The new driving force
A timeshare concept allows members to hire a Porsche or a Ferrari for a fancy wedding
Harsh Gokal, business head of Patchi India, loves high-end sports
cars like Ferrari and Porsche. He does not own either, yet he can be
spotted driving them alternately on holidays and weekends.
Gokal, 32, is one of 12 members of Club Torque, which is tapping high net worth individuals with a super luxury car rental model, akin to the timeshare concept typically associated with luxury holiday resorts.
After paying a one-time membership fee of Rs. 1.5 lakh, members can choose from three packages, with annual fees ranging between Rs. 5 lakh and Rs. 15 lakh— much lower than the actual price of the cars.
Members
can choose from a fleet of super luxury cars, which includes the
Porsche 911 Turbo, Ferrari F430, BMW Z4, Mercedes-Benz E Cabriolet and
Audi R8. They are not tied to any specific vehicle, nor are they limited
to a predefined usage period—unlike a timeshare model where the member
has seven fixed days in a year, Club Torque members have the flexibility
to choose as and when they would like to use the service. They are
allocated points against each model. The annual fee they pay depends on
the number of points they accumulate. The more valuable the model a
member takes out, the more the points that are deducted from their
quota—so, for example, more points will be deducted from the annual
quota for taking out a Ferrari F430 on a weekend than a BMW Z4. The
annual membership fee rises proportionately. The cars are owned, insured
and maintained by Club Torque. “It makes a lot of economic
sense as you can actually experience these cars at almost one-fourth of
the cost you would pay for a new car,” says Gokal, who has been a member
of the club since its inception.
Amit Jain, chief executive of the five-month-old club, says he was inspired by the success of the model in the Australian, European and British markets. “We sensed an opportunity gap in the high prices of super cars and the unwillingness of buyers to own one as they saw little merit in forking out Rs. 60 lakh-1 crore merely to satiate the leisure of driving on weekends,” says Jain, who worked with Ford India Pvt. Ltd and Mercedes-Benz in various sales functions before founding the club in November. Encouraged by the response, Jain plans to introduce the concept in other metros and even abroad.
“When
you buy one of these super cars,” says auto expert Murad Ali Baig, “you
have to use them. Any small dent or a scratch can cost a lot. A concept
like this, even if you have to spend a few lakhs per year, makes sense.“It
gives those who otherwise cannot afford such cars, which have high snob
value, (the chance) to flaunt them on important occasions like a family
wedding.”
Rishabh Sheth, director, Shaman Group—dealer for Mercedes-Benz, Volkswagen and Honda cars in Mumbai—and co-founder of Club Torque, says: “We often get customers in our showroom who check out the E-Class Cabriolet. When it comes to the purchase, they will choose an E-Class as it’s more practical. We realized there is a latent desire for cars like E-Class Cabriolet.”
Jain points out that one of the challenges is getting the cars into their fold. Club Torque currently has a mix of new and pre-owned ones. With the market for second-hand super cars being limited, procuring them becomes difficult. “It doesn’t make sense to buy new ones as it will increase the cost for members,” says Jain.
Gokal, 32, is one of 12 members of Club Torque, which is tapping high net worth individuals with a super luxury car rental model, akin to the timeshare concept typically associated with luxury holiday resorts.
After paying a one-time membership fee of Rs. 1.5 lakh, members can choose from three packages, with annual fees ranging between Rs. 5 lakh and Rs. 15 lakh— much lower than the actual price of the cars.
Ride in style: Among Club Torque’s fleet of cars is Ferrari F430. Xavigivax/Wikimedia Commons.
Amit Jain, chief executive of the five-month-old club, says he was inspired by the success of the model in the Australian, European and British markets. “We sensed an opportunity gap in the high prices of super cars and the unwillingness of buyers to own one as they saw little merit in forking out Rs. 60 lakh-1 crore merely to satiate the leisure of driving on weekends,” says Jain, who worked with Ford India Pvt. Ltd and Mercedes-Benz in various sales functions before founding the club in November. Encouraged by the response, Jain plans to introduce the concept in other metros and even abroad.
A Mercedes-Benz model. Photo by Hemant Mishra/Mint.
Rishabh Sheth, director, Shaman Group—dealer for Mercedes-Benz, Volkswagen and Honda cars in Mumbai—and co-founder of Club Torque, says: “We often get customers in our showroom who check out the E-Class Cabriolet. When it comes to the purchase, they will choose an E-Class as it’s more practical. We realized there is a latent desire for cars like E-Class Cabriolet.”
Jain points out that one of the challenges is getting the cars into their fold. Club Torque currently has a mix of new and pre-owned ones. With the market for second-hand super cars being limited, procuring them becomes difficult. “It doesn’t make sense to buy new ones as it will increase the cost for members,” says Jain.
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