Fractional ownership, what is it?
Fractional ownership is the sharing of the ownership and responsibilities of an asset between several individuals. Assets like vacation homes, yachts and private jets are very expensive and typically spend very little time actually being used. In traditional ownership a vacation home would be used only a couple of weeks out of the year and the individual owner would still pay for the home’s upkeep, mortgage and taxes for the entire year. If a vacation home is in a fractional ownership scheme, then there would be several owners who all pay a fraction of the total cost and have access to the home for a fraction of the year. Each owner would enjoy the benefits of owning a vacation home, but be able to share the costs with other owners.
For many individuals, a car is one of the most expensive things that they own. The cost of ownership is not only the cost of the vehicle, but fuel, insurance, parking and maintenance. It is also typically one of the least utilized possessions as it is actually in use only 90% of the time. With this in mind, we at RCI Mobility have co-developed Nissan Intelligent Get & Go. Utilizing fractional ownership as inspiration, the Nissan Intelligent Get & Go offer is a car-sharing offer based for groups of 2-5 people. Each group member pays a monthly fee that allows them to use the car for a portion of the time.
Fractional ownership is an offer that sits in between traditional ownership and publically accessible fleet-based car-sharing. Fractional ownership will further develop as insurance and financing services innovate and provide new products to support shared ownership schemes. A step in the right direction, Nissan Intelligent Get & Go offers a brand new vehicle to be shared within small groups where the members take equal benefits and responsibilities of the vehicle.