Speaker A
The wealthy are making hundreds of thousands, if not millions, through a legal loophole in our tax system. And no, it's not through dodgy politicians or brown envelope backhanders. It's through a love and passion that we all share: cars.
Mark McCann reveals a UK tax loophole allowing car collectors to make millions legally by buying and selling rare cars tax-free.
Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.
Generated from the transcript and can be wrong — check the timestamp.
Key Takeaways
- Rare cars can be a tax-efficient investment compared to property due to a legal loophole in the UK tax system.
- Capital gains tax and other fees significantly reduce profits from property investments, unlike private car sales.
- Manual transmission and limited edition cars tend to appreciate more due to rarity and desirability.
- The loophole requires the car to be used personally and not traded as a business to remain tax-free.
- This strategy also offers inheritance tax advantages, making it a smart wealth preservation tool.
What the video covers
- The video exposes a legal UK tax loophole that allows wealthy car collectors to make significant profits without paying capital gains tax.
- Unlike property investments, which incur multiple taxes and fees, rare cars bought and sold privately can yield tax-free profits.
- Mark McCann interviews Simon Koo, an accountant, to compare the tax implications of property versus car investments.
- Property investments face stamp duty, legal fees, and capital gains tax, significantly reducing net profits.
- Rare and desirable cars, especially manual transmission models, have seen explosive value increases, making them lucrative investments.
- Examples include Ferraris and Lamborghinis that have doubled or even increased by hundreds of thousands in value within a year.
- The tax loophole applies only if the car is a personal vehicle, driven by the owner, and not part of a business trading cars regularly.
- Inheritance tax benefits also apply to these cars, making them attractive long-term assets.
- Mark shares his personal experience buying a rare manual Ferrari 360 and discusses the emotional and financial benefits of such cars.
- The video highlights how smart investors can exploit this loophole legally to beat the tax system while enjoying their investments.
Chapters
- 00:00Introduction to the tax loophole and car collecting profits
- 02:41Comparing property investment costs and taxes
- 05:14Government tax increases and investment risks
- 07:54The appeal of manual transmission cars
- 10:08Current car prices and investment examples
- 12:45Lamborghini Gallardo manual as a key investment
- 15:32Buying and verifying rare cars remotely
- 21:59Restoration costs and maintenance risks
Full Transcript — Download SRT & Markdown
Speaker A
In the UK, as I [music] speak, cars are being passed around like hot cakes. And it's not just because they look good and sound good. is because of the huge tax benefits [music] you receive when you buy and sell a car for profit. Now, to
Speaker A
In the UK, as I speak, cars are being passed around like hot cakes. And it's not just because they look good and sound good. It is because of the huge tax benefits you receive when you buy and sell a car for profit. Now, to me, that makes no sense as we are all told that cars lose money. So, how are the rich getting richer from these dream vehicles? Well, today I'm going to discover exactly how it's done and I want to get a slice of that cake myself.
Speaker A
And I'm also going to show you guys at home the way to take advantage of this huge opportunity to exploit the system and beat the tax man without committing tax fraud. The rich don't always get richer from working harder than everyone
Speaker A
And I'm also going to show you guys at home the way to take advantage of this huge opportunity to exploit the system and beat the tax man without committing tax fraud. The rich don't always get richer from working harder than everyone else. The smart get rich by making their money work for them. They use their money to invest in things which increase in value and then sit back and watch that money grow without lifting a finger. And if you speak to most financial advisers about where to invest, everyone in the past has said the same thing: you must buy a house. Apparently, property always goes up. Over the last 30 years, house prices have done exceptionally well, multiplying money way more than inflation and most stocks and shares. But the government is cracking down on property and more than ever wanting a bigger cut through taxes. So, we're going to tell you about a different option where you don't have to give away any penny of your profit.
Speaker A
financial adviserss where to invest, everyone in the past has said the same thing. You must buy a house. Apparently, property always goes up. Over the last 30 years, house prices have done exceptionally well, multiplying money way more than inflation and most stocks
Speaker A
Nice to meet you, Simon. Hey, nice to meet you, Mark.
Speaker A
penny of your profit. Nice to meet you, Simon. Hey, nice to meet you, Mark.
Speaker A
Let's talk about money. Yes. This is Simon Koo, owner of an accountancy firm called Growth Factor.
Speaker A
And he is going to explain to us what happens if you buy and sell property for profit. And then we will compare it to if you do the same investment but with cars. Say for an example, we have
Speaker A
And he is going to explain to us what happens if you buy and sell property for profit. And then we will compare it to if you do the same investment but with cars. Say for example, we have £200,000 to invest in a second home. So, like something like this, a flat, £200,000. Tell us about some numbers.
Speaker A
Well, the problem with property is you're going to get hit on the way in and on the way out. So on the way in, you've got stamp duty, which is roughly going to be about £10,000 in a 200k
Speaker A
Well, the problem with property is you're going to get hit on the way in and on the way out. So on the way in, you've got stamp duty, which is roughly going to be about £10,000 in a 200k apartment like this. But don't forget, you've got your search fees, your legal fees, and all the rest of it. So you're looking probably about £15,000. So our 200 grand is already 215. Correct. So we're the wrong way at the minute.
Speaker A
Correct. Okay. So we keep that house for a couple of years. The property market booms. All of a sudden our house is worth 400. Yeah.
Speaker A
Correct. Okay. So we keep that house for a couple of years. The property market booms. All of a sudden our house is worth 400.
Speaker A
Wow. That's a big chunk of the profit. Yeah. So we're 65 down effectively already. So there's another 10k approximately of legal fees on the way out more. So really, let's say you've made a 200k gain on this property. It's
Speaker A
Yeah.
Speaker A
Yeah. And this is best case scenario. So the government are continually increasing taxes. You do the hard work, you take the risk, and if you're successful and make profit, number 10 Downing Street keeps taking more and more. Right? Let's switch all this then
Speaker A
But it's already cost us £215.
Speaker A
How do we look on taxes on that? So, this is a fantastic thing about cars. If you're a private individual, you bought that car, you've been driving it around yourself, no tax, but it's got to be sort of personal car.
Speaker A
Yeah. So if we're a higher rate taxpayer, the capital gains tax on that sale will be approximately £50,000.
Speaker A
We are. We are. The government don't get any of it. None of it. None of it.
Speaker A
Wow. That's a big chunk of the profit.
Speaker A
[music] that be an investment? Cars lose money. And you'd be right. Most of them do. But the right car, a rare car, desirable, that doesn't just hold its [music] money, it explodes in value. And that's the bit that nobody has been
Speaker A
Yeah. So we're £65 down effectively already. So there's another 10k approximately of legal fees on the way out, more. So really, let's say you've made a 200k gain on this property. It's gone from 200 to 400. Really, you've only made 125,000 on a property. And that's all going to the government.
Speaker A
The lightweight Ferraris like the 458 Speci has increased £150,000 in just 12 months. And as you have seen from our recent videos, the spaghetti Veyron that [music] has rocked, each one increasing about £800,000.
Speaker A
Yeah. And this is best case scenario. So the government are continually increasing taxes. You do the hard work, you take the risk, and if you're successful and make profit, number 10 Downing Street keeps taking more and more.
Speaker A
And that is why today we are talking about this massive tax loophole. [music] And this has definitely helped the values of these cars to rapidly increase. So how easy is it to make money tax-free on buying and selling
Speaker A
Right? Let's switch all this then to cars.
Speaker A
Now, obviously that is a lot of money, but car prices these days are astronomical. For example, a new BMW M3 is 80 grand. A Porsche Macan GTS [music] £85,000.
Speaker A
Yeah, you got a 200 grand special edition, say Lamborghini. It's doubled in value. Everybody wants it. Supply and demand. That car is now £400,000. 200 grand profit for doing nothing.
Speaker A
for the new owners, that's going to be extremely painful. So, where can we put our £80,000 to take advantage of this legal loophole [music] and make some tax-free cash and even better whilst driving and enjoying [music] a dream car? Well, I know just
Speaker A
How do we look on taxes on that?
Speaker A
Obviously, [music] they're taxfree. The profit on them is taxree as we know, but also inheritance tax to pass over as an asset is also taxree as well.
Speaker A
So, this is a fantastic thing about cars. If you're a private individual, you bought that car, you've been driving it around yourself, no tax, but it's got to be sort of personal car.
Speaker A
Yeah. What sort of cars should I be looking for? You know, look, what you need to look for is brand number one.
Speaker A
So, can't be a business doing this every week.
Speaker A
transmission. [music] Buy a manual Lamborghini Gallardo, but you've got the six-speed gated manual shifter.
Speaker A
Correct. So, we've made 200 grand profit. Are we keeping every single penny of that?
Speaker A
maximum amount of emotion, [music] a more enjoyable driving experience. Now, this is a real [music] turnaround because when a lot of these cars were made 10 to 20 years ago, there was an option. Everyone was choosing the modern
Speaker A
We are. We are. The government don't get any of it. None of it. None of it.
Speaker A
Nobody was choosing a manual, and that decades later makes them very rare. For instance, I' I've just bought yesterday a 5,000mi Ferrari 360 modern manual. The mileage is great. Everything's great.
Speaker A
So, that wasn't something I was making up. Cars are legally exempt. And the rich have known this for years and that's why they've been pouring their money into them. Now, I know what you're thinking. A car? How can that be an investment? Cars lose money. And you'd be right. Most of them do. But the right car, a rare car, desirable, that doesn't just hold its money, it explodes in value. And that's the bit that nobody has been talking about.
Speaker A
Nearly double. Yeah. Manual SV [music] leftand drive going for sale at RM SE's auction. I think that car is going to break world records for Mercos. I think it's going to make it wouldn't surprise me if it made £2 million.
Speaker A
So, let me give you some examples. The Lamborghini Murciélago over the last year has increased by over £100,000.
Speaker A
It's such a rare car. Just that manual thing. Just a manual. But they made literally a handful of manuals.
Speaker A
The lightweight Ferraris like the 458 Speciale has increased £150,000 in just 12 months. And as you have seen from our recent videos, the spaghetti Veyron that has rocked, each one increasing about £800,000.
Speaker A
option, like Carly is saying, could now be worth six times its value. What you're buying is a numbers game.
Speaker A
And finally, the Ferrari Enzo that has basically doubled, giving any lucky owner a 2 million profit.
Speaker A
So, it is just that rarity. You're buying the numbers and that's why that manual thing is a good thing.
Speaker A
And that is why today we are talking about this massive tax loophole. And this has definitely helped the values of these cars to rapidly increase. So how easy is it to make money tax-free on buying and selling cars? And can you guys do it at home? Well, I'm going to try and prove this theory today. And I am setting my investment budget at £80,000.
Speaker A
We definitely need a manual gearbox but also very importantly we need a car to be the right age. I have an investment rule. I call it the 2030y old rule. And this is my logic behind it. When we were
Speaker A
Now, obviously that is a lot of money, but car prices these days are astronomical. For example, a new BMW M3 is 80 grand. A Porsche Macan GTS £85,000.
Speaker A
They were nothing but a pipe dream and in no way affordable, but we enjoyed just looking and dreaming. Well, imagine the rule 20 to 30 years later. You've worked hard and had some lucky breaks.
Speaker A
A new Audi RS5 over 90 grand. And a Mercedes AMG C63S £100,000. One tenth of a million quid. And each and every single one of those stunning cars leaving the dealership will lose a chunk of money. And for the new owners, that's going to be extremely painful. So, where can we put our £80,000 to take advantage of this legal loophole and make some tax-free cash and even better whilst driving and enjoying a dream car? Well, I know just the person to ask.
Speaker A
buy a car before its boom, a rare poster car, a special edition, if you can foresee the next classic car to become desirable, the next car to be snapped up in short supply numbers, you can make some serious cash and that profit is
Speaker A
Right. We'll come see you about tax fiddle.
Speaker A
Yeah, it's literally like brand new. I know. This is the best. Obviously, I had these cars new, but you know, you're looking at a car now which is 22 years old. This is the best example of a 22y old car in
Speaker A
Oh, good. Wonderful. There's loads of pros in buying investment cars.
Speaker A
How do you keep this this time? You've been kept in a bubble. Yeah. With the And it's done 5,000 miles.
Speaker A
Obviously, they're tax-free. The profit on them is tax-free as we know, but also inheritance tax to pass over as an asset is also tax-free as well.
Speaker A
And I suppose in theory because of its year, [music] it's not too late. 6 months ago, this car would have been 100,000.
Speaker A
Right. So, you don't even pay your 40% inheritance tax on really.
Speaker A
[music] So we need to find a cheaper car similar to this, but just about to boom.
Speaker A
Yeah. So, obviously you've got a bit of an eye for making a bit of money on a car.
Speaker A
model. I think the manual Gallardo is exactly what we need and historically a very important car for Lamborghini as back in the early 2000s their cars were very expensive V12 flagships. They were big, bulky, [music] expensive and unreliable.
Speaker A
Yeah. What sort of cars should I be looking for?
Speaker A
ingredients for a perfect car. The reliability and engineering from the German giant whilst design and flare of the Italians. With this the Gallardo was born. A more accessible entry-level supercar. More usable day-to-day and less outrageous. This car saved the
Speaker A
You know, look, what you need to look for is brand number one.
Speaker A
And that is what we need to find. You've always been more of a Lambo man.
Speaker A
So, you know, Ferrari, Lamborghini, Porsche, those three say McLaren.
Speaker A
got a computer. We can make anything these days. Now we know exactly how the tax loophole works. Buy the right investment car and then sit on it or flip it for profit and we pay no tax.
Speaker A
No, I don't. I didn't say McLaren because there's one common denominator in all those three cars. The models that I'm going to say are going through the roof are all manual. The gated manual transmission.
Speaker A
Monaco after this. Buying a yacht and a [music] new helicopter with the money we are going to make. Bag for life stuffed with cash. And if it works for me, you guys can do the same at home. All we
Speaker A
Buy a manual Lamborghini Gallardo, but you've got the six-speed gated manual shifter.
Speaker A
Yeah, them two are the same and one sold. That one would have been nice.
Speaker A
Over the last few years, manual gearboxes have become very trendy.
Speaker A
Yeah. Sometimes they say manual and then not. And it's not a manual. So that's the E gear. £175,000.
Speaker A
Modern automatic cars change so fast that you can hardly feel it. It's pretty much the feel of a Tesla. But a clunky manual gearbox can give the maximum amount of emotion, a more enjoyable driving experience. Now, this is a real turnaround because when a lot of these cars were made 10 to 20 years ago, there was an option. Everyone was choosing the modern alternative, the then trendy automatic gearbox. They were the latest and greatest, the Lamborghini E-gear, the Ferrari F1, and the Porsche Tiptronic.
Speaker A
Right. Ferrari 360. Can't give up. There's got to be someone. So, there's a website where you can check the whole of Europe. Okay. So, let's let's see what they're looking like around Europe.
Speaker A
Nobody was choosing a manual, and that decades later makes them very rare. For instance, I've just bought yesterday a 5,000-mile Ferrari 360 modern manual. The mileage is great. Everything's great.
Speaker A
It's a manual. It's a manual. Okay. So how much is that then into the country?
Speaker A
But the fact that it's manual takes that car from being 100 grand if it was F1 or 175 because it's manual.
Speaker A
[laughter] So that's been imported into Japan. Let's try this one. Oh my left again.
Speaker A
Nearly double.
Speaker A
I am worried though we might be slightly too late. Is the fact that there are none for sale because they have all been snapped up and that of course will make the prices increase. Have people already caught on to this car? Are they being
Speaker A
Yeah. Manual SV left-hand drive going for sale at RM Sotheby's auction. I think that car is going to break world records for Mercos. I think it's going to make...
Speaker A
It's been over a week of daily searching now and still nothing available. Nothing's changing. The sort of same cars are on here and they're all in gears. So, um, and they're anywhere between 70,000. Um, and as you can see,
Speaker A
350,000, but not a single manual. Um, look at that. 350 grand for a Superiraa. Wow. I think we may have missed the boat with a manual car. I'm a little bit worried that they've been snapped up and any
Speaker A
from now on on the market are going to be unrealistically priced. I doubt very much we are ever going to see anything even near to our £80,000 budget. Whilst we were at the Heartley showroom, car did show us a couple of other possible
Speaker A
[music] investment cars. That's a Bentley Continental R Müller. But if I come home in there, I'm not sure Jane's going to love me anymore.
Speaker A
But none of them really got me too excited. The problem now is I have my hopes set on a Gallardo. mainly as Lamborghini for me has always been my brand. For 20 years now, I've been lucky enough to own them, but never a manual.
Speaker A
So, ticking that box would be amazing. And after a few days, my early morning checks have got us a little bit of hope.
Speaker A
Right. Good morning. Excuse the croaky voice. This morning in bed, I was looking through Facebook um and I found a Lamborghini Gallardo for sale, 2006.
Speaker A
[music] So, it's a Gen One, the one I like. And there it is. So, it's that gray color. It was only listed an hour ago. [music] [music] Look at that. That there is a gear stick. [music] The golden egg that we have been
Speaker A
searching for. A gated manual shifter. And this car is hiding a secret, which might just make it the perfect investment. It's an SE model. Now, I remember the SE models. I think they did like [music] two or 300 of them. It's a
Speaker A
special edition. I think it wasn't that much different. I think it had a black roof, but it is still a special edition.
Speaker A
So, you know, it's better [music] than not being a special edition. Actually, this car is limited to only 250 pieces. And apparently, rightand drive manuals, only 13 were ever made.
Speaker A
But the big question for this rare special edition car, how much is it listed for? 100,000, 150, maybe 200,000?
Speaker A
Wow. Yep. That is not a typo. £55,000 for a limited edition right-hand drive manual coupe Gallardo. But there is one big negative for this car. And to be honest, the reason that it's at that price, 73,000 mi, that's a lot. We all know that mileage
Speaker A
is important on an investment car, especially when it's a classic, vulnerable Italian supercar. Car's Ferrari 360 had done only 5,000 mi, so 73K feels like it's been to the moon and back. It is very high mileage for a
Speaker A
Lamborghini, and my worry is the more miles often comes, the more problems. And I would imagine that the parts for this car are not going to be cheap either. So, is it worth the risk? Right.
Speaker A
Car vertical check. It's looking good. So, as we can see, it's a Lamborghini Gallardo. Um, [music] so no mileage forward. If we go to the mileage, we can see it was used a lot to start with, [music] which any new car would be, and
Speaker A
then it's slowed down since. So, I think that looks all absolutely [music] spot on. It has a clean record and the miles are high, but if you actually divide it into the years, it's only done an average of 3 and a half thousand miles a
Speaker A
year, which then makes it sound way better. Also, as we learned from the Bugatti, with high risk sometimes comes high reward. I'll send a message now. I get on me way to work and I will let you know what's going on as [music] soon as
Speaker A
I know. But good start to the morning. a Lamborghini Gallardo [music] manual coupé. On the way to work, I made a call and it went pretty [music] well apart from the one bit which makes me pretty nervous.
Speaker A
Right, I have [music] spoke to our man with a Gallardo. First red flag, his name is Andrew, which is never a good start in my books.
Speaker A
No, no, no, no, no, no, wait, wait, wait wait. This sounds like every scam in the world again, but I do believe this guy.
Speaker A
[music] the car is for sale. He's got somebody coming to see it tomorrow. Okay. The guy hasn't paid him. So I said to him, "Is it still for sale?" And he said, "100% [music] until he has that money in that bank,
Speaker A
the car is for sale." And I don't blame him on that. So I've agreed on 50. Um I've done a FaceTime call with him. He seems legit. Like he's into his Lambos.
Speaker A
The videos he showed me was quite obvious. The photos which I've been sent as well. I've checked his Facebook [music] profile as well and he's not Dorine from Scun, which has had her account hacked. Like this guy, [music]
Speaker A
there's pictures of him with his car with his family. Like this guy is legit without a doubt. Oh no.
Speaker A
In my mind, he's legit. So we're going to do everything which I tell all you guys not to do and I'm going to send him a deposit.
Speaker A
So, I'm going to send him a 10 grand deposit. That's the deal. Chance is going to get in his van right this second. He's going to go down to him.
Speaker A
Then, Chance is going to have a look at the car, make sure everything's okay.
Speaker A
Uh, give me [music] a shout to say yes, we're safe to send the money. I'll send him the balance. Chance will put it on the van. We have a Gallardo Manual Coupe in possession. [music] Um, it definitely isn't perfect, but it's done 73,000
Speaker A
miles, so it's never going to be perfect. But I think for the money, for £50,000, a Gallardo manual coupe gen one as well, I think this is an absolute steal. This is our only option as there's still no other manual Gallardos
Speaker A
for sale. So, Chansy took a road trip to make sure this car is actually real, and hopefully it is, as I'm already £10,000 deep in a deposit. I know what you're thinking. Buying a 50 grand car without seeing it is crazy, but I think it's
Speaker A
worth the gamble. I know this car already has a good history thanks to Car Vertical. Now, if that Gallardo report had come back looking like this, I would have ran a mile because, as you can see, it's previously been crashed [music] and
Speaker A
you just don't know if it's been repaired correctly. And that could massively change the value of your car.
Speaker A
And that's why it's so important to do a car vertical check to make [music] sure you know exactly your car's history because sometimes it can hold some dark [music] secrets. You can use my discount code Mark to save yourself some money on
Speaker A
that check and the link is in the description, but make sure you save it for when you need it. And thank you as ever Carver Vertical for sponsoring this video. So, as Chansancy pulled up to the house which he was supposed to be parked
Speaker A
at, is there an empty driveway or is there a very rare manual Gallardo? My faith in Andrews is restored and the car looks okay. I had the nod from Chancy. So, I sent the balance of £40,000. And it seemed like the gamble
Speaker A
of sending a deposit before seeing the car was paying off. And 50 grand right now seemed like a proper bargain. Well, so I thought, as my new investment supercar was rolled back into the UK's Las Vegas.
Speaker A
Is it a shed? Are you thinking good or bad? I'm excited. I think it's going to be a £50,000 Lamborghini. I'm not thinking positive.
Speaker A
A £50,000 Gallardo manual gated gearbox. Rare as rocking horse. I was buzzing to see my new car for the very first time, but it didn't take long to realize this car was not exactly perfect. Not sure about that gray bit in
Speaker A
the middle. in the first [laughter] got that bit. Obviously, he said it was in the car somewhere.
Speaker A
When he says it was in the car somewhere, what do you mean by that? You just said it was in the car to Did you check it?
Speaker A
No. [laughter] It's quiet. [laughter] You see like this headlight is like clear and fine. This one not as much.
Speaker A
Is there an engine? [music] Oh, there isn't. There is actually an engine. Yeah, it did so, isn't it?
Speaker A
That was part of the deal. [laughter] What? We got it. It's real. We should never doubt it.
Speaker A
We have to be realistic with the price. It was never going to be a perfect example. It was always going to need a little bit of loving. We will definitely have to throw some more money at it [music] to make it a proper collectible
Speaker A
car. But at 50 grand, we definitely have some wiggle room to give it a bit of a makeover. We have all seen homes under the hammer. They buy a tide house, paint it neutral, fit a new kitchen and
Speaker A
bathroom, and then flip it for profit. Now we have our car. We're going to do exactly the same thing. We're going to fix everything wrong with it that we just mentioned and hopefully maximize our profit. But there's a catch. [music]
Speaker A
We only have seven seven days ish. There are two ways that we plan to make money out of this car. Number one is with [music] renovation. Obviously, it needs an overhaul. So, we have made our to-do list. And when we have ticked them all
Speaker A
off, we will get the car revalued. And in my little brain, we will turn a profit. And the second way to make money out of this car is to hold on to it, keeping it and enjoying it for a couple
Speaker A
of years and hopefully it will rise in value as this is the golden egg manual.
Speaker A
And remember, any profit that we make is going to be tax-free. Right, first part to making a million quid is this car needs a little bit of paintwork.
Speaker A
Hello. What the hell? I'm Mark. Hello, Mark. Nice to meet you. Um, [laughter] like your place has been done by paint with a paintbrush.
Speaker A
It's not the best. It doesn't make a very good uh impression at all. And like these this has gone quite yellowy, has it?
Speaker A
Yeah. Yeah. UV. And then this has got like like a cover over some reason. Not quite. Don't know whether it's hiding something, but we'll worry about that.
Speaker A
We also have some corrosion on the wiper blade. And worryingly, bubbling paint in the door sill.
Speaker A
These have gone a bit white, but obviously that's probably nothing you can do. That's a bit weird.
Speaker A
The headlights have gone funny, isn't it? Only the one. We charge the battery up and that's [clears throat] not holding charge.
Speaker A
Okay. So, it definitely needs a new battery. Rich took the car away to get it started. He was given a strict 24hour deadline. So, tax. I don't want you guys to think that I'm trying to avoid paying my taxes. In fact, I run a business
Speaker A
called Simark Engineering and we make ratchet straps. It's a very honest, straight company cuz we sell to blue chip companies like Tesco's and Amazon and obviously they don't pay in cash.
Speaker A
Right, battery secured. God, they don't get any lighter. Right, take this over to reach. Thank you, GSF. And then we'll also see exactly how many hours he spent on this car cuz bearing in mind he's had it two days.
Speaker A
And I bet you all he's done is at KFC. Now I was slagging you off. Said you weren't doing anything. Rich is midway through fixing that door sill and reacering the carbon spoiler. Right.
Speaker A
Rich has fixed the um gas truck. Right. We're going to take one of these off cuz it needs new ones. But like I don't see the point of buying Lamborghini ones cuz they're only going to be a standard
Speaker A
offtheshelf item anyway, aren't they? €26. But at least we know what car it is now, don't we?
Speaker A
Yes. And the bonnet ones as well. So I got the struts on order [music] and push rich to hurry up as we don't want to go over our 7day deadline. Every single penny that we make, we [music] have to pay tax on. And we know the UK
Speaker A
government hits us hard with taxes from every angle. And I am lucky enough to be a high rate taxpayer, but obviously it still stings a little as I am [music] taxed nearly half of my wages. And then when I spend what's left, there is a 20%
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VAT on all the stuff I buy in the shops. And then when I pass away, the government takes another 40% before Senna spends it on dumplings which we'll also have that on. So basically bad news. The government have 80% of
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everything that I earn. So, I am definitely doing my bit and that's [music] why I'd rather they didn't have any profit from the Gallardo and why I invest my money into wonderful cars and this will guarantee [music] a good future for me and Jane and
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ultimately Senna. Right, end of day two. We still got 5 days to go. So, on a tight schedule, but looks like he's done a good job.
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So, we had the big bit was obviously the carbon fiber. Wow, what a difference.
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Oh, look at that. Yeah. So, it's so much better about that yellow, isn't it?
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Yeah. Yeah, definitely. Yeah. Doesn't it look a difference? Oh, wow. Yeah. Obviously, it's all all the corrosion's gone. Yeah.
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The exterior now looks way better, but it is in desperate need of a clean and polish, but we will get on to that at the end. Next, we need to address the scruffy interior. Max morning. Right.
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Like you did with the Bati, your magic. Yeah. We need some extra magic. It's not that bad for the miles, but the interior, I feel, is the thing which is making it look a little bit old.
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Yeah, it instantly looks quite dated, doesn't it? That's the trouble. I think it's like I don't think it's even really the shape.
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I think it's almost that color. Yeah, gray like this always feels quite a dated color. As soon as it goes in, it it makes it feel that little bit cheaper and especially when it starts to wear with color like this [music] as as well.
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It's gone like James Adams. There is also a couple of bits of damage to the lever on the dash which will also be sorted [music] out. So everything you can see that lighter gray is being changed to Alcantara.
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Right. They're very very similar. Which one? I think that one. There we go. That's final decision. So Max has some ideas on how to modernize the interior and he takes it away to get [music] the job done quick. So not to go
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over our 7day deadline. Spending this money on the interior is going to be expensive. But I really think it will [music] help the resale value. If this car was a 5,000 mi car like cars, I wouldn't change the interior from
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standard. But I think adding Alcantara will modernize it perfectly and make it a much nicer place to be. But I guess we'll find out more when we get it valued by some experts later in the video. Now, all of these taxes add up to
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a lot. In the last tax year, the government had 329 [music] billion off us in income tax. Cheers, Mush. 22 billion from capital gains, [music] 180 billion from VAT, and we'll try not to mention the [music] 24 billion from
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fuel duty, basically, which I paid by filling up once with Shell Optimax. That in total [music] is close to a trillion in one year.
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After a few days, or as we like to call it, 24 hours, Max is back to fit the refreshed interior. Hello. Hello. Good to see you. Beauty.
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Oh my god. Looks like a different car. What a massive difference. You will see later in this video when we go through the cost that this was quite a substantial build. But I think this is the part which is going to make all the
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difference when we get our valuations. That's ridiculous. It's like modernize it to next level, hasn't it?
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Yeah. It doesn't look out of place. No. You were worried that what it would do is make the rest of it look old.
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Really? But it hasn't. It It's tied it all. So, time will tell if that was worth it.
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But one thing we definitely need to spend money on to get the maximum value for this car is a service. Detailed history can massively [music] affect the value of an investment car. And this car has come with a ridiculous amount of
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service history which will help its value. But right now it is due a service. We have chosen RE Performance to give this car a service and a detailed check and hopefully get rid of that engine management light on the
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dash. But first, let's find out what 73,000 mi has done to this car mechanically.
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I think I'd rather not know what's under there. I think this is a case of it's better not to know.
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I don't think that's the case cuz when it blows up it's way worse or your wheel falls off.
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I'm just worried it's going to take us over our seven days. Oh no. Ooh.
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Right. Good or bad news? Uh, a bit of both. You've got some good bits and you've got a few bad bits. The list isn't too long. If you notice here, uh, a load of the wheel arch is missing.
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Do you keep this car indoor outside? Oh, definitely indoor in in one of them bubbles. Oh, in the bubbles heated garage and all that. Yeah.
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Um, so your dust boot is split. So that would be like anote failure. So that needs to be replaced.
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Not at myote station [laughter] [clears throat] through there. You can see the spring, the the orangey bit. No, they're painted orange. They are.
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Okay. Only at the bottom. Only at the bottom. So that's something to keep an eye on if you wanted to. The big thing on this car is the AC compressors failed. It's completely snapped off. So you've got no
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air con in the car and that's just literally banging around. So that's something we kind of need to address fairly soon.
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That's the big scary bit of the car really. Um obviously you've got to bear in mind age related items. So some of like the corrosion on the arms and stuff like this. Um hopefully being in that bubble it will stop it from getting any
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any worse. But I think we've all got a bit of age related problems, haven't we?
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Exactly. Definitely. Yeah. Mid30s right now from these difficult Okay. After 73,000 mi, it's not [music] really that bad. But this car has been serviced regularly as we have the paperwork to prove it. [music] So I was hoping for
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good news. Later on though, we will have a full breakdown of the cost to get this car back to perfect. I do know that all of these taxes are for a reason to make the whole country mathematically work
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and right now we won't get into a debate on how bad we might think those tax revenues are spent. But at the end of the day, we all have to pay tax no matter how much it winds us up. So what
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what are age related problems which would have been bad but is good? Cats is the main thing. Cats and temp sensors.
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And is that because of where it is or like with the dirt and stuff?
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No, the cats failed just cuz they're really poor material and it just that's what sucks your back into your engine.
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So that's the biggest killer of 5 L engines is the cats. And as in killer of 5, wipe it out.
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Yeah. Yeah. You cannot buy uh the a crankshaft for a 5 L Gallardo is £39,000.
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£39 grand. It's £70,000 for an engine off Lamborghini. Wow. And that is the danger with buying these old classic supercars. But considering this car was bought over the phone from a guy called Andrew, I think we've been extremely lucky. But the
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engine management lie. This could be a two-minute fix and it could be tens of thousands of pounds. Is this the reason that this car came for £50,000?
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Could this be engine very bad? Um, I don't think it would be too bad.
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My guess is something emissions related. So, now even if you put your money into the safe option, a normal bank savings account, [music] you will get taxed on the interest that you have made. And it's the same for all other investments
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like Bitcoin, stocks and shares, stamps and coin collections, jewelry, [music] paintings, houses. Basically, any profit you will make, you will get taxed, but there are a few exceptions. As we know, there's cars, but also farms have a special exemption. Cat temperature
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probes pretty common on these. And then your bank 2 center 2 lambda probes failed. And you you can see here, look, bank one, 135°, bank two, zero, right? So, it's not freezing. No, it's not just you think it's just
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efficiently cold. One side of the You got Yeah, you got a really cool I know what it is. That leaking air con is pushing all the way down side. Yeah.
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Yeah. I thought you could literally get them auto towels and just clear everything. I I can do that for you.
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There we go. Straight. It's done. Fix. Don't start it. Don't run it. Just push it on a trailer.
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[laughter] Let's see the full cost of all the bits that we need. So, all together £3,164 plus of that.
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What's that? VAT. No, me neither. Never heard of it. And then that's to Yeah. To fix your two major issues.
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Brilliant. Thank you. Service ticked. And next, something this car is desperately crying out for.
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Now, this car is too far gone for a simple clean, and that's why Aaron at Nova Detailing has his work well [music] and truly cut out. We have also given him a list of a few things that need to
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be fixed. The cloudy front headlight, the rear light tint removal, [music] the little spot repair on the dash, and touching in the gold paint from the center of the wheel caps. And then finally to [music] finish this car is
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getting a complete ceramic coating to make sure it looks shiny for a very very long time.
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We have recently seen a massive debate about farms being included inheritance tax. These have been forever outside the [music] rule of being taxed when the ownership gets passed down due to death.
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Land in the UK is worth a lot of money. So some farms could be worth2 million pounds on paper, but if there is a death and it gets passed [music] down to a younger generation, they would have to
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pay an £800,000 inheritance tax bill, which they are very unlikely to have. So that family farm has to be sold. There has been a turnaround on this and [music] now the tax is only on above 2.5 million. The
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government's constant search for extra tax is likely to change UK farming forever. This does show that they are cracking down on any [music] tax loopholes. But for now, cars are exempt.
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So, let's get this Gallardo finished up and see how much profit we have made in only 7 days.
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What do you think? Looks amazing. [laughter] So, Aaron has finished. But before we do the big reveal, there's a couple of things that we need to fix. Firstly, the engine bay hydraulic struts.
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This is the first thing I've ever fixed. Oh no, I'm not sure about that.
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[laughter] Did you order the ones with the right strength? Yeah, that's stupid. Can you get them in different strengths?
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[laughter] I think I'm overthinking it. No, it's fine. Good. And of course, being an Italian supercar, we have an electrical problem.
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Something is draining the battery. Now, when I bought this car, we had a nightmare with the battery, and I just thought it was a dead battery. So, we went to GSF, [music] got a brand new battery, and something
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on that car is draining the hell out of it. Cuz one thing I've noticed, if I show you this, the stereo has a a permanent live, not an ignition live.
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But I [music] think that's sort of maybe the source of the problem. Maybe. Should I do that? And then dip beer.
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Yeah. I tell I'll tell you what I do. Right. Let's do this. I shut the door. Go back.
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Oh, well then dips is there and then the next shot will be You need to remember where your feet are. This is me telling you how to do this, right?
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[music] Yeah. Here comes Dips. Morning. How are you? Good, thanks. You Oh, good. Here you go. It needs fixing.
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We've got Yeah. Just give me a set of keys in. Now, I was worried that this was going to be extremely difficult to diagnose. I thought this could be an ongoing nightmare. But in true dips fashion, he quickly found the front boot light
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wasn't working and the terminals had some corrosion. And apparently that means the system stays awake and it drains power. So, with just a quick bit of cleaning, that's working now.
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Yeah. And then Oh, it's gone off. We fixed it. So, to-do list finished and everything is completed on this car. And if you want to see a more detailed version of this amazing transformation, RE Performance, P1 Auto Keys, and Newovo
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Detailing all have YouTube channels, and they will be doing extended deep dive videos on how they work their magic on our amazing car. So, please give them a subscribe. So, let's stand back and admire how my £50,000 manual Lamborghini Gallardo has turned
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out. [music] Ta. Oh my god. Aren't you chuffed to bits? I am. That is not the same. Well, if I hadn't got the red, John, I'd have thought that was a different car. Genuinely, I could get away with that in the
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future. No. [laughter] How good a job has Aaron done? Look at the light as well. So, remember the light was really bad. sorted out the gold on the middle of the wheels. It's ceramic coated and armored coated, double glass glazed.
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So, you could throw rocks in now. It would be all right. I think I'd actually drive that.
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I don't know if you would, you know. [laughter] So, I' have wheels and gearbox instead of hearing an engine. You do.
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She's back. That sounds really do again. [laughter] Can you do a duck? No. You can't argue how good this car has turned out. When we got this car, it really did look like it had done 73,000 mi. But now it's transformed into a
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great investment supercar. This gives this car a fantastic chance that over the years this car will be worth more and more money. And the good bit is I won't be taxed on that profit. Now we get to see how much this car has
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increased in value after we have spent some money and put a little bit of love into it. Hopefully, as we look through the bills, it will have increased more than what we have spent. And of course, I finally get to drive a manual V10
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Gallardo. Ready? Yeah. This is a proper engine. This is a 5 Lamborghini engine. Not a 5.2 Audi engine. This is a Lamborghini engine.
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Ready? Yeah. [snorts] That is the Lamborghini part. [laughter] Let's start off with the initial price of the car, which we know was a bargain £50,000.
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That sounds amazing. Listen to that air con thing. To get the car back home was £200 delivery [music] and we spent 48 quid on those strut braces and a new battery from GSF £110.
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This is ice. What a car. It's not fast. It just sounds so good. That is unreal.
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Rich from Fiber Factory charges £400 to restore the bodywork. Launch controls are a button. You turn the clutch on.
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How ace is that? This is brilliant. I love it. Absolutely love it. Now, the big one to transform the whole interior. Max from Hawks Autoworks did us a great deal, but still a lumpy £4,400, which I hope isn't the cost which kills
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this project. Hold on, everyone. And the final bill, Ricky's work, including BAT, is £3,800.
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Aaron at Novo Detailing was 600 quid and dips [music] was £400. This video was made possible due to you wonderful people subscribing. But for the 73% watching who haven't, it's totally [music] free to do. It helps us so much
Speaker A
with sponsors and access to make even better videos. the more you guys press like and comment. It really does make a difference. So, big up you all for helping out every week. And also, don't forget the Mark 2 channel and our
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Thursday Night Live podcast. [music] And you can find all the old ones here. Right, let's get it home, get it valued, and let's find out whether all this hard work and effort has turned into a profit or not. To keep the valuation fair,
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we're going to get the price from five supercar experts. How you guys been? Yeah, we're good. Thank you. We're good.
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This is Lewis from Better Performance. [music] I've bought and sold numerous cars from this crazy man. Good morning.
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Good morning. How are you? Where are you? I am in sunny Spain. Next, Carl Hartley, partner in the biggest supercar dealership in the UK.
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Good morning. You're right. Chris, where are you? I'm in Cornwall. This is Chris from Bay Tree Cars, owner of a luxury car dealership not far from me. Morning.
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Morning. How are you, mate? Where are you? Uh, call for who? Everyone's on holiday.
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This is Matt from Furlonger Cars, the geniuses who rebuilt they and Ron into the amazing car it is today.
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Hello, mate. How are you? Good morning. You okay? Yeah, not bad, mate. Not bad.
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And finally, Dan from VVS. Interestingly, his company's name is on the number plates, so I know he has sold this car before. This is the car. It's all been machine polished and then um ceramic coated. So that's all been
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redone. Oh mate, that looks incredible. A hell of a lot of um service history. A hell of a lot. It's done. I don't know what it when last time you saw it. It's done 73,000 miles.
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Um yeah, I want to say it was in the 40s when we last seen it.
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Yeah, like it's a great car. We drove it last night. Really enjoyed it. So I can see why [music] he has used it. What obviously with what's happened with the market at the minute with the manuals and stuff like that, where would you
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think this one might be? Yes. So, we sold a really nice green card just before just before the boom to be fair. And that was over 100 then, but that was 16,000 mi lovely car. We've just sold a black 40,000 mi car for
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110ish. So that's why I'm like actually this is 30,000 more miles but it's an SE and you can use it and it's got all the spec on it. So that's why I think like I would say in the I mean so many of these
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have been sold off market at the minute. So it's hard to anyone to get a gauge in it but I I think in the '90s and so on cuz the affordable manuals are going now. So people are having to have high
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mile car to to still get one that's affordable in their price range. Your timing has been I mean you couldn't you couldn't perfect it anymore. the [music] fact that there's even an SE as well. I mean, you're so lucky to have
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found that. Um I I I think I can sell that car for 100 grand today.
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Really? Yeah. Wow. Even with them miles on? Yeah. Look, do you know what? My cars with 30,000 mi and 35,000 mi are doing 130 140.
Speaker A
Wow. I think that car is probably 895 to retail somewhere. It' probably be worth something like 100k.
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I sold a 40th manual gearbox 200,000 quid a few years ago. Now it's 400,000.
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It's that manual thing, isn't it? This manual thing is a big manual thing. 100% the manual thing. So I looked at this car and thought to myself, "Right, okay, that looks a really nice car. Yes, the mileage is up
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a little bit, but if you kept that car 10 years, all of a sudden that comes down to 2 and a half thousand miles a year." That's how I look at it. Very desirable car. I'd put that at a price
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point today of 75 to 100 now. You know that sort of mark. I would say today three to five years 150 grand and then we're going up from there.
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So if we win in the middle of that estimation we're about 87. Yes. 87. Okay. But definitely worth keeping.
Speaker A
Definitely an investment. Only 100%. I'll be amazed if that car in 10 years time's not going to be touching 200,000.
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So, putting all the valuations together and averaging them out, we have our finished restored car valuation of £93,400.
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This car was £50,000 and we [music] spent pretty much exactly 10 grand. So, even with my maths, that's a grand total of £60,000 for a manual Gallardo Coupé. So, we have a profit of £33,400 after just 7 days taxfree.
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Now, cars like the 458 Speci, the Porsche 918, and the Ferrari Enzo are selling for nearly double what they were worth last year because owners are cashing in on this tax-free money. And the crazy thing is, even at these
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inflated prices, some cars are not slowing down. Month by month, they are going up. They are buying them and then hiding them away in the garages for the next 10 years and creating a tax-free [music] retirement fund. and sometimes from just
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one single car. This whole loophole has caused [music] the market to explode and your dream car might be getting further and further away in price. But the good news is the loophole is for everyone [music] cuz right now you could go out yourself
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and buy your actual dream car. Genuinely enjoy [music] it and make money doing it and completely taxfree just like Ree did with his E46 M3. [music] He bought his Dream Classic for £15,000.
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He drove it and enjoyed it for 18 months and sold it for £17,500, a profit of £2,500.
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And obviously, he didn't pay a penny [music] in capital gains tax. But I'll be honest, I can't see this lasting forever. The government knows exactly what's going on, and a loophole like this can be closed at any moment. and
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probably before I sell [music] any of my cars. Probably shouldn't have done this video. So, if you've still got that dream of owning that car, this might be the best chance for you to go and get it. So, the big question, what car would
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you [music] invest in? And do you reckon that government will ever close that tax loophole and change the world of cars [music] forever?
Speaker A
Are you selling it or are you keeping it? That is a massive question. Should ask the boss. Are we allowed to keep it? Yes or no? Why don't you flip a coin?
Speaker A
Tails keep head cell. What's it going to be? It's for sale. Yeah. [laughter] Okay. Do it one more time.
Speaker A
Yeah, cuz I want to keep it. Ready? 3 2 1 go. It's for sale.
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For sale again. That'll do. [laughter]
Topics:tax loopholecar collectorsUK tax systemcapital gains taxrare cars investmentmanual transmission carsproperty vs cars investmentLamborghini GallardoFerrari 360tax-free profits
