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You Are Not What You Drive

By
Real Estate Broker/Owner with 3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. #9001154

Inspired by the constant debate about the "agent's car image" from another forum that I frequent, I have decided to chime in my two cents worth. (This blog is purely to discuss the car image only).

There are 2 basic schools of thought: One who thinks that the "car image" reflects SUCCESS and the other who thinks as long as the vehicle is clean and reliable, that should be all that matters.

  I drive a 1999 Honda Accord. The market where I mostly range in the low 100Ks to about 300-400K range. Most of my clients drive Accords, Camrys, Civics, Corollas, Madzas, Mitsubishis, Tundras, Tacomas, Jeep Cherookees, Sentras, Altimas, Tahoes, Pilots, CRVs, Acuras, Siennas and alot in this range. So, needless to say, I support the 2nd school of thought. So far, no one has not want to ride with me in my car because of what I drive.

I believe if I was supporting clients in the million dollar range, I will probably need to upgrade to something more classy. So, yes, a somewhat CAR IMAGE is important. But only in the market you serve.

Per my survey of a group of consumers (not my clients), the car needs to be big enough to haul 2 adults comfortably at the back seat perhaps with a young child (most of the time, clients with family prefers to drive themselves anyways). They agree that the vehicle should be clean and reliable. To my surprise: Most CANNOT remember what their realtors drove. I want to add: since the gas prices soared, good mileage is another critera for car selection. My Accord gets me around 28mpg. I love this than to have an SUV that gets 15-18mpg.

Affordability is another big consideration when making a choice in car selection. I strive to keep my business expenses low. Having a paid-for car is an option I took. If I couldn't pay for it in cash, I wouldnt buy it. And yes, there are many ways to skin a cat and I choose to do it the conservative way. Also, with the amount of mileage we put on our vehicles, we are practically driving them into the ground. Our cars are one of our largest depreciating assets, so the economical sense on car depreciation versus the "image" is really up to the person making the decision.

The Millionaire Next Door by Dr. Tom Stanley: The striking and profound findings revealed in that book a decade ago are as true today as they were then--especially when it comes to spending habits. I took this point ("You Are Not What You Drive") after reading the book: Millionaires spend their money smarter than other people in the choices they make: cars included!

 Lessons from Millionaires:

1. Live well below our means: Understand that there's a difference between willingness to pay for quality versus image. Millionaires take extraordinary steps to save money and most dont live a lavish lifestyle.

2. Believe that financial independence is more important than displaying high social status: Most drive regular cars and they keep them for years.

So, the next time when you stop at a red light next to this person in a Red Corvette, or a fancy decked out Z71, wonder if he is working to make his payment, or that other person in an older, used and clean car. Please dont get in the rut of impressing someone else (clients) just for the sake of projecting an "image" we dont have.

Leslie Bloss, Bellevue Real Estate Professional
Bellevue, WA
I'm with you there Loreena--and The Millionaire Next Door is one of my favorite books.   I have seen many agents drive very expensive cars--I just can't do it.
Dec 27, 2006 09:24 AM
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

I've had lots of cars in my life but I believe my current Toyota Prius Hybrid is my all time favorite.

This car is just way cool. Besides getting phenomenal gas mileage (I get a legitimate 50 MPG around town) it gets the best rating from the EPA for air pollution scores.

So far this year I've had 2 separate buyers also make a trip to the Toyota dealer after riding around with me.

We like the Prius so much we have two of them in our garage; my wife has had hers about 2 years now and I'm winding up my first year.

 

Dec 27, 2006 09:38 AM
Anonymous
Alfi
i notice that the vast majority of the cars your clients drive are Japanese.
Dec 28, 2006 11:17 AM
#3
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

Alfi,

And???

Dec 28, 2006 11:31 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents
Yup it sure is. My SOI is increasing this past year but back in my "newer" days, my college friends used me as their realtor: I have a large Asian client - and somehow we prefer Japanese and German autos.....
Dec 28, 2006 02:05 PM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

I took a recent poll about this topic since I really didnt know what consumers/ clients think vs. I know how us real estate people think about our vehicles.

Note: The comments below were UNALTERED. Why would I?

The result(s):

They cared about the cleanliness, well-maintained, no cigarette smell, no heavy scent, could comfortable sits them.

One even said "skeptical of a realtor who picked me up in a Navigator/Mercedes" [I didnt quote this]

" I don't remember thinking "Wow, what a nice car!" nor "What a POS- maybe we should take our own car!""

"The only time I've worked with a realtor, she drove a high-end, luxury "SUV" (that was clearly never intended to be taken off paved roads, what a waste!). SHe was nice, very sweet, and apparently incapable of hearing "Our budget does not extend beyond $X". She kept insisting on showing us houses that were outside our price range, and didn't have the amenities we wanted. "

"Our realtor's vehicle was black.  It was a small SUV I think.  I remember that for being winter (sand & salt on the roads) he kept it nice & clean.  That is all I remember."

"Bottom line is I don't care what they drive as I usually prefer to drive myself and meet them there (when I was house hunting). They could drive an old farm truck for all I care. As long as its reliable and comfortable I wouldn't think much one way or the other what they're driving."

"I was really disgusted at the obvious consumer mentality behind the cars both of the realtors I worked with drove - one a Lincoln, own a BMW.  I thought it was disgusting, and I wasn't sure what they were trying to prove, except to go BuyOwner when we sell, because obviously they make too much commission. I also got the impression that because of it, they were going to try to push me into more of a house than *I* could afford to help pay for *their* cars."

The conclusion:
Get one to fit your needs. If it's an image need, so be it.

Dec 30, 2006 10:17 AM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590
Thank God for Tom Stanley!  He taught me the car info in 1990 in a lecture to Merrill Lynch Financial Advisors.  I have followed it to a T since then.  It has rewarded me handsomely as I have never had a car payment.  Then again, I drive a very clean older car.
Jan 01, 2007 01:35 PM
Deb Hurt
Realty Pro Albuquerque - Albuquerque, NM
ABR, e-Pro,Green, TRC

I drive a 2004 VW Jetta TDI Wagon. I also get a legitimate 50 mpg. My clients love my car and so do I. The diesel is awesome. The other vehicle  I had that was great was a Toyota pickup....yep, those Germans and Japanese seem to know how to build reliable, efficient vehicles. Clients seem to appreciate reliable, efficient REALTORS. I agree that if the vehicle is clean and reliable and you listen to whaqt your clients want in a home and show them what meets their needs, that is what they care about.

As a certified EcoBroker, the vehicle also lets me demonstrate to them that there are more options than they may have thought about to meet their goals. A Prius is hard to come by in this neck of the woods. When I was car shopping there was a year waiting list to get a new one and there were no used ones to be had anywhere in the state! Clean diesel provides an alternative just as existing homes provide another approach to building new "green" homes.

Jan 02, 2007 02:49 AM
Kathy Vaughan
Ryan Taylor Homes - Annandale, VA
Great reminder for Realtors. Keep telling the truth.
Jan 02, 2007 06:44 AM