 |
|
|
|
|
|
|
|
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
 |
|
|||||
 |
|
||||||
 |
|
||||||
 |
|
||||||
The exotic car guarantee (ECG) program works by protecting buyers who take delivery of a car but just don’t like it for any reason and want to resell the car. It avoids the trap of significant tax losses the day you “drive off the lot.” The program works by accepting the full value of the vehicle as in a cash purchase, but setting up a short term lease with no termination penalty and no restrictions. Ultra low monthly lease payments are made during which time the client can enjoy the vehicle over an unrestricted period of time – days, months, even years. If the client enjoys the vehicle and now want to setup long term financing to get their invested cash back out, lease or purchase options can now be arranged. If the client wishes to dispose of the vehicle for any reason whatsoever, the car can be dropped back off at the dealership of purchase or any other dealership. Once sold, the received value can be refunded back to the client. The exotic car guarantee is a great way to experience the car and live with it for as long as you need to before committing to buy, lease or dispose of.
Considerations
1) Losses do apply to the actual vehicle during your use. For example, if you acquired your exotic car at $120,000, then used it for 3 months at the low lease price of $200 per month, then the vehicle sold for $118,000, you the client would lose the $2000 in the drop in value of the vehicle, and also the 3 months at $200 per month, so a total of $2600 plus taxes on the monthly lease payments which are minimal. Without the ECG program, you the client would have additionally lost $8400 in sales tax (at 7%).
2) The program allows you the client to take a break from an exotic if you choose for as long a period as you wish, again without the tax losses.
3) It also allows you to flip cars often and not worry about consequences.
Dealers Welcome! Advantages to a dealership and why you should offer it:
1) If other dealerships offer the program, potential buyers may steer toward them instead of you.
2) The ECG program gives buyers a sense of protection since they are shielded fom large potential tax losses.
3) ECG gives clients an extended test-drive period.
4) ECG costs you the dealership nothing.
5) ECG is simply a financing option for your clients.