Sharing Ferrari ownership with a friend

[projectgt]

On paper, sounds simple. Each puts in 50% of purchase price (£25k) each and have the car two weeks each.

- can we each take out an insurance policy on the same car?
- we would look to set up a contract just to agree scenarios (engine failure, substantial crash damage resulting in reduced value post repair, when one wants out etc)
- which Ferrari? 360 (bottomed out in value nearly?) is favorite at present but should we be looking at 355 (beautiful) or stretch to a 430?

I had been looking at M3s, Z4Ms before this idea came about

[balls-out]

Make sure you agree what and how the exit works if either of you want out.

I did this with a friend for an off road landrover and then we added an off road range rover. Worked really well for 10 years.

However, watch insurance. If one of you owns it with a name driver, then its all fine. but genuine shared ownership isn't normal, so throws any insurance company into a blind panic, and refused to even quote. I think they feared a car club/rental scheme?
I don't believe you can both insure it. Insuring a car when you are not the registered owner will be an issue.

Edited by balls-out on Sunday 10th February 19:29

[Hairy Bob]

Risky as Wife swapping imo.
Good idea in the pub after a few beers, too risky in real life.

[Animal]

Ask SimonSpider on here, I think he co-owns a car or two for business.

[projectgt]

Hairy Bob said:

Risky as Wife swapping imo.
Good idea in the pub after a few beers, too risky in real life.

Risky in what way? Other than agreeing the points I covered?

[RivieraBlue]

Too risky for me but fair play if you do it!

[McSam]

You start to run into problems when one of you "needs" the car for a particular occasion, at the same time as the other "needs" it. Agreeing on what to do with mechanical failure will also get sketchy unless you each have exactly the same driving habits - saying you'll share the cost is fine until you realise the other guy rags it from cold, for example.

I think it's much easier to do with track or race cars than road cars - but that's not to say it can't work with the right people and preparation

[james_gt3rs]

projectgt said:

Risky in what way? Other than agreeing the points I covered?

Falling out with your mates?

[projectgt]

I know the guy well, we have been mates for 12 years or so and have owned about 20+ cars each during this period. We both look after our cars, both have mechanical sympathy and I trust his driving and would happily lend him my current Boxster or 205 GTi if he wanted to borrow them.

That part aside, which would you choose?

[RivieraBlue]

Could get a nice 996 turbo for 25k?

[Banner]

Same idea here
http://www.pistonheads.co.uk/gassing/topic.asp?h=0...

[dowahdiddyman]

You might have known your mate for 12 years but will he still be your mate if you pop the or mash the gearbox then won`t pay half because it happened on your fortnight.This sort of thing could ruin your friendship and your wallet.
If you are deadly serious I would see about getting a legally binding contract drawn up. There is a hell of a lot to consider, from expensive repairs/servicing to the little things like you get it with a full tank of fuel but forget to fill it up for him.

[Jasandjules]

I think only you will know if both you are your mate will be able to handle it.

[williamp]

I looked into this years ago for an Aston, and we didnt in the end. However, as long as you both know the answers to various questions/scenarios, then why not:

who looks after it? Is the other happy with the security arrangements? Is it a 50/50 if they are looking after it? Does the other pay rent?
Can you get to it if they are not there?
who has first dibs on driving it?
if the other person crashes it, are you happy to go halves if it was their fault?
and why were they driving in the rain/snow?
and they let someone else drive?
did they park the car carefully enough in the pub carpark when it got a scratch?

[Lynch91]

balls-out said:

Insuring a car when you are not the registered owner will be an issue.

Don't see why, my dad owns the car that I'm the policy holder on. Although adds £50 to insurance...

[6fire]

Many, many pilots share ownership of aeroplanes. With a decent agreement in place it causes hardly any problems at all.

Ignore the negativity and do it.

[soad]

Good if you can make it work, makes a supercar affordable.

[projectgt]

6fire said:

Many, many pilots share ownership of aeroplanes. With a decent agreement in place it causes hardly any problems at all.

Ignore the negativity and do it.

Good point about the aircraft sharing, that is very common.

[ryanjohnstott]

Sounds like a great idea which two sensible people should be able to do without a problem.

I'd suggest including a really good warranty so that neither of you have to worry about a large repair bill or play the blame game when something breaks!

[Caruso]

It's how I got into Ferrari ownership. I'd already done shared ownership with the same friend on a Rover 2600s. That worked out because he rarely had time to drive the thing. We went to Italy Ferrari shopping and arranged to buy a 208 GT4 which we later drove back to the UK. We enjoyed it for a year or so till the first service was due. My friend wanted to sell it, but I was hooked by then so ended up buying him out.