Definately… - Posted by Steve D
Posted by Steve D on June 27, 2002 at 15:24:23:
Turn up to look at a $100k property in a new Porsche, and they won’t go down on price (because you can clearly afford it).
Turn up to look at a $500k house in a old pickup truck, and they won’t open the door because they think you can’t afford it.
Perception is everything… I own a couple of IT companies, I’m early thrities (look slightly younger, still get ID’d at certain bars), long hair, always wear jeans - when I’m looking for clients/partners/recruiting people etc., I turn up in a Porsche - it contridicts the way I look, but it demonstrates there is success behind me and helps establish credibility. Same when I’m dealing with banks, I’ve even had the loan officers come out and look at the car. When I’m looking at houses or making a major purchase, I use my pickup truck.
The vehicle is a negociating “prop” - if you want to give the impression of success/you really know what you are doing, and the situation calls for that, a high end car can help if used in the right way. As can a cheap vehicle when you don’t want to set that impression.
If your looking for investors, partners, meeting bankers, the nicer car can help (providing your not giving a banker a credit app showing just how high those monthly payments are).
If you have a motivated seller, and you have your funding sorted out, you can use the expensive car as a prop if you go in and can make the deal happen immediately - solve their problems approach - sign here today and you’ll get your money on xxxxx - this offers only good until 5:00pm.
If your in a long negociation trying to get the price down - the “I really want this property, but it’s just out of my price range” the old vehicle is a better prop.
If used correctly, your choice of vehicle can help, or hinder… it’s all part of what your selling and how you’re trying to sell it.
Now the other consideration, is if you can afford to spend say $40k on a car, would you be better spending $20k and investing $20k - will buying the expensive car now hinder your path to financial freedom? Or is the desire for the car strong enough to warrant delaying that financial freedom a couple of years? I love cars and motorbikes, and own several of each, but I battle with the decision to buy/sell a vehicle every single time (always want to buy but could the money be used better elsewhere, and never want to sell). You have to balance your financial goals with actually enjoying your life on the journey to those goals…