Buying car(s) with friends

[ryanmil]

Hi All,

A few like minded friends and I have had the idea of buying a car or two together and run it a bit like a mini car club.

Outline is:
-Initially put in ~£750 each to purchase a nice weekend car (Jag V12 or Spitfire or similar)
-Rent a garage because none of us have enough storage
-Each pay an equal monthly contribution to cover maintenance/tax/MOT (~£50 each/hope to save this whenever not spent)
-Each have an equal allowance of use (e.g. One weekend/month)
-Book car in advance, return to garage with full fuel tank
-Hope to accumulate some money from not spending monthly contributions and put towards buying more cars or bikes.

Basically, just wondered if anyone has any experience of doing something similar, or has any idea how we can get insured effectively and how best to register the cars/manage the money.

[dodgerover]

I can imagine it being a nightmare to be honest, what happens when it breaks down or gets bent and people can't use it when they want or someone is short of cash and can't pay...

[keithyboy]

I like the idea but it seems like it could be a nightmare. That said, I know a bloke who used to have a part share in a light aircraft and that worked well. They had some sort of legally binding contractual thing arranged. I believe it's quite common in flying circles so that might be a good place to seek advice.

[robinmasters]

Don't. Anything goes wrong, friends no longer are.

It might work with a track car, but a road car, nothing but problems.

[datsundrew]

Difficult to keep it fair, and easy to cause upset......so the hg goes, who drove it, who checked it, did someone notice it got hot and keep quiet? Why is it always the same one who breaks it, why the same one who fixes etc........

[speedy88]

As above. I have had a few pool cars with friends but they've strictly been for drifting. We run them until they don't run anymore and then get another one. There's only like £300 floating around with equal contributions for fuel/tyres etc on top of that.

Nice idea but it's likely to go wrong. Unless you and your friends are PROPER TITE INNIT.

[slammage]

recipe for disaster right there. one tip never mix money and friends (particularry car related) together- it will end messy.

[ryanmil]

Thanks for your responses so far.

Initially, I had the same reservations - however; if we can set out some clear rules from the start to cover every conceivable eventuality and all sign an agreement...

We've all been friends for at least 15 years and we're each very unlikely to get upset over a few hundred quid to be honest.

Does anyone know how to legally register a club? Can we register a car to a club? What are our options for insurance?

[hamps]

you are better off getting a trade road risks policy and acting as a "garage" add all of you and the cars to the policy job done

[honeymonster]

In general, I'd agree with the previous posts saying to be careful, BUT if you know the people really well I reckon it could work nicely, especially if you have written rules beforehand.

I started a syndicate to buy a glider just after I'd learnt to fly them. Four of us recently solo'ed glider pilots put in £500 each and went and bought a glider and trailer. We all had a good couple of years fun flying it and working on it. Interestingly, any one of us could have afforded the whole thing and the running costs, but going quarters on it meant we got on with it much sooner. And with more fun.

Relevant things to the car situation:

• There were days when I couldn't be bothered to go and fly it - but a text from one of the other owners saying that he was going to soon got me off my butt
  
• If for any reason you can't get to the car for a couple of weeks (work/family/holiday) you can be safe in the knowledge that someone else will be using the car and checking it over.
  
• Two people working on a car is usually much more fun than working on your own. You might not get as much done if you spend the whole time chatting, but it's meant to be fun, right?
  
• Even better if, say, you're good at welding and fabrication and the other owner is great at sorting engines.
  
• Only having to pay a fraction of the costs for parts/upgrades is really cool!
  
• As you'll be splitting the cost of the insurance anyway, its probably best if you go for the most comprehensive insurance you can. That way, if there are any accidents, most of the capital costs can be recouped.
  

It comes down to how well you know the other people and their attitudes. eg there are people I wouldn't want to own a glider with because I know they wouldn't be careful enough with it, and also there are people who are mega fussy and would have a meltdown if I accidentally trod a bit of mud inside the glider. Basically, either extreme causes you stress or annoyance.

Google "aircraft syndicate agreements" for hints - the examples can look a bit wordy and full-on, but then they might be for aircraft worth £50K+ and with owners who don't know each other.

Sorry I can't help with car-specific insurance or club tips - the people I know who have shared cars have just had normal insurance policies and added the other person as a named driver.

James

[Potter]

Sounds like a cool idea and one me and my 2 best mates have floated around at times(hillclimbing Mini maybe-we're all into Minis) but in the end always fell through as we've all got enough personal projects and neither of us want to end up fighting over a car.

Be careful but go for it I say!

[grumpy]

I think you wouldnt have a problem if you say your mates are solid and you can all easily afford the money and costs . It might be a good idea to sit down and come up with some sort of written agreement - not legal or anything but just so your all on the same wavelength and to make things clear . Might also be a good idea to agree to review how its going every x amount of time , just because life throws stuff at you doesnt it!! . Good luck with it .

[oddball]

Interesting idea. I think the biggest stumbling block may be insurance. Insurance companies seem to go out of their way to be unhelpful, especially if you want to do something out of the ordinary.

Does anyone know what sort of premiums are charged for 'trade' insurance and what, if anything, you need to do to qualify?

[ChasR]

IMO it really depends on how good your friends are.

The 205 has been owned by two other friends and we have all put in cash towards repairs etc. On the one time it was crashed my friend single handedly insisted on paying for the repairs .

Whilst it can be a nightmare it can also make for a very effective way of owning another retro in addition to keeping the cars used (the 205 went wrong the most (as have most of my retros) when they were seeing little to no use).