People that keep supporting CNC need to watch this really understand why this is 100% the fault of the dealership owner. Concise and well done explanation.

That is not entirely true in terms of floor plan line of credit. I am an independent dealer and was offered by multiple floor plans up to 1 million in line of credit. Other dealers get even more. Some big dealers get 20 to 30 million dollars. Some of the big floor plan companies are AFC Nextgear and floor plan Express. Most dealers have access to those companies to get a line of credit. It is not 30 or 20% or even 15% rates. Most dealers with decent credit , their rate is about 2% over prime. The owner of CNC himself said in the interview that he went from 2 million to 20 to 30 million line of credit. He went and bought many cars. Spent many of the millions the line of credit provided him. Over leveraged himself. Very dangerous in the floor plan game. Exotic cars in general take a while to sell, some over a year. The floor plan is generally due after 90 days on a car loan. In CNC's case, what probably happened is that many of these cars didn't sell right away and he is left with millions due on the floor plan line of credit. So either the floor plan creditors come in and confiscate the cars on the line of credit and he loses millions. Or He uses the money from the consigned cars that have been sold and makes payments on his line of credit floor plan to buy himself time and not lose his entire business.

@jaymorrison5895

3 жыл бұрын

Thanks for the info. I’ve known owners of small used car lots and was aware they had some sort of credit line. Just wasn’t sure how it worked. Thought maybe the auctions provided the credit line. Thanks fir sharing

@jimrobison114

2 жыл бұрын

@@jaymorrison5895 Almost all dealers (new and used have flooring or can obtain flooring if they want it. I speak from 45 years of New, Used and Leasing Company experience. As a used car dealer I always had a flooring credit line. Some are handled through banks, auctions are a big source and many flooring companies set up with auctions to floor auction purchases. Another error in the video is that as mentioned above by allh1, this dealer did have flooring but may have mishandled it at some point and had it revoked which would put him a cash crunch. Flooring companies require immediate payoff when a car is sold. He got underwater and was robbing Peter to pay Paul which happens often but usually not in such big numbers.

You're really giving them more credit than you should. Clearly they just blew all their customers money on cocaine and prostitutes.

@agent9184

3 жыл бұрын

probably, they have terrible cash flow and long term planning skills 😂😂😂

@HalfBreedMix

3 жыл бұрын

@Ether Secure Skip the cocaine and spent the saved cash on better prostitutes,,,,,,,,,,, cleaner in both respects.

It's called the FLOAT! I was in the car business for over 20 years, it is VERY common. Customers get late payments, etc on their credit reports. All it takes is one bad month for the house of cards to crumble.

@JetFire9

3 жыл бұрын

Yes, so many people think CNC is the first and only one to have the house of cards fall down. It happens all the time. It happened to a highline dealer near me, and I bought a car from them and had to pound them to get the title, but I got it. Only months later, the whole place cratered and people got hurt for sure. It's really not that rare.

@travelingman8230

3 жыл бұрын

Or 14 bad Covid months!!

@jamesplotkin4674

3 жыл бұрын

@@travelingman8230 CNC's been in trouble since 2018. Like a compulsive gambler... "just one more roll and I'll make my money back."

@2011blueman

3 жыл бұрын

@@travelingman8230 The car market was fantastic during 2020, CNC's issues likely had nothing to do with covid.

@Truthcanbeconfusing

3 жыл бұрын

It's called a scam, a ponzi scheme, new investor money to pay off old investors type thing.

"And he would have gotten away with it, too, if it weren't for you meddling kids!"

@themessenger5868

3 жыл бұрын

HE HE HE HE HE HE...time for a scooby snack Scoob...

@Pboy7272

3 жыл бұрын

😂 You won the internet that day.

@chijen2010

3 жыл бұрын

Shaggy consigned the Mystery Machine van to CNC

@davidbranch3104

3 жыл бұрын

@@chijen2010 and never got his money back. Damn Shaggy..damn😂😂😂

@duramax78

2 жыл бұрын

Meddling kids.?

I sold cars at West Covina Plymouth-Chrysler-Jeep. Back in the early 2000's they were doing what CNC is accused of doing. We didnt know until my co workers mom traded in her car for a new Chrysler....but a few weeks later the bank called his mom and told her she missed a payment. After some back and forth between the dealer and my co workers mom it came to light that the scheme was happening. Another instance was a guy came into the dealer so pissed off that he walked into the finance directors office and punched the dude in the face! They were SHADY!!! A coworker and I went to the bank on payday to cash our check and the teller told us that couldn't cash the check because the dealers account was overdrawn! I told the teller she needs to cash our check right now...she did but told us to warn everyone else that they basically have a worthless piece of paper until the dealer reconciles the account. After that I was out of there!

@jimrobison114

2 жыл бұрын

In my 45 years of auto dealer experience the more experienced crooks saved the payment books from the person trading in the car and made the monthly payments until they got enough heat that they had to pay the loan off.

I don’t even recall the last timr I watched your videos and I randomly remembered your channel yesterday and now I came across this by chance so glad i watched and glad to be a viewer again. Very informative

This style of video you're starting to do is actually really good and engaging. Fyi.

@19993gt

3 жыл бұрын

Hm illl be the judge of that. And I hope I agree. Thank you for this disposition

The key here is that all of these are FAR beyond 90 days. How do I know? I am out $500k as of today. Also, you failed to mention the kicker: all of these deals are like mine - they are CONSIGNMENTS. CNC has not floated a dime.

Direct and to the point from someone who knows (indirectly) what happened.... excellent video, thanks!

Love the straight up no bs method man

It’s very reassuring when this type of information comes from a regular car buying guy, also keep it up, love your videos man🤝

thanks for this video - helped me understand the situation!

This was the best overview description so far 👍🏽 Amazing breakdown.

What's happening to CNC makes perfect sense once you have heard the back story. Thanks for your great job of presenting it.

Great job ! Because of your presentation on this video - I subscribed , good luck !!!

This is an excellent explanation. This happened to a dealership in my city... im surprised the guy in charge didnt get hunted down by the rich people who got burnt.

Ya, got caught in floating title scam. Dealer resold the vehicle without paying off note. Had to repo the vehicle from poor bastard on the other end. The GM of the dealership was versed in this game originated from CA. Great vid!

Ooooooh! I bet those guys over at CNC might not like to see this Vid!

@ExoticCarHacks

3 жыл бұрын

They might not like to see the inside of a prison cell, either lol

@fstmr2trd

3 жыл бұрын

@@ExoticCarHacks LOL yup. one way trip he made himself to the Pen.

@bigd9848

3 жыл бұрын

They will be in jail soon

@morfeophantasm7435

3 жыл бұрын

@@ExoticCarHacks excellent articulate explanation of how the house of cards falls . Thank you for making this video. Nice watch too ; ) we are hoping the best outcome for all the people who's cars and money are in this state of limbo .

This is spot on!! I am glad you explained this so well!!!

Excellent explanation on the House of Cards of how CNC and other dealerships were running their business. Thank you for this

Ur the man, that was the best real explanation I've heard. Everyone else wants to pretend it isnt over for them, it def is. They scaled to high without enough people on the financial side to know what they were doing n they got swamped.

Just the video needed. Subscribed immediately 👏🏼👏🏼👏🏼

Best analysis of the CNC situation out on internet!

Spot on Mate! That was my impression after viewing the 1st video regarding Shane's situation. It appeared to have the Ponzi Scheme vibe.

You don't need to be a franchise dealer to have a floorplan.

@ExoticCarHacks

3 жыл бұрын

Yes, but while almost all franchise dealers have floorplans, most boutique exotic dealers do not -- or if they do it is too small so they seek other funding as well.

@shawnl3151

3 жыл бұрын

That’s true floor plans usually are short term for high turnover dealerships. Most cars have to be paid off between 90-180 days that’s why dealers are motivated to sell when a cars been on the lot 90 days

@semajd5995

3 жыл бұрын

What are you guys talking about? Tons of mom and pop dealerships have floorplans...

@UNLOCKsilo

3 жыл бұрын

@@semajd5995 that's what I'm saying

@kevinw627

3 жыл бұрын

This is a fact . LARGE numbers .....depending on how long you have been in business credit worthiness etc.

I have been waiting for you to talk about this!

Damn. Straight to the point and full of a shit ton of good info!!! 🤙🏻

@mohamedelyaouti2051

2 жыл бұрын

This guy is an absolute fraud. Can't get more clearer than that man.

I’ve driven past their Upland dealership a thousand times. I lurk on their website inventory page frequently just to see what’s new and what it’s going for. I had no clue how they were acquiring their stock, let alone, who are the people actually buying these cars. What a great video. What a crazy scam.

OK I got it, well you explained it 100% I was watching Dan's channel Normal Guy Supercar and he's still figuring out how they could of done this to so many people.

Great video and info. You nailed this on the head.

Great video and so true I saw it all the time then they start messing with employees pay stats off with little things.

So what I'm gathering is that they couldn't manage risk properly. But bought a 16mil dollar complex 🤦🏽‍♂️

You did a great job explaining how some of the dealers work. Thanks

Don’t own an exotic yet. But, this video will be rewatched in the future!

@EmmanuelDeligeorges

3 жыл бұрын

U dont need to worry if u r buying, only if u hand over a car u own for consignment

@restomodmustangs

3 жыл бұрын

@@EmmanuelDeligeorges wrong. if the dealer didn't pay off the note on the car (if previous owner had financing balance). there would be no title released for you to register the vehicle and the old owners bank would still be the lien holder. in that situation both consigner and buyer get screwed with the dealer mismanaging funds.

Thank you for enlightening explanation. I knew Clay was likely doing this from the first time I heard how long he was stringing some of his clientele. He was trying to buy more time before settling all accounts but the “cash”was just sitting there.

Fantastic video and very informative. You did an excellent job explaining everything.

The problem with this is, if CNC goes bankrupt, nobody gets their money.

@1570CHRIS

3 жыл бұрын

They need to be shut down and unfortunately people are going to lose money. As long as they stay in business more people are and will be scammed! They will not be able to legitimately make up the deficit in their current situation.

Excellent video. Your explanation was clear and concise.

Thank you for sharing your insight! It makes total sense. I learned something new!

Excellent video. Extremely well explained. Thanks for sharing, sir.

OK, independent dealers absolutely have floor plans. That's 1000% incorrect, you don't need to be a franchise dealer to have a floor plan.

@georgecifuentes3244

2 жыл бұрын

I agree with you

thank you for a great video with no gimmicks, dumb intro etc. Well done!

Great video! Very informative and to the point, Thank you

You do not have to be a franchise dealer to get a floor plan. Next gear capital is a floor plan company that will extend lines of credit to independent dealers. Those credits are called floor plans. God bless nice video

@ScrubRadius

3 жыл бұрын

Exactly. Over 20 years ago when I was a used car dealer I had floorplan money. Clay at CNC said just the other night that he was making interest payments on 30 million in floorplan. I suspect the floorplan bank may very well have all the titles (this is pretty common on floorplans)...and CNC isn’t paying THEM.

@650turbo

3 жыл бұрын

Disagree. Next gear is shit for Floorplans. Complete joke. Good Floorplans aren't I boutique dealers by real banks

@chadwick-ma

3 жыл бұрын

@@650turbo Next Gear is super expensive to use.

@eddiejoseph9062

3 жыл бұрын

A dealership can’t floorplan autos it does not own-i.e., consignment vehicles.

@brianmccartney7705

3 жыл бұрын

@@ScrubRadius He’s more than likely out of trust with all his floor plan lines. Over leveraged. Plus he’s out of trust with consignment customers cars. Rumor on the street is he’s out of trust by around $40,000,000. 40 Million

This is very informative PJ; thanks brotha 👍🏼

So CNC doesn't really own any of the cars they have on the web site? So no one that is owed money is going to get paid because the cash flow cycle is falling to far behind? So the bank will soon pull the plug and everyone is going to loose! I hope everyone who has a car on the lot runs down there to get it back real soon! The WEB site is full of beautiful cars still today!

All affected customers need to file a lien against CNC before he files bankruptcy.

@gustavo-gs6jy

3 жыл бұрын

ASAP. Once cnc files a BK, that's it.

Very, very well explained! Even if one chooses the higher road and doesn’t float & leverage consignor cash....the huge daily cash swings of an exotic car dealer are hard to manage and can get out of control very quickly. Unfortunately many dealerships see spending money/time on financial back office as a waste because they aren’t “revenue-generating”, and always choose to spend their overhead on more sales guys and marketing spend. Then they spend consignor money on accident and dig themselves in a hole. Not having a solid back office that can keep up is like building a mansion on sand. It’ll collapse eventually.

Excellent explanation and much appreciation for the info!

Well explained. Straight and to the point. Thanks.

i drove by there two weeks ago and noticed there were no vehicles parked around the building outside like there usually is. i thought it was really odd. now i know why.

Very informative, thank you for the info. Keep doing what you're doing. Love his no bullshit approach.

@mohamedelyaouti2051

2 жыл бұрын

This guy is a scam artist man don't fall for it

@tariqsabbah2621

2 жыл бұрын

@@mohamedelyaouti2051 From most of the reviews I've read he provides valuable information related to buying and selling of exotic cars. He sells the courses with the knowledge he has relating to this. Just like you'd buy a real estate course to learn about real estate from an informed source. Why is he a scam artist?

@mohamedelyaouti2051

2 жыл бұрын

@@tariqsabbah2621 just do some poking around. His knowledge isnt worth anything. Just do some research you will see. He talks smooth makes it sound nice and appealing but he doesn't say anything of value

This sounds a lot like the performance shops I used to order parts from. I’d pay upfront for the part and they’d lie to me about how there are shipping delays, back orders, etc, wouldn’t let me cancel my order. 3 months later the part shows up. Lol.

@22Epic

3 жыл бұрын

That's unfortunately how most businesses work. Everything is fine as long as the number of transaction stays the same, but if for some reason you get less transactions then it's the start of a domino effect.

Great video. Very clear and concise explanation of what dealers are doing. Keep them coming. (small point. Check your spelling on the pop ups EXIOTIC and follwers)

Very interesting, thanks for the detailed explanation!

Epic video! Noti on !

thanks for explaining this makes sense now 👍 borrowed into a hole they couldn't dig themselves out of

as a safe tips when you buy the car from independent dealer. i only pay dealer if they can show me title or copy of title. if they floor plan it. It can be pulled from bank. without it do not pay for the car.

Excellent explanation that confirmed everything I thought. Thanks

this helps a lot - thanks for the explanation

Great video PJ!

Insightful and informative for anyone interested in purchasing an exotic car from an independent dealership. Hopefully this information will save an honest and unsuspecting consignment prospect thousands of dollars as well as a tremendous amount of stress, grief and regret!

I like how you explained everything really good video thanks

Great explanation. Makes a lot of sense!

I watched your video about 5 times its so good

Thank you for your knowledge

Very insightful, thank you!

Thank you for explaining this.

This was perfectly explained, excellent content.

Love your videos keep it up

Love your explanation! Like like! Thanks

Great explanation, thanks!

Outstanding video

Wow very informative

Great video!

You can get a Floorplan as an independent non-franchised dealer. There are many to choose from. Even Mannheim offers them.

How this guy isn’t behind bars is absolutely unbelievable!!!!

Thanks for explanation.

I hate your youtube ads but this was very well done.

“Like the video, hate it, tell me I’m fat…” lol

Excellent video.👊🏻🙏🏻

So when your dealer gives you your 3rd paper tag, it might be time to ask some questions.

@dakotaautosales9673

3 жыл бұрын

Lol absolutely

Great analysis

Well put man 🤙🏽

Yes sir your example at 7:51 is exactly how we ran a book business on our inventory supply, we were in the 100 top sellers in US for dollar per square foot sales.

Best video on this BY FAR!

Thank You!!! Good topic in investing... Fund Manager Game....

That's BS. There should be new laws to prevent this in the future for these kind of car dealers. You sell a car for someone, you give the money to the seller right away! Period, No using their money to finance your business! That's BS. Thanks for clarifying for me. I live in Upland and am horrified at this CNC dealer!

Great explanation.

Really good explanation....

Sir you are the professor thank you for breaking it down in simple terms I’m not even a high price car guy but I’m subscribing I drive by this place all the time and from the outside looking in everything looked perfect at this dealership WOW I should just quit profiling and judging at 55 years old I’ve been wrong more than right as it relates to wealthy upper crust people places and things. I guess it’s true all that glitters is not gold

Thanks for the explanation

WOW.... I live in CAnada and nothing here about them but I heard the name already in the past!!

wow this is very educational. Totally making me think twice about buying (or in the future) selling via one of these indy dealers.

Doug Demuro's not going to be happy about this lol.

@simonbelmont5801

3 жыл бұрын

That dealership had too many quirks and features... apparently. 😁

@ExoticCarHacks

3 жыл бұрын

Doug will be fine, he is excellent at what he does and will get access to vehicles from other sources.

Finally explained thanks

This was such a fucking awesome video. Really thank you so much for the inside look on exotic car sales.

Dan with Normal Guy Supercar interviewed the owner. Check out his videos.

@linoleumshake

3 жыл бұрын

The owner didn’t even answer the question. I didn’t know a man can spew BS for so long. No explanation about the funds/titles/location of cars. Just boo hoo I’m broke, I’m renting, I’m not getting away with this and if you all keep pointing fingers at me then that somehow prevents checks from being paid. I’m glad Dan followed up with a video basically stated the owner is a pos and don’t do business with them.

@georgesuzuki7040

3 жыл бұрын

Get the violin out when watching Dan’s interview with Clay.

😆🤣😂 CNC is in Upland, California. that's funny I live by them..they drive Lamborghini and other fancy cars around the neighborhood speeding down the 210 fwy to mountain and back to campus super fast...