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OFF-TOPIC Fractional ownership/Car clubs ?

lkn2bfd

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Sep 22, 2007
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So how do some of you who drive and own exotic cars feel about the two and please explain why you feel the way you do ?
 

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kurtyordy

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I have looked for people who wanted to share ownership for my ride, but for some reason they all look at me funny and say no. Must be something wrong with my presentation.
 
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lkn2bfd

lkn2bfd

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Sep 22, 2007
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I think she might take my 96 accord lol, but really at one time it seamed like this idea was taking off has all the hype died out ?
 

Cmbilt

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Jan 25, 2008
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I think the biggest problem with fractional ownership in cars is the depreciation value that cars automatically have once you drive them off the lot. But I believe other fractional ownership systems work miracles in splitting up risk, cost, and any down side to investments. Multiple minds at work are always better than one! I am not trying to plug my own investments here, but since I saw the title of your post was fractional ownership I must say it got my attention. I have been buying real estate for years and believe fractional ownership is a very good tool for real estate investment properties. Although real estate is a bit different than cars, you can use both or rent out both(Have you thought about renting your super posh car to other companies or people to use in promotions?). The attraction could persuade some people to split up the cost of the car with you.

Regards,

Tyler
www.cmbilt.com
 

kurtyordy

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'96, you are living large. Mine is only a '95 Olds. As far as responses, I had never heard of such an idea until I read your post.
 

andviv

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Cmbilt, great point.

I think you have to look at this as a toy. It is definitively NOT an investment, IMO. I tend to have the same opinion for Timeshares, you are buying time for vacations, not 'an investment'.
 
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lkn2bfd

lkn2bfd

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Sep 22, 2007
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Well I'm not looking at it as an investment I try to figure out ways for people to pay for things I want. like just say for instance a fractional ownership car it would have seven owners and I would manage it, keep it deteiled and keep the mantanice on it. not for money but for use of the car also that way I never have to own it
 

MJ DeMarco

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So how do some of you who drive and own exotic cars feel about the two and please explain why you feel the way you do ?
I think the "Fractional" thing works for guys who like to move from car to car over short periods. There are guys on the Lambo forum that trade their cars every 3-6 months. I typically hold for 18-24 months so it makes fractional ownership unfitting for my needs.

Also, I think the "fractional" arrangement is really for people that can't afford the car so they look into alternatives, much like Timeshares on vacation properties. If you can't afford that posh villa on the Hawaiian coastline, you can timeshare it and own 1/16th of it.

Personally, I want to have 100% control over my assets, even the depreciating ones. That means an ownership arrangement via 1) Paying cash 2) Leasing or 3) Financing.

Having someone dictate my maximum mileage, the time/day I can drive, etc is not my idea of freedom, especially in a doodad that I view as a product of my hard work.
 

Cmbilt

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Jan 25, 2008
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"I tend to have the same opinion for Timeshares, you are buying time for vacations, not 'an investment'. " - Andviv

I dont know how to copy other post and put it in green like that at the top, but I just wanted to comment on this quote. :smx4:

I agree that regular timeshares are not good investments and they are mostly toys because you never earn equity or appreciation, just a vacation. I think you will see a trend in the marketplace coming real soon where vacation properties will start becoming deeded timeshares, like a couple of my investments. You own a certain percentage, like fractional ownership, but still use the property like a timeshare. There is a difference between timeshares and fractional ownership. I just wanted to make that clear.

Tyler
www.cmbilt.com
 

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lkn2bfd

lkn2bfd

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Sep 22, 2007
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I think that's selling yourself short.

Why not put in some extra effort and make the car purchase look like change you

dropped on the floor? You want an Enzo you say? Work harder!


I know this is detracting form the original question, and I'm not trying to be offensive in

any way. But, I just think it's like an Olympian preparing to compete and expecting a

bronze. Slow? Oh yeah.
I don't think I would be selling myself short. I was just thinking about a quote that russ has under his post control everything, own nothing. like fractional ownership why would you spend 200,000 on a car that is going to depreciate in value. when you could have someone else pay for it and you would have access to the use of it. you wouldn't be miss using them instead of them paying you. you would have access to the car from time to time. I don't know it was just a thought I have them all the time and just like to throw them out there and see what you guys and gals think
 

CarrieW

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I think its more likely to work (generally) in a city type enviroment. like in nyc where you dont "need" a car but may want to use one from time to time to do certian things. and where its a pita to park or store it.

I think in a situation like this it would make practical sense to have a car that you could use when you needed it and only pay for % of the parking, maintence fees, and insurance for something you wouldnt use every single day...
 

andviv

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Tyler, just press the Quote button for the post you want to quote. It will show everything the original post had, you just remove the things that you don't need and keep the text you want to quote.

About the difference between the timeshares and fractional ownership, yes, I understand what you are saying. I think it would be interesting if you post somewhere else about how you set them up and how's been your experience managing them. Who gets the 'nice' weeks like 4th of July, Christmas, New Year, Thanksgiving, etc. How do you manage the condo fees, etc etc.

lkn2bfd, I do commend you for having a wish (your Ferrari) and looking for different ways to accomplish it. The 'simple path' is to own it free and clear. The business idea you are talking about has a lot of merit as it shows that you are stepping out of the box to find another way to make it happen. rep++ for that.

There is a business just like that in NY/NJ and Miami. I think the founders created the business just for the same reason. The cars are not just toys, they are 'business equipment' and as such it gets business depreciation and many other benefits, while you get to enjoy the ride in 'the company car'. Check this website http://www.gothamdreamcars.com/dream-car-tour.htm and take a look at the pics of the cars they are selling on ebay. That does NOT look like the McMansion of a Ferrari owner, does it?
 

Cmbilt

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Jan 25, 2008
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The condos are set up according to our operating agreement. 1 share owns 6 weeks out of the year - 2 weeks during the peek season(like the summer) and 4 weeks the rest of the year. We are pretty flexible on the weeks that you want, unless these weeks are already rented. The condo fees are split between all the owners.
 

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