GT3 - Track car fractional ownership
03-13-2018, 06:16 PM
#16
Sounds like a terrible idea. Not only do you have to figure out what happens if the car gets into an accident, or even lightly damaged (figure the driver at the time pays the insurance deductible and deals with getting it fixed...?) but then for the 4 weeks it is out of service and in the shop (do you make the same driver pay extra for that time?), and the next owners have to miss their events because the car isn't available, plus their costs to cancel their DE registration (if allowed), hotel reservations, etc. And now a higher insurance premium and/or deductible that everyone has to split because Vinny can't seem to keep the thing on the track coming out of turn 3? Just seems like a lot can go wrong, and the time it would take to administer all this could be significant.
03-13-2018, 07:31 PM
#17
one idea , is keep it and you rent it to people like Turo or even for people to take on track with limited miles allowed and if track use extra charge for wearable . In Las Vegas you can rent a GT3 full day with instructor for around 1800 dollars including food. So you can do some additional research and make your charges accordingly per day. I think the car will pay for itself over time
03-13-2018, 09:02 PM
#18
Burning Brakes
Risky idea. Many years ago, three "friends" sharing the same interests thought about "sharing" space to store/work on their cars. It never happened as two were "neat freaks" and the third would do their thing and borrow tools from the others and leave the place a mess for the others to clean up. (P.S. I was one of the "neat freaks"). Sharing ownership in a track car is a whole other universe........
03-14-2018, 09:06 AM
#19
Why not just use the Touring for DE? How experienced are you? Do you think it will make much difference?
03-14-2018, 02:43 PM
#20
03-14-2018, 02:48 PM
#21
Rennlist Member
as long as nothing "breaks" this could work - the problem is when something breaks how do you divide the repair costs - some breakage is attributable to a sole individual - other breakage is wear/tear which should be shared...also sometime there is cash flow problems and when you want something fixed but your partner is not in a good place - it's awkward to delay the repair or accelerate it...
my family has owned boats with other people - it's never gone well and there is always disagreement on costs/responsibility - it can work, but rarely works well.
my family has owned boats with other people - it's never gone well and there is always disagreement on costs/responsibility - it can work, but rarely works well.
03-14-2018, 04:03 PM
#22
03-14-2018, 04:24 PM
#23
03-14-2018, 06:25 PM
#25
Burning Brakes
03-14-2018, 07:25 PM
#26
Rennlist Member
I've done it with boats. Was President of a Yacht Share company. Customers all loved it 100%. Similar issues, challenges, and opportunities.
Fractional is a beautiful thing, but most fail on the trust issue. After all, you are selling a 3 or 5 year promise, can you deliver?
A couple of things I learned...
1. You must have multiple vehicles, if one goes down, need a back up or else someone's plans get ruined / costly.
2. Better if only 1 person as owner, the others lease. This solves all title, ownership, partnership issues. And, isolates the actual and tax depreciation 100% to a single entity.
3. Everyone's fear is not enough time per shareholder. Reality is complete opposite, so don't worry about that issue.
4. Repairs - just put it on a professional overkill maintenance program and build it into the cost. For example, we changed our belts, spark plugs, and water pump impellers annually whether or not they were needed. Never had a maintenance failure.
5. This one will take some thought on your part to figure out.. "When you cut into a Hot Apple Pie, the first slice taste best". Have a model that is not reliant upon all shares selling out at the same price - because they don't!
6. The math works great, but you need to add more value. For example, perhaps you can include professional transport to and support at various tracks throughout the country. You can't get that by walking into a Porsche dealership and paying $180k. Build it with "Unattanium".
7. You gotta say no. Some people don't need to be on the team, so don't let 'em.
8. People will love it, but do YOU want to do the work???
Good luck, its the future.
Fractional is a beautiful thing, but most fail on the trust issue. After all, you are selling a 3 or 5 year promise, can you deliver?
A couple of things I learned...
1. You must have multiple vehicles, if one goes down, need a back up or else someone's plans get ruined / costly.
2. Better if only 1 person as owner, the others lease. This solves all title, ownership, partnership issues. And, isolates the actual and tax depreciation 100% to a single entity.
3. Everyone's fear is not enough time per shareholder. Reality is complete opposite, so don't worry about that issue.
4. Repairs - just put it on a professional overkill maintenance program and build it into the cost. For example, we changed our belts, spark plugs, and water pump impellers annually whether or not they were needed. Never had a maintenance failure.
5. This one will take some thought on your part to figure out.. "When you cut into a Hot Apple Pie, the first slice taste best". Have a model that is not reliant upon all shares selling out at the same price - because they don't!
6. The math works great, but you need to add more value. For example, perhaps you can include professional transport to and support at various tracks throughout the country. You can't get that by walking into a Porsche dealership and paying $180k. Build it with "Unattanium".
7. You gotta say no. Some people don't need to be on the team, so don't let 'em.
8. People will love it, but do YOU want to do the work???
Good luck, its the future.
03-14-2018, 11:57 PM
#27
RL Community Team
Rennlist Member
Rennlist Member
Better to just rent the car as a dedicated track car.
Easier, and probably with a bit of margin on the side for yourself.
Easier, and probably with a bit of margin on the side for yourself.
03-15-2018, 12:02 AM
#28
Wow.
03-15-2018, 12:51 AM
#29
Nordschleife Master
Why wow? Doesn't that make sense?
Mattheboatman made some very good points that I will reiterate:
1) The parties should be capable of buying the car outright on their own
2) Ideally each partner already has their own track car and this would be a 2nd one to add
3) the skill levels of each partner need to be similiar, otherwise the consumables will be eaten at different rates and the setups will be different
4) The partners need to have the right personality. Only you will know what that means
Mattheboatman made some very good points that I will reiterate:
1) The parties should be capable of buying the car outright on their own
2) Ideally each partner already has their own track car and this would be a 2nd one to add
3) the skill levels of each partner need to be similiar, otherwise the consumables will be eaten at different rates and the setups will be different
4) The partners need to have the right personality. Only you will know what that means
03-15-2018, 09:48 AM
#30
Rennlist Member
Why wow? Doesn't that make sense?
Mattheboatman made some very good points that I will reiterate:
1) The parties should be capable of buying the car outright on their own
2) Ideally each partner already has their own track car and this would be a 2nd one to add
3) the skill levels of each partner need to be similiar, otherwise the consumables will be eaten at different rates and the setups will be different
4) The partners need to have the right personality. Only you will know what that means
Mattheboatman made some very good points that I will reiterate:
1) The parties should be capable of buying the car outright on their own
2) Ideally each partner already has their own track car and this would be a 2nd one to add
3) the skill levels of each partner need to be similiar, otherwise the consumables will be eaten at different rates and the setups will be different
4) The partners need to have the right personality. Only you will know what that means