When going gets tough, 'time-share' a Lamborghini
Foreclosure attorneys and board-up services aren't the only ones thriving during these uncertain economic times.
"We just had a one-hour staff meeting about the economy," says Palatine businessman George Kiebala. "If we are in pre-recession, or whatever we are in, it's good for our business."
Industry innovators Kiebala and his wife, Kathy, offer an alternative for people who might cut spending when financial times get tough.
"Over the last couple of months, our Web hits are up 20 percent," George Kiebala says. "We hear that all the time now: 'I took a beating in the stock market, and I'm not going to plunk down $200,000 on a car. So let's talk.' "
Instead of buying that new Lamborghini Murcielago, Ferrari 360 Spider, Bentley GTC or Rolls Royce Phantom, car enthusiasts can buy just a share of one through the Kiebalas' Curvy Road fractional ownership program, or pay per spin through their Exotic Car Share Club.
"I was looking myself for a second car and was thinking along the lines of a Porsche," says Nick Gregoriou, a 29-year-old trader who longed for something a little more exciting than his BMW M3.
"I don't need a second car. I would just be taking it out on a weekend once in while. It's just pure recreation," Gregoriou says of his dream car.
After weighing the costs of insurance, maintenance, storage and the hassles of ownership, Gregoriou decided to buy one-fifth of a Lamborghini Gallardo through Curvy Road.
"It's just easier," the trader says.
"And I get to drive a better quality car than I would have bought," adds Gregoriou, who drove the car around Chicago and rural Indiana for a week in October. Noting that the Lamborghini isn't made for slush and ice, Gregoriou says he'll probably wait until March to reserve the car for another week.
The Kiebalas, who pioneered the Exotic Car Sharing Club concept in 2000, expanded their business to include the fractional ownership option. They now have offices in New York, Los Angeles and Miami.
Minimum car-sharing costs start at around two grand, and fractional-ownership packages begin at about $15,000, Kiebala says. People who buy one-tenth of a car can drive it four weeks per year, while people who shell out for a fifth get the car for eight weeks.
"We've had an acceleration of membership and we just recently signed our 807th member," Kiebala says.
"We prescreen the heck out of our members," Kiebala adds. In addition to researching financial backgrounds and driving records, members get hands-on driving lessons before they get to take a car for a spin.
In eight years of business, the Kiebalas have had only one customer accident -- a Dodge Viper slid off a ramp without causing any injuries.
The Kiebalas had been in business for a year when the Sept. 11 attacks sent the economy downward and made people scared to travel. Kiebala discovered customers who canceled their European vacations and spent that money driving fancy cars at home.
"There's a tragedy, and we're getting an increase in business," Kiebala marvels. "I've got to think about this."
Meanwhile, Kiebala figures the bump in business during this current economic downturn might give the fractional-ownership concept enough traction to make it really take off once the economy returns.
Of course, even if the economy booms, lots of 401k accounts will never be able to support even a 10th of a Ferrari 360 Spider. Maybe someone should start a Modest Car Sharing Club.