Exotic Economics
Exotic car share clubs make economic sense. They also eliminate the non-economic pains of ownership.
First, unless you are among a select few who can get your hands on some of the very, very limited new Ferrari’s at sticker, owning one super premium exotic just doesn’t make any economic sense. Owning more than one makes even less sense. You buy exotic cars and then restrict your driving because of practical use issues and the high depreciation rate on super premium cars. It costs the owner of a super premium exotic in the range of $50,000 or higher per year to own a car driven less than 1,500 miles per year. You do it because you can and want to and there is nothing wrong with that.
When talking to members and prospective members about Van Horssen Group, they “get it.”
Many of our members can and want to (and many do) own the super premium exotic. Others may not be able to own or don’t want to own a Ferrari, Lamborghini, Aston Martin, Bentley, Rolls, etc. All of them want to enjoy the great experience of driving a wide range of super premium exotic cars. I’m told by Van Horssen Group members, that they find great variety in the Private Collection of super-premium cars that Van Horssen Group operates, use is flexible, the fleet is new and pristine, reservations and delivery service is exceptional and there are no service or repair issues that they have to deal with. In addition, the Van Horssen Group member packages permit its members to tailor their timing of use and spending to their own patterns.
In a pure economic analysis sense, membership in an exotic car share club such as Van Horssen Group can’t be compared to owning one or even two super premium exotic cars because at Van Horssen Group you have access to a whole fleet of them. I recently heard of a guy who owned a Ferrari 550 and the maintenance alone cost him over $100,000 in less than three years of ownership. He has been a member of the Van Horssen Group exotic car share club for almost two years and has driven when and where he wanted in a Ferrari F360 Spider, Ferrari 575M Maranello, Aston Martin DB9 Volante, Porsche Turbo and more at a cost of less than $30,000 - no repair costs!
My view - membership in an exotic car share club is not just a substitute for ownership. Membership in an exotic car share club just makes ownership obsolete. The numbers prove it!
Allen Palles
Chief Financial Officer
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