Do You Have to Buy a Fancy Car to Impress Clients?
2019 Update: We still think this is a fascinating discussion on the question of whether you need to buy a fancy car to impress clients — but you may also want to check out our more recent discussions of whether lawyers need a nice car and (on our blog for working moms) how to choose the best family car for you.
What kind of car should the overachieving chick drive? Do you HAVE to buy a fancy car to impress clients? On the one hand, a luxury car could impress clients and colleagues… but on the other hand, it can also convey that you're “not working for the money.” Reader K wonders:
I'm graduating from law school next month and I'll be starting at a large regional firm in the Fall. For the past 11 years, I've been driving an old 2-door Honda. It was a great car for commuting to law school, but I'm definitely ready for an upgrade. My husband and I have talked about buying a new car and he really wants a higher-end sedan (audi, lexus, acura). I would love a luxury car, but I would be equally happy with something more modest. I'm worried that if I pull up in an expensive new car on my first day at the firm, my colleagues will assume that 1. I don't really need to work (untrue) or 2. I'm materialistic and fiscally irresponsible (also untrue). My husband and I are in our 30's, we've both worked and saved for quite a few years, and I have a small amount of law school debt, so it's within our reach to upgrade.
Am I worrying about nothing or should I consider my colleagues' perception when deciding what type of car to purchase?
This should be a fun one — I'm already seeing shades of our engagement ring discussion, as well as our intern-with-the-Birkin discussion. I should say upfront that I've been living and working in NYC for about 15 years now, and cars just don't matter that much here. (Pictured: Devan's Pimped-Out Ride 3, originally uploaded to Flickr by Jennerally.)
Financially speaking, I've always been taught that cars are depreciating assets, and so it is always a bad decision to lease them — you should strive to buy them outright (all cash) whenever possible, and keep the same car for as long as you can. (Although: apparently only 11% of people buy cars outright.) I will also say that of the many friends I have who drive luxury vehicles, the vast majority of them are making monthly payments on them or leasing them, and trade them in every few years to get newer, better cars.
{related: how to buy a car as a single woman}
So I think we've got a lot of competing judgments that people may make about you based on your car. I think most will assume you're making monthly payments on it or leasing it; some may think “Ooh, nice car, she can afford a monthly payment that high;” and others may think “Huh, she probably didn't have the cash to buy a $20K car outright so she may as well get a flashy car if you're making monthly payments,” and still others may think “Wow, she's loaded!”
If the choice is between buying a lower-end car in cash, versus making payments on a higher-end car, you may want to consider the advice Men's Health gave recently to its readers on how to attain status symbols: buy a slightly older car, like a 2003 BMW. The cost may be low enough that you can buy it all cash, you still have a status symbol, and if people think anything of it, they may think “ah, she appreciates quality but also makes prudent financial decisions.”
For my $.02: I think ultimately you should look at your family finances, weigh that against your desire for the car you like, and get the car that makes the most sense. Readers, given your druthers, would you rather own a brand new car outright, make monthly payments on a fancier car, or own an older, fancy car outright? What judgments do you make about people based on their cars? Do you think you need to buy a fancy car to impress clients?
I have always bought slightly used cars and paid cash for them. I think financing is a huge waste of money.
Financing is great if you can’t necessarily spare the cash to buy a car (new or used) which was always the case for my parents when I was growing up. It wasn’t until I was out in the real world that it occurred to me that people might actually DO that.
Also, right now car financing interest rates are actually at or below inflation, so they’re practically paying you to borrow money. Not a bad deal really.
I have bought 3 new cars and always had 0% interest. It would have been a waste of money for me NOT to finance!
As long as the price of the car did not go up with the 0% deal :-) From an economic standpoint, anything less than the cost of money is cheaper than cash.
I drive a Mustang. It’s certainly not an uncommon car, but I don’t think that I’ve seen any other lawyers with one. I don’t think that it matters too much what others think of your car, but I do sometimes wonder what colleagues or clients do think of it, when most lawyers in my area appear to be driving more “sensible” cars. I get a lot of (positive) comments on it, and it is a very sensible car for me (no kids, decent gas, inexpensive, incredibly fun to drive, gets me out of having to drive when I’m part of a group driving somewhere).
Yay, Mustangs! Although I posted above that I’m not much of a car person, every male in my family is, and I have awesome memories of my Grandpa’s zippy little red Mustang. He once was stopped for driving it at 95 mph (luckily, on a deserted highway). Anyway, the talking-to my grandma gave him when she found out has become legendary in our family, as has Grandpa’s response: “Geez, Norma, give it a rest; I was slowing down!” He was 78 at the time.
LOVE this story about your Grandpa! Thanks for sharing. Made my day.
Mine, too! Grampa sounds awesome! When I’m a grandma, I’ll follow his example. :)
Hey I’m a lawyer and I drive a Mustang! I have also received positive comments.
I have a Mustang too! But it’s my fun time car – it’s 43 years old and sits in my garage most of the time. I ride my bike or take public transit to work and for 90% of my other errands. When I do drive it, I surprise a lot of people and get very positive reactions. Gas is expensive and it’s a bit of a time sink as far as maintenance is concerned, but I’ve wanted one for as long as I can remember and wouldn’t have it any other way.
I’m struggling to think of when my clients – or most of my coworkers – would actually see my car. Only my coworkers who are friends know what I drive, and my clients mostly work in office buildings, so when I go to see them, I park in a parking deck, not out front of their offices. I’d never think about what message my car (a Honda Fit) is sending. I suppose when you own a Honda, the message your car is sending is something like “I don’t care very much about cars; I just want something dependable.”
I don’t have a car. I don’t even have a license. But my thoughts are as follows: there are nice cars and there are flashy cars. I would – personally – not get a flashy car, but I would not think twice about getting a nice car. To me, and I realize that this is personal, subjective and maybe regional thing, a flashy car would be a lexus. I think there are a million cars nicer than a lexus, but I think a lexus is purchased to be at least a bit flashy. And I say this thinking of it as basically a fancy toyota. On the other hand, I think there are lots of really nice cars like VW, Audi or Infiniti, to name a few, that don’t – to me, at least – come across as particularly flashy.
Not sure if that makes sense, but that’s my two cents. And I would never judge someone for a car they drive, btw, I would just maybe think this person likes certain things and whatever floats their boat (FWIW, I don’t judge someone for an LV logo’d bag either – I’d say this is on par).
Anyway, that’s my stream of consciousness. To which I will only add that I think it’s absurd that people actually consider someone not “needing” to work against them. Most people who don’t need to work, would choose not to work. If anything, it should be viewed as a positive attribute. I know that isn’t the case, but it’s a dumb judgment.
I had this conversation in my family recently. My mom thinks that for many people, if they didn’t “need” to work to support their families, they would still do very productive things like make arts and crafts, serve on community boards, etc.
I will never get back the 60 seconds I spent reading this.
As a 15 year– female litigator I could hardly wait to give my 2cents! Drive the beat up old car. That alone will endear you to the older men in the firm (most impt. to impress) and will not read “bitch” to the female lawyers. It makes you look genuine, hard working, salt of the earth and that is huge. You can always get a better car down the road. I am willing to bet many of your lawyers in the firm are not driving new vehicles. Midwest law firms have been hard hit by the economy. Most old/fat lawyers are cutting back– beach houses for sale, kids attending state colleges etc. At this point– put your ego on hold. You are blessed to score a law job in this economy– but be cautious! The loss of one major client or a couple– makes a firm prime for a re-shuffle. The low level associates are always the first to go. Be frugal and dress well:)
I was working once with a guy who had reached the pinnacle of speed — former military test pilot and space shuttle pilot. He flew into space at 18,000 miles per hour. I was waiting for him to pick me up and drive to a meeting, and wondered what kind of car a guy like that would drive. He shows up in an ancient Volvo station wagon and drove at or below the speed limit all the time. I loved that. The guy didn’t need to prove anything or worry about what people thought of his car after flying the fastest, most complex vehicle in the world.
oh… and for the record– driving a 7 year old Volvo purchased when the law biz was booming. Hoping I can eek out another 5 years.
The hive’s consensus is: buy what you like, within your means, and “know your office,” if other circumstances apply.
Also, readers, maintain your cars and keep them clean! While people may not care what you drive, they’ll notice if your car is loud, rusty, dirty, or overflowing with Starbucks cups.
I drove a 1996 Honda all through law school and for several years after while I was adjusting to life with a paycheck (and student debt in repayment!). So, yeah, I drove a real beater in the first couple years of my practice, but having no car payment let me save up a lot to put a nice down payment on a certified pre-owned BMW. Now my car looks like it belongs in the parking lot! I wouldn’t necessarily advise this route if your work environment doesn’t allow it (know your law firm!), but for me it made so much sense financially.
Seriously, think of people who thought they had a job and didn’t, or had a job that got deferred 6 months. You can’t beat $ in the bank. And if you have to spend for a car, I vote for getting what you can buy with cash. And no BMWs (etc.) unless they are under warranty (DH’s seemed to have many 4-figure bills in a row — so much for driving that into the ground). I can’t tell you how it helped to save up and pay down LS without a car payment (and I have tended to have beater cars, but they were so old that I could take it to my favorite mechanic instead of to the dealer). Currently driving an Odyssey, which I highly recommend if you are in the market for anything with 3 rows of seats that you can safely enter/exit in a skirt in a ladylike manner. When I travel, I pay extra out of pocket to rent convertibles :)
I’m guessing this is going to cause a lot of eyerolling but here goes….in law school I was married to a Navy jet pilot and drove a Porsche 911. I was worried when I went to interview at my first 2L clerking job about the impression it would make, but it was a Navy town and fly-boys often have flash cars so it wasn’t a problem. Fast forward thru divorce to today, and I am now a partner in mid-law and drive a new BMW SUV leased by the firm. I got an amazing deal by leasing from an out-of-state dealer (the local ones were totally overpriced) and I chose the model because I need to be able to fit my bike in the back – I do triathlons and too many bikes get stolen off the back of cars when we’re swimming or running. Even before the firm payed for my lease, I chose to lease a BMW SUV – just a smaller one with less extras. And down here, no one would look at you twice even if you pulled up to your first job out in a Jag, Porsche, Merc, etc. My Associates drive BMWs, Mercedes, Infinitis etc. – all brand new. This is a very shallow, materialistic, see-and-be-seen place to live. Not saying it’s right, just sayin’.
I miss Miami :)
When I was in BigLaw, I bought myself my dream car … a BMW 5-series. New, customized for me in Germany. I love that car. Still have it, she’s now almost 10 years old, with 120,000 miles on her. But most of my colleagues had no idea what I drove. I commuted to work with hubby and the car stayed at his garage most of the time, unless I was working late. I drove people for work in it *once* in 8 years. There was no status in this status car.
I now commute to work in a Honda Civic hybrid (hubby takes the Beamer to metro) and again, the vast majority of my colleagues have no idea what I drive. It’s just not an issue. The Honda is now almost 5 years old, 80,000 miles and I plan on keeping her for another 4-5 years or until maintenance becomes an issue. Am not sure how the IMA battery will do over time; that may determine this car’s lifespan.
My personal take: buy what you want, forget about your colleagues’ opinions. They likely will not even have an opinion because what you drive will be a non-issue.
I was still driving a 14-year old American Motors car when I graduated from law school and drove it until it threw a rod on the way home from Wolf Trap three years later. I bought a used Pontiac Firebird which I got 12 years out of before I succumbed to the purchase of my first “new” car (in celebration of pay-off of student loans), another Firebird. I drove that one for 8 years before purchasing my dream car: a 2004 Corvette ZO6. I’m still driving it and loving it. By then I was a partner in a big law firm (with no debt other than a mortgage) and the Corvette shocked the heck out of everyone because partners drove a Mercedes, Beamer, or Lexus (with the occasional Jag). For my part, I thought it suited; none of them could keep up with me on the road or off. There is something to be said for delayed gratification (and stick-shifts).
For what it’s worth, it might be good idea to wait just a little bit and see what the rest of the folks in your practice area are driving. There’s a clear divide in our law firm’s parking lot: the litigators drive small sedans of varying niceness, with partners almost universally driving luxury brands but because we have an environmental and land use practice, you’ll see quite a few small SUVs and Priuses. What’s more, there are practice groups (in our area) where driving Amercian-made cars is very, very important—to the extent you can get a bead on firm culture in this regard, it might be a good idea to wait a few weeks. A final consideration: Is there any chance you’ll be driving clients around in this car in a year or two? If so, it might be worth looking at something with enough room to load up more than 1 other adult (a mid-sized SUV, for example).
As to the degree of luxury question: We bought a year-old Saturn Vue (which is no longer produced as a Saturn, but is now the Chevy Equinox), and it was loaded up with lots of extras—leather seats, remote start, fancy stereo, etc. For my purposes, I like driving a tricked-out but slightly less “luxury brand” car, and would absolutely buy this one again. I get compliments when I drive it from associates and partners, and its comfortable enough to put several adults in if I’m travelling for work. Still, because it’s a mid-ranged brand, I don’t have the (admittedly self-imposed) angst of worrying that I’m paying for a name brand that I wouldn’t otherwise love to impress the partners. That alleviates the pain of working for The Man in my contorted hippie soul.
Really, though? One way or another, there will always be something for folks at work to make judgements about (Like shoes! And nail polish!), and you can only lose sleep over so many of them at once. If you can afford it and you love it, treat yourself to the fancy car, and let the fact that you’re working hard speak for itself. If that’s not what you want, find something safe and mid-ranged, and roll with it. As long as it’s clean and you’re not cutting anyone off in the parking lot, you’ll be fine.
I bought an ’08 Accord in ’10 fully loaded and LOVE it. Although my boss has made comments on how much she loves my car (she drives a Fit), I don’t think it makes me look like I don’t need my job/that raise. But I have wondered. Especially bc my peers in my non profit organization all drive old beater cars. But hey, my DH makes a good living, I make decent, and I drove my ’95 Camry right until it puttered out on me. I say get what you want and be happy.
I am a current law student and had been driving an older hand me down car until I recently got into an accident and it was totaled. My husband and I are also older, have saved money and had the financial means to buy a car cash. We knew i would likely have to get a new car after graduating. When it snuck up on us and we started searching, we looked at luxury vehicles knowing I would be driving it for a long time. We ended up finding a luxury car that was only a few years old with 9k miles on it! And we were still able to pay with cash so no monthly payments! I definitely agree its the best way to go. Why pay do much and go in debt for a depreciating asset? You and your husband sound financially savvy so to with what your gut says!
I bought my first luxury car last year after getting a good bonus. Still make monthly payments on it but they are reasonable since I had a good down payment. It was my way to reward myself for all my hard work. I haven’t regretted it for a minute. I enjoy driving it and it feels like a treat every day.
At the end of the day, people don’t think about us nearly as much as we worry that they do. I recommend that the reader do what she wants to do without regard to the opinions of others. Any thought given to what she is driving will be fleeting and won’t be worth the stress of worrying about it.
One last note, I did buy it a year old to avoid the first year depreciation. I wanted to treat myself but I didn’t see the point in buying it brand new and losing so much value in the first year. A compromise of sorts….
Did someone already post this? Above the law getting all judgmental about what kind of car you drive…
http://abovethelaw.com/2012/04/law-license-plates-first-tier-degrees-on-second-tier-cars/
I live in NYC, so I don’t currently have a car, but my family still has my car from high school/college/a couple of non-NYC years (my brother’s got it now). It’s a 1997 Toyota 4Runner we got used my junior year of high school. We’ve had basically no problems with it and have just done basic maintenance. If I made more money and could afford parking, I’d bring it up to New York in a heartbeat, because I love that car. I couldn’t care less what other people think about what I drive. That car is still going when all my other friend’s much “fancier” cars died years ago, and with far fewer miles than my car’s got.
I am in law school (finishing 2L) and purchased a BMW last Summer.
It was my first car. I live at home and don’t have any other major expenses other than tuition.
I work more hours a week than most law students do.
I chose to buy BMW because I always wanted a luxury car. I purchased a 2008 (they all look the same to me) and I am making monthly payments on it. Plus, by buying a 2008, it is still under warranty and I got less of the depreciation factor. I looked online on the BMW website for all previously-owned cars for sale within the country and ended up driving 2.5 hours away to pick it up, but saved about 5k from what I would have paid in my city. It does come up to a lot with insurance and gas but as I said, that is my only major expense for now.
I do realize I get judged by a lot of my classmates but I love my car and wouldn’t change it.
I don’t know much about law firms, but I was just in a similar situation a few months ago. My husband drives a lot for work, and we were driving an 11 year old Infiniti sedan I inherited from my grandfather about 6 years ago. It was SO expensive to maintain, and had all kinds of ridiculous problems you’ve never heard of. When we were looking at about $3,000 in repairs, we bit the bullet and decided to get another car. What we learned from the Infiniti is – don’t buy a luxury car. They aren’t worth the cost and hassle to keep up.
Based on Consumer Reports and Edmunds, we narrowed our search down to Honda, Nissan, and Toyota. I always thought I would be like my parents – buy a used car and drive it for 10+ years until it dies. Because of the economy, the prices of new cars are way lower (especially Japanese cars where companies were affected by the tsunami). We were looking for a safe, mid-sized sedan with good gas mileage that would be a nice family car when we have kids. We liked the Nissan Altima, but it’s not as reliable over time. Didn’t like the Honda Accord interior, and you could barely save any money on buying a used Accord (versus a new one) because they’re in such high demand… and you’d have an older car with a higher interest rate. I liked the Prius, but it was too expensive and felt weird to drive. We didn’t like the older Camrys because they were almost as expensive as new Camrys, with worse safety features, lower gas mileage, and a higher interest rate. We settled on a new 2012 Camry SE and absolutely love it. Toyota had 2.9% APR and $1000 rebate for recent (last 2 years) college/grad school graduates. It feels so luxurious inside. It drives well and we were able to pay for 2/3 of it outright. We’ll have FREE maintenance for 5 years, and we’ll have the car completely paid off before then. I highly recommend the SE!
Everybody has different needs, but
…but this worked best for us!
As of June this year, I will have owned our company for 17 years. I am 38 years old. After driving a Chevy Blazer for 12 years, it was time to upgrade this past January. I have always loved the classy look of a Cadillac and their smooth ride. I paid cash for the Cadillac SRX SUV. I love my vehicle. Now, with all that said, I hear comments weekly by our customers, “Oh we must be paying you way too much” or “It must be nice to have your cash.” I have to remind them that I’m single with no kids. It tends to shut them up. In reality, I work my ass off and save my money to buy the nicer things in life.
My Ford was just totaled and I went through this – I wasn’t sure if I wanted a new car or to replace my car with a paid-for equivalent, and IF I went new, whether to get the luxury vehicle i like. All the partners at my firm, including the president, drive modest cars. I think a couple may have something nicer at home, but I see senior associates and partners in things like new jeeps, civics, etc. We have a parking lot with assigned spaces. One new girl a year out of law school has a big $60K SUV and I am sure it’s family money but, I dunno, I feel like such a douche showing up with something flashy. I am young and haven’t proven myself in the legal world yet – so I feel liek an A$$ giving myself a luxury vehicle when the partners doing big things every week aren’t indulging that way. I don’t judge the girl that showed up with one, but I myself would feel sheepish and silly having one in that setting. I also know my boss is a very very frugal person. We also work for a LOT of local governments, and I sort of feel like if I show up to meetings in a luxury vehicle that I am screaming “look at what all your taxpayers paid for!!”
I think that if i feel like i prove myself a little more in a few years maybe I will get the car i really want, or if I go to a firm where more of the younger associates have them, or if it;s a place where I park somewhere in a parking garage. I cannot even bring myself to bring a designer bag to work. I ended up getting an all-cash replacement to my Ford…and my boss commended me for being so modest. I feel like I deserve the things I have or could get, but until those people I work for that deserve it even MORE don’t indulge, that I am in no place to do it.
what car to drive?
a maserati of course! preferably not the latest model.
classy, rare and a wonderful object of desire.,
After we put 440,000 miles on our 1989 Audi 90, we decided to purchase another Audi. Our 2002 Audi A4 is now approaching 175,000 miles and still looks amazing, so much so, that people often ask if we got a new car! We love the Brand so much we just bought another A4. You get what you pay for. And no, I don’t work for Audi LOL.
I’m a lawyer, have been for 15 years. Here’s the criteria for this next car:
(1) it needs to be completely no-brainer trouble-free, because you will be working insane hours, leaving well after dark, and will not have time to go to a mechanic.
(2) It needs to tell the partners at your firm that your intention is to focus on your career and not “lean out” in two years to go work for a nonprofit or whatever. It also needs to telegraph that you’re their sort of person, someone that they would want to have over for dinner and of sufficient allegiance to upper-middle-class values to take out clients eventually. This may sounds weirdly Stepford Wives if you’re young, but trust me on this – the impression you make here will either pay off enormously later, or it can limit your career with that firm in a way that no amount of work or quality of work will overcome.
(3) It needs to be capital efficient, which means you should not be tying up thousands of dollars that should otherwise be your first nest egg / 401(k) contribution. You have a high income, but you are not yet wealthy – those are two different things. You need to get into a regular habit of saving.
(1) means you need a new car. A 2003 anything is too risky for you. Leave that for people with eight-hour-a-day jobs. (3) means you’re leasing it. You can lease with zero down. Negotiate well and you’ve got a sub-$400/month lease payment. (2) means you’re getting the bottom-of-the-line model of any luxury brand, provided that the partner leading the group you’re working in drives something from a luxury brand. If, on the other hand, your lead partner is a Honda / Toyota kind of person, get a Honda or a Toyota. Reading their thinking is the important part of this decision – to a 55-year old lawyer driving a 7-series BMW, a Honda may very well tell him that you’re leaving in three years to have kids or take a nonprofit job.