stitched clips cali

Pizza party. A lot of it.

Exotic cars.

Yeah. Who says the best pizza is only in New York? Looks like la. Now you're gonna challenge like all of our, like, followers. Challenge all the followers. Pizza contest. LA or New York Outdo us, man.

I think LA does it best.

There we go. They do call this Brooklyn style in la, for what it's worth. But we'll do a little tape test. This will actually get a lot of people fighting. Our comment section.

Take two guesses, like, what do you think is going to be the best?

This is the one I special order for myself because, you know, you can tell I'm kind of like, I'm an eater. I like to eat. And you eat healthy. Okay. No, this is not exactly healthy. That, that to me. That to me looks interesting. I mean, you know, I'm not a huge cheese guy. I know that's like the crowd pleaser usually.

Yeah.

So what's on this one? There's lots of sauce and ricotta cheese and mozzarella cheese.

So cheese guy. But he threw ricotta cheese on top of the cheese.

Yeah, yeah, he's not a cheese guy, for the record. Cool. Yeah, let's do it. Just want to say something real quick too. Also just want to thank the David and obviously the rest of the team for having Z and I over here. So just in case, you know, I'm not sure if you guys know anything about Motor Heavy. I know we've, we've talked a little bit here and there on, you know, touch some aspect of your work as the stuff that you're. That you've helped us do, but. Which is all very much appreciated, but basically you and I come from South Florida. I think we talked about this. We've been, you know, Motor Envy has been in business since 2017. We have an office up in New Jersey and South Florida and we recently opened an office in la. But then I sort of met David and Austin and you know, we sort of drive in and so I said, okay, you know what? Probably instead of opening an office from, from scratch and may be better to collaborate, you know, because collab is like this famous word that we use on social media. Right, so just do some collabs. Yeah, of course. And in doing so, hopefully that we can get some distribution for our, our unique product that we call Vehicle subscriptions. And then maybe put some, put some of our cars here for you guys and maybe you guys have the opportunity to sell those cars to buy some cars for you guys as well. Whatever, you know, or maybe, you know, we've been working on some acquisitions out in the, on the east coast for you guys. So give us an expanded footprint. Right. Because we do have, we're pretty, we try to be tightly integrated into the communities that, in which we have an office, whether it's South Florida, New Jersey and hopefully eventually la. And by doing that obviously, you know, know we gain access to cars. Right. And not a lot of those cars necessarily fit us. Our sweet spot is kind of like between us 50 to 150,000. Right. I think there's an opportunity for us to move higher. But because our product is mainly geared towards leasing, you know, probably not, you know, we haven't figured out a really good way to lease like a 3, $400,000 car. Hey, how you doing?

Good, good, good.

Do you have like empty box or something? I just want to take it to.

Oh, take it.

Don't need a whole lot. I don't know what your, what you guys spend on like on average for recon.

Typically not so much. But yeah, some of the older exotic.

Cars do, do need, you know, like.

The McLarens right now taking a little bit of work on the accumulators and stuff. So just try spending about like five.

Grand a pop on McLaren, on McLaren's in general.

But you know, you break that into the buy price.

Yeah, yeah, that's a decent chunk of change. So yeah, we're, we're primarily looking, just looking to distribute our subscription product. Obviously if we, so if we can help you guys sell some cars, that's cool too. You know, that's a revenue source for us. So just in terms of the subscription, I just wanted to take this opportunity to give you guys a quick, like a quick rundown because most people probably don't even know what it is and how it works. But it's, I don't know if you guys are familiar with, you know, if you guys have ever personally leased a car. I mean being in the industry, in the independent space, we don't lease too many cars. It's mostly a new car, a new car business thing. But basically what Motor Envy has created is a program that enables the like the leasing of pre owned luxury cars, but better. And what we mean by better is we enable our customers to be able to lease the car for as long or short as they want, which is the big value prop for a lot of people. So you know, you can lease it for a month, you can lease for six. We encourage them to lease it for 13 months. That's where we get the best funding rates. We do give People a discount for somewhat of a commitment. But we do market it as a zero commitment product. So for instance, like the cars that we have here that, you know the, the GT 63 or that's, that's actually the AMG GT 62, 63 is the four door version. Right. Cars like that, the white 911, you know, obviously the silver 5 560, we do a lot of Porsches, we do a lot of AMGs. That's kind of like in our sweets, Range Rovers, things like that. Just to give you guys an Idea, that white 911 is $10,000 up front and you can return at any time. Plus I think it's like that's a Carrera S. Right. So that car is 2600 and change a month. Okay. So instead of paying, our list of price on this car is 120. Right. Instead of paying 120 for the car, the consumer who is well qualified. Right. We do have a pretty stringent credit check. It's typically a tier 1 top, top tier credit buyer. That consumer simply paid the 10 grand up front. And the 26, what is it here? 88. And there's a, you know, there's a, there's an underwriting fee of a thousand bucks and then whatever doc. Which isn't much in California. We're, we're very limited here and taxes and registration. Right. And they take the car. So it's, it's a financing product. It's straight out of the box. It's seems new and different now, but it's actually far simpler than any type of a finance or loan.

Right.

Because the terms are already predetermined. If you fit into the underwriting bucket, you get it. This is how much you pay. You know, you can leave with a car today. Credit approvals really fast. It happens for us all internally over in Florida. And yeah. And you know, all the, the customer still has the ability to buy the car anytime they want. There is a residual just like a traditional factory lease. And, and we, you know, I'm super excited because I feel like this will be a, this is a huge product. It's, it's, it's. I will tell you guys who were successful with the product. This is not like necessarily like an exotic car buyer per se. It's a luxury car owner. Right. And some of those exotic car buyers are luxury car owners too. Right. Because you know, when we talked about this the other day, like, like the 812 or the, you know, the SF90 customer or that GT2RS customer that customer's probably not going to daily drive that car, right? But they will probably want an AMG or a 911 to drive every day. And that customer is probably gonna. You know, this gives us an opportunity, I think, to create, to have this unique product that maybe will be able to, you know, do more business with this customer who has bought that aperta from you guys. But maybe he'll have a daily drive or his wife wants a G Wagon and, you know, they could go out to Mercedes and buy the G Wagon or Finance or whatever way they traditionally get. But now there's a new way, right? Offering them this, the subscription service, which is super easy. They get the car, they don't have to commit to the car. The buying and selling and the maintenance will do through you guys is all included in one price. The single biggest thing that they're gonna benefit is in the state of California because there's no trade in tax credits. It's an enormous tax savings by subscribing to a car like this 911 Carrera S. If they were to buy the car, they would be on the hook for how much taxes they'll around here at least 10, 12 grand. 12 grand taxes. By doing it through motor envy, their taxes up front on the same car will probably be two grand. And then if they return it, they pay. You know, obviously they'll pay the taxes on every monthly payment. But if they return the car after six months, you know, they end up paying way less taxes. You can imagine, right? We only tax them based on the. The total payments as opposed to the total value of the car. So there's a huge arbitrage there for smart consumers. And a lot of these customers, they walk in here, they're typically probably on the slightly more sophisticated scale. A lot of those guys will be able to extract a lot of value from that type of structure of getting a car as opposed to sometimes buying it outright. So all these things make switching cars really simple. Without, without when. Things like that, you kind of understand what we're trying to do. And obviously we hope, you know, with, with Z yesterday, we were out making commercials all day. We were at the Hollywood Sign. We went to. We went to Beverly Hills, we did all this Instagram stuff. And what we're trying to do is we're going to try to push a narrative out. Obviously we can only do that from, you know, the East Coast. But beautiful thing about technologies, we can push that narrative out. We can make the content here, we'll push it out, but we're Going to try to create awareness here in Southern California. And once we're, you know, once we start getting more traction, we should be able to be able to send more clients over here. You know, my first goal is to put some cars here, do the marketing, get some, get some customers into them, and hopefully over time, we hope could take some of your cars that fit our subscription model. We can price a subscription so that you guys can offer that as an additional way to move that product, your own inventory here using, using that platform. So just want to throw that idea out there, create some familiarity around what we do. And any questions, happy to take them. You guys can always reach me over Slack. We're super accessible. But that's kind of like the brief, brief intro. Cool. Awesome. How's the pizza? Good. Great little expansion you got.

And improve on that. I think adding another offering for our customer set just. Just adds value, adds. Adds optionality. I think that goes a long way. And obviously there's some education if a customer walks in to understand what it is. And we'll do our best on that front.

Yeah.

And excited to kind of see kind of where we can take this. So I look forward to kind of continue building that relationship.

Yeah.

You know, expanding motor envy and motor end together in a way that is beneficial. But our guys have been working hard on helping sell some of these cars. I think we'll continue to do that and then we'll figure out how we can kind of better integrate the subscription conversation in the entire experience.

Yeah, I know it's going to take a little bit of time. Yeah, a little bit. Everybody's very different, but, you know, as I always say, there's no better way to do it than to start. Right. So.

Yeah.

And what we'll try to, we'll try to make as easy as possible for you guys. You know, we're gonna be handling most of the sales of the subscription product from our office at this point initially, you know, so, you know, obviously we do understand that it probably will take a little bit of time to get familiar with it and whatever and totally understand that. And that's cool. We're prepared to do that. And then hopefully we can show you guys ultimately to, you know, proof is in the pudding. Right. Can we move some cars? Can we get some customers in here? Would you see that they have a great customer experience? And then when, hopefully we can deliver upon that and you'll see it and then, you know, that's going to create more intrigue to do it more and to focus on it and what have you. But yeah. So I appreciate. David, thank you for the opportunity. Yeah, yeah. We're looking forward to continuing our partnerships.

Cool.

Just a thought from my end. I feel like it's also very good, for example, for the sl, right. Their value is dropping really fast. So pushing that to the client like you don't want to, you know, your, your car will not be valued.

What do you.

If you're buying it. So if, yeah, if you want to just enjoy it and don't lose money, I, I think that's a great for like specific cars, especially like Mercedes M4s, you know, something like that.

These cars, you know, co is over. So these cars are all dropping.

Yeah, exactly. So I think that.

Hi.

Hey.

How you doing?

Good, how you doing?

And, and they know exactly how much they're gonna pay with us. And that's a lot of times that's a.

It's pretty good.

That makes it harder too because we tell them this is how much you're gonna pay up front, this is how much it is in month. It changes the car buying experience because any other way of car buying, you don't really know how much you're paying.

Yeah.

You know how much you're writing a check today for. You don't know how much it's going to cost me to maintain it. You don't know what you're going to sell it for. So you know they're just rolling the dice, right. Any car, right. Like you buy a Coleman, you pay half a million. What are you selling? That, that your and a half old calling for 300, that's 200. And half a million is a low MSRP coin. Right. And so most people don't think of it that way. Like if you ask your customer how much you're paying for that calling, they're gonna say 500. And then they assume they're gonna sell it at some point and get some of that money back. But no one ever thinks about what they're gonna sell it for. Right. They're gonna sell it for 200. Your out of pocket cost on the car is 300, not including whatever else you put into it. So the way we do it, they can the advantage and the disadvantage is they can add up exactly how much they're paying over the next 13 months. Right. Like on this white 911, they're paying the tank up front plus, you know, roughly 20, roughly 32,000 over the next, you know, in terms of monthly payments. So it's roughly 42,000. That's all they're gonna pay no matter if they crashed it, no matter if, you know the matter. No matter if the tomorrow we go to war with China economy collapses. They're paying what they're paying, right? And if they don't even want to pay anymore, they just return. So it really removes that, all that uncertainty. But you know, of course the disadvantage of selling this model is because you're so transparent, you tell them exactly how much they're paying. You know, sometimes that becomes harder to put. You know, some. Sometimes it's easier if they didn't know rather than if they actually knew. You know, I'm sure if every single leads is how does it work? You know, everybody who, who finds this product initially will always ask that question, how does it work? And that's, you know, as a company, that's our challenge, right, because we're basically have to re. Introduce, re change their way of thinking how they own cars. So they, you know, everybody say, these people, 40, 50 years old, been into cars their whole lives, and they call us and say, how does it work? And my answer to them is depending on, you know, where the least horse comes from. But most people have leased a car at some point in their life. So my answer to them is if you, have you ever released a car before, it works exactly like that, but better. Here's how it's better, right? We don't give you terms, we don't lock you in. And the service and the maintenance, security, and right there, they, they immediately understand because they've all leased cars before. At the pain point of leasing a car is being stuck in it for 36 months. Right? So, you know, that's a very simple way to communicate that. And then they immediately get it. And then the question becomes, do they think it's, is it worth their while what they're paying? They're getting enough value for. But good question.

You guys have a good retention rate. Like, let's just say someone purchases a car.

Yeah, that's the, probably the most exciting thing. And you know, I think this is also one of the things that will spill into. Your retention rate is ridiculous. It's like 70, 80%. Because, because at the end of the day with these clients, they come to get the car, first of all, they, you know, they know that there is an end date. They have to come back here. Once there's an end date, they can't go to somewhere else. There's nowhere to go to. The car has to be returned to motorway in this case. So, so, so first of all, we know how Long they're committed to the car. For we talk to them, they will. The first call that we're gonna get, the first call they're gonna make when they want another car is us. Because they have to find a way to get rid of the car they have, right? So imagine the power of your client. The first call always has to be by almost contractually, but to you, right? So then they call you, you know, find out, you know, if they wanted another car, that gives us the opportunity to be the first one to have the opportunity to sell it, another subscription or car, whatever it is. So. So. And once what. We also see that once you change, once we do the hard work of changing their behavior to get them excited about getting a car. This way, they don't want to go back, right? Because they don't have to do negotiation. They don't have to do PPIs. They don't want to have to, like, all these uncertainty. Like, we could never give them a bad car because at the end of the day, we own it. We have to take it back. We're the ones fixing it. So. So all that, you know, sort of like all that conflict between a traditional sort of like, car ownership, you know, the way they buy cars, they're on the hook for everything. They're at risk. That's completely been absolved. Basically. We have all the risk. Motor Heavy has all the risk. They have no risk. They just pay. And so once they experience that and they kind of go, you know, once they. Once we see that, once they do their first subscription, they're. They're very eager to come back and do another one and then kind of continue. And they don't want to go back to the. To. To the old way. So. Yeah, the retention rate is very strong.

That's a solid statistic.

It's really strong. Yeah.

The biggest question is, like, Sorry. The biggest question is. Let's just say. Let's say David wants to lease this Porsche through you guys. And David, in six months, is ready to get into another car, but he. Does he have to come straight back to you to return this car? Does he have an option to take the car to CarMax or to another dealer, or does it have to come straight back to you?

It has to come back to us because CarMax can't buy our cars. Only the customer can buy our car. So. But that. That's because they normally won't, because these guys don't really get into the car wanting to buy. If they wanted to buy, they would have bought it, right? They don't want to buy it. So unless it's a situation where there's enormous equity in the car, they typically don't want to buy. And if there is enormous equity in the car, if they go to buy it, we always talk them out of it. Here's why. So let's say you have 10 grand in that Porsche. You know, you could buy it and sell it. Once you pay your taxes, you probably don't have the 10 grand left, but let's assume that you did, right? Even during COVID we didn't have too many buyouts. We would just tell them, look, yeah, you got 10, 12, 15 grand of equity in a car. If you end up buying, you're gonna pay six grand taxes or erase most of it, Whatever, half of it. Tell you what, if you. If you stay with me, the six grand of credit, I'll keep you in house for your next car. So your next car, you don't have to pay that additional six grand. So what I end up doing is I take the customer's equity and I kept it, and I applied it to his next transaction to keep him in house. Like, there's so many different ways we can keep them. And this is why it's a very exciting model, because once you kind of get them onto the.