Marketing with Car Magnets

Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes

Hey BiggerPockets marketing experts.

I would like to know people's thoughts on using car magnets to generate leads? I have some but just have never gotten over the "tacky" factor to put them on my car.

Stupid I know. Obviously part of the beauty of a magnet sign is I can take it off in a situation where that might be an issue.

Anyway I was curious what people thought the effectiveness of this type of marketing is vs. other types.

I'm also curious if there are seasonal differences. I'm in MA so it would be interesting to know if there are seasonal differences with them.

Like is their a dip in the winter when all the old people with equity in Massachusetts go the Florida or Phoenix to play golf for 6 months. :)

Thanks for any insights!

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Aaron Yates

Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes

13y

I have used a magnet on my truck for a year now. I have gotten a few calls but no real leads. I do it mainly for tax write off. my vehicle becomes 100% tax deductible instead of keeping mileage records. Gave me so much deductions last year my accountant couldn't even use them all because he said it could get me audited even though all my receipts are legit.

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Justin SilverioPro Member
Developer · Andover, MA · Member since 2008 · 1k+ posts · 489 votes
13y
I've had a back window decal on my truck for about 6 months and I haven't received a lead from it yet. I'll continue to leave it on because I think it helps with brand awareness, although I don't know how effective that is.
Podcast Guest on Show How to Easily Find Off-Market Properties (No Experience Required!)
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Thomas Quinn
Residential Real Estate Agent · Uxbridge, MA · Member since 2012 · 123 posts · 13 votes
13y
I have 1 magnet on my wife's suv but have not received any leads from it.
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Bryan L.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y
One of my mentees got a lead right off the bat. I have them for my car too, but usually don't put them on because I use my car for my other job too.
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Adam Carbone
Real Estate Investor · MA · Member since 2012 · 27 posts · 4 votes
13y
Good Morning @Shaun Reilly

@Shaun Reilly
- Spite - Our building management gave me some trouble for putting business cards on a the community kiosks at our office building. But what could they say if I had my car parked in the lot ;)
- Also the mobile billboard ( I think the rear window is more effective, then the sides, have you ever tried to get the # off a car when it is moving ).
- Lastly and maybe most importantly, networking getting the name out of what you do. I was talking to an investor colleague that did this, he said the biggest gain was the additional people he would talk to, opening the door for potential equity partners, etc.
As far as it being effective for leads you have to ask how often am I driving ( better yet parking ) in my target marketing areas.

We are strongly considering doing this in the next 6-12 when I need a replacement for my car!
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Patrick Hopkins
Real Estate Agent · Reading, MA · Member since 2013 · 32 posts · 13 votes
13y
@Justin Silverio (sorry - the @ doesn't work from my office computer)...Ironically enough, I was listening to a BP Podcast last night on the way home on 93north and you drove past me. I recognized the business name on the back decal right away. Nice job!
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Brian Woline
Involved In Real Estate · Grand Haven, MI · Member since 2013 · 42 posts · 7 votes
13y
Hi Shaun,

I am new to BiggerPockets but not to marketing or the use of signage. I would suggest getting magnets with a background color that matches your car. This will detract from the "Tacky" factor while giving you the ability to remove the signage at your convenience. As far as generating leads, my experience is similar to Mr. Siverio's.

The magnet might not generate any direct leads. However, your name will be more recognizable to people in your area. They probably wont know where they have seen it, they will just find the name to be familiar to them. This helps especially to reinforce referrals.
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Paul Timmins
Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
13y
The magnets or signage does not have to be on your vehicle.

I had a buddy who put them on a couple of contractors vehicles, he paid for any lead generated. It also increased work for the contractors.

Paul

@Shaun Reilly
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
I have used a magnet on my truck for a year now. I have gotten a few calls but no real leads. I do it mainly for tax write off. my vehicle becomes 100% tax deductible instead of keeping mileage records. Gave me so much deductions last year my accountant couldn't even use them all because he said it could get me audited even though all my receipts are legit.
3 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
13y
Had signs for about a year, 10 years ago in Atlanta. Never got 1 lead, only a few calls from guys, looking for dates. Got rid of them
2 Reply
Samantha M.
Landlord · Dallas, TX · Member since 2012 · 505 posts · 34 votes
13y
Heres a question, do you guys think a full car paint job for your company and message would pull better than a window peel or side sticker?
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Shaun Reilly
OP
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
13y
Thanks for the feedback everyone.

Interestingly I was looking at some older threads on this subject and they generally had more positive things to say about them.

I do have the window decals and I have been meaning to put one of those on since I don't think those have the same tacky factor. I also doubt anyone will be able to see much more than the logo when driving but the brand awareness can be useful in the investor community.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
13y
I put a logo with info on my truck last October and I have had about 5 calls with the very first person who called I made a deal happen that my partner and I sold for about a $7,000 profit. My sticker decal cost about $75. It has our logo, a catch phrase and my contact number. I will leave it on there but I dont count too much on receiving calls.
Curt Davis - KAIZEN Realty538 Reviews
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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Originally posted by Aaron Yates:
I have used a magnet on my truck for a year now. I have gotten a few calls but no real leads. I do it mainly for tax write off. my vehicle becomes 100% tax deductible instead of keeping mileage records. Gave me so much deductions last year my accountant couldn't even use them all because he said it could get me audited even though all my receipts are legit.

@Aaron Yates ,

That is completely incorrect. You still need to keep mileage records. The IRS would throw that out in a moment. You would have to prove that it is 100% business use and what that use is.
[email protected]224-381-2660
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
13y
Your vehicle would only be 100% business if you had 2 vehicles but then you would have lower mileage on the business one. You might want to look for a new CPA of he is considering it 100%
Curt Davis - KAIZEN Realty538 Reviews
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Shaun Reilly
OP
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
13y
Originally posted by Steven Hamilton II:

Originally posted by Aaron Yates:
I have used a magnet on my truck for a year now. I have gotten a few calls but no real leads. I do it mainly for tax write off. my vehicle becomes 100% tax deductible instead of keeping mileage records. Gave me so much deductions last year my accountant couldn't even use them all because he said it could get me audited even though all my receipts are legit.

@Aaron Yates ,

That is completely incorrect. You still need to keep mileage records. The IRS would throw that out in a moment. You would have to prove that it is 100% business use and what that use is.

Thanks for the clarification @Steven Hamilton II

That didn't sound right to me but I haven't looked at those vehicle regulations in awhile.

At least in MA I am pretty sure just having a magnet won't even get you eligible for commercial plates on your car. This is a dream of mine just so I can park easier if I am out in Boston on the weekend. :)
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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
@Shaun Reilly ,

Glad I can help.
[email protected]224-381-2660
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Justin SilverioPro Member
Developer · Andover, MA · Member since 2008 · 1k+ posts · 489 votes
13y
@Patrick Hopkins Awesome! Glad you saw and recognized the name.
Podcast Guest on Show How to Easily Find Off-Market Properties (No Experience Required!)
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Adam Carbone
Real Estate Investor · MA · Member since 2012 · 27 posts · 4 votes
13y
@Steven Hamilton II I had exactly that same conversation with my accountant about that the other day! you still need your mileage records, and the irs is getting more strict on the mileage log, and if they deny your log for one year they will often say if it was bogus this year lets see it for the last 3 years, so you could end up owing a lot of money!
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
my vehicle is business. in fact i use it for both of my businesses. by day i am a robot programmer in the auto industry. by noght a real estate industry. both are my companies.
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
@Steven Hamilton II , Heres how it has been explained to me...

Even if I didn't use it for both of my businesses, you have the option to claim mileage which requires you to keep VERY accurate records and the smallest discrepancy can erase all of you mileage deduction or you can claim expenses which you get a percentage of.

Once you advertise your company on your vehicle you now can claim 100% expense OR mileage. I use expenses because it gives me a greater deduction.

Also maybe because my robot business is the other reason I can claim my vehicle.

In any case, my accountant has been in business for over 30 years, has properties himself and has many real estate investors as clients. He has never steered me wrong in the 5 years I have been using him. If a flag pops up he tells me. Just like last year. My deductions were too great to claim them all compared to the income I brought in from my robot company.

@Shaun Reilly , my vehicle is registered under my company as well. Maybe the steps I have taken is why I can claim it but in any case I did what I was told to do in order to claim the expenses.
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Mike HurneyPro Member
Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
13y
@Curt Davis Price seems right for the ROI on the door magnets! Only negative I've heard is from a Plumber, he can't use them in the tunnels in Massachusetts because the Stateys will pull him over for carrying flammable gas (hazardous material) in a tunnel;-(
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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Originally posted by Aaron Yates:
@Steven Hamilton II , Heres how it has been explained to me...
Even if I didn't use it for both of my businesses, you have the option to claim mileage which requires you to keep VERY accurate records and the smallest discrepancy can erase all of you mileage deduction or you can claim expenses which you get a percentage of.

Once you advertise your company on your vehicle you now can claim 100% expense OR mileage. I use expenses because it gives me a greater deduction.

Also maybe because my robot business is the other reason I can claim my vehicle.

In any case, my accountant has been in business for over 30 years, has properties himself and has many real estate investors as clients. He has never steered me wrong in the 5 years I have been using him. If a flag pops up he tells me. Just like last year. My deductions were too great to claim them all compared to the income I brought in from my robot company.

@Shaun Reilly , my vehicle is registered under my company as well. Maybe the steps I have taken is why I can claim it but in any case I did what I was told to do in order to claim the expenses.

@Aaron Yates ,

What type of vehicle is it? Unless it is a special use vehicle, not going to happen.

Your accountant is completely wrong. Putting a magnet on your car does not make every mile business related. You can use the actual percentage of expenses(based business/ total miles) or the standard mileage rate.

If you have a corporation that owns the vehicle it is to charge you (via w-2) for the fair market value of your personal use of the vehicle.

IRS Pub 17 page 185 US Tax Court Pages 15 & 16

IRS Publication 15 Fringe Benefits

Advertising display on car. Putting display

material that advertises your business on your

car does not change the use of your car from

personal use to business use. If you use this car

for commuting or other personal uses, you still

cannot deduct your expenses for those uses.
[email protected]224-381-2660
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
@Steven Hamilton II , I will call him Monday and reclarify with him how he claims my expenses. He has me paying my car, car insurance, cell phone, car repairs and gas all from my business account.

Maybe I am misunderstanding how he explained it to me. I do remember for sure that he said if i advertise on my vehicle that I can then claim 100% of expenses instead of only getting a percentage of the expenses.

I remember him saying something about a car allowance to now that you mention a W-2.

My vehicle is a truck which is obviously needed when rehabbing houses.

Also, as a robot programmer ( my company as well) I travel to multiple locations and drive to those places when the job is located in Michigan. As I stated earlier, I am not a direct employee. So again, this may have something to do with why he has me doing what I am doing in regards to how I pay certain bills and what I claim.

My company setup is not a simple one since I am in two different industries.

Also scanning the links you sent me, my CPA has said something to me about vehicle depreciation also.

So I will talk to him and get back with you once I get a better understanding and update the post so I don't give wrong information.
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Aaron Yates
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
@Steven Hamilton II
UDPATE:

Sorry for the book but after more research on your response, my scenario is different than most part time investors.

In regards to the link you put for the ustaxcourt ruling: I am not a dentist and am not claiming equipment. Both of my businesses require travel and lots of it. I have a 10 year history of work traveling whether it be driving or flying which 6 years of it was an employee.

My job as a robot programmer is to setup lines for production. I travel to different locations as new lines are installed and need setup. It's my job description to travel. So this is not a trick for a tax deduction with my robot business. And as a real estate investor I travel to look at properties, buy supplies, meet with clients, and so forth. So in short, the court link you sent does not apply to my type of businesses as mine do require up to 100% travel for my position as a robot programmer and as a real estate investor.

I read the section you are talking about in regards to percentage of what I can claim and also spoke with my accountant. Again as I thought, because both of my companies require travel of up to 100% most of the time, I can claim my vehicle expenses. Obviously my robotics company helped this be possible but it's still possible to claim a percentage as you stated and is based on mileage.

His clients that have been audited in the past and have had this challenged, sometimes end up only getting 80%-90% but most of the time he has had no problems he said. Also, my company is structured as an S-Corporation instead of a C-Corp which apparently is a bonus.

So worst case scenario for my situation, I may lose 10% or 20% in the event of an audit for the very little personal use I may do for going to the grocery store or something instead of us using my wife's car but in actuality my vehicle is a 'Work Truck' in every aspect.

Back to the Dentist scenario. That is a far fetch in my opinion to try and claim what they were. A Dentist is not a 'travel' job. I also don't claim my vacations as 'Real Estate Investment' travels. I seperate ALL my personal and business expenses. Each expense comes out of the corresponding account. I have a seperate account for my real estate transactions, robot programming transactions, and personal transactions. I am as clear cut as I possibly can be as I was advised to do from both my CPA and my attorney specifically for the event of an audit as well as asset protection.

So in all, it really is left to interpretation of that IRS agent, CPA, or attorney. And how detailed were the companies books who were trying to claim these deductions? Heck, even our government officials claim their vacations and get caught. So how I see it, if you are an open book, keep clear records, then in the event of an audit things should go smooth and you should have nothing to worry about. Oh, and don't claim unwork related expenses!! Which I don't and never have.

In fact I don't use alot of deductions I should be just because I do have so many already and my CPA advised that too many will also throw up red flags and risk an audit. The biggest one that scares me is food deductions. I talk about real estate at meals all the time with possible partners but in my mind how do I prove that the dinner or lunch was a 'work' related meal. I didn't set out to say hey.. what can i deduct this year? It just happens everytime I grow my company or make changes. I acquire more deductions depending on what I have going on that year.

But I am now trying to get tax planning strategies set up and have to set up a meeting with me, my cpa and my attorney to get the most out of it.

To summarize then, how I see it really depends on what your regular job or company is and does. If I was a direct employee still as a robot programmer then no, I couldn't say my vehicle was for business use and also because as an employee I use to get mileage anyways or as I found out last year could have claimed a percentage of the expenses (as you mentioned also). As a Contractor now I don't get those benefits when it comes to vehicle use and my job does not consist of me always at the same 'work' location every day.

Hope this clarifies things for you and it was good to challenge it because it helped me get a better understanding of why I get the deductions I get.
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Steven Hamilton IIPro Member
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
@Aaron Yates ,

I only used that case to show you the regulations as stated there and how the court saw them. I completely agree the dentist was an idiot about claiming that much.

That was my only goal was to make sure you have your I's dotted and Your T's crossed. Just remember that they can hit you with the personal trips and if there are no logs no way to prove otherwise.

Great conversation
[email protected]224-381-2660
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