Want to buy a Ferrari, part time Charlotte-area entrepreneurs invest in car-club startups, an idea geared toward fast-growing wealthy population

Want to buy a Ferrari, part time?

Charlotte-area entrepreneurs invest in car-club startups, an idea geared toward fast-growing wealthy population Car-share clubs are catching on nationwide. The setups differ, with some similar to a traditional rental service, others offering shared ownership or point systems that allow members to redeem points for usage. The point cost usually depends on the car reserved and other factors, such as time of year and day of the week.

In his Myers Park garage, Tom Pollan starts the black Ferrari 575 Maranello, savoring the leather seat's embrace, the engine's throaty promise and the thrill of a new business.

Pollan, 48, paid $200,000-plus for the car last year, a reward for achieving his goal of retiring early as a high-level executive. He loved the powerful ride but rarely drove the car for fear of dings. Maintenance and cleaning -- you can not drive a dirty Ferrari -- were more hassle than he'd figured.

So, he's creating Privatus, his bid to join the national trend of luxury-car time-share clubs -- a concept common in jets, yachts and resorts. Members would ante $65,000 to join, plus annual dues of $7,500. That buys 50 days a year of drive time, choosing at the start from two Ferraris and an Aston Martin. Pollan plans a total of 10 cars.

The startup is a sexy glimpse of boomtown's wealth. Prosperity radiates from multi-million-dollar lake homes and pricey uptown condos and lures upscale retailers, such as Neiman Marcus, big-name steakhouses and a Ferrari dealership that opened last year.

There's even at least one would-be competitor for Privatus. Charlotte entrepreneur Marcel Stark's planned club is at an even earlier stage.

Their potential pool of members is likely growing: Researchers estimate the ranks of Mecklenburg millionaires could rise by more than two-thirds in the next few years, to more than 15,000.

"There's been a ratcheting up of wealth in this city," said David Goldfield, a UNC Charlotte history professor. "The transformation has been remarkable."

The city's rise as the nation's No. 2 banking center has been an engine of growth, drawing well-paid professionals, such as Pollan.

The Houston native went to work after college on the consulting side of the former Arthur Andersen accounting firm. His clients included a Texas bank that later became part of Bank of America. By the early '90s, work for the Charlotte bank kept Pollan commuting to town so often that he relocated.

He was a senior partner, working with many of the city's top executives, and a leader in the spinoff of the firm's global consulting business, called Accenture. Two years ago, he left a 23-year career of travel, endless hours and the thrill of doing deals around the world. He took with him a hefty bank account, boosted by stock in Accenture, which he helped take public.

He's enjoyed having time with his son, 16, and daughter, 5. He's also fulfilling what he calls the spiritual aspect of his life by stepping up volunteer efforts with such groups as Charlotte's Echo Foundation, which promotes global tolerance.

"The first half of my life was about chasing financial goals and goals that appealed to my ego," Pollan said. "The second half of my life, I wanted to do something more spiritual, more satisfying to me."

The industry

Pollan has spent months gently courting the power brokers he knows from years of working in Charlotte.His pitch of hassle-free access to a stable of luxury cars is the same message building the fledgling industry nationwide.

"It's a lower cost way to fulfill a fantasy," said Jack Plunkett, the founder of Plunkett Research in Houston, who has tracked the business of shared luxury-product ownership.

He expects the concept will spread to most urban markets, catering largely to "a whole lot of baby boomers ... who are in their 50s and 60s with a lot of discretionary income but not so much they're going to buy two, three Ferraris of their own."

The Otto Club opened in Boston in March. Classic Car Club Manhattan opened last year, while San Francisco's Club Sportiva is three years old. The Van Horssen Group launched last year in Scottsdale, Ariz., a smaller city than Charlotte but part of a region with more millionaire households.

Pollan and Stark, his potential competitor, say the Charlotte area is ready for the latest in luxury.

Mecklenburg has 3,775 households with incomes greater than $500,000, six times the 1990 count, according to market research and data firm Claritas. Wealth also has spread, with the number of high-income households shooting up to 1,380 from 197 in a nine-county ring around Mecklenburg.

Stark, 40, said his car-time-share plan calls for a joining fee of $125,000, plus annual dues likely to top $12,000 for 30 days per year of drive time. A planned luxury clubhouse could be as big a draw for members as the cars.

In May, a holding company that Stark said he owns paid about $1 million for the former Dilworth Fire Station No. 2 on South Boulevard. Stark, a Chilean native who came to the city in 1970, plans extensive renovations, including loft apartments and display space for the cars.

Construction isn't scheduled to begin until December on the building, which is next to the gleaming pink Arlington condo tower and now houses several offices. Stark said he's working with consultants on design and a name for the club, which doesn't yet have cars or members.

"It's evolved from just a normal car club to more of an entertainment-car-club facility," Stark said.

Why not buy?

The wait list for a Ferrari can top two years. The tab can run a quarter-million dollars or so. An oil change can top $300. Changing belts can cost $5,000, even for cars that aren't driven much -- and they aren't likely to be.

Newspaper ads for used luxury cars are evidence of limited drive time, with as little as 40 miles for a year-old car, 10,000 miles for a 2001 model.

"Garage queens," Greg Butler, a salesman at Charlotte's Foreign Cars Italia said of the exotic vehicles. The dealership, opened last year, handles Ferrari, Maserati and Aston Martin.

Butler said that because of the cost and low usage, several people often share ownership. He's sold Pollan cars and hopes to sell him more for the club.

"Tom's deal is, you go in on a lot of cars," Butler said.

Privatus membership will be limited to just 50 people in Charlotte. Pollan says he has deposits from potential members but won't say how many. He's keeping the money in escrow until he has enough signed up to be certain he can make a go of the club.

He's betting heavily on the dream. He says he's paid cash for the cars, about $700,000. Privatus has a slick Web site, and Pollan has hired a lawyer, accountant, PR firm and two top aides to handle daily operations.

He just finished about $250,000 in renovations for a clubhouse/garage at a Charlotte location that he won't publicly disclose for security reasons. A tiny sign identifies the entrance to the nondescript building. Inside the clubhouse this month, Pollan pointed out the lounge which will include a huge plasma TV, comfy chairs, poker table and bar.

A curved metal wall separates the cars' show area from the bay where a full-time mechanic will keep the cars at peak performance, and detailers will ensure members have immaculate rides.

Pollan says he's turned away would-be investors.

"If I'm going to take this kind of risk," he said, "I won't take anyone with me."

Other Offerings in Charlotte area

For information on the other planned Charlotte car club, call Marcel Stark at 704-341-4111 or Jeff Tomascak at 704-577-9650.

Privatus Details

Members sign a two-year contract and pay a joining fee of $65,000 plus $7,500 in annual dues, which buys 50 days of driving per year. Membership will be limited to 50 people.Members ultimately will be able to choose from 10 luxury cars. Currently, the company has three.

Privatus provides maintenance, storage and insurance. Members who have an at-fault accident will have to pay up to the first $10,000.

Membership includes use of the clubhouse and a high-end concierge to handle such tasks as scoring the perfect gift, tickets to sold-out games or seats at booked-up restaurants. Founder Tom Pollan plans club events, which might include private track racing, fishing expeditions, golf outings and foreign trips -- maybe to the makers of luxury autos.