Do brokers HAVE TO drive a good car?

Are you trying to maintain the image of someone who drives a luxury car or are you trying to maintain the image of someone who makes smart financial decisions?

When I go into a house in an upper middle class neighborhood  and there are two nice cars in the driveway, they seldom have much money.   On the other hand, if there are two older mid-level cars, the client almost always has money.

In other words, the clients who will care about your car probably don't make good clients.

Before I entered my practice I had bought a used mid-high end luxury car prudently.

It had about 90k miles on it and I got it for about 40% of the original sticker price.

Now it's about 4 1/2 years later and I just passed the 200k mile mark.   I could still probably get about 15% of the original sticker if I sold it.

When i'm ready for my next vehicle I will still buy a quality used car but possibly get one with a little less cache.

scrim

[quote=anonymous]

Are you trying to maintain the image of someone who drives a luxury car or are you trying to maintain the image of someone who makes smart financial decisions?

When I go into a house in an upper middle class neighborhood  and there are two nice cars in the driveway, they seldom have much money.   On the other hand, if there are two older mid-level cars, the client almost always has money.

In other words, the clients who will care about your car probably don't make good clients.

Depends on your style of business.  If you are out working CPA’s and Attorney’s for referrals and taking them to lunch you better not show up in an old toyota.  If you are meeting in your office with clients I don’t think they look through the parking lot trying to figure out what you are driving. 

Good car versus luxury car? My current go to meetings rides are a Jeep GC and a Toyota Camry. If clients are saying anything negative, they haven't said it to me.

While there is nothing wrong with being thrifty, as a successful advisor, gas money shouldn't be an issue. With your mileage the out of pocket gas money difference between an econobox and a luxury car would be in the $1500 per year range.

The bigger issue is the depreciation hit the big miles would put on your wallet. The mileage you're driving will kill the value of your car. Case in point; I traded a 4 year old Accord with 97k on it. Real money, I got $8500. The car cost me $21,000. Approximately a 60% hit over four years, $12,500. Those same numbers applied to a BMW 325CI, with a $52,000 price tag would be over $30,000 in depreciation. I picked this car as an example because it was originally what we were going to buy. My wife didn't like it and that saved us $17,000 in depreciation.

The smarter move would be to continue driving the Toyota. A compromise would be to find a low end luxury car like an Acura TL or a Toyata Avalon XLS. Both cars can be had for under 35k and are great cars, though very different. A step down would be to pick up a loaded Camry or Accord. We've had both and it's never interfered with business. Lastly, a Prius Hybrid may be the best choice. It can be had in the low 20s, is very "in", and gets great gas mileage. Rich folks love these things.

Allways go with what your wife says

in all seriousnes i agree with your wife. you never know when/who your gonna come across in your day. and as corny as it sounds...image is everything

This is really interesting because I recently had this conversation with my family over the dinner table. My uncle is a lawyer, and his father is a doctor, and they were saying that it could be bad for their professional image to drive expensive cars, since their clients might feel they were being overcharged for their services to pay for extravagant things for their doctor/lawyer.  On the other hand, a real estate agent is usually better off driving a nicer car, since clients tend to see and possibly ride in the car and it projects the image that they're good at what they're doing (can get you a higher price for your house).  I brought up the financial advisor point, where on the one hand, you want your clients to know that you are sucessful and can manage your money, but you don't want to come off as the person who wastes ridiculous amounts on brand new cars that don't hold their value any better.

I like the Prius idea, bondguy (it makes me think of Larry David) and for those who like their fancy cars, more and more luxury brands are adding hybrid vehicles so you can at least save a little on gas if not in depreciation 

I firmly believe it depends on who you are trying to attract as
clients.  Being practical is fine, but being cheap isn’t. 
Fine line sometimes I know.  I did find it right in line with
Jones (whom I just left last month) that nobody drove a “new
car.”  Seg 4 and 5’s driving a 10 year old beater made me a little
curious.  And bear in mind I am small town midwest, not trying to
generalize to Jones as a whole.  But the rep down the street from
me who just became Seg 5 after 12 years driving a late 90’s GMC truck
with a topper and a busted rear tail light made me say hmm.

I think people are right on here that in most cases - clients impressed by material goods rarely make good INVESTMENT clients.  While some wealthy clients might drive nice cars, I seriously doubt they look at a vehicle as a sign of wealth or success. 

Having said that - don’t destroy your credibility by pulling up in a smoke spewing junker.

I think it depends on where you live.  I get by just find and blend right in with my clients by driving a 4x4 Blazer.  If I had anything "real fancy" people would suspect that I am fleecing them or spending way to much money on bling .

It is strange though because on the rare occasion I drive our 67 Chevy Stepside no one considers that the $$ invested in restoring that vehicle is much more than the cost of a modest new car.   

Drive something about equal to what your clients drive and save the Boxter or classic Corvette for personal time.

just get a ferrari…so as long as it’s not yellow, rizzy’s the color nugga!

People like to do business with people with whom they can relate and that look like they do.

Advisors should generally drive the same types of vehicles that their ideal clients drive. If you're ideal clients are farmers - chances are that you should drive a Ford F150, venture capitalists - probably a Bentley.

Okay…most of my clients are lesbian biker chicks…what should I drive?

[quote=bspears]Okay...most of my clients are lesbian biker chicks...what should I drive?[/quote]

Lesbian's tend to like Subaru Outbacks so you may want to check that out.  Good luck.

[quote=bspears]Okay...most of my clients are lesbian biker chicks...what should I drive?[/quote]

Ford Probe...'nuff said

When I was a trainee I drove an old Pontiac with 200k miles.  I
had one wealthy prospect open an account with me because he liked my
thrifty nature.  I never had anyone say anything negative about my
inexpensive cars and I have consistantly been in the top
quintile.  Old cars never hurt my production.

I drive a 90K luxury car because **I** like it.  What people think about it is THEIR problem.

I've never lost/gained a client because of it.

2002 Expedition. pretty versatile image there

I REALLY like my automobile. I bought it used. Nothing fancy or anything a client couldn't get their hands on fairly easily. It's probably the best car I could get my hands on without venturing into BMW, Audi territory.

Also, I didn't want to be one of those guys who want a car like a BMW, Mercedes or Audi but could only (barely) afford the base model, i.e. C class, 3 Series of an A4 1.8T. If I'm going to venture into luxury territory, I'm going to wait until I can do it big - E/S Class, 5/7 Series, A8.

Meanwhile I'll stick to the loaded/Used Nissans and Toyotas.

[quote=bspears]Okay...most of my clients are lesbian biker chicks...what should I drive?[/quote]

Toyota Rav4

[quote=Ferris Bueller]I drive a 90K luxury car because I like it.  What people think about it is THEIR problem.

I've never lost/gained a client because of it.[/quote]

Maybe...maybe not.  You may have lost and/or gained clients and not even knew it.  That being said, I don't think it makes much difference as long as you're not too far in the extreme.  I can't imagine driving a smoking piece piece of crap or a million dollar Ferrari, but other than that, I doubt if there's much impact either way in my market.  My personal choice is to spend 20-30K for a respectable vehicle and bank the rest...too much gravel and road salt, and too many coal trucks in the industrial midwest...I'd be afraid to back a 90K luxury car out of the garage.  At the same time, I can't think of any clients who would be offended if I decided to drive a car like Bueller's.

[quote=Indyone][quote=Ferris Bueller]I drive a 90K luxury car because I like it.  What people think about it is THEIR problem.

I've never lost/gained a client because of it.[/quote]

Maybe...maybe not.  You may have lost and/or gained clients and not even knew it.  That being said, I don't think it makes much difference as long as you're not too far in the extreme.  I can't imagine driving a smoking piece piece of crap or a million dollar Ferrari, but other than that, I doubt if there's much impact either way in my market.  My personal choice is to spend 20-30K for a respectable vehicle and bank the rest...too much gravel and road salt, and too many coal trucks in the industrial midwest...I'd be afraid to back a 90K luxury car out of the garage.  At the same time, I can't think of any clients who would be offended if I decided to drive a car like Bueller's.

[quote=707SE]

I REALLY like my automobile. I bought it used. Nothing fancy or anything a client couldn't get their hands on fairly easily. It's probably the best car I could get my hands on without venturing into BMW, Audi territory.

Also, I didn't want to be one of those guys who want a car like a BMW, Mercedes or Audi but could only (barely) afford the base model, i.e. C class, 3 Series of an A4 1.8T. If I'm going to venture into luxury territory, I'm going to wait until I can do it big - E/S Class, 5/7 Series, A8.

Meanwhile I'll stick to the loaded/Used Nissans and Toyotas.

[/quote]

Generally I agree with this. However, it should be noted that with BMW, the 3 series is not an entry level car. It's an ethusiast car in it's own right. As are some renditions of the A4. Many buyers of these cars can afford to go to the bigger car but want a driver's car, not a full boat luxury behemoth.

One of my wealthiest clients drives an A6. He can afford a fleet of S65s. He doesn't want the big Benz and can stand the big Audi.

Another option for the car guys(non gender specific) is to buy a toy car and keep it out of sight of the clients and the help. There is nothing wrong with enjoying the fruits of your hard work. If that fruit happens to have six forward speeds connected to a 400hp engine well then, just rembember, red attracts radar. Have fun and melt those tires!

I go against the grain and do not buy used.  I prefer to know exactly when each oil change took place, how and where it's been driven, and everything in between.  I just bought a 2007 Toyota Tacoma TRD Sport, and I'll probably keep it for the next ten years.  Toyota is the best car manufacturer in the world right now, and I am confident it will last.

I was driving a 1999 Jeep Cherokee Sport, with 165,000 miles on it.  I have kept it as a second car, as I have kept it up well and made repairs as needed.  It's worth much more to me than the $3,500 I might get out of it.

I have no problem buying brand new, because I know I'll have it paid off in 4 years, and no car payment for another 4-6 years (unless I wrap it around a tree or whatnot).  Before I bought this car I hadn't made a car payment in 3 years.

Acura TL.  Clients like Honda.  Safe and reliable. 

[quote=BankFC]

I go against the grain and do not buy used.  I prefer to know exactly when each oil change took place, how and where it's been driven, and everything in between.  I just bought a 2007 Toyota Tacoma TRD Sport, and I'll probably keep it for the next ten years.  Toyota is the best car manufacturer in the world right now, and I am confident it will last.

[/quote]

Last summer I bought a certified used 06 Lincoln Towncar. I too usually buy new, but don't have an aversion to buying used if the car, deal, and dealer are right. From the get go this car had a problem with the transmission that Ford didn't want to help me with. The car was in the shop every month for the seven months I owned it. I put over 2000 miles on 06 Lincoln loaner cars that drove just fine. But mine, the one I owned, step on the gas and get air. Finally, not happy with Ford's final answer that there was nothing more they could do, I drove the car directly from the LM dealer's shop to the closest Toyota dealer I could find and traded it on a Camry. Now, with 7000 miles on the clock, the Camry is having some problems. The front valance is hanging off the car. The car has developed a vibration at 70mph and here's the best one, the trans has developed a severe pause, the exact same problem that got the Lincoln kicked out of the stable. The Camry goes to the shop tomorrow so we'll see. But, world's best built cars? Not the one I'm driving.

I just traded my 98 Nissan Pathfinder 208k for a 2003 Chevy Tahoe 34k LT.  My wife and I will not purchase new…I think, in my area, people will respond better to a Tahoe than a Pathfinder, but who knows???

Buy or lease what you want. I came to the conclusion long ago if someone does or does not do business with me because of what i drive i simply do not want them as a client. This career is already intrusive enough on personal lives don’t go looking for more ways to have yolur lifestyle changed by your work.

[quote=skolbrother]Buy or lease what you want. I came to the conclusion long ago if someone does or does not do business with me because of what i drive i simply do not want them as a client. This career is already intrusive enough on personal lives don't go looking for more ways to have yolur lifestyle changed by your work.[/quote]

Amen brother.

[quote=san fran broker]

People like to do business with people with whom they can relate and that look like they do.

Advisors should generally drive the same types of vehicles that their ideal clients drive. If you're ideal clients are farmers - chances are that you should drive a Ford F150, venture capitalists - probably a Bentley.

[/quote]

My ideal client is a venture capitalist.  However, there aren't any where I live.  Therefore I drive the F150 (supercrew to haul clients on occasion), same thing 1/2 of my clients drive.

I drive a 1994 Isuzu Rodeo that I've had since I started college.  Its a TOTAL piece.  Literally, probably months away from the aforementioned smoking monstrocity.  During the opening of my first account (215m) the prospect made a comment about it and I referred to it as 'my travelling car.'  Tee hee.

I'll lease the badest-ass car I can when I get the money, run up the miles and send it back to those guys for a new one.  Who cares what one prospect thinks, I'll just find another.

I made a joke about it leaving an oil spot on his driveway (which really wasn’t a joke) and he died laughing.

How many of you have clients who are or will be in the market for a vehicle?  Here's what I do:

One of my clients is an automobile wholesaler.  He buys vehicles at the auctions for a number of dealerships in the area.  They, in turn, mark up the cars and sell them to the general public.  He also will buy cars for individuals.  Here's how it works:

You want a 2007 model that the dealership will sell you new for $20K.  John, my client, will get you the same model through the auction -- fully reconditioned and still under full warranty with no more than 5,000 miles -- for around $15,000.   He'll even get it titled and plated for you at the BMV (which is a major selling poiint!).  His charge is $300.  The buyer can then drive the car for 1-2 years and sell it themselves for what they paid for it (or more), then turn around and repeat the process (get another "new" car). 

"With what John saves you, you can make your IRA contribution this year, Mr. Client!"

Find an automobile wholesaler, make sure he's "clean" and network him into your practice.  John has placed more than 100 cars through me to my clients and to a number of the investment wholesalers who call on us (and who like the big savings on high-end imports).

I ride my biike to work since the DUI, clients love it I tell them I am training for a triathalon…

The cars in my office range from the beat up, cheap SUV to the 6 figure import.  The old SUV owner is the largest producer and the import belongs to an advisor who inherited a parent’s book and is now losing clients left and right.

I like nice things but I'm a cheapskate so I tend to pay cash for older but nice cars, I had a '99 Porsche that I traded in on a '99 BMW cause I was concerned about the image a 2 seater "toy" car would give.

In the end I think it's like an extravagant office, we tend to read alot into it, most clients could care less or even notice.

[quote=FL Broker]

How many of you have clients who are or will be in the market for a vehicle?  Here's what I do:

One of my clients is an automobile wholesaler.  He buys vehicles at the auctions for a number of dealerships in the area.  They, in turn, mark up the cars and sell them to the general public.  He also will buy cars for individuals.  Here's how it works:

You want a 2007 model that the dealership will sell you new for $20K.  John, my client, will get you the same model through the auction -- fully reconditioned and still under full warranty with no more than 5,000 miles -- for around $15,000.   He'll even get it titled and plated for you at the BMV (which is a major selling poiint!).  His charge is $300.  The buyer can then drive the car for 1-2 years and sell it themselves for what they paid for it (or more), then turn around and repeat the process (get another "new" car). 

"With what John saves you, you can make your IRA contribution this year, Mr. Client!"

Find an automobile wholesaler, make sure he's "clean" and network him into your practice.  John has placed more than 100 cars through me to my clients and to a number of the investment wholesalers who call on us (and who like the big savings on high-end imports).

[/quote]

I'm glad this has worked for you. However, trusting an auto wholesaler is taking a big leap of faith. Not that the guy is dishonest. It's a risky area to be playing in. You only need one bad car to get pulled into something ugly. Especially in Florida and the southeast where thousands of hurricane damaged flood vehicles escaped before the feds swooped in and started tagging cars. Most FL flood cars are branded with a certificate of destruction. Yet up to this time last year anyone could buy one of these cars on a "for export" only basis. The car then gets shipped to another state and then to another and another, and reregistered until the brand is left off the title. Most unscrupulous dealers know which states don't mark the the titles so, it's not a difficult process to get a title washed. Most interestingly even certified used cars from major foreign manufacturers are showing up with washed titles. Some are flood cars, others rebuilt wrecks. A dealer could export the car and then bring it back.

I have first hand experience with this. I'm somewhat of an expert on BMWs. A few years ago I was in the process of buying a 5 series in Florida sight unseen on ebay. I asked the owner to take pictures of every vin number on the car. That's every body part, plus the dash plate. The guy called me back and told me he could only find the dash plate vin and a vin stamped onto the drivers side B pillar. The B pillar stamp on this Florida car, put there by the state, showed the car was a rebuilt salvage car. Probably a theft recovery rebuilt with non BMW aftermarket body panels. All news to the by now horrified owner who had a clean title in hand.

The message, as always, buyer beware.

[quote=BondGuy]

I'm glad this has worked for you. However, trusting an auto wholesaler is taking a big leap of faith. Not that the guy is dishonest. It's a risky area to be playing in. You only need one bad car to get pulled into something ugly. Especially in Florida and the southeast where thousands of hurricane damaged flood vehicles escaped before the feds swooped in and started tagging cars. Most FL flood cars are branded with a certificate of destruction. Yet up to this time last year anyone could buy one of these cars on a "for export" only basis. The car then gets shipped to another state and then to another and another, and reregistered until the brand is left off the title. Most unscrupulous dealers know which states don't mark the the titles so, it's not a difficult process to get a title washed. Most interestingly even certified used cars from major foreign manufacturers are showing up with washed titles. Some are flood cars, others rebuilt wrecks. A dealer could export the car and then bring it back.

I have first hand experience with this. I'm somewhat of an expert on BMWs. A few years ago I was in the process of buying a 5 series in Florida sight unseen on ebay. I asked the owner to take pictures of every vin number on the car. That's every body part, plus the dash plate. The guy called me back and told me he could only find the dash plate vin and a vin stamped onto the drivers side B pillar. The B pillar stamp on this Florida car, put there by the state, showed the car was a rebuilt salvage car. Probably a theft recovery rebuilt with non BMW aftermarket body panels. All news to the by now horrified owner who had a clean title in hand.

The message, as always, buyer beware.

[/quote]

I can also attest that it is VERY easy to "wash" a title, i.e. go from a salvage title to a clean regular title, especially when you go across state lines.

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The presentation is an important strategy. If you are presenting yourself as a corporate level agent, it is more likely that the customer will like you and trust you.
That’s the advantage.
Take your luxury car when you are meeting a big client.

Yes, I think it is important to a great extent..

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