business

Ferraris for the people: luxury goods now sold in fractions

15 Comments
By Thomas URBAIN

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15 Comments
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This is just stupid.

1 ( +1 / -0 )

Fractional ownership is garbage!

The company will own the painting! If they decide to run away and take everything and hide.... Easy to do.

Me: Buy expensive painting.

Show to my friends.

Keep in my house.

Tell everyone is mine and I paid for it.

While= Over 200,000 people have paid to own a piece? How much do you own in such a scenario? What happens if it dissappears or the company decides to be shady?

This is a trap. Scam.

3 ( +3 / -0 )

Its a nice idea - though there's details missing - such as when will the item get sold - and who decides that ?

Far better would be to have a fund that spreads its valuation over 1000's of items..... but there-again, you may as well invest in an auctioneers house.

-1 ( +0 / -1 )

So, for example if I buy one fraction of this Ferrari, who looks after it? Who keeps it in a good condition? Who makes sure it is not involved in an accident where the value of it goes to near zero or just value of it in spare parts??? Seems like a way for someone to buy one with someone else's money, there is another name for this, a con!

2 ( +2 / -0 )

You can do the same with racehorses if you like being taken for a ride.

4 ( +4 / -0 )

I guess for an investment it makes some sense, as long as you can flip it at some point for profit. In Real Estate it makes total sense obviously but shoes or a Ferrari, kind of made me laugh but hey there must be a market for it otherwise we wouldn't be commenting here. I'll stick with stocks and crypto. If I can afford a Ferrari one day I'll just buy it, the whole car not just a door handle.

0 ( +0 / -0 )

Amazing how the economy keeps evolving and changing. Modern economy raises funds, separates ownership and management, and hedges risk. Im glad to be living in such an era. Just hope we can also further social and sustainable topics to better the world beyond financial.

0 ( +0 / -0 )

The original “fractional’ Ferrari concept worked like this:

Dad, can I have the keys to the car? I want to impress a girl.” -

- “Get in line, Junior. Your brothers, your cousins, ... And, the neighbors come ‘First’.

Here! Show her this picture.”*
1 ( +1 / -0 )

You’re right @Fuzzy 9:47am. Fractional ‘ownership’ originally worked for some limited ‘use’ of private, executive aircraft if you didn’t want to incur the full cost AND the additional expense of the craft when they were sitting idle.

Some individuals and companies want to promote “an image of wealth”, calling to mind people like “Wolf of Wall Street” Jordan Belford; “Ponzi schemer” Bernie Madoff; self-proclaimed “billionaire”, Westgate Resorts timeshare Pres/CEO David A. Seagal, etc.

0 ( +0 / -0 )

This is a good way to dip your toes in investing and much better than NFTs.

Actually, these are NFTs. Each fractional share is an NFT.

Fractional ownership of things like classic art is not a bad idea as they generally retain or grow in value over time, backed by a real tangible asset, it's a way into an investment that you otherwise couldn't afford. But, buying fractional ownership in a Ferrari is just plain stupid.

1 ( +1 / -0 )

Fractional ownership is still an experimental market, where price risks are very real.

- “many assets are priced, significantly, above their listing value, there concern about sharp price swings, which are much more pronounced than in the stock market.” -

But as wealthy countries slowly emerge from the pandemic, Schuck says he has started to notice a "slow-down" in the fractional ownership market.

0 ( +0 / -0 )

With just $10, you, too can help troubled youth, like poor little Kanye here, with some much-needed shoes and reliable way to get to work each day. - (Sarah McLachlin’s In the Arms of an “Angel” as background music) - Won’t you help?

1 ( +1 / -0 )

If they used the term “timeshare” instead, would you “invest” ?

1 ( +2 / -1 )

A bouquet of tulips comes to mind.

0 ( +1 / -1 )

This is a good way to dip your toes in investing and much better than NFTs.

0 ( +0 / -0 )

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