Classic Car Syndication Model

“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:

  1. Establishment, management and storage costs of a shared ownership scheme are high compared to the value of most vehicles.
  2. There are hidden risks in older vehicles which can result in high, unexpected costs – engine rebuilds, body restoration, etc.
  3. 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:

  1. 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.
  2. 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.
  3. Vehicles are cycled around partners sheds every few months, effectively giving them their own private collection and saving on storage costs.
  4. Vehicles are made available for hire, both for photoshoots, etc and self-drive.  The income helping to offset running costs.
  5. Partners are allowed a maximum number of kms per year/per car over which they pay a per km contribution.
  6. 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 – keith@vcch.com.au

KeithMcIlroy_0254 CROPPED for documents

9 comments on “Classic Car Syndication Model
  1. Paul McCarthy says:

    Hi Keith,

    The first couple of thought bubbles that popped into my head when I read your 6 points…
    1. Share garaging and rotation is a great idea to keep cars spread out and closer to a larger group of owners
    2. How to choose what goes in the fleet? Some are more expensive, some are more difficult to maintain, some are more popular than others…. how to equitably share the costs? The shared ownership model is fantastic because each owner only faces a small proportion of the overall cost but gets max use out of the fleet!
    3. Photoshoots – we need a marketing spin on this to get the best access to creatives who specify what the look and feel of an advertisement/film/videolog/you tube video involving vehicles should look like
    4. I love the term mechanical sympathy and would be very happy to get my hands dirty on a range of cars!

    When do we start?!
    Regards, Paul

  2. Ken Fraser says:

    Hi Keith,
    Your exercise has come up with good ideas, as far as I am conserved I do not have the capital to be a financial partner. However I have a double garage for working on cars like my 1968 Morris Cooper S that a managed to win trophies at car show like Peoples Choice on a shoe string budget.I have an excellent range of tools including generator / compressor, trolley jacks etc and I tried to rebuild my S motor X 5 times without success.
    Went to Mini Wreckers in Newcastle and had it rebuilt and sold it I had had enough due to not have the right technique knowledge of the Cooper S setting even with a lot of help from a mate who had no previous experience with Minis.
    I could carry out basic maintenance as long as they are not computerized and could do full vehicle inspections as required.
    Have just received some protective wax from USA for a excellent shine called Shine Armour which I am about to apply to my current BMW Mini Chilli Cooper.

  3. bill inkpen says:

    Keith perhaps get a list of different motor clubs with a list of the cars in each club would help because from my knowledge different car clubs don’t talk to each other . In Canberra we had 3 different French car clubs with dying memberships which have now agreed to call themselves the French Car Club of Canberra in the process of being registered with the local Government- just a thought cheers Bill

  4. Chris Ristevski says:

    Hi Keith,

    Is there a value in having different tiers of cars based on either marque, country of make or $$ value?
    I realise this could be subjective but maybe some Partners would only be interested in vehicles from say Italy that are valued under $100k in purchase price for instance.

    Another option is potentially having a lay-by system on certain vehicles, which allows Partners to advertise a vehicle for sale with extended periods of ownership and payments made accordingly?

    I realise the above ideas probably don’t sound too enticing in text but thought I would share accordingly

    Best,
    Chris

  5. Hi! Thanks for this info! Love your blog!

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