Sharing a Ferrari

I'm thinking about joining forces with a few other likeminded people to buy a 328 or similar, with the aim of sharing its use along with the purchase and maintenance costs. Does anyone have any experience, positive or negative, with something like this? Or otherwise have an opinion?

 

Thank you for all of your responses. All of them have very valid points and I really appreciate you sharing them.

I can definitely see why most people wouldn’t touch this with a 10ft barge pole. However I think with a sensible approach, and the right mix of people, it could work. There’s no doubt that conflict will ensue at some point but in any sort of partnership that’s inevitable. If it does work, I would probably look to leverage the same system with additional, perhaps even less attainable vehicles. If it doesn’t, then at least I gave it a go.

ChipG. Despite your reservations about doing this yourself, your suggestions are actually pretty close to the way I was thinking of setting this up:

4 people max. 25% equitable share each in the car. Charge more than the cost of the car for the initial investment to start a healthy reserve fund. Everyone gets the same mileage allowance but can purchase more by adding to the reserve fund.

In addition, in order to simplify scheduling and minimize handovers I like the idea of everyone having the car for one month at a time (2 months total each per year between April and November). If weather permits, bonus usage during the winter months. Pickups would be the first weekend of the month, and drop offs the last weekend. This should give me time to inspect and prepare the car prior to the next usage.

I’ve put some thought into the questions some of you raised:

Maybe you’re better off joining one of the car sharing clubs
I’ve definitely considered it. But take the Classic Car Club for example. To get 8 weeks of driving time in the 328 you’re looking at upwards of 13 thousand dollars of money you’ll never see again. What I’m trying to do is get around 8 weeks of usage each for around $5K in dues annually. That’s $20K a year that can go to toward the upkeep & improvement of the car, and anything that’s left over when the car is sold can be split four ways. The initial investment for an equitable quarter share in the car, let’s say is 10K (Not including 1st years dues), and hopefully you’ll see most of that back.

I had actually looked into starting a “for profit” operation with just one car, but could not find a feasible way to get proper insurance, especially in New York. This led me to consider the “none profit” model which, from what I can tell, is not subject to the same insurance complications.

Who is going to own/register/insure it?
I’m planning on creating an LLC to register the car under. As for insurance, I would name all drivers on the same policy. I’ve found a company that will allow me to add up to five drivers to the same policy, even though it’s considered an exotic/collector car. Seems like most will only allow one or two drivers.

Who is going to house it?
I’m considering using part of the collective funds to join the Collectors Car Garage in Bedford, NY (www.collectorscargarage.com). This would be a great place to house the car during the winter months, allow for use of their facilities throughout the year (detailing bays, club lounge, events etc.) and be a neutral place to pick up and drop off the car. Whilst someone has the car in their possession, they would have the option of keeping it there if convenient, or at their home, providing they have a garage.

If somebody brings back the car with the engine making nasty noises - parks it for the next guy - who's to say when it happened?
Furthermore, who’s to say that it happened due to neglect rather than normal wear and tear. Yes, this is a tricky one. Firstly, I’m hoping that a reasonable security deposit along with a high level of due diligence with potential co-owners (MVR reports, Background checks, interview etc.) will help minimize the shenanigans that may occur whilst the car is being driven. Secondly, I would plan to have any handover of the car go through me first so I can record any damage/issues and hold the last driver responsible if there’s any obvious neglect, and/or address any apparent issues. Of course there will be times when fingers get pointed and I think a well thought out contract that makes provisions for those instances will help keep the grief to a minimum.

Does it really need ALL the suspension bushings replaced for $2K?
I think the contract needs to stipulate that all recommended service is performed, leaving no room for argument.

Anyway, If anyone has any other suggestions or comments, I’d love to hear them. And of course if anyone is interested in getting involved in something like this let me know.