Company Vehicle questions. What do you guys have? Is it worth the cost?

[HCHTech]

Your area may differ, but I would hazard to say - A fancier car is better for business. It shows success in your business. It's the same as a salesman having a $100 Cross pen and a nice suite. Fancy sells and inspires confidence from a sociological stand point.. and that's proven.

I have a story about the most uncomfortable meeting in my life to share on this topic. This was back in the 80's, I was the underling, and went with my boss, who had just purchased a new Bimer convertible. We had a meeting with the local police department about potentially getting their business. As we wheeled into the parking lot with the top down (of course), just about the entire force of this small suburb was standing around the entrance talking. We definitely got some glares. We walked in and sat down in the two little metal folding chairs that had placed for us, while they formed a semi-circle around us in full uniform complete with mirrored sunglasses.

My boss tried to break the ice by saying "I'd just like to state up front, that we are not armed." Almost in unison, they responded "We are." Let's just say the meeting didn't go well.

I take your point about the look of success, but there is another side to that coin.

 

[ohio_grad_06]

Look of success could make you look too uppity, not enough like a working man/woman if you know what I mean. Also you pull up in a cadillac for example with a wrap, you might become an instant target depending where you are.

 

[ChrisTech]

We thought that a company vehicle would be a risk financially, but is also an opportunity to advertise - hence we got a small van and put our details on it.

Best thing we did, transport wise - I still get people calling saying that they saw the van parked in their street, when on site at a customers premises.

Persoanlly I think it's worth trying, depending on your finances.

 

[ohio_grad_06]

Very nice. One company that used to be around here used to actually have a minivan that they'd had a wrap done on. If you did this, you could also try to park it out closer to the street and have it be free advertising.

 

[drnick5]

We thought that a company vehicle would be a risk financially, but is also an opportunity to advertise - hence we got a small van and put our details on it.

Best thing we did, transport wise - I still get people calling saying that they saw the van parked in their street, when on site at a customers premises.

Persoanlly I think it's worth trying, depending on your finances.

I like the van! what Make and model is that?

 

[lsi]

For those of you that think a fancy car is a sign of success that your customers will appreciate - you need to be real sure that you're playing in the right league. Most of my customers are small businesses and the owners would not appreciate me pulling in with a fancy expensive car. A few of them wouldn't mind but those are only the super-successful ones who like to spend their money. I think only the big boys that like to think they do business with the big boys appreciate and admire those types of status symbols. It's mostly self-flattery. Most business owners like to spend their money wisely, especially on IT support. If you pull up in too nice of a car they start to wonder if they are paying you too much. Even the ones that have nice cars themselves would rather do business with someone they feel is on equal footing or less successful than themselves. They want to feel like the big important account for your company and that is why they're doing business with you and not Dell or IBM outsourced IT support. My car is nice but a little flashy (I have a luxury sports sedan that's been lowered and modded) so often I will drive my camping rig instead when meeting with customers.

 

[seedubya]

I like the van! what Make and model is that?

Citroen Berlingo - I assume 1.6 HDi Very reliable, loads of room in the back and (usually) a 3 person seat up front. Very economical, runs on the smell of diesel. I currently have the earlier model and am upgrading to this in the new year. Not the most powerful thing in the world though.

 

[phaZed]

For those of you that think a fancy car is a sign of success that your customers will appreciate - you need to be real sure that you're playing in the right league. Most of my customers are small businesses and the owners would not appreciate me pulling in with a fancy expensive car. A few of them wouldn't mind but those are only the super-successful ones who like to spend their money.

That's a fine theory, however, most psychology research and teachings would disagree with you. If your right, why do politicians keep getting elected while being "fancy"? Why do car salesmen wear suits and ties and have nice accessories like rings, cufflinks and a hundred dollar cross pen? Why do people look up to and admire Hollywood and actors/actresses? According to your theory, these things are all backwards.

Perhaps we need to define "fancy car". What is your definition of a fancy car? It is defined by a dollar amount, by the looks or by taboo?

Around here there is no shortage of 30-50k dollar cars. How much do you think a BMW costs?

 

[PCSupportGlasgow]

I have a story about the most uncomfortable meeting in my life to share on this topic. This was back in the 80's, I was the underling, and went with my boss, who had just purchased a new Bimer convertible. We had a meeting with the local police department about potentially getting their business. As we wheeled into the parking lot with the top down (of course), just about the entire force of this small suburb was standing around the entrance talking. We definitely got some glares. We walked in and sat down in the two little metal folding chairs that had placed for us, while they formed a semi-circle around us in full uniform complete with mirrored sunglasses.

My boss tried to break the ice by saying "I'd just like to state up front, that we are not armed." Almost in unison, they responded "We are." Let's just say the meeting didn't go well.

I take your point about the look of success, but there is another side to that coin.

Think that says more about bullying and intimidating tactics than having a nice car.

 

[seedubya]

That's a fine theory, however, most psychology research and teachings would disagree with you. If your right, why do politicians keep getting elected while being "fancy"? Why do car salesmen wear suits and ties and have nice accessories like rings, cufflinks and a hundred dollar cross pen? Why do people look up to and admire Hollywood and actors/actresses? According to your theory, these things are all backwards.

Perhaps we need to define "fancy car". What is your definition of a fancy car? It is defined by a dollar amount, by the looks or by taboo?

Around here there is no shortage of 30-50k dollar cars. How much do you think a BMW costs?

Different thing entirely. You don't buy IT services from a Hollywood actor. It also depends entirely on your clientèle. If your clients expect a beemer then you drive one. If they expect a pickup you drive one. Around here they expect a white van so I drive one.

 

[mlcomputers]

Pretty cool, doesn't look much bigger than my Mazda3 Hatchback, though

Hi thanks for your comment., The Fiat is a compact van but does have quite a large load volume at 2.5m3 and a 610 Kilo payload limit which is not bad. More than enough room for my stock and collecting and delivering equipment from customers. I have only had it 3 weeks and I am very pleased with it.

 

[Davena]

In the area I am now- contractors/techs drive nice SUV's. Mine is a 2006 H3 with 130,000 miles kept in excellent maintenance. Paid $17,000 cash for it in 2010. Has made me lots of money as a roving billboard. Cost about $450 to wrap and I made that money back in business within the hour I drove it from the sign place to the bank. Guy next to me in line saw the wrap and asked for my card- been a great customer since then.

 

[mlcomputers]

Different thing entirely. You don't buy IT services from a Hollywood actor. It also depends entirely on your clientèle. If your clients expect a beemer then you drive one. If they expect a pickup you drive one. Around here they expect a white van so I drive one.

A good point seedubya and exactly the reason I stopped using my personal car and purchased a dedicated van for my business.

 

[phaZed]

Different thing entirely. You don't buy IT services from a Hollywood actor. It also depends entirely on your clientèle. If your clients expect a beemer then you drive one. If they expect a pickup you drive one. Around here they expect a white van so I drive one.

I wasn't suggesting that you buy IT services from any of my examples, rather, the examples were given to make a point in which I think you have thoroughly missed. You are welcome to complete your own psychology study that says to the contrary. It is disingenuous for one to rely on their personal feelings or internal misgivings on the matter... the study's are in. This is a big part of marketing. Seeing as we are on a site that deals with business owners and the success of business I respectfully ask that you provide some data that would support your claim, rather than anecdotal evidence, so that 'Nibblers have the correct results in their businesses.

I did state, "Depending on your area" - obviously if your in an area that is fairly depressed and struggling.. I would agree, rolling up in a nice car could be detrimental. I have yet to experience that or any problems as such. Quite the opposite in fact. Would it be fair to say that the US is quite different than the UK, Ireland or France when it comes to such things? I don't know. I can only comment on my geographical location.

Edit: Not directed at seedubya, but to a previous poster... Clients don't think "Oh, a BMW, I'm paying too much" because they already found the prices on the phone or website, agreed to them, and are welcome to shop around and find that I am not, in fact, anywhere near the highest priced IT outfit here. Sales 101: You complete a sale on the phone/website when you have convinced the customer to follow through, not when you or they arrive to see your car or when they pay. So, that puts that to rest.

If anything you should be looking at the color of your car as it has more reflection on the "thoughts" of the observer: What Your Car Color Says About You
Association for Psychological Science: Minds on the Road

Cars are the ultimate status symbol. They also generate some remarkable forms of discrimination. A Maserati gets more respect than a Volkswagen Bug.
Classic psychological studies have demonstrated that a drivers extend more patience and courtesy to motorists driving expensive cars than those in older, cheaper vehicles. In their seminal 1968 experiment, for example, Anthony N. Doob and Alan E. Gross found that drivers waited longer to honk at a high-priced car than when blocked by an old model.
This builds on a wide body of research showing that people act more aggressively toward others of low social status.

The researchers speculate that this result reflects pure conformity—a tendency to respect the behavior of a high-status vs. a low-status person.

The 4 factors influencing consumer behavior

Social status meanwhile reflects the rank and the importance of this role in society or in social groups. Some are more valued than others.

The social role and status profoundly influences the consumer behavior and his purchasing decisions. Especially for all the “visible” products from other people.

For example, a consumer may buy a Ferrari or a Porsche for the quality of the car but also for the external signs of social success that this kind of cars represents. Moreover, it is likely that a CEO driving a small car like a Ford Fiesta or a Volkswagen Golf would be taken less seriously by its customers and business partners than if he is driving a german luxury car.

And this kind of behaviors and influences can be found at every level and for every role and social status.

 

[drnick5]

Thanks for all the great responses so far.

I'm going through the hassle of trying to get a commercial loan. For those of you who bought cars, did you buy them personally? or directly through the business? Since we are an LLc with me and another Partner, I'd rather have it through the business then needing 1 or both of us to personally guarantee the loan. But it seems everyone I talk to do far require a personal guarantee and will write it up in the business name. (I'm trying to avoid a hard pull on my credit if at all possible since if I go to buy a car for myself personally in say 2 years, I'll still have this loan showing up technically under my name).

Lastly, What do you guys pay for commercial auto insurance? (I know this answer may vary greatly based on the State and your driving record).

Thanks!

 

[jft135]

Just my 2 cents . . .

Pay close attention to the weight ratings of the vehicle and not just the volume. I made that mistake when I traded my minivan (I got sick of driving the same car as my mom) for an Outback. I figured that since it was a hatchback it would be half decent for hauling small amounts of cargo. It turns out that it is only rated for 1/2 ton passengers, fuel, and cargo so I've overloaded it with only about a dozen and a half desktops in the back. I love the car, but I sure do miss the minivan when I run to my refurbisher and recycler.

 

[drnick5]

Thanks for all the replies everyone.

We ended up getting a 2011 Scion Xb with 37,000 miles for about $12,500. We were able to handle the auto loan at the dealer directly (which was much easier than trying to deal with banks directly).

The financing end was much easier to have the dealer do for us (a lot of banks don't deal with commercial loans). However be careful here, as the dealer can (and likely will) mark up the rate on the loan. ex. the bank might approve you for a rate of say 2%, the dealer then tells you "we got you 2.9%, thats pretty good". So you would unknowingly be paying an additional 0.9% interest, which is pure profit for the dealer (This may vary by state, but in mine the dealer can mark up a loan up to 2% on top of the rate the bank gave them!)

In my case, Once we agreed on the price of the car and I filled out the credit app I went into the room to sign the papers. (we hadn't even talked about the loan or payments, as I always negotiate the price of the car first). After I signed 4 or 5 documents, I get the contract showing my interest rate and monthly payments. My credit score came back at a 840, yet I was given a 4.9% interest rate!

The finance manager tried to tell me with a straight face "this rate is the best we can do because its commercial". I asked the finance manager which bank he was using, when he told me the bank, it just so happens my brother works for that bank, and happens to have access to the auto finance software. I sent him a text while I was in the finance managers office asking to look up the rate. I had been approved at 2.9% (they tried to mark it up the maximum allowed 2%!).

After speaking with my brother, he told me his bank in particular will write a commercial loan, but requires a personal guarantee on the loan. But, because of this, they give you the same personal rate and don't mark it up for it being commercial.

So, after calling the Finance manager on his bs, I let him know that I had a man on the inside, and told him what my rate should be. The look on his face was priceless (as was seeing him do a tapdance in front of me to try and explain his way out of it).

Long story short, financing with the dealer was the easiest, but I'd recommend pushing back some on the loan rate, since they will likely try to mark it up on you.

 

[NETWizz]

I have a story about the most uncomfortable meeting in my life to share on this topic. This was back in the 80's, I was the underling, and went with my boss, who had just purchased a new Bimer convertible. We had a meeting with the local police department about potentially getting their business. As we wheeled into the parking lot with the top down (of course), just about the entire force of this small suburb was standing around the entrance talking. We definitely got some glares. We walked in and sat down in the two little metal folding chairs that had placed for us, while they formed a semi-circle around us in full uniform complete with mirrored sunglasses.

My boss tried to break the ice by saying "I'd just like to state up front, that we are not armed." Almost in unison, they responded "We are." Let's just say the meeting didn't go well.

I take your point about the look of success, but there is another side to that coin.

Were they in the UK? I didn't think police there were armed; I thought they were all pussies with whistles who will ultimately argue all day with a perp, where in the USA they will simply tazer, pepersrpay, and possibly shoot someone for not wearing a seat belt it sometimes seems.

 

[HCHTech]

Were they in the UK?

Nope - suburbia here in Pennsylvania - U S of A. It was about 25 years ago now, so I don't think they even had tasers.

This has been a VERY interesting thread.

 

[maclaptech]

I am about to buy a Ford Trans Connect Van and wrap it. I can also do repairs in it at customer location. I think it is a great choice for our line of business.