According to Jointli, four people could conceivably wrangle one of the Italian exotics for as little as $8,000 per person, which works out to close to $8 per hour individually. Of course, Jonli's math means that's the cost after selling the vehicle after just one year of use. It also excludes any unfortunate dings or repairs that may arise as the result of four people who don't know how to drive a Ferrari being tossed the keys. The whole scenario sounds great in a perfect world. Unfortunately, our planet is about as far from that bright center as you can get. Head over to Jointli to check out the system for yourself.
A Social Marketplace for Co-Ownership -- Collaborative Consumption Means the Millionaire Lifestyle on a Beer Budget
New York, NY -- (November 29, 2011) -- Jointli.com allows a group of like-minded people to get together and pool their resources to purchase and own something together. Each co-owner gets an equal share of usage, and pays an equal share of expenses. For something like a boat, RV, or vacation home, which are never fully utilized by a single owner, it's a way to cut the cost of ownership at least in half while still using your shared item as much as you normally would as a single owner.
The Ferrari Example
Most guys have dreamed of owning a Ferrari since they got their first matchbox version of the real McCoy. Unfortunately, most of us don't have $185k to buy a (used, mind you) Ferrari. Even if we did, the average Ferrari gets driven only 1 to 2 days a week, or about 7 days a month. It's not exactly the kind of car you drive to the grocery store. That means that you'll be paying to have your Ferrari sit in your garage more than 75% of the time. Even for the super rich, that just doesn't compute.
That's where shared ownership comes in. It's a model that makes use of capacity that would otherwise be wasted. It's also a way to dramatically cut the cost of ownership of a luxury item, putting the millionaire lifestyle within reach of a much larger segment of the population. With three other co-owners you can cut the cost of ownership by 75% and still drive your Ferrari as much as you would have if you owned it by yourself.
Just for fun, lets compare shared ownership to a few other alternatives.
vs Sole Ownership
This is pretty much a no-brainer. Even if you could come up with the $185k, you'd be spending a lot to drive a Ferrari. Based on the 1 year scenario in the graphic you would be spending $32k for a year of ownership. That's $20k of depreciation, $10k for maintenance and repairs (a set of tires alone is $2k), and $2k for insurance. Assuming 7 days of usage per month, you're paying $380/day of actual usage vs $95/day with shared ownership.
There are a few specialist rental services out there that will actually rent you a Ferrari if you can pass their screening criteria. You'll need to be over 25 in most cases, and you'll need to have a spotless driving record. Oh, and you'll typically have to pay a rather large security deposit to cover potential damages - up to $10k in some cases. Assuming you've gotten that far you can expect to pay about $1000/day for your dream car vs $95/day with shared ownership. To get to 7 days a month for a year, you'll be paying $84,000. That's almost double what you would pay to purchase the whole car with 4 co-owners, and you'll never get any of it back. When you buy instead of rent, you hold equity which you get back (minus depreciation) when you sell the car. This simple fact is why long-term rental of anything is almost never a cost effective option.
vs Peer-to-Peer Renting
Peer-to-peer rental of exotic cars is a model that has only recently been made available by a handful of services. In this scenario, someone who owns a Ferrari will rent you theirs for the day. You can expect to pay somewhere in the neighborhood of $500/day - much cheaper than the traditional rental, but still far more expensive than co-ownership at $95/day. Again, do this for 84 days (7 days a month for a year) and you'll be spending $42,000, none of which you can get back.
So, if you've ever wanted to own a Ferrari (or a boat, RV, vacation home, or some other luxury item) but haven't yet joined the millionaire club, shared ownership is your ticket past the velvet rope.