Does the kind of car you drive as a real estate agent really matter? Some agents believe it does, while others believe it doesn’t. It’s not uncommon to find new real estate agents and experienced ones looking to take their careers to the next level asking this question. How Important Is Your Car As A Real Estate Agent?
So, does it really matter, and if so, how much? Today, we look to answer that question from the eyes of an agent who started out with cheaper cars and has now moved up to more luxurious ones.
Why Could Your Car Matter as a Realtor?
Let’s face it; your image is vital in the real estate business. Some experts actually argue that driving around in an expensive luxury car can actually boost your professional image and help you make a great first impression. Rolling up in a luxury car can signal some people you’re experienced, professional and knowledgeable.
This is all true. A sleek, luxurious car works in the same way a well-tailored dapper suit does. A combination of these two can give you instant credibility when going to listings and meeting new clients.
Here are some other reasons why you could consider getting a luxury car:
- Appeal your target market: One of your car’s core functions as a real estate agent is to put your clients at ease. This is why you need to know your target market before you buy a car. For example, if you work with wealthier clients, you might feel compelled to buy a more luxurious vehicle. On the other hand, a luxury might be intimidating if your clients are middle-class families. As such, a luxury car can both be beneficial and can also backfire. Some clients may assume that if you can afford a luxury car, you don’t need their money. They may also start to feel you are overpaid and try to negotiate a lower commission.
- Project success: If you want to convince your clients that you can help them in the deal, you should show them that you have achieved a certain success level. One way to showcase this is by driving a nice car. Of course, nice here is relative depending on your target market. However, it’s also crucial that you strike a balance. Find something that befits your values and lifestyle while reflecting on what your clients stand for.
- Shows you’re good at what you do: One of the biggest arguments about cars for real estate agents is whether a nice car will demonstrate to your clients that you do a fantastic job. When you drive a classy car to an upmarket project, your clients will definitely get this impression. So, why would they fail to entrust you with their sale or purchase?
Is A Luxury Car Worth the Monthly Cost?
Some of these cars come with massive monthly payments. So, we must dig deeper and look at the opportunity cost associated with the vehicles. In some markets, realtors drive around in Range Rovers, all the way up to Supercars like Lamborghinis.
These cars don’t come cheap. They can cost thousands of dollars a month in car payments. Before making before an expensive car think s’s you might be missing out on like investing in a asset or business that’ll give you a good return on investment. Remember, you’re a business person. This means you have to really think about your ROI.
Is putting that much money into a car payment going to give you a good ROI? In most cases, it’s not. You need to invest in yourself first. You have to become a knowledgeable agent, not just look like one. The goal is always to become better, if not the best, at what you do.
Some agents drive around in cheap regular cars yet sell millions of dollars a year in real estate sales volume. These agents typically make more than six-figure incomes annually.
While your car might give you a slight boost in first impressions, it’s not a factor that’s going to make or break your real estate career. Most agents need to know this because most Realtors believe that you need to have an expensive, fancy and luxurious car.
You need to look at your personal budget and decide what’s important to you in the long run. What are your priorities? Do you have the extra money to apply for a car? If not, you should feel comfortable driving older, used economy cars. You might end up selling millions worth of real estate with nobody complaining or asking questions about your car.
Here are few other reasons why you might consider getting a cheap car:
- Relate better with clients: Some agents have argued that driving ordinary cars has helped them put their clients at ease. People will relate with you if you have a typical car. Sometimes the humble approach is better.
- You’re the same agent: You can drive around in the flashiest of cars but still could be a terrible agent who can’t help their clients achieve their goals. It might actually make some sense not to judge an agent by the car they drive but by their work. Some clients feel that a car is not the most suitable metric to evaluate an agent.
- Avoid losing money: As mentioned before, some clients may think that you don’t really need the money if you drive a luxurious car. Some of these clients might actually bargain for your services and ask for a discount based on your image. They decide the amount of money they’re willing to spend based on the car you drive. This way, it’d be wise to keep a modest vehicle.
- Some clients really don’t care: There’s an extent of truth in this because some clients really don’t give two hoots about the kind of car their agents drive. They evaluate their agents based on their communication skills, ability to help them and how they carry out their transactions. Why would you spend extra on a flashy car if your clients don’t mind the make or the model?
Remember that clients are just worried about their best interest being taken care of at the end of the day. Always go above and beyond for these people. Your clients will love you for taking care of them, not for your car.
If you really want to go for a luxurious car, start by looking at the used options out there. Luxurious cars depreciate fast. Most of these cars are originally worth between $70,000 and $80,000. However, in the used cars market, the exact vehicle could go for about $25,000. Cars depreciate really fast, especially when brand new. If you look at the depreciation curve, you get to wipe out the majority of that depreciation in those first five years.
This is a great strategy if you love cars and want to reward yourself with your favorite luxury car. You get to move around making great first impressions and building your brand while not leaving a dent in your wallet. So make sure you consider such options. Here is a great website I use to shop for used cars.
What Should I Check When Buying a Car?
The biggest thing with luxury cars is just making sure you do your research first. Make sure that you’re not buying a money pit. Some of these cars come with costly engines and transmissions to fix. Others have turbos and other different kinds of technology that can cost thousands of dollars for one repair.
Make sure you look at the reviews from people who’ve already owned these cars, especially those who bought them already used. These reviews could help you point out a few major and common problems. You can then get prices and know how much it’ll cost you if you experience these problems.
You can also look into extended warranty programs. Sometimes they aren’t worth the money, but other times they are. It’s all dependent on what type of car you want to buy.
Keep these tips in mind. Your car’s reliability is a huge factor in its practicality. As a realtor, you’ll do a lot of driving. You don’t want to be driving around in a car that breaks down all the time. First of all, you’ll be late to appointments, and that can really aggravate your clients more than having an old, ugly and beat up car ever would.
On top of that, it’ll put a hole in your profits if you have to keep spending money on costly car repairs. Cars are already a liability. Don’t get a giant liability when you don’t really need it.
Another tip is if you really desire to have a luxury car and see yourself cruising around in a BMW. Mercedes, or Range Rover, you can tie a goal to it. This should help motivate you to work harder and buy the car you desire.
For example, you can target to sell 20 houses this year, and once you do it, you’ll buy a BMW 3 series. You can upgrade to a 5-series once you sell 50 houses and a 7-series when you get to 100 homes. This strategy gives you some room to grow and can help you push forward even when you don’t feel like working.
Is the Condition of the Car a Factor?
Remember we mentioned that you want to make a lasting first impression on your clients. The condition of your car will go a long way to demonstrate your professionalism. Besides, your professionalism also speaks a lot about your career success and how you handle your client’s deals.
As such, professionalism is mainly demonstrated by a few key elements. They include confidence, self-care and reliability.
Your car is like your second office. It would be best to keep it clean to show that you handle your work with utmost seriousness and respect. This gives your clients the confidence to believe in your services.
Make sure you wash and vacuum your car any time you know you’re going to see a client. Avoid any clutter in your vehicle so that you can invite clients at any time without worries. You never know when you could have an unexpected appointment with a new client. Take time to take care of your vehicle regardless of its model.
In your real estate career, you’ll always be selling yourself to prospects. This means that confidence will help you a lot in most deals. Would a client trust your services if they see that you are unorganized?
This applies even when it comes to your car. You need a car where you feel confident whenever you’re behind the wheel. Choose a model that’s comfortable and right for you. There’s a thin line between class and extravagance. Always go for the former. Remember that everyone has their own view of what a nice car is. Furthermore, you don’t want to come out as too flamboyant. Especially if it could turn off your current client base.
Key Takeaways
Your car is your second office and is vital in your professional image. The car you choose to drive as a Real Estate Agent is important but is often not as important as agents think. Make sure you choose a car that speaks for you and reflects what your clients stand for. Don’t break the bank for a car that’ll make you look too flashy. Keep in mind cars are assets that depreciate in value. Especially with all the mileage we we rack up as agents. If you do want to buy a luxury car it is best to tie it to a goal and purchase used.