How much would you pay for supercar privilege?
06-22-10, 10:53 AM
#17
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To interject into the discussion, I am fully aware of programs, car shares that allow you to do this and the various fee agreements, including monthly pricing, points pricing, etc. The basic crux, of programs are that maintenance and cleaning is taken care of and you can select from different cars and just drive. That is what you pay for.
Mikez, to answer your question, I would pay up to $1500/mo to enjoy the ability to drive an exotic for one weekend/mo. This would of course mean that I get to pick the weekend and the exotic of my choice. Basically, I balance between owning my own for the same amount and driving it whenever, or being able to change between them.
If it is a fixed weekend every month, but different cars, the value would diminish, maybe to $1000 because I could see not being able to utilize it at all times.
If it is not fixed weekend, but same car, then I look at about $700.
Basically, I bought my M3 purely for fun/weekend driving and if I could get that experience almost on demand with various exotics, I would do it. However, it is not practical for to own one of these. Like my assumption above, gas and go means a lot.
Mikez, to answer your question, I would pay up to $1500/mo to enjoy the ability to drive an exotic for one weekend/mo. This would of course mean that I get to pick the weekend and the exotic of my choice. Basically, I balance between owning my own for the same amount and driving it whenever, or being able to change between them.
If it is a fixed weekend every month, but different cars, the value would diminish, maybe to $1000 because I could see not being able to utilize it at all times.
If it is not fixed weekend, but same car, then I look at about $700.
Basically, I bought my M3 purely for fun/weekend driving and if I could get that experience almost on demand with various exotics, I would do it. However, it is not practical for to own one of these. Like my assumption above, gas and go means a lot.
06-22-10, 10:56 AM
#18
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Thread Starter
To interject into the discussion, I am fully aware of programs, car shares that allow you to do this and the various fee agreements, including monthly pricing, points pricing, etc. The basic crux, of programs are that maintenance and cleaning is taken care of and you can select from different cars and just drive. That is what you pay for.
Mikez, to answer your question, I would pay up to $1500/mo to enjoy the ability to drive an exotic for one weekend/mo. This would of course mean that I get to pick the weekend and the exotic of my choice. Basically, I balance between owning my own for the same amount and driving it whenever, or being able to change between them.
If it is a fixed weekend every month, but different cars, the value would diminish, maybe to $1000 because I could see not being able to utilize it at all times.
If it is not fixed weekend, but same car, then I look at about $700.
Basically, I bought my M3 purely for fun/weekend driving and if I could get that experience almost on demand with various exotics, I would do it. However, it is not practical for to own one of these. Like my assumption above, gas and go means a lot.
Mikez, to answer your question, I would pay up to $1500/mo to enjoy the ability to drive an exotic for one weekend/mo. This would of course mean that I get to pick the weekend and the exotic of my choice. Basically, I balance between owning my own for the same amount and driving it whenever, or being able to change between them.
If it is a fixed weekend every month, but different cars, the value would diminish, maybe to $1000 because I could see not being able to utilize it at all times.
If it is not fixed weekend, but same car, then I look at about $700.
Basically, I bought my M3 purely for fun/weekend driving and if I could get that experience almost on demand with various exotics, I would do it. However, it is not practical for to own one of these. Like my assumption above, gas and go means a lot.
The reason I asked because I want to know if its feasible to provide this sort of enjoyment to the masses. To enjoy something that you love every month of the year as if you own it without taking the hit of financial constraints. So enthusiast such as us or just car lovers, even the folks driving a 93 sienna with 4 kids can enjoy a Ferrari every month of the year.
06-22-10, 11:01 AM
#20
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Thread Starter
Exactly, that is always an issue. But that depends if you just want a Ferrari 360 or drive the Scuderia/CCR/Zonda, because it obviously cost a lot more to fill your lineup with super exclusive new supercars where as some of the previous gen exotics are not that hard or expensive to procure.
Plus, I doubt many would care that their Ferrari for the weekend has 80k miles on it if it works and is in good shape.
Plus, I doubt many would care that their Ferrari for the weekend has 80k miles on it if it works and is in good shape.
06-22-10, 11:34 AM
#21
Interesting thread!
...what about this.
Let's say you have a very good friend that is also very much into cars (exotics) and simply split say...$4000/mo. Guess what? Just buy it with someone! Have everything drafted up by an attorney as far as to state the terms of the agreement (i.e. when each would use it) and then if you get sick of the car...trade it in for a different make/model! You won't have to then worry about when I can have it and it would not be "rented" to you. IMHO if I had $2K a month to throw around at something like this, I would look into finding someone to go in on a purchase of one of these exotics. Better yet, if you can't find anyone $2K/mo over 5 yrs could allow you to purchase a pretty nice pre-owned exotic for around $120K. Aston Martin DB9...mmmm lol
Just looking at it from another perspective...perhaps this is something you would like as well! GL!
...what about this.
Let's say you have a very good friend that is also very much into cars (exotics) and simply split say...$4000/mo. Guess what? Just buy it with someone! Have everything drafted up by an attorney as far as to state the terms of the agreement (i.e. when each would use it) and then if you get sick of the car...trade it in for a different make/model! You won't have to then worry about when I can have it and it would not be "rented" to you. IMHO if I had $2K a month to throw around at something like this, I would look into finding someone to go in on a purchase of one of these exotics. Better yet, if you can't find anyone $2K/mo over 5 yrs could allow you to purchase a pretty nice pre-owned exotic for around $120K. Aston Martin DB9...mmmm lol
Just looking at it from another perspective...perhaps this is something you would like as well! GL!
06-22-10, 11:37 AM
#22
Lexus Champion
Thread Starter
I was actually just talking about this with someone, 2k a month in lease / financing would net you something below 80k, and then you gotta deal with insurance, reliability issues, etc. Also not to mention from my experience of trying to finance a Lotus, they won't even consider it unless you put 50% down, so that chunk of cash has to come out of no where.
Its always better to have the car yourself, but I think if the monthly price is cheap enough, then the scale will tip since you save on all the other cost of ownership.
Its always better to have the car yourself, but I think if the monthly price is cheap enough, then the scale will tip since you save on all the other cost of ownership.
06-22-10, 11:38 AM
#23
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Exactly, that is always an issue. But that depends if you just want a Ferrari 360 or drive the Scuderia/CCR/Zonda, because it obviously cost a lot more to fill your lineup with super exclusive new supercars where as some of the previous gen exotics are not that hard or expensive to procure.
Plus, I doubt many would care that their Ferrari for the weekend has 80k miles on it if it works and is in good shape.
Plus, I doubt many would care that their Ferrari for the weekend has 80k miles on it if it works and is in good shape.
06-22-10, 12:55 PM
#24
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You want to make this so the 'average' guy can drive a supercar on the weekend. There are all sorts of issues with that go along with this; the biggest being anything that falls under a Tragedy of the Commons, it's not their car so maybe a coffee gets spilled, the kid wanted a ride and had sticky hands or muddy shoes, lips & bumpers get scraped on curbs and speed bumps, people bottom the car, rims get curbed never mind the bigger ticket problems like burnt clutches worn out gear boxes from excessive thrashing.
As I understand it the 'average' guy has a house and a car (or two) with payments and a kid or three and the general expectation is these kids will go to post secondary (which for you guys is quite expensive). Assuming most of your target customers are the average guy (not girl) they have wives that can come up with any number of 'better' ways the money being spent on the supercar membership can be spent (I think they like home improvements, kid activities, paying off debt sooner)
What about where you're going to store the cars? You need people to maintain them (unless you plan to become really good friends with a lot of the dealerships), you need parts that often don't come from North America. If you only have the 7 - 8 cars (because monthly membership is so affordable) people are going to be pissed when you've told them more than twice in a row that the car they want isn't available today. Like others, I think on demand driving counts for a lot. You need to have insurrance for EVERY type of driver, there are theft issues.
I'm not saying that the clubs need to cost as much as they currently do, but by setting the membership fee as high as they often are, it keeps a lot of the problem clientelle away and therefore the headaches that go with them.
If you're serious about this, what you need to do is start from the end dollar amount of what it really costs to run this business, including normal profit (get an economist to help you, not an accountant - you need someone overly familiar with opportunity cost) and then figure out how much you need to charge each member. Once you have that number you ask the question: "Would you be willing to pay $X/mo with this type of supercar borrowing scheme"
06-22-10, 01:16 PM
#25
executive matchup
correction: you'll need both an economist and an accountant, with the latter helping you to determine profitability and corporate business solutions. 
06-22-10, 01:20 PM
#26
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Thread Starter
Enough to buy and maintain about 7 - 8 cars IF you don't go nuts on the options list and IF nothing goes horribly wrong.
You want to make this so the 'average' guy can drive a supercar on the weekend. There are all sorts of issues with that go along with this; the biggest being anything that falls under a Tragedy of the Commons, it's not their car so maybe a coffee gets spilled, the kid wanted a ride and had sticky hands or muddy shoes, lips & bumpers get scraped on curbs and speed bumps, people bottom the car, rims get curbed never mind the bigger ticket problems like burnt clutches worn out gear boxes from excessive thrashing.
As I understand it the 'average' guy has a house and a car (or two) with payments and a kid or three and the general expectation is these kids will go to post secondary (which for you guys is quite expensive). Assuming most of your target customers are the average guy (not girl) they have wives that can come up with any number of 'better' ways the money being spent on the supercar membership can be spent (I think they like home improvements, kid activities, paying off debt sooner)
What about where you're going to store the cars? You need people to maintain them (unless you plan to become really good friends with a lot of the dealerships), you need parts that often don't come from North America. If you only have the 7 - 8 cars (because monthly membership is so affordable) people are going to be pissed when you've told them more than twice in a row that the car they want isn't available today. Like others, I think on demand driving counts for a lot. You need to have insurrance for EVERY type of driver, there are theft issues.
I'm not saying that the clubs need to cost as much as they currently do, but by setting the membership fee as high as they often are, it keeps a lot of the problem clientelle away and therefore the headaches that go with them.
If you're serious about this, what you need to do is start from the end dollar amount of what it really costs to run this business, including normal profit (get an economist to help you, not an accountant - you need someone overly familiar with opportunity cost) and then figure out how much you need to charge each member. Once you have that number you ask the question: "Would you be willing to pay $X/mo with this type of supercar borrowing scheme"
You want to make this so the 'average' guy can drive a supercar on the weekend. There are all sorts of issues with that go along with this; the biggest being anything that falls under a Tragedy of the Commons, it's not their car so maybe a coffee gets spilled, the kid wanted a ride and had sticky hands or muddy shoes, lips & bumpers get scraped on curbs and speed bumps, people bottom the car, rims get curbed never mind the bigger ticket problems like burnt clutches worn out gear boxes from excessive thrashing.
As I understand it the 'average' guy has a house and a car (or two) with payments and a kid or three and the general expectation is these kids will go to post secondary (which for you guys is quite expensive). Assuming most of your target customers are the average guy (not girl) they have wives that can come up with any number of 'better' ways the money being spent on the supercar membership can be spent (I think they like home improvements, kid activities, paying off debt sooner)
What about where you're going to store the cars? You need people to maintain them (unless you plan to become really good friends with a lot of the dealerships), you need parts that often don't come from North America. If you only have the 7 - 8 cars (because monthly membership is so affordable) people are going to be pissed when you've told them more than twice in a row that the car they want isn't available today. Like others, I think on demand driving counts for a lot. You need to have insurrance for EVERY type of driver, there are theft issues.
I'm not saying that the clubs need to cost as much as they currently do, but by setting the membership fee as high as they often are, it keeps a lot of the problem clientelle away and therefore the headaches that go with them.
If you're serious about this, what you need to do is start from the end dollar amount of what it really costs to run this business, including normal profit (get an economist to help you, not an accountant - you need someone overly familiar with opportunity cost) and then figure out how much you need to charge each member. Once you have that number you ask the question: "Would you be willing to pay $X/mo with this type of supercar borrowing scheme"
I am investment banker by trade so market analysis, cash flow projections and financial report accounting is what I do all day. I raise millions of dollars for companies both as private and public capital. So please don't worry. I am toying with this to get out of this business since I don't like it.
But to answer your questions:
No one said you have to buy new cars. Ferrari 355 goes for 50k usd now. Lotus Elise goes for 20k. Ferrari 360 goes for 50k (high milage), and same for Gallardo. 200k can net you a good selection of high mileage but drivable starting supercars.
Everything is covered, and should be covered, under customer insurance. As for coffee spills and burnt out clutches, that's what security deposit are for.
As for spouses, I think wives that prevent their husbands from spending 50 bucks a month is not the majority. If it is, boy have I got a lot to experience in life
I will be storing the car at a warehouse? Rents for office + warehouse locations in NJ are anywhere from 1 to 13 dollars per sqf per year.
It is all feasible, but there are a lot of variables to work out like you said.
However, my goal is not to become rich, my goal is to provide a dream that I want but could not live it, for the average folks out there like myself as well
Last edited by mikez; 06-22-10 at 02:01 PM.
06-22-10, 01:29 PM
#27
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^ then what is the thread about?
You are correct, I wasn't meaning you wont need an accountant at all; my point was you need the economist to help with all the hidden non-monetary costs that are often over looked.
You are correct, I wasn't meaning you wont need an accountant at all; my point was you need the economist to help with all the hidden non-monetary costs that are often over looked.
06-22-10, 01:46 PM
#28
executive matchup
06-22-10, 01:58 PM
#29
Lexus Champion
Thread Starter
Woman, please read The thread was about how much are you willing to pay for such a privilege of super car ownership as a non wealthy individuals that both fit your life style and dreams of owning those cars. If I want to do the car club for exclusively wealthy and charge 10k a year I wouldn't be asking you.
I don't need business 101 from arm chair CEO's, I am testing the idea and seeing the market response.
Different people have different views to this, and just because your business lesson is moot point to me does not mean this thread has no point. If you read, you can tell some people prefer a couple of hundred bucks, some doesn't mind a thousand, and some are iffy about the monthly commitment. Those are all good information
The thread was about how much are you willing to pay for such a privilege of super car ownership as a non wealthy individuals that both fit your life style and dreams of owning those cars. If I want to do the car club for exclusively wealthy and charge 10k a year I wouldn't be asking you.I don't need business 101 from arm chair CEO's, I am testing the idea and seeing the market response.
Different people have different views to this, and just because your business lesson is moot point to me does not mean this thread has no point. If you read, you can tell some people prefer a couple of hundred bucks, some doesn't mind a thousand, and some are iffy about the monthly commitment. Those are all good information
Last edited by mikez; 06-22-10 at 02:03 PM.
06-22-10, 05:14 PM
#30
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This is an interesting concept. What would I personally be willing to spend? In my current finacial situation (and the forseeable future), about $100 a month. And I'd be hard pressed to justify that much, with all my other expenses.
But for that $100 i don't expect to get a brand new FXX every time. But how about a nice selection of "mid-level" sportscars. Things that could be bought for $40-60k, but the average working stiff like me just can't afford to own and insure. C5 Vettes, Elise's, NSX, well looked after muscle cars - you know, all those cars that we could almost own, but don't because they are just not practical or a notch out of reach.
I can rent super cars on vacation for for under a grand, if I really wanted. And I can go to Hertz and get a Mustang or Camaro. But an M5, S2000, or an old Austin Healey, I'm forced to buy if I wanna drive.
Cars in this price range would allow you to keep a decent size fleet of disireable vehicles, while keeping prices affordable for the average enthusiest. And they're not not expensive to operate, to boot!
Just something to think about.
Oh, and switch it from cars to bikes, and I'm sooooooo there!
But for that $100 i don't expect to get a brand new FXX every time. But how about a nice selection of "mid-level" sportscars. Things that could be bought for $40-60k, but the average working stiff like me just can't afford to own and insure. C5 Vettes, Elise's, NSX, well looked after muscle cars - you know, all those cars that we could almost own, but don't because they are just not practical or a notch out of reach.
I can rent super cars on vacation for for under a grand, if I really wanted. And I can go to Hertz and get a Mustang or Camaro. But an M5, S2000, or an old Austin Healey, I'm forced to buy if I wanna drive.
Cars in this price range would allow you to keep a decent size fleet of disireable vehicles, while keeping prices affordable for the average enthusiest. And they're not not expensive to operate, to boot!
Just something to think about.
Oh, and switch it from cars to bikes, and I'm sooooooo there!