October
2007 Update
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2006 Monaco Signature -- $500,000 worth of rolling
luxury
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Out of the 30 million RV enthusiasts,
only a few million are full-time RVers. Most have a house
and use their RVs for trips or for travel during part of the
year. Their RV may sit unused most of the time.
So, why not rent an RV when you need one?
For some, renting does not meet their needs. RV rentals are
typically low-end coaches. For the person seeking an upscale
luxury coach, the only choice has been to purchase it -- until
recently. Now several companies are offering the opportunity
to have the use of a high-end coach for a set number of weeks
per year at a big savings off the price of buying one outright.
(NOTE: Update, February, 2007)
FRACTIONAL OWNERSHIP
Called fractional ownership, this arrangement
gives you the use a high-end coach for five to twenty-four
weeks of the year with a much smaller investment. For
example, at American QuarterCoach, a high-end coach like musicians
use on tour is $184,000 for a one-eighth share, plus $7,020
a year in maintenance for five weeks of use. While expensive,
this is much less than it would cost to purchase such a rig
outright. Not only that, American QuarterCoach takes care
of all the maintenance. You can literally bring you suitcase,
step onboard, and drive away.
HOW IT WORKS
Once you decide what type of RV you want to
own, you contact one of the companies that handles these.
You typically purchase one-twelfth to one-quarter interest,
putting only a small deposit down until enough interested
purchasers are located. Then your share is due. A partnership
or LLC is formed. The company takes care of all paperwork,
including insurance.
A quarter-share entitles you to 12 weeks of
use, while a one-twelfth share equals five weeks. You
can reserve time in advance. The company takes care of all
maintenance and prepping the RV for each use. They provide
24-hour emergency roadside assistance, training to drive and
operate the systems, and usually concierge service. For an
additional fee, you can have the kitchen stocked or have the
RV delivered to your residence or near your travel destination.
One company, CoachShare, advertises that they
make sure everything is perfect for you, right down to
the last detail. "We monogram your sheets and towels,
set them up in the coach before each trip and launder them
afterwards. Your coach includes upscale amenities such as
satellite radio, satellite TV, home theater system with surround
sound, fine dinnerware, glassware, cookware, barbecue grill,
outdoor furniture, and more. We can even stock your refrigerator
with your favorite foods and beverages to make your trip more
enjoyable."
Typically, a program runs three to five years.
At the end of that time, the RV is sold and proceeds distributed
among the owners. At that time you can reinvest your share
in a similar or upgraded model or cash out. You can sell or
trade your shares during the course of the program, too.
GET A LAWYER
Check out the company carefully. Make
sure it is financially solid. Involve a lawyer to make sure
that purchases made by individuals remain segregated from
those assigned to other assets. Also, make sure that the structure
of the sale is such that creditors for the company selling
the shares can't put a lien on your asset if the seller gets
into financial trouble.
Fractional ownership has been used for years
for planes and yachts and even for condominiums or vacation
houses, called time shares. So why not RVs? For your next
trip, you, too, could drive a Prevost or Monoco!
Jaimie
Hall
11/6/05
| UPDATE,
February 2007: Recently Universal Luxury Coaches LLC,
which offered fractional sales, went under and the investors
lost their money (read
the article here). Two executives face fraud and racketeering
charges. Be sure to investigate carefully before making
any investment and consider waiting until this industry
has more of a track record before participating. |
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