You may have seen that the price of used cars has skyrocketed recently – as much as 30% in the last year. One study found 73 models of 1- to 3-year-old vehicles being sold at auctions for prices above their original sticker price.
The current crunch comes from auto manufacturers stopping production in the spring of 2020 due to COVID followed by a shortage of computer chips needed for modern automobiles. That caused buyers to shift to the used car market (which itself is short on supply because rental car companies are holding onto their vehicles because they are unable to buy new ones).
Buying a used car can be an unsettling experience. It’s not easy to hand over thousands of dollars for something without knowing much about what you are getting.
That’s why most used cars dealers offer a multi-point inspection. In fact, Honda offers a 182-point inspection on their certified pre-owned vehicles.
If used-car buyers are reluctant to buy without supporting details even in a “hot” market, wouldn’t you think that clients would like comparable information from financial advisors and financial planners on exactly what they provide?
Of course, they would! This is why we have always encouraged advisors to communicate this information to clients and prospective clients. Not a simple list of “services” that your clients could get anywhere, but rather what you include in the various types of wealth management and service standards of care you personalize for your individual clients, families, and the niches or target markets that you serve.
Need some help defining the details of your standards of care?
Check out our latest course, Well-Served: Crafting and Implementing Your Standards of Care. Click here for all the information you need.