“Why has Classic Car Syndication not taken off…”
..is a question I have been asking myself for a number of years. Shared ownership of holiday homes, airplanes, boats, horses, etc. is very popular. So why not our classics?
I think there are three reasons:
- Establishment, management and storage costs of a shared ownership scheme are high compared to the value of most vehicles.
- There are hidden risks in older vehicles which can result in high, unexpected costs – engine rebuilds, body restoration, etc.
- The need to trust other owners to have a degree of mechanical sympathy and to treat the car respectfully.
Over the last few months, I have been working with a selection of enthusiasts to try to come up with a model that could overcome these problems. These are the key elements that we came up with:
- We share a fleet of cars – that way we raise the capital cost so that the set up costs are a more realistic percentage of the capital cost.
- On top of the capital cost of the fleet, we also set up a Capital Sinking Fund (similar to that used in apartment blocks) to cover unexpected repair costs and/or restoration costs to improve the fleet.
- Vehicles are cycled around partners sheds every few months, effectively giving them their own private collection and saving on storage costs.
- Vehicles are made available for hire, both for photoshoots, etc and self-drive. The income helping to offset running costs.
- Partners are allowed a maximum number of kms per year/per car over which they pay a per km contribution.
- Partners are expected to get their hands dirty with the fleet of cars. This will improve their mechanical sympathy when they drive the cars and minimise maintenance costs.
But what do you think? Please email me with your feedback – firstname.lastname@example.org