HOH Episode 5

This episode is jam packed with fun stuff.

Segment 1- Steve Talks credit crards and the things he wants you to understand about how they work, specifically how they make money and the interest rates work.

Segment 2 (34:18-46:37)- We head out to TintWorld in Wilmington, Delaware for a very special wrap and LED package Steve had installed on his Cybertruck.

Segment 3 (46:38)- We announce the winner of our first watch giveaway.

Transcript

SPEAKER_02 0:00

Alright, what do you say? Episode five. Five, four, three, two, one.

SPEAKER_00 0:07

Hey folks, welcome back. House of Hoops, episode five. It's me, Steve Oops. So thankful to be back. Can't believe we're on episode five already. Hopefully you guys got a chance to go watch episode four, both parts, with Schmidt. Got a lot of good feedback. That was a lot of fun. We'll have some more guests on this year, especially, kind of try and do some fun stuff. Maybe get outside the office for one of the interviews, maybe even get on the golf course. Who knows? See what we can do. But wanted to have a conversation, first topic for this episode. Going to jump right into it because it might take a little while. Something I've been passionate about is just responsible, you know, finances. You know, we've talked about it before. Um, but this one specifically has popped up recently, and I've gotten a lot of questions, a lot of clients, prospective clients, we are talking to about credit cards. Uh some people have heard the current administration made some comments about trying to get the credit card companies to force them to get down to a fixed 10% APR on their credit cards. Uh, if you're out there, you probably have a credit card that's anywhere from $17.99 up to $34.99. Some of you may be lucky and have a rate lower than that, but they're very, very few and far between just because primarily, and I get a little bit into this with an explanation from the regulatory environment has kind of taken it away from us ever really being able to get back to that 8, 9, 10, 12, 13% interest rates. Um, it's just really difficult to do without an exorbitant an annual fee that's in there to try to make up for the other side of it. But want to give some background, um, talk about you know what a credit card is, um, how it's used, how the credit card companies think about it as they're going through managing the portfolio, who they decide to give a credit card to, how big of a credit line that you get, what your APR actually is, why it is what it is, and how a PL of a credit card actually works. Um there's a lot of misconceptions out there. Um, I think a lot of bad information is out there that people just don't understand how the environment in the industry works. So I kind of want to give some information from being in the industry now for 30 plus years. Um I got a lot of good insight to be able to give you kind of a soup to nuts of every permutation of every kind of combination of credit card out there. Um, first and foremost, though, why do people use credit cards? Right? There's multiple reasons. The first and most popular reason um is they get something back, the what we call the value prop. Usually it's rewards, it's cash back, um, it's building up for travel, um, but it's very, very popular. You see credit cards being a co-brand credit card, which are the most popular. So if you go to Chase, they have cards such as the Marriott card or um, you know, United, American Airlines, if you're at Citibank, Delta, if you're American Express. There's a lot of different ones that are comboing credit cards with co-branded relationships where you can build your miles on your airline program or your you know, you know, hotel miles on Hilton or Marriott or someone like that. Those partnerships, when you take a look at the PL of a Marriott or a Hilton or an American Airlines, you'll be surprised how big of a portion of the profit that those companies make come from their relationships with the credit card that they issue through a bank. That being said, um, the credit cards are privileged, not a right, right? You know, it is the fact that you can handle credit good enough to be able to justify to basically float your purchase until a later date and pay for it later. Um, you know, from that perspective, the other side of the fence of people that use credit cards are ones who can't afford to buy something they want to get or need to get right now. So the credit card gives them the flexibility to pay for it on the credit card today and either pay it back slowly or pay it back in full at a later date, but basically be able to float themselves, you know, a time frame between now and later to pay for something they want to get today. Running into that is where it gets kind of dangerous because people have best intentions. They make the purchases today. Um, they plan on paying it off over a you know a short period of time, you know, a little bit per month, you know, equal payments over 12 months to try and get it paid off. Or they say, hey, I have a bonus coming in at the end of the year. I'm gonna just pay it off then and you know, I'll just float and pay the interest between now and the end of the year. Um, but you run into places where other expenses pop up. I got to replace my tires, I got to do work on the car, you know, something happened where I had to replace a window in the house. Uh, and all of a sudden now you don't have that money you were planning to use to pay off that credit card. You're now revolving that credit card longer because you need that money to pay for something else. Um, and it just gets out of control, and people build up debt and debt over time, and all of a sudden it's an issue, and they're blaming the credit card companies uh for the high interest rates and everything else that goes into it. So I kind of want to get into talking about you know, what do credit card companies do? How much money are they really making off of you having a credit card? So let's talk about a traditional credit card company, a large one like a Citibank, Chase, um, Bank of America Citibank. Those guys really are doing what I would call full spectrum lending, where you know, your best possible FICO score, and I don't think FICO score is the best thing to use for um lending to people, but it will always be a component because it's a you know nationally recognized score that does pretty well, but you know, most credit card companies use a lot more than just your FICO score. But for purposes of just discussing this, let's let's focus on the score. Your FICO score goes from the worst case, 350, up to the best case of 850. And that number basically translates to what chance there is that you're gonna default and not pay that credit card back or auto loan or mortgage or consumer loan, unsecured loan. You know, they're used to basically to dictate how risky of a proposition it is to lend money to that person. Ironically, the higher and better the score, meaning the lower risk you are, the less money a bank's gonna make. Right? So a misconception is um some people I hear, and even people who have been in a bank forever, you hear executives say, you know, we need to just lend to customers with a 780 and above FICO, which is a small 10% of the entire population, and they're very, very adverse to risk, and it's less than 1% chance in the next two years that person's gonna default. That's great. Very, very low risk. However, that person's usually paying their credit card off every month. There's no interest being gained by the bank. They're wholly relying on when they swipe the credit card for that to come through uh in what's called interchange, which is when you swipe your credit card at anywhere in the United States or abroad, the the POS machine, the point of sale machine, is invoicing interchange from either MasterCard, Visa, American Express, Discover, are charging what's called interchange to the merchant. It could be anywhere from 2% to 4%, depending on which card it is. That money gets split between MasterCard and the bank or Visa and the bank. So that's really one of the only main revenue streams for those very, very low risk customers. Banks make less than 1% returns, maybe 1%, 1.5% best case returns on those customers. So there's a lot of risk when you're lending billions of dollars and your returns only 1%. If an economic downturn occurs and wipes out, you know, a lot of people's ability to pay, those credit card companies can't survive. And you saw that 2008-2009, credit card companies taking a ton of losses and losing money. And it wasn't because of the high-risk customers that some people would like to say out there that's giving misinformation. They lost money on the best of the best customers, the pristine customers who they were only used to having uh 50 basis points, less than 1% chance of going bad, uh, and they were only making one to two percent at most returns. When those loss rates go from 1% to 4%, you go from making a percent to losing 3%. Unlike a very, very high-risk customer, let's take somebody who's a 620 FICO, you know, FICO score means the fixed position is a 720 FICO scores right around average. Every 20 points you move away from that 720, the loss rate probability doubles. So if you go from 720 to 700, the chance of that account being bad is double what it was at 720. Conversely, if you go from 720 to 740, it's about half. Uh, and that's kind of the further you get away from 720, the risky you are. So 7620 is very, very risky. You're talking double-digit losses, which is why you have to charge 29, 30, 34% interest. Um, because if that happens, it's going to kind of go down the tubes. Those customers definitely increased in credit um losses over that period of time in 2008 to 2010. However, the returns on those are usually 5% or greater, like 6%, 7%, 8%, and they're running at a 10% interest rate. So if similar situation during the downturn, your loss rate goes from 10% to 16%, you're eating up 600 basis points of additional losses. But if you're making six, seven percent, you know, you're still break-even on those. You're not making a lot of money, but you're not going underwater like you are on the very low-risk customers, where just a little bit, if you move from 1% to 2%, all of a sudden you're break-even. You go from 1% to 3%, you're losing money. So banks have a very, very risky proposition on the highest risk customers in an economic downturn. Conversely, in that time period, 2008 to 2010, um, before we get into the PL of a credit card, I want to dispel some other rumors of the bailout of the banks, the bailout of this during you know, the big economic downturn. Um it's true and false at the same time. Um, when you take a look at what happened, the government decided to put in a ton of legislations, Card Act, UDAP, and you guys can look it up online. They put a lot of parameters on the banks to force them to carry additional capital to account for situations like this. Um, their tier one capital ratios got shifted. Um, that is how much money you have in reserves, not part of your operating capital, not part of what you're doing day to day, but just capital that sits there at rest to be there, to be there of just in case something goes wrong. By forcing that amount on there, the government figured out the amount they would have to force the banks to retain that the banks were not able to come up with in a short period of time. The government put it into law and then very quickly said, if you're not able to do this, you're going to take what's called TARP money. It's the what many people consider the bailout money in 2009, 2010, and so on and so forth, where all the big banks and small banks were forced to take this to build up their capital ratios and get it in place. Very quickly, the government was trying to then say, hey, now that we're basically invested in you, we're going to have say in what you're doing day to day. The banks didn't need the money. The banks were forced to take the money because of changes in the regulatory environment. And what you don't hear nowadays is all of those banks adjusted their PLs, adjusted how they approach business, very quickly raised and increased their capital levels and paid back the government with interest of all of the money that they forced on the banks in this bailout that you want to consider, you know, whatever you want to call it. Not every bank was able to pay it back. There were certainly some banks that weren't able to do it. There were some forced takeovers. Um, there were some other banks that got acquired. That money didn't get paid back by everyone, but the money that was paid back by 90% of it by the big banks was paid back with interest. And overall, the money that was forced and flowed to the banks, the government made a very, very healthy return on that money. So the taxpayers had zero impact to them from a bottom line on overall of this bank bailout. Unlike the auto bailout, which none of that money was paid back. The auto lenders kept every dime of it. Um, there was some that was paid back, but in general, that was a true bailout. Um, so that misconception, I want to get it out there. The banks are trying to do the right thing and they're trying to do it responsibly, but they're in business. They're here to make money, they're not here to be, you know, charitable, to just give you money to go lend to go buy, you know, a new printer or that you go buy, hey, the latest and greatest iPhone or the latest and greatest Android. They're not there for that. They're there to help you in times of need, and how you use a credit card is your choice, not theirs. Now, that being said, all of that, you know, in general, the banks are there to make money, and how do they make money? Let's talk about a general profit and loss statement of a credit card business. Um, now you hear this APR of 10% being pushed by the administration. Let's let's just take an average look of today at what an average credit card portfolio with one of the big banks look like. You know, you typically have a credit card business that has five or six different APR price points, um, anywhere from $15.99 up to $34.99, depending on what state you're in and a lot of other factors. Now, what the bank does is when they evaluate the risk of the customer, they decide is this customer low risk enough to us to give them the credit card first in four months most? Yes or no? Yes. Let's say yes, you're able to get a credit card. From there, how big of a risk do we want to take by giving them a credit line of $500, $5,000, $20,000? Um, that's all based on ratios of income and debt levels, history of your delinquency and losses. If any, hopefully not. If you're very, very clean, you've had a credit bureau for a long time, higher likelihood with good income, you're gonna get a higher credit line. The last piece is deciding what interest rate or what we call APR annual percentage rate are you gonna get build on that credit card? Are you gonna get the low end at you know $15.99, $16.99, or the high end at $34.99. Also primarily risk-based. We call it risk-based pricing. You're gonna get your interest rate set based on your profile, and not just you specifically, but what your profile says in general, right? There's 350 million people with a credit bureau out there. Based on your profile, the average person with your profile performs X. So even though you might be better than that, which we would call positive selection, there's also people that perform worse than that called adverse selection. And the combination of that in general averages out to a certain risk level, and that's where they're gonna price you at. So let's say, on average, in a big bank company like a Bank of America or a Chase or a you know, Cap One, your average credit card person is gonna have a 2499 interest rate, which is called an APR. Now, automatically you're saying, well, the bank's making 25% on every dollar they lend. No, that's not even close to being true. The bank only makes money off of that interest rate when the customer revolves a balance from one month to the next. On average, in a given month, only about 40% of the customers, maybe 50%, best case, revolve their balances from one month to the next and don't pay it in full. If you charge $500 in your credit card, you get your statement for $500. If you make a payment of $500 before your due date, you pay no interest rate at all. The bank gets no money. You basically got a free loan for 30 days. Now, if you take three, four months, the average balance over time, you'll pay interest on that over time, and that's where the bank makes some money. But on average, when you see a 24.99 interest rate, let's just say 25% to make it a round number, um, you're probably only seeing the bank make anywhere from 11 to 12.5% interest of what they're bringing in as revenue. From there, you know, you also have the cost the bank has to do to borrow that money to lend to you. The bank just doesn't sit there with billions of dollars of money just to give you. They have to get that money from somewhere. You go in and deposit money into your bank accounts, your savings accounts, CDs, bonds, and all that. The bank has that money in their coffers. They know on average how much money is going to get withdrawn and moved around from the customers, and they have a comfortable number of that money they have sitting in there, what percent they'll use to lend on consumer loans, mortgages, auto. So the cost to borrow there is really the cost for them to pay interest to you operating on the bank side for that. So let's call that the big banks probably are having a cost of funds, the cost to carry of what they have to cost to borrow money to lend to you, anywhere from three to four percent. Some of the, you know, the bigger, the smaller players run six percent. Some of the small, big, really small players or fintechs could be running at seven or eight percent. So that's the cost that they have to pay for that money to lend to you. So quick math, 12.5% interest coming in the door. All of a sudden, let's just say 4%'s right out the door for what they had to buy that money down for you to actually borrow it. So now they're at an 8.5% positive so far. Operating costs, generating statements, processing payments, sending out letters, sending out statements, um, you know, receiving customer service calls, you know, when people go delinquent, you have the collections department, you have fraud protection. So when you swipe a card or someone steals your card, the bank can identify it and do that. All of that stuff costs three and a half to five and a half percent, depending on the bank. So let's say four percent for round numbers. Well, now there's another four percent off that twelve and a half, and now you're down twelve and a half to eight and a half to four and a half. So now you're at four and a half percent. The average credit card company right now has a four percent loss rate. That's just losses every year is about four percent on a very, very clean book of business with the big banks. Well, now you have four percent to borrow, you have four percent to operate, and four percent of losses, you're at twelve percent, and you're only getting twelve and a half percent interest rate. Um, not interest rate, but interest that you're accruing at a twenty-five percent interest rate. So now you're at a half percent half percent profit. Uh, there's other fees that go into the credit card environment. Let's call that at about one and a half percent, and that's very generous. It's probably not even that high, but we'll be generous and say one and a half percent. Okay. That half percent grows back up to two percent. Perfect. From there, the interchange I talked about, which can range anywhere from two to four percent. Big banks, let's say on average, two and a half percent is what they get. Great. We're back up to four and a half percent profit on there. Your rewards programs, you redeem them for travel, you redeem them for cash back. That's a cost the bank has to foot. On average, it's about two to two and a half percent. So now all of a sudden that four and a half percent profit's back down to two and a half, maybe two percent, two, two and a half percent. That is what a big bank makes on average, is only about two, two and a half percent. They're not raking in 10, 15, 20% money on lending to you on a credit card. It's two and two and a half percent. When your losses are running at 4% and an economic downturn occurs, that 2.5% gets gobbled up pretty quickly. So they want resiliency. They want at least 50% coverage. If the losses go up by 50%, you can still break even worst case. And that's right around where they're at. They're running at a 4% in uh loss rate, those losses increase 50% to 6%, that two, two and a half percent of profit goes down to break even, right? The banks aren't gonna in business to lose money on the a downturn. They're trying to account for worst case scenarios. So on a typical portfolio with an average FICO score of 710, 720, which is you know only the top 40% of credit worthy, you know, US credit credit profiles, um, banks are only making two, two and a half percent. If you look at where they're making the money, they're making five, six, seven percent on the people below six sixty, and they're making less than two percent on the people above seven eighty. So it's a large range of what's going in there. If you were to move that APR down to 10%, the revolving people, you're gonna be risk-priced out, right? Anybody who is a 720 FICO with a 4% loss rate's not gonna get a credit card. You're gonna be basically lending to the best of the best, and all of a sudden you start getting into how do you make more money? You're gonna have to start implementing annual fees to be able to get the right returns. The banks aren't gonna lend money to people that are gonna lose them money. They're not in the game, it's just not sustainable. A 10% APR is impossible in today's environment with just the cost to carry money and the cost to operate, you're at 8%. Even if you revolve at 60% at 10% interest rate, you're at 6%. You're at underwater by 2%. Fees, interchange, rewards, rewards are gonna go away, right? So, you know, what's the value of using a credit card for half of those people that are 780 plus? Only use the credit card because they don't need to. They use it for the rewards. If those go away, why am I gonna pay an annual fee? You're gonna crush the ability for any company to lend a credit card out there. It's just impossible without annual fees, and the annual fees are gonna come with value. What's the value prop? Rewards. So those annual fees aren't gonna be 95 bucks. You're gonna see a lot more 200, 300, 400 annual fees to get a credit card that you can get returns. And the only people that are gonna afford them are the people that can afford to charge 10 grand a month, five grand a month on their credit card and pay. Pay it off in full. Um, so you're really gonna disrupt the people who need the credit card are never gonna be allowed to get it. So anybody who's out there saying, I hope they do it, I hope the government is able to get the banks to to whittle down to a 10% interest rate, guess what? If they do that, you're not gonna keep a credit card. Just taking a a general the best of the best in a credit card environment at a 1799% interest rate, those guys only revolve at like 30% or 25%. They're at a six percent interest rate. You know, those guys have a three percent cost of funds, a three percent operating cost, and a one percent loss rate. You know, they're at seven percent cost at a six percent gain. You know, you're upside down before you even start talking about fees, interchange, and rewards. Um, when you you add in a half or s half a percent on fees because they're very low risk, not a lot of um bounce checks and late fees. Um interchange a little higher, call it two and a half, three percent, and your rewards are higher at two and a half, three percent. So you're upside down. Like a credit card customer that is the lowest interest rate right now is losing bank's money. So they have to enact an annual fee just to call back that money to get to the point where they can justify lending to you. At a ten percent interest rate, you're gonna have maybe four percent interest gained because only forty percent of the people are gonna revolve, maybe less. So call it three, three and a half percent interest, um, you know, three percent cost to borrow, three percent operating cost, one percent losses, you know, you're negative four percent before you get into the fees, interchange, and rewards. And if you're gonna need to do rewards, so it wipes out your interchange completely. So you're gonna be at negative three or four percent before all's being said and done on the best of the best customers out there, which means those annual fees are gonna have to be three to four times the size they are today. So you're talking again, like I said, four or five, six hundred dollar annual fees. So, all in all, in general, I just want to make sure there's not that misconception of you know the banks are making hand over fist tons of money. The banks make a lot of money, but it's based on volume, not based on individual accounts. They're not making crazy returns of 10, 11, 12%. Now, let me caveat, there are lending institutions out there, not traditional banks, that focus on just people below 650 FICO, there's some that focus on 500 FICO, there's people who focus on people who don't have a credit report, and they're charging interest rates or equivalent of interest that are 80%, 100%, and above. Like those are out there, but it's all risk-based priced. The bank would never lend you money if they couldn't charge you that amount of revenue to bring it back to justify the returns. Now, those returns on the super, super subprime type businesses, let's just take somebody who lends 580 to 640, the loss rates on that are 15, 16%. Right? So to charge interest up there, you know, even though you might have a revolving of 70 or 80%, you know, a quarter of those people aren't going to pay that interest anyway. So interest doesn't matter if you don't if the customer doesn't pay it. So yes, those guys may be making 10%, 15% returns, but they're also taking 15, 20% losses. So if those losses increase again the resiliency by 50%, that 15% also all all of a sudden drops down to 5%. If we have an economic downturn, the big one that occurs, it could be upside down. So everything is done for a reason. It's not done to try and ding the customer. Again, a credit card is a is a privilege, it's not a right. You don't have to take a credit card. It's your pr personal you know preference to say a credit card is the way I want to do this, and a lot of people just put everything they charge on a credit card and pay it off in full every month because they want the rewards. Others are using it because that's the only way they can do it to buy something that may be a necessity or you know a luxury. You have to make that decision individually, but the banks are not making a ton of money on these. When I talk about banks, I'm talking about the major banks, you know, credit unions, um, you know, you know, the larger, you know, regional banks like a PNC, a Navy Federal Credit Union, um, you know, you have uh Aberdeen Proving Ground, which is right here near me. You know, and a lot of those places as they make more money, you get those back in dividends from having accounts with them. So they share in the profits if they're doing better than they thought they would. But all in all, hopefully that makes sense. Um I'd love to see some comments out there on your thoughts, different opinions, how you feel about um the credit card environment, a lot of the stuff that's been talked about, um, how you felt about it before and after kind of this little uh little education seminar. Hopefully it makes sense. I I know I'm gonna get a lot of feedback from uh the guys I've worked with in the industry in the credit card um environment for a while. I have a lot of clients that are are uh in the credit card environment. So interesting to see their feedback and pushback and see if I get yelled at or applauded, I can see it going both ways in either way. Um but I just want to make sure that uh the banks are trying to do the right thing, give the customer the ability to have access to credit and disposable income to spread out over time as opposed to shortening yourself if you have an emergency to replace a tire. You don't want to you know get cash poor, you know, use a credit card, pay it off over time. Perfectly logical, but the banks aren't making crazy returns on it, they're making reasonable returns that are based on the risk of the customers they're lending to, and everything is set up that way. The banks would rather drop interest rates to attract more customers than charge more to make more, right? If they charge more to make more, it's gonna be less and less of the good people and more and more of the risky people. That's not where they want to be. They want to set the price and the risk of the credit card they're offering you to match what your physical risk is based on your average profile compared to the bank of 350 million Americans that are in the credit database. And the banks know for sure based on your credit profile, 100% if there's a a thousand of you that look the same, you're gonna perform X. And that's guaranteed. There will be some that perform much better, there will be some that perform much worse. But on average, banks are very good at isolating this is what you're gonna look like. So this is what we need to charge you an APR, and this is what we need to give you in a credit line. So it's surgical, it's targeted, it's not a whim, it's not trying to optimize how much money they can make. They're making sure that the money they make balances with the risk they're taking. So if your losses are X, they want their profit to be Y. And they're very targeted in that. They'd love to make more, but they also know if they try to push the envelope and make more, you see it from me having done this for 30 years, four different economic cycles, you start to get greedy, you start to lose some of your best customers, and your ratios fall off, and it just doesn't work. You've seen a lot of companies fail because of that, and I won't get into that, but that's that's a big one. So um what I'll say is hopefully this was educational for everyone. Uh it's just been a lot of conversations I've had with people that just don't understand it and it gets frustrating. Um, and I try try to tend to be kind of nice about it sometimes, but this kind of gave me the opportunity to just kind of give all the information at once, not have to go back and forth forth and debate it. Um but I'm happy to debate it. If anybody wants to have a conversation, happy to do so. Um but this is kind of the background of you know credit cards in general, uh the evolution since that 2008 to 2010, where there's a lot of legislation put on the credit card banks that basically hurt the customer, not the banks, it hurt the customer. The bank's not gonna keep going unless they make money. So when the when the government starts putting parameters on there, the government the bank has to make money to make up for that shortfall. They're not gonna run at a negative um profit on purpose, they're gonna make money or else they're not gonna lend. They're gonna shut it down. So that money was pushed back on the customers. That's why late fees are no longer $10 bucks, they're $39, right? They're you're not seeing a $999 interest rate, you're seeing $17.99. The government forced a lot of things on the banks, and unfortunately, it's just is what it is. And you know, going back, like I said, the money that was a bailout that was forced on the banks was paid back with interest. So there was no free float for the banks. The banks didn't want to take the money, they were forced to take the money, and they paid it back with interest. Um, credit cards are a privilege, not a right, and I'll say it again. Um and again, you know, they're not trying to rake you through the calls, they're trying to price you appropriately and charge you the interest that's appropriate for your profile. Um hopefully I didn't uh make any enemies and you don't uh unsubscribe, but remember we got a watch giveaway coming up, so hitting that subscription button if you haven't already, or the follow on any of the social media outlets, each one of those is gonna get you some entries. Um like the videos across all the platforms, not just on one, do it on all of them. Even more entries at compound. And lastly, comment. Comments get you in there too, and I'd love to hear them. We try to answer everyone when we we get them in. Um so love to hear back on this one. This one I think is gonna be a hot topic. Um we'll see. And I'm sure I'll hear a lot about it in email and teams messages once this launches, but it's gonna be fun. Um this is the first part of the segment. We're gonna have a couple more parts of the segment. Um just got the cyber truck rewrap, some accessories added on. So we had a lot of fun with that. I think you guys are gonna love it. Uh, I love it. I know cyber trucks are kind of a uh you know an acquired taste. It's a love-hate relationship, but I think this one, uh, the people who hate it, the wrap I had on the last one, the blue one, really love this one. Uh again, it's my fun car, my everyday drivers, my GMC 2500 Sierra. Uh, but this one's a fun one, and what we did to it is amazing. I think you're gonna love it. And another segment is gonna be us kind of giving you a preview of all the watches that are gonna be part that you're gonna be able to choose in the giveaway. We're gonna go through and kind of give you a quick sample, go through, show you what's in there for you to choose from, uh, and then go from there. And uh, I think it's gonna be a lot of fun with those two segments and uh you know, kind of wrap up this first segment, you know, finishing up on the watch side, figure to say, um, you know, what am I wearing on the wrist today? Um so we'll go over here on the sidebar and um this is uh my tag horrier turbion. It's uh the Carrera Calibre Hoyer 02T. Um I got it back Christmas 2019 uh coming off our our best year um at that point, uh 2020. Obviously, kind of went package with with COVID, but uh this was a lot of fun. It's very crisp and clean. You can see the turbillon cage there at the six o'clock marker. Um Devin will get some uh some uh good glamour shots of it. Uh it's got a nice display back. Uh it's very clean. It came with a brown leather strap. That was okay, it was fairly comfortable, just didn't really feel like it was the right fit for me. Um I loved to wear it in the beginning. I wore it a couple times when it was hot out, the sweat bled into the leather, so it didn't look good, so it took forever to get that out. Finally found this, uh it's a tag warrior sports band um that's very, very comfortable. It feels good on the wrist. Uh, and I can wear it as a dress watch or a sport watch. Um, but again, another one that for me was coming off an incredible 2019, a good year, had a lot of work, didn't really take much time off. It was just grinding it out. But uh it's a really fun watch. So hopefully you guys enjoy taking a look at that one. Uh we'll get some glamour shots and close-ups, but stay tuned. The next two segments, completely fun stuff. We'll go take a look at all the watches that are gonna be part of the giveaway. Um, and then finally coming back to the main camera, we're gonna take a look and get some segments from uh from Tint World where we got the Cybertruck wrapped, some accessories put on there, some undermount lights, uh, some fun lights on the front, um, some upward uh off-road lights up top, all kinds of stuff. The whole thing kind of blends in perfectly, and I love it. It's a lot of fun. So hopefully you guys like it too. And again, stay tuned. Next episode, make sure you stay tuned for the next two segments. But next episode coming up in April, we'll have a blast and uh on to the next topic. Thanks, guys. We've got a fun one for you today. Uh as you know, you've seen a few of my trucks. Uh the Sierra is my main baby. I'd love to drive her every day. Uh, got her wrapped in that matte black that you guys might have seen the change from the original episodes. Um, the guys who do that, a company called Tint World up here in Wilmington, Delaware, they're great. Anywhere from tent to wraps to electronics to upgrades to car stereos, uh, they do it all, and they're great guys to work with. Dennis here is one of my guys that I work with all the time, do a lot of stuff for my different cars. Um, but I had some ideas. Uh, as you might or may not know, I have a Cyber Truck as well, uh, the Cyber Beast version. So it's uh an unnecessarily drag racing uh pickup truck, um, if you want to call it a pickup truck. It's a very uh polarizing vehicle uh for most people. But uh I had some ideas um about what I want, you know, a lot of fandom that I have in my in my background for sports, for comic books, uh, you know, whether it's Marvel, DC, whatever, uh, a lot of good stuff that I really like to follow and and uh and and and do different things around. Uh but as you'll see today, I'm not gonna give it away. We'll wait till the the reveal of the car, but had the ideas and the specs, gave it to Tent World. They came back with a plan, uh, some upgrades and some things and differences of what I thought and what they thought would go better. And evidently it's ready to go. We're here today. If it's a little bit of an indication, got my Wayne Enterprises t-shirt on, uh, got my my Rolex on. Uh that if anybody knows anything about Rolex, you know what version that is. Uh, and then uh I got my uh my black and blue Jordans on as well. So it's gonna be a lot of fun, but uh let's head in, uh talk to Dennis and the crew and see uh how it ended up.

SPEAKER_02 36:25

All right.

SPEAKER_01 36:50

We did light tint on it. We did a custom wrap. Uh it's called Tint World, but we do way more than that. We specialize in PPF, vinyl wrap, ceramic coatings, 12 volt lighting, uh alarms, remote starts.

SPEAKER_00 37:07

I heard it looks awesome. Yeah, you excited? I'm excited. Yeah, so am I. So am I, man. Hey, see you excited, dude. I can't wait to see you to see it. You're gonna be really happy. Yeah, I'm pumped. I've been waiting for it forever, man. It looks fucking dope. Dre Python stuff. You got the lights welcome me in. Bodyguard. Alright, all right, I'm ready, let's fucking go. Oh shit. What like it looked great on paper, yeah, but it is nothing compared to like on the car. Like the lines pop a lot more than they thought. With a joker. Like I can't wait for the first person to pull up behind me on the way home today. You're gonna be freaked out. He's electric will always be the joker to me. Let's shout out the Jack Nicholson, so he was very cute. This is amazing. It looks mean too. For a cyber truck, for like an electric vehicle, it actually looks cool. Thought the blue was cool, but this is makes it look makes the blue look stupid. Love the lights. And it looks like it's bracketed on unlike the Tesla one that they just try to glue on. Did anybody tell you like I they put the glued off-road bar on mine and going down the high one 896 it just flew off? Yeah, wind got under, flew off. This is amazing. Oh yeah, it turned out better than the pictures. The lights and everything just impossible. Can't wait to drive the light too.

SPEAKER_01 40:23

I agree. I think it turned out great. Glad we got the opportunity to do it for you. It wouldn't change a thing. Yeah. It turned out really, really good. The lights, everything. Perfect. It all ties in together really, really well.

SPEAKER_02 40:35

Yeah.

SPEAKER_01 40:36

I like the uh the Batman theme that you went with. It's pretty cool. Yeah, I like both the Bruce Wayne and the Wayne Enterprises and the Batman together. Yeah, absolutely. Yeah, the uh the wrap here was it's pretty intricate wrap as you can see, all the lines and all that stuff. So we have to line them all up, which is pretty tedious, but we've done quite a few of them. So this is perfect. Walk in the park. Uh another thing we got here for you is the uh the boring light from Tesla, which is all RGB color wheel controlled. You can hit every color in the spectrum. Same with your XK glow lights down below, and we've got the XK glow light up here as well. And on the sides down here, these little accent lights down between the door. Yeah. That uh all of them are singularly controlled. You can control them all together. Sink them all up, yeah. Sink them all up, offset them different colors of the game. Have them have them flash Christmas colors, whatever you want.

SPEAKER_00 41:57

Different season, having the pre-programmed setting for Christmas. Yeah, they'll sync a B T. It'll go with the B the K.

SPEAKER_01 42:06

Really? Yeah. Yep. And also we've got the uh XR Plus from Xpel, 20% on the front, and the quarter windows here to match the back is easy key. Yeah, they look exactly. Yeah. Yeah, and uh up here, your your light's not gonna fly off on the freeway this time. It's not very well. Yeah.

SPEAKER_00 42:28

The original on the original one was just glued on. And it wasn't really arched like that one too, so it just glued on me. Yeah, it all takes anybody with you.

SPEAKER_01 42:40

Yeah, yeah, that would have been not good for anyone behind you. I think it ties in together really well. The shape of the shape of the looks like it was built for it. It follows the body lines very, very well. My f one of my favorite things back here is this uh this joker, Heath Ledger. That's one of my favorite parts about it, even though it's one of the smaller parts. Yeah, no, it's a perfect looking even with how small it is. Yeah, and it's like perfect on that little bending on the bottom. Yeah, yeah. Yeah. I think it turned out really well. Yeah, this is perfect. It's one of our one of my favorite projects that we've done here. Yeah, no, this is uh my favorite one you've done. Not to say the other ones weren't awesome, but this one's fun. Yeah, this one was this one was above and beyond. Yeah. Yeah. I really I'm I'm happy with it game. Everyone here is super happy. This is amazing. Absolutely perfect. I agree. Glad you're happy. Yeah, man. Because we we definitely are. I really like how it came out. Yeah, absolutely. Glad we got a chance to do it. Yeah.

SPEAKER_00 47:03

Much, much more positive than the blue or the plain silver show. Thank you guys for tuning in. The watch giveaway. Hope you enjoy all the watches we're gonna be showing off. But our winner, TikTok, Jason from TikTok, one of our followers. He is the winner. Devin will be reaching out to you directly. And you can take a look at all the watches here. It's gonna be a lot of fun and your choice. You know, we'll get together and figure out what that is. But make sure you guys are out there following, subscribing, you know, getting those likes and those comments in there. A lot of likes and comments and stuff like that, and not as many followers. So you get the most uh points for the follows and then the subscribe. So make sure you do that. 10,290 entries exactly for this first giveaway. And hopefully it's only up from there. Thanks everybody. Hope you enjoyed it. See you next time. Hold on, just for uh making sure we understand. Jason from TikTok had 50 entries total, so that was just a follow on TikTok, and he was able to get it. So maximize your opportunities. Follow, subscribe across all the platforms, like and comment on all the videos, and you maximize your chances. But you know, this being our first one, Jason nailed it with just one follow on TikTok. So congrats, Jason. Uh looking forward to see which watch you choose. Have a good one.