Transportation timeshares let everyone ride in style

Time was when only the very rich could afford to get around in fancy sports cars and boats, let alone private planes. These days, however, such luxuries are available to far more people, thanks to the growing trend of fractional ownership.

In such arrangements, a number of people share both the costs and benefits of ownership, thereby allowing more of them to enjoy the excitement, status, and other “perks” that come with being behind the wheel of the latest and most exclusive mode of transportation.

In most cases, membership is required in order to gain access to the fleet. Once that is taken care of, however, members have very little else to worry about, other than where to go next.

For those who dream of flying the extra-friendly skies, Marquis Jet (www.marquisjet.com) may be your ticket. Marquis is tied in with NetJets, the world’s leading supplier of private aviation. As NetJets has more planes than all of their competitors combined (Marquis Jet’s VP of marketing, Randy Brandoff, notes that, were they a commercial airline, NetJets would be the second-largest airline in the world), they also have more clients than any of their competitors. Nearly 95 percent of all Fortune 500 companies are NetJets clients. For those of us who are not affiliated with these giants of industry, Marquis Jet offers a way into their world.

“NetJets’ minimum commitment is 50 hours a year for five years, which was too big for many potential users,” Brandoff says. “So we made an exclusive partnership with them, bought the shares, and now we resell them in smaller increments.”

Though the time in the air may be more limited, the options are not.

“We have nine different styles of jets, and each has its own rate,” Brandoff explains, citing a range from $115,900 for the seven-passenger Citation V Ultra up to $319,900 for the 13-passenger Gulfstream 450, “but members can exchange up or down on a trip-by-trip basis.”

Marquis Jet differs from other private air brokers in many ways. Instead of a membership, Marquis Jet card owners are just that – owners of access to the fleet of planes, all of which are factory maintained. Also, all Marquis Jet pilots have at least 9,000 hours of flight time.

“The quality and standards are exceptional,” Brandoff says, “and that is what we offer.”

If your jet-set dreams do not actually include jets, there are still plenty of choices available for you.

For the car enthusiast, The Otto Club (www.theottoclub.com) offers a dream garage filled with such vehicles as Aston Martins, Porsches and Lamborghinis (see sidebar).

“The car-share model today is where the jet-share market was four years ago,” says company president John Caron. “We think it represents the future of exotic ownership and the high-end car industry.”

Having started as a storage provider for high-end automobiles, the North Andover-based Otto Club (which is cleverly named for the inventor of the four-stroke internal combustion engine, Nicholas Otto) allows people who do not own such vehicles to drive them anyway.

“It is like Zipcar for millionaires,” Caron says, citing the popular ride-share program that is catching on across the country. “There are a lot of similarities – the greatest of which is that it makes financial sense.”

With a 5-to-1 member-to-car ratio, Otto Club members have the best chance of getting the car they want when they want. As members also nominate cars to be added to the fleet, customer service is unparalleled. They will even load your favorite CDs into the car for you before delivering it.

“It is also a great depository for beloved rides that no longer serve their drivers’ needs,” Caron suggests, noting that the Club buys cars from members as well.

With their multiple tiers of membership, ranging in price from $9,500 to $28,000 a year, almost every driver can find one that’s a good fit.

“We use a point system,” Caron explains, “and the higher the membership level you select, the more points you get and the more driving you get. That allows members to suit their membership to their individual taste and it allows them to define the value.”

In addition to providing members with fun and value, Caron also helps others improve their lives through charitable giving to such organizations as Lazarus House in Lawrence.

“Every business has to have a soul,” he suggests, “and it can’t be just about making money.”

Though a young company, The Otto Club is on pace to have 50 members by year’s end and are looking to top 100 by this time next year.

“The main idea is about providing the membership with the experience they want,” Caron says.

Speaking of member-ship, summer on the North Shore is the perfect time for boating. But if you do not want all the hassle of owning your own vessel, there is a program for you.

Monocle Yachts (www.monocleyachts.com) owns and operates boats of all sizes from Maine to Miami to the Mediterranean. With all their experience in the field (and at sea), they have the goods and services to turn even the landlubbers among us into shipshape sailors.

“Monocle developed the first modern fractional yacht ownership program,” explains owner Loren Simkowitz. “Our philosophy is that people should enjoy owning a yacht and not be afraid of all the negative stigmas attached to yacht ownership.”

As a PhD in business administration, Simkowitz looks at yachting as he looks at any other business.

“If you had a $5 million business, you’d have it managed,” he suggests, “so why not a $5 million yacht? These are huge assets and they require professional management.”

That, Simkowitz says, is where Monocle comes in.

“Yacht owners support this asset throughout the year but actually use it infrequently,” he says, “so it becomes a financial drain as well as a management issue.”

As a member of Monocle, yachting enthusiasts pay only for what they actually use – anywhere from $220,000 to $2.5 million for their share of the purchase of a given boat.

“If you are going to use a boat 10 percent of the year,” Smikowitz says, “you buy 10 percent. That is practical!”

From accounting to maintenance, Monocle takes care of every boat from stem to stern, allowing owners to relax and enjoy.

“People get on the boat, have a good time, and walk off,” Simkowitz says. “Instead of being financially and emotionally drained, they get to have fun and have the prestige of ownership without all the negative aspects.”

With their model, Monocle is opening the world of yachting to people who might not otherwise be able to get involved.
“We’re starting a whole new industry here,” Simkowitz says, “and we are really enjoying it!