Been gone for 3 weeks... helping my 80+ mother in Florida recover from a heart attack. I'm back in CA now and my mother is doing very well. I thank all of you for the many PMs I got expressing kind thoughts.
An agent friend of mine brought up an interesting point the other day. He looked at the car I drive and said "No one is going to buy financial products from you if you pull up to their home or office in THAT!"
I drive a (paid for) 2004 Honda Civic EX... clean, no dents, etc... not a junker. But it got me thinking. Do you think people REALLY judge you by what you drive (assuming you're not driving up in a beater)?
I can afford any car out there... but I'm practical, I'm not a "car guy," and the Civic fills my need to get from point A to B comfortably and economically.
All things being equal do you think agents should drive luxury cars? I notice that I NEVER see another agent (health, life, DI, whatever) driving a Honda Civic. Out here BMW is the vehicle of choice for agents, if you believe my unscientific study of the parking lot when some carrier is having a road-show.
Do you think high net-worth people really care what their agent drives (so long as it is clean and presentable)?
"But it got me thinking. Do you think people REALLY judge you by what you drive (assuming you're not driving up in a beater)?"
Only the stupid ones.
A car is the worst possible example of financial waste out there. Anything that loses half it's value with a first turn of the key is simply dumb. However, that said, are you trying to make sales or smarter clients? You can be absolutely correct mathmatically and not make any sales.
Try negotiating a really tight, 2 year lease on a BMW. They hold their value which equals very favorable lease prices. Full service for four years --including oil changes, wiper blades, whatever. Same sticker price on a BMW leases for half the cost of a certain line of American luxury cars that lost billions this quarter.
As for what people think, who cares? You're now driving a car that will make you wonder why you ever drove anything else. Unless, of course, you're not a car person.
A new $50,000 BMW will loose value the second you drive it off the lot; and it won't take you back and forth between appointments any more effectively than a $20,000 Honda.
If your only reason for considering the purchase of a high-end luxury vehicle is the "perception" of success it may create to your prospective Clients I don't know that that is a good enough reason.
I too can "afford" to drive any car on the market today (well, just about any), but I drive a 2007 4-CYL Honda Accord. It's certainly not a BMW, but it's great on gas, it has a nice navigation system, and it has all of the upgraded bells and whistles that a Professional might want in a vehicle.
I mean - as Agents, we have to have cars that are reliable and in tip-top condition, and we certainly don't want to drive up to a Client's home or office in something that screams "Please buy from me - I need this sale!", but as an Agent who is selling financial products and trying to educate my Clients on ways to save, invest and protect money - I think it helps to convey that I myself am conscientious of my own spending habits in how and where I choose to invest my own money. And we all know that anything that automatically losses value right after you buy it is certainly not an investment. Of course your high net-worth Clients aren't going to think twice about you driving a high-end luxury vehicle, but I have heard a couple of Agents say that they were "judged" negatively by prospective Clients who were turned-off when they drove up in their BMWs or Mercedes b/c as we all know, there is that segment of people out there who think we all sell snake oil and get rich off of the premiums of those struggling just to make ends meet. So again, the perception that is created by that brand new luxury vehicle will depend on whose looking.
Now, all that being said - I have nothing against BMWs or Mercedes. They are awesome cars. I have owned a BMW before and I'll probably own one again before its all said and done; but I probably will not drive it to any of my appointments b/c the Honda is sooo much better on gas.
Last edited by Agent4Life : 05-03-2008 at 09:53 PM.
I drove a 1991 Mazda Protege for the last 3 years (I now have a Nissan Maxima, 1998). I never lost a sale due to my car. The only reason I don't drive it is I got a really good deal on the maxima from a friend.
I kept the Mazda clean and it still shined really well if I waxed it, to where you never knew it was 15+ years old.
My highest net worth client (CEO of a local bank chain) drove a 5+ year old Lincoln.
BMW = Big Money Waster Mind you I think the M3 is a hell of a car, but for the money, get a vette.
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"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan
A lot depends on the area you are in. I drive a Jaguar, and it gets noticed, people think that I'm successful based on the car. of course, if I get out and I'm in tennis shoes and a t-shirt, it doesn't do any good.
I know people who drive Prius's for the 'green-value', which give a practical impression to clients.
I think if you are in more rural areas, this could work against you.
My jaguar is a 2000 S-Type, looks new, but it's actually a pretty practical car. I would drive anything that looks clean without worrying about it much. Very few clients see your car.
We have a broker with Wachovia Securities who's book of business is probably 10 times the next best within a 50 miles radius. Obviously, he's very successful. He drives a late model Accord. Hasn't hurt his business.
We have a broker with Wachovia Securities who's book of business is probably 10 times the next best within a 50 miles radius. Obviously, he's very successful. He drives a late model Accord. Hasn't hurt his business.
Of course, he also has a King Air.
Maybe he drives an Accord because unlike some people, he can't afford any car out there...
Rick
------------------------------------ ILIAA
Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
Last week I made the decision to buy a new car. My trusty Subaru has over 190,000 miles on it, no air conditioning, oil leak, and lots of rock chips all over the paint so...it was time.
Like Al, I can afford any car I want. I chose a new Mazda3 hatchback. It's in the same class a Honda Civic but I like it a little better.
Now here is a real world example of how much you lose as soon as you drive off the lot...
I test drove a red one and liked it. Worked out a deal on the exact same car in silver. They got it in. I paid for it and drove it home. After a couple of days, I started figuring out some of the standard features I was supposed to get weren't on my car (Electric power seat being the main one.) I went back to the dealer and they said I'm wrong none of them have that feature (they sold the red one by then and didn't have any in stock but I KNEW the red one had power seats.)
I research on the internet forums and sure enough Mazda had 2008.5 models that had come out in January with many upgraded features including power seats and new Bose Sound Systems for no additional cost over the older 2008s. I was PISSED. I was baited and switched.
Now I had the car for 4-days and 350 miles before I figured this out. But to trade it for the 2008.5 model (that I was supposed to get in the first place) they said my car has already lost $7,500 in value. And this is only a $22,000 car to begin with.
I'm very mad at myself for not doing MORE research before I allowed myself to be screwed by these dirtballs. I tend to think people will do the right thing but I occasionally get disappointed.
In Alabama, we drive trucks. Doesn't matter if you drive a Bright Red '01 Dodge Ram 1500 like I do or a navy blue, older (but very well kept), 70-something Ford like our County Probate Judge drives. All my agent-friends in town are driving trucks from newer to older.......and it makes no difference the make, model, color, or whatever.
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Tim Lett
P.O. Box 1617
Gadsden, AL 35902
You're going to drive whatever you want based on whatever floats your boat.
The original question was about client perception. You can argue either way: 1) a modest car means this person will look after my money like he looks after his, or 2) an expensive car means this person is successful, does well, and that is the type of person I want in my corner.
In my opinion the biggest waste of money in the world is a swimming pool. I have one and I wish I didn't. However, millions of people love their pools and to them the money is well spent.
As for cars, I enjoy driving and a BMW definitely floats my boat. I do lean towards argument #2 --but I have another business where the car perception is more important than insurance. In any event, if I was totally convinced that it made no difference, I would still lease and get what I enjoy driving every two years while also avoiding the hassle of salesmen and maintenance.
Personally, when go on appointments I drive my 07 Ford Fusion, great work car 30mgp, leather seats, navigation... everything any agent needs. Now when the weekend comes you can catch me playing in my crew cab 4wheel drive truck.
Drive whatever you like and feel comfortable in, however some clients do think that if you drive up in an expensive, fancy automobile that you will try and stick them with a high dollar premium in order to pay for that car. I actually had an old farmer tell me that this past year.
Anyway if they have a problem with what you drive perhaps there is a bigger issue than insurance coverage.
Drive whatever you like and feel comfortable in, however some clients do think that if you drive up in an expensive, fancy automobile that you will try and stick them with a high dollar premium in order to pay for that car. I actually had an old farmer tell me that this past year.
Excellent point. The vehicle should really suit your target clientele.
I recently met with a client at their house, the reconstruction cost worked out to be right around $4,000,000. She made a comment about how nice my car looked sitting in front of her home.
Now, I only have a handful of multi-million dollar reconstruction cost homes insured (not really my target market). I have a lot in the $400K - $750K range, which is my target market.
Very few of my clients have seen my car. They come to my office.
Here in Eastern NC, the economy is still primarily agricultural. Therefore, most men, agents included, drive pickups. I don't, because of the fuel economy (or lack thereof). I have a 94 Lincoln Town Car, and a 99 Buick Park Avenue, and have never heard any comments from any of my clients, about them.
I don't actually know any agents in this area that drive BMW's, although there are some in the nearest large town (Kinston, NC). In general, I want my clients to feel comfortable, but also to know that I'm doing well. To my clients, the cars I drive represent that. However, the average income of my clientele is approximately 35-40k per year, so I guess if you are dealing with a client base with a 250k per year average income, a Bimmer makes sense.
Dave
------------------------------------ 3rd Generation Independent Agent- L&H Only
Last edited by gradyinsurance : 05-05-2008 at 10:14 PM.
I have a client that works on the 7th floor of the Bank of America building, in Midtown Atlanta, exactly 170 paces from the Midtown MARTA (Metropolitan Atlanta Rapid Transit Authority) train station.
He asked me at our first meeting if I had any trouble finding a parking spot, and when I told him I took MARTA to get there, he responded, "Smart Man." He's been my client for four years and provided me with three leads.
With Gas at $3 - $4 a gallon, the intelligent among us won't have a problem if you don't drive up in a BMW. I have a Ford Taurus SEL, with a BRAVES sticker along the right side of the car. I usually get, "Hey, you're a Braves Fan? That Chipper Jones is hitting 424 now, wow. Say..."
Tomorrow is the first day in the past five business days that I will actually drive to an appointment. It's not on a MARTA line, but is at Senior Facility, where I will be meeting several contacts.
Since I've used rapid transit more (for the past 6 months), we have been saving $45 to $68 per week. A weekly, unlimited trip, Breeze Card on MARTA is $13. With the exception of the Decatur and Arts Center Station, I get coverage on my cell phone, and conduct business while on the train. I've even made cold call presentations on the East-West Train, coming from Five Points Station to Avondale (twenty minute trip). Noone seemed to mind, and I actually got three people ask for my card before they got off the train.
Practicality = Success
Building relationships with people like you = Success
Will clients be concerned about the car you drive?
Only the ones who think material things make the person.
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"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan
BMW = Success?
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