I used to love it like that.

I didn't think like when people try to play hardball, I don't want to argue. I'm like, look, folks, I can do 2850. That's all I can do. I want it 27, sir. I can do 20, 50. That's it. Oh, and they start arguing.

I'm like, look, just take this or get out of my shop. I don't care. I don't care if I sell it to you or I sell it to somebody else. Somebody's going to buy it. So it's either you or them. And I'll get to the point where I just started kicking people out of my lot. I know I probably lost a lot of sales out of it, but it just wasn't worth the headache.

And I'd rather not burn a relationship with a customer where I'm like, look, folks, I'm being 100% honest. This is all we can afford. And this is what we're going to do. And so I do admit it was a pain in the butt, but I have been recently talking about maybe opening up another dealership here in Vegas. So I'm kind of. When you initially had that dealership, what kind of dealership was it?

You know, when I sold my dealership, it was the happiest day of my life, but it was also like the saddest because I actually do enjoy like, you know, hanging out with people selling cars. Yeah. Because I tell people it's like, you know, like you were real. state you know when you sold somebody a house you know you see them light up they're super excited you know you're making commission but it's like you're a part of somebody's like life future whatever else and the way i did it as just i i actually had a lot of fun the last few years i i stopped caring about it as a

business and i made it more of like just like i hate to say a social experiment just having fun and doing whatever um but the reason why i'm thinking about doing it now is i started back in 2012 when everything was going bad and everything was going down and people told me I was a fool just like when they were telling you to buy real estate same thing with this so I decided you know what why not get back into it because this time around I want to do more of the financing myself I want to hold my own paper I want to become like my own thing is that dangerous it is a little dangerous you know you you are financing people with your own money but the profits are just crazy now can you pool money together from investors like let's just say hey you know like I could give you some financing

Give you $500,000, go and loan this out as you see fit. Can you accept money from other people to then loan out? Yeah. So part of the group that I'm talking to, they actually own a hedge fund and they were talking about giving me money to go out and do loans because we were kind of talking about like, you know, like the whole influencer auto sales, like financing people like ourselves where, you know, if you go into a bank and you're like, hey, I'm a YouTuber, here's my bank statements.

I make, you know, $10, $30, $30, $40,000 a month off of YouTube. most banks don't have a category to stick you in. They put you as like self-employed, something bad. And then a lot of people get turned down, especially for like $60,000 to like $120,000 car financing. So I figured I may do a few cars like that to build like the influencer brand and do specialty financing. But also to help a lot of people because I remember in 2012 when I started,

I was doing a lot of cheap cars. All my cars were under $9,99 bucks, under $10,000. And I helped so many people, people that I saw during, the 05-0608 that were only construction companies, the own three to five to six to ten houses. You know, they lost everything. And now they're buying a $10,000 car for me to get back on their feet.

So not saying it, I'm hoping it doesn't happen this go around, but I think that the market's going to be wide open. And a lot of these dealers are so over-leverage that I think now the time is right to actually get back in just for fun sake. I got two more questions for you. Okay. So number one is before this,

you said you're going to tell us how you, you actually make money and how we're going to be very surprised by that. So we get into that. And also we have three Patreon questions that we're going to get to you right after that. How do you make money, Lucky? How do I make money? First is only fans. No, I'm joking.

First is basically training dealers, setting up dealerships, setting up different types of franchises, almost like Houston. What is Chicken. I do the same thing for dealerships. I try to set them up. Do the correct things, get them lines of credit, financing, set up the rental car companies, lines of credit, help them get fleet lines so they can multiply their vehicles.

But the big thing that I do is I actually go out and I buy portfolio from different banks. So one of my jobs or one of the things I like to do for fun is I'll go talk to banks and see how their numbers are performing. So a lot of my numbers that I get is a lot of inside information. So when people are like, well, where can I look this up or how can I look at it? You can't unless you work for the bank, which they'll never tell you. That's how I see the default rates. I see what the average loan is, what the average payment is, which is $1,000, which is awful. And so we go around and my job is to go basically knock on doors, ask the bank, hey, do you have any paper you want to sell?

Three to five to $10 million. We only do those chunks. And then what do you do with those huge chunks? So once they tell me what they have, I look at it, I put a value onto it. And then my job is to go find another bank that's willing to purchase it. So you wholesale. Wholesale paper, yeah. So almost like how you guys wholesale houses you get the note.

And then we just shop it around. Exact same thing, but just with banks. Your dealership training kind of sounds like if you listen to our homozy podcast, what do you do? with a gym launch. 100%. It's like it's the same concepts. Once you learn the system and you can expand it like that's why I started doing YouTube because it's like I loved marketing.

All my funny ads on Facebook just blew up. So I figured let me try YouTube, you know. But I really like the fact of like I don't want to get out of the automotive industry because I loved it so much, but I keep trying to get away with it. I'm trying to do YouTube more and more. But the more I do YouTube, I feel like more people like, dude, show us how to do this. Show us how to do that. Come over the course.

Oh, no, I have a course, but it's, I want to show people. I don't want to charge people. I want to show them like when we walk into the repo yards. We walk into the auction or like next time when we go to L.A. I'll take in one of the repo yards. I think you'll laugh. You'll see Ferraris, Lamborghinis, trucks, motorhomes, taco trucks, like everything. You know, watches, like when I go to the feds, oh, that's one you got to come with me.

When we go to the Fed auctions, when they impound all the stuff from the drug dealers, we bet on couches, TVs. I remember we bought this like 3,000-pound elephant, like marble statue. We couldn't move. We ended up selling it to another. guy because we were trying to get it back here to Vegas. But you could buy the most crazy stuff at some of these auctions. Okay.

And that's something I'll hopefully in the future I'll be able to take you guys to. And then what about any other income sources you could think of? I mean, obviously the flipping cars, you guys see that on my YouTube channel and Instagram. We go out, we buy cars from the auctions, stuff like that. The next one is we're getting ready to set up a bank where we can actually start funding multiple dealers and we're purchasing vehicles from them. So almost like the company's called My Vehicle Value. it's still up and running.

We're still going through the software phase, but we're buying about a thousand cars a month through California, Nevada, New Mexico, Arizona, and Colorado. Walk us through, because I know you've had a bunch of different jobs, and you've worked in the car industry, but doing a lot of different things within the car industry. Walk us through your income over time, how it's gone up, how it's gone down, how the 08 recession affected it,

and what you were doing at each time. Oh, geez. Well, when I first started, this was back in like 2000. I had a shop in Chinatown, and I was just a regular mechanic. I was 18 years old. I wanted to work on cars. At that time, I actually wanted to do music, but I ended up getting in the cars.

So I was like, I'm going to make some money and then pay for school and whatever else. And so I started working on just different types of cars in the area. I started doing the body kits. This is when Fast and Furious was really popular. We worked on the most junkiest cars ever. And I think I was clearing maybe $30,000 a year after paying all my expenses. Back in 2000, you know, I was a little bit more. Yeah, but I thought I was falling.

I was an 18-year-old kid. I just infer inflation. That's like $700 grand. Yeah, I know, exactly. And so, but I mean, I was, I was 18 years old. I had this, like, crazy Mazda RX-7. And so I said, yeah, so I started fixing up more and more cars. Fast forward two years later.

And I started to get into customizing. I was like, I want to work on some nicer cars. I want to do like, this is when Pimp my ride and Overhawling was like at its peak. Everybody in their grandma was like, bro, I got 20 grand. Let's do something crazy to my car. So we just started doing all this crazy stuff. That was my first year. I broke $100,000.

I think I was like in my like early 20s. And I was just super excited. That's really good. Yeah. And I was like, man, this is great. I can't wait. So we opened up a body shop after that. Fast forward a few years.

And we were doing really, really well. And that was the first year. That's when I was at my worst, my duchess. I was a 25-year-old kid living in Turnberry Towers back in the day. I think my rent and my penthouse was like $6 grand a month. I was driving a 05 or 06 Bentley County LGT convertible. Wow. I mean, you couldn't tell me nothing.

I thought I was the man. I arrived. I was such an idiot. Did you still work on cars or were you just, oh, yeah. No, I worked on cars. I realized this is when I started developing my skills for marketing because I would hire people and they were way faster than me. I could do stuff better, but they could do it much, much faster than me.

That's when I decided to step back and more of a sales role management because my guys couldn't sell a job to save their lives. Where I'd go in there, hey man, we're going to spend 20 grand. This is what we're going to do this. We're going to do. Sign here. And it just kind of just kind of flowed. So then I just started door knocking, asking people for their business. And that's actually what led me to doing like exotic cars.

When I was door knocking, I ran across Dream Car Exotics. They were the biggest rental car company here in Vegas. There was no Ferrari Lamborghini dealership here. So there was nowhere for them to send their cars. They either had to send them to Scottsdale or ship them to L.A. So I was like, well, let me work on your cars. I figured work on our Ferrari can't be that hard. It must be simple.

It's all the same stuff. And we worked on a few 355s and 360s. They're easier to work on than a Honda Corps. Wow. I thought it'd be super complicated. We need all this crazy tools. No. So we were doing timing belts, swapping out clutches.

because these guys were doing clutch drops in these rentals and blowing them up. I flew to New York, did this, like, training class for a lot of these Italian cars, came back, and I was like, I'm going to do exotic cars. I'm going to specialize in this. And so we reopened, rebranded. I think the company, it was Las Vegas Motor Works. We did nothing but exotic cars and highland cars. Anything under 60K, I would consider them a peasant and throw them out of my shop.

That was the year I went down in income. I think I was making like a hundred grand. The ride that steals the spotlight every time it had the road? That's the Volkswagen Tiguan. Its sleek exterior makes a first impression you can't ignore. Step inside to find available full leather seats and wood accents. Under the hood, the available 201 turbocharged horsepower engine gives it a fun to drive edge. The refined Tiguan, you deserve more style. Visit vw.ca to learn more. SUV, German engineered for all. Are you making before that when you're doing 250? That was when you're doing the

Bentley Continental. Yeah, I was working on regular cars. This is why the switch came on. So during that time, I saw these people that couldn't afford these cars. You know, they'd buy a brand new $80,000 truck, and then fix it up, drop $20,000 and turn on sell it and go buy another one. Or then to go buy a Maserati, a Ferrari, a Lambo, you know, and they just kept buying all these crazy cars.

And I was charging these people $10,000, $30,000, and they were all using their credit cards. Nobody's paying cash anymore, which I started to know a stack because my credit card bill was insane. But after paying my people, after paying my extravagant living expenses, I made $150,000 less that year. And it blew my mind. So I was like, you know what? I'm going to start branching out.

So I opened up two or three locations of auto repair doing regular cars. And I got up to about back to the 250 marker working on regular cars. But I got too caught up in the mystique of working on the exotic cars. I thought that was the way because everybody wanted to come hang out of my shop. I had a couch area like this where my friends would come out and this was a glass wall. and we'd watch the guys work on the cars and do stuff like that. And I thought it was really cool.

And that's when I got on this TV show. If you Google it, TLC's rides, I was on the pilot for that. They came here and shot it in Vegas. So that was way back in 06, 07, I think. That was the prime time of that day. Pimp my ride and MTV, cribs. Yeah, they filmed the pilot and they're like,

true life. Can we come back and film some more? And I'm like, oh, you guys are going to pay me? They're like, no. I'm like, why am I going to film? Like I thought it was if I would have known now like I did back then I could have been OC choppers or something special, but I just got irritated because I'd put an Alternator into a car and like okay, it looks good now go ahead and take it back out and walk back

and do it again. I'm like what do you talk about? I just put the alternator in this car Why am I going to take it back out and go back again? Oh we want to capture from a different angle this time and that's when I first started learning about how these media companies did that but anyways I I told them no I really lost an opportunity and then 08 happened market collapsed, everything went bad. I actually decided to join the army when I was 20-something. I figured I was going to take a break from the car business, join the army and went and flipped houses in Texas for about two years. And then that was fun. Actually, I made more money down there and I was stupid. I missed Vegas and I came back. And then I came back to Vegas and then I opened up

my dealership and my rental car company. How much we're making flipping houses? Not to sound bad. It was so easy down there because nobody had any style. Everybody was like super country I know this is probably going to be roasted in the comment section, but like everything was barnyard and wooden doors and I hated it. So we were doing everything modern. And so we'd buy these like little tiny houses for like 20, 30 grand. I mean, this is so cheap back then. This is like an Arlington and Fort Worth and Dallas. And we would just buy these houses modernize them. We'd put you know, smart dials, smart keypads in them. We would do modern fixtures. We would do like concrete countertops way back then. We were doing hardwoods instead of carpet. Everybody was doing carpet.

and like veneer walls it was awful i their style down there was just completely weird so we just copied everything we did here in vegas and it just worked out really really well we met a hard money lender out there and we didn't ever look for houses he just gave us all the houses that people defaulted on which was really bad that's when i first really learned about repos but this guy had so many houses he had a fund of just just giving people money to get houses oh yeah these guys gave us 20 grand down they they tore down everything down the studs and they found termites and they walked away from the property. Do you guys want it? I'll give you six months no payments and no interest. Sure. We'd take it on. He wouldn't, we'd balance out his books. We'd fix the house up.

Turn and sell it. We make our profit. He'd make his big back. His investors were happy. It was really, really good. He was actually mad when we left. When I came back here to Vegas, I reached out to him to see if he can get back into flipping houses and his investors didn't want to do the Vegas market because at that time, we were one of the biggest ones that crashed. So then I just got back into cars and opened up my dealership and started that way. Because like I said, When I came back here, people that I saw that were driving Lambos and Ferraris were driving like 2003 Toyota Corollahas and Camrys because they couldn't afford anything. That's the first time I learned the term cross collateralization. When they lost one thing, they lost it all.

And it was crazy. I mean, people fell hard. So I opened up the dealership, started selling cars at that time. I think we were clearing maybe $80,000 a year at that time. It wasn't a whole lot. And then it's the same thing. I went bigger. I got the two lots, peaked at like $250.

300 cars still would make like 100k here couldn't couldn't crack the mold until I started doing these like when I just stopped carrying really I started doing the funny ads started selling uh I hate to say it started selling cheaper cars again and just got back to the basics and that's why on my channel I can do exotic cars I can do all these fancy stuff but if you just sell cheap affordable transportation your money you make your money by far you usually make double or triple where when I sell like a like this bentley bentigo or this rolls rice i'm going to sell it i'll make like 50 grand but i tied up 120 000 and it's going to sit there for you know a month and a half on fixing it and waiting for parts i could have bought 7080 regular cars and maybe double my money off of that by

then so that's kind of why i decided to do that but that was kind of my flow of the business now with youtube and everything else um i'm hoping this year to crack the 450 500 k marker that's my goal i really want to get to that point. But my biggest goal is, and you're going to laugh, and I guess this James Raddy saying, I want no debt. The only debt I want is my car payment. That's why I don't mind spending a crazy amount on a car because I don't know credit cards. I don't own a house, you know, which people think it's crazy, but I can't afford to, I can't afford it. I just don't want to afford to overpay for a house. I just think it's stupid. I rather just wait and use my money to make me money's better off invested in cars at this point. Yeah, you know, and it's just like,

no matter what happens, like we talked about investing. stocks, I just feel safer with the car market. And now that, you know, the, the bear market is here and the gravy train's gone and everybody's a magical investing wizard, all the money is coming back to the automotive industry for for high interest lending. So I think that it'll open up a lot of opportunities. That's why I'm interested in starting a dealership now because these guys are going to want to make more money on their investment and they can't get in the stock market now.

So now they're going back to hard money lending with cars and houses. Do you want to ask the Patreon questions? Yeah. So for those that don't know, we have a Patreon down below in the description. But part of the perks of that could be asking our guest questions along with a whole bunch of other benefits like getting the episode early without ads, by the way. But what do we got here? Well, first of all, I just want to mention, I just got a text from Alex Hormosey. And he sent me over his wife, Lela Hormosey's phone number.

And it looks like we're going to have Lela Hormosey on the podcast, potentially next Sunday. So if you're still watching at this point, be very excited for that. next Sunday because that's going to be a crazy episode too. Yeah, you know why? Actually, if you want to get in and ask her questions, we'll link to the Patreon down below in the description. I'm not sure when we're going to be doing this, but potentially you could ask her questions that we'll ask. That brings me to a great point, Graham. If you haven't followed me on Instagram, Alex, come on. And get on to the Patreon.

Alex. All right, let's see. All right. You know, I'm con says, what is one thing that you would do differently if you could go back in time and who is your mentor? One of my mentors, the car business, unfortunately, people are not that friendly and they don't want to share knowledge. And so one of the nicest guys ever met his name is Tony Fernandez. He owns a dealership here in Vegas. He was one of the few dealers that would give me words of encouragement, tell me a little bit about how to stay away from some of the problems, and just an overall great guy. So I wouldn't call, I mean, I guess he could be a mentor because he did teach me quite a lot about the business and about life.

So I would say that'd probably be him. And if I could do one thing differently, it would be I would have done buy her pay here, which is doing your own auto loan portfolio way back in the day. Because if I would have done that back when I first started, I'd be just a millionaire. When you're a bank, that's where you make all your money. So that's probably my biggest mistake is I didn't do it. Holding the notes and collecting the interest. I was too busy trying to learn other banks programs because I didn't want the headache.

I didn't want the overhead. But then I ended up working in the wrong way because at the end of the day, if I would have done that, I would have been doing just like the banks, just sitting back collecting money and selling paper. Now, Colin L. asks, what are your thoughts on sponsorship revenue? And what is your plan for your channel if sponsorship revenue declines? I mean, I think it's a great source. I'm probably one of the few channels that I still, to this day, I haven't taken really hardly any sponsors. I'm kind of just going off of my own dollar.

Like a lot of people don't realize that I spend my own money running my channel. I think I make maybe five, six grand a month and ad revenue, which is not a whole lot. But I would say that, you know, I should have taken it on probably a little bit earlier. I was actually following Graham's thing because I noticed when you first started, you didn't take a lot of sponsors. And I didn't want to sell out. If I want to have a sponsor, I want it to be something legit where I can either feel it helps my audience out or it's something I believe in. And unfortunately, my industry and the automotive business is not a whole lot I believe in or trust. All right.

So this is kind of a controversial question from Aton. He says, you've been in the car industry for a long time. You know how all of the different companies make money. it not obvious to you that Tesla is winning on all fronts and is clearly going to take over the industry if they haven't done so already? That's one of my favorite questions. They're also making their own materials for their cars, which not a lot of other car companies are doing.

Correct. So like I said, Tesla is great because they were first to market. But if you look at a Porsche Tycon compared to a Tesla, it's like looking like at a Kia and a Ferrari. It's the build quality is completely different. I know these people in Tesla are going to be like, oh my God, no, it's the best car. Take the time. Look at, like, the technology is there.

Their autopilot is much further ahead. Chevy and Hyundai are going to be the first to catch up with it. But when it comes to build quality, they make better products like Ford, Honda, Chevy, Toyota, because just the build quality is much better. Parts, being able to fix your car, they have that leaps and bounds ahead of them. Tesla is highly profitable because they're building something that's very niche. They got the Apple effect. You know, this phone costs a few.

bucks to make, but it's got the brand behind it and it's got the fans, the loyal fans behind it. So yeah, they are first to market and they're first to sell direct to consumers, but right now their constraint, they can't grow any faster unless they physically start buying franchise stores. So, and plus too, like a lot of the other manufacturers, their battery life is better than Tesla's. You know, so when all these cheaper cars cost half the price and a Kia can go twice the distance as your Tesla, and on top of that it costs half as much to fix, and they have more

battery battery technology where they can repair cells instead of replacing a whole 20 thousand dollar battery which the new ones don't have that they Tesla fixed that but you know I that's what I believe is everybody's going to catch up the Tesla Tesla was just first to market give it about five years and the market share is going to change because already right now believe it or not Volkswagen has more EV vehicles than anybody else coming out next year I think they have 14 or 15 models so you know like I said everyone's playing catch up and so now that they know that the market's there and they're building that infrastructure which was a charge America which is Volkswagen. They're building all these systems. Everybody's just waiting and they're going to unveil

their stuff and it's going to be very, very surprising. Are there any other random things of knowledge or a crazy story or something you would hope we had asked something you wanted to share? Oh, geez. I guess I can tell you really quick before we get off some of my amazing down payments. So in the car business, we take pretty much everything. We're always talking about cars, whatever else. And I used to run these ads. We'll take anything down, you know. And we had one lady she brought in like this puppy, I think it was called a Frenchie. And I didn't realize they were like $3,000 dogs. And so she brought it in.

We gave her like 500 bucks as a trade. We turned on sold the dog for two grand, which was hilarious. So we started doing these like trade in anything special. We had people bringing in motorized scooters, fake legs. We had one guy. A fake leg. A fake leg. And they brought it in as collateral for.

Yeah. He's like, he's like, what will you give me down? I'll give you a dollar for it. And just he left it there. We were taking everything. What did you do? do with a fake leg? I'm, I actually left it. Sold it for $500.00. The person you bought the dog. That was the award for the salesman that

sold the most cars that month. So I told them we have a special, we have a very special award, and I stuck like $300 inside the leg. And then I gave it to them and said, this is your championship cup. Don't lose it. So, but that was one of things we did. But we've had, I've had people show up with gold bars. I've had people show up with guns. I've had these, like, strippers one time, like they showed up because my first dealership was right next door to treasures. And so we used to get the dancers coming by all the time and they would ask people hey hey I need I want to get a car I need to get a car oh yeah three four thousand dollars down that's all you need you can roll with this car oh was there anything we could work out I'm like yeah just work out payments give you know

you know give you the money and I'll get you the car well is there anything you could do that maybe you like or something that turns you on and I'm like yeah you know what turns me on what money pay me and so we used to I loved it every week they would try to come in like sweet talk and I'm like no and then that same girl I won't mention her name because I'm still friends with her on Facebook. She came in one day and we had this, I think it was like a 2014 Lexus I-S-300 and it was pearl light with like this pink Christian Deer interior total stripper car. And so she came in and I was like, you need six grand down to get this car. She's like, well, I got $1,500. It's like, great. Oh, you need a few bucks more and you can drive it away. Hour later, she shows up with this

older gentleman gives me $1,500. Oh yeah, I'm here for, well, almost said her name. I'm here for so-and-so. We'll call her Misty. I'm here for Misty. Let's, this is her down payment. Oh, Okay, cool. Yeah, I was like, are you her dad or no, I'm her boyfriend? Hour later, another guy comes in. Same thing. Oh, hey, I'm Misty's boyfriend. She told me that leave like $500,000, he's like, I got like $1,800.

Sure. And literally within a day, she had like several men show up and just give me money. And then she drove away the car. So that's some of the crazy stuff that, like, we would deal with all the time. Strippers, pimps. I mean, like I said, I've had people trade in a helicopter. I got a bell helicopter out of somebody's backyard. They didn't know what it was.

Their friend left it there. They were supposed to use it for an event. Yeah. And so we took it in on trade. We actually sold it for, I think it was like 180K. I had no idea. You sold a helicopter.

They gave you that as a down payment for what car? It was a 2010 escalade. How much do you sell that for? No, well, think about it. It's like, how do you sell a helicopter? What is it worth? Craigslist it?

I don't know. No, that's it. We did. We looked on Craigslist and we're like, does it run? He's like, I don't know. And I was like, How did you guys get it there?

He's like, oh, we brought it in here on a truck. And I'm like, so you just brought it in the truck and stuck it in your backyard? He's like, yeah. So we were actually, because my dealership was by the freeway. So we were going to like stick it on the side of my sign and buy the freeway. We're like, we'll just use it as a big sign as a joke. And I think we gave him like $5,000 in trade. And then once we found out how much this thing was worth, it was $180K, but I think we had to spend about $30,000.

Because I guess the blades are time related. They have to be a certain years amount of old and they have to be installed. So the guy ended up bringing it to. It's at the North Las Vegas airport, but we got it fixed up. We paid him the money and he found a guy that bought it and I thought there'd be like a title or some sort of paperwork No, just give one an helicopter. Yeah, and I was like I was like okay, but I mean like yeah We've gotten all kinds of crazy stuff. So I've had that stolen cars I don't know if you saw some of my Instagram stories like people offering his drugs all the time. I got you know, I got coke. I got hookers. I got weed

What plumbers offering hey, I'll fix your pipes. Never. If I can use something like that, like, hey, man, I'll work off. Like, I had one guy that didn't have any money, but he was in construction, but he needed to do something. I had to remodel our office just for a down payment because it's like, at least he's got a skill, yeah, that he can help me with? And I was like, can I meet a landscaper? Same thing. I had to redo my parents' house. So stuff like that I actually looked for.

But I never got like that often. It was always something crazy. Like, bro, I got a fur coat. I'm like, what am I going to do with a fur coat? It's Las Vegas. It's a $12,000 for coat. Well, good. Sell it for six and give me the money.

You know, wow, I just take it for trade. And so it's just like, I literally became a pawn shop. We had TVs. Like my whole shop was full of, it looked like your studio. Would you sell this stuff out of the pond? Like people would go buying for cars and they'd see like all your. Yeah, my sales guys were being lazy and they were sitting there not doing anything. I would say, hey, post this stuff up for sale.

So they'd post cars for sale on Facebook. And then they'd post all of our crap that we took in on trades. And then I would split the money with them. So whatever we sold it for. So if we had like this microphone and we sold it for 50 bucks, they would keep 25. I get 25. And we just kept doing that on all the. as we get and it was crazy I couldn't believe it this guy these people would show up 10 20 30 TVs one

time I guess he bought them from some auction and showed up with all and they all worked and we sold each one for a hundred bucks wow so it's it's crazy but yeah that's that's pretty much some of the the PG stuff the other stuff I'll tell you offline but that's some of the weird stuff that we've gotten in as far as trades and everything else that's crazy well thank you so much for coming on man thank you for sharing these stories is amazing yeah thank you guys so much for having me and it's been yeah it's one one year of uh friendship and one ice coffee Cool. Well, happy to celebrate that.

I'll link to your information down below in the description as well as Purple Flair wraps if you guys are looking for a good rap company. They wrap the Lotus. You'll see some pictures of it very shortly.

Actually, you know what? I'll throw up a picture of it right here. They did such a good job, as with you, Lucky, trying to get that car up and running. So thank you guys so much. Also, oh, Lucky, did you get your free stock down below the description? Also, you guys sent me on on Instagram.

You guys can also see the video of a post or walked 100 miles for 1000. You got the free stock. All right. Follow me on Instagram before you go. Thank you guys so much for watching. Until next time. Cool.

Wow, I never closed that out. That was fun. Yeah.