Mark Cheng believes there is a market for people who want to drive premium and luxury vehicles and would want to be part of a club to have unlimited access to them.
The 64-year-old native of Hong Kong and longtime B.C. resident has started the Vancouver Luxury Car Club (VLCC), and he has curated a collection of 70 that include supercars, SUVs, EVs and luxury vehicles. The brands are Ferrari, Lamborghini, McLaren, Aston Martin, Bentley, Mercedes, Porsche, Land Rover, BMW, Audi, Jaguar and Maserati. He is offering 50 memberships to Vancouver-area residents who want to drive these cars year round without the burdens of traditional car ownership. Members will receive white-glove concierge service and effortless control through a seamless mobile app. There will also be events and other ways for the members to meet physically or online.
There are various membership rates. A personal membership includes a $60,000 initiation fee and a charge of $5,500 a month. A corporate membership includes a $75,000 initiation fee plus $15,000 per additional driver up to four. The monthly fee is $6,000, plus $500 a month per additional driver.
Cheng, who is the Founder and CEO of the VLCC, is an entrepreneur and senior executive with more than 35 years experience in the automotive sector, including owning and operating two dealerships and body shop that he sold. He is also a Porsche enthusiast and collector. He developed this idea 13 years ago after selling his businesses and didn’t want to retire at age 51. He decided to do something interesting and use his automotive business background.
He did some consulting work but felt there was a real niche in the marketplace for car enthusiasts who love supercars and premium vehicles and classic cars. His personal passion is European luxury cars.
“There’s lots of different car club out there, but this is a unique concept I’m going to have,” Cheng said. “I will give my members a full roster of vehicles that kind of whets their appetite and they can have access to the fleet every day of the year, seamless, no stress, no fuss”
He said members can have access to the cars for as many days as they want.
He is confident the club will work purely on economics.
“If you were in the space of owning a supercar, your costs of acquisition or outlay – it doesn’t matter how you structure or finance it – is anywhere between $300,000-$500,000, and you’re laying out $75,000-$150,000 in taxes,” he said. “That is a mental roadblock financially. For well-to-do people money is not the issue psychologically. But do I want to put $150,000 in taxes and kiss that good-bye and add depreciation to it?
“There are people that love cars and are doing it, but with that in mind my motto is giving these people an alternative. It’s like going to a five-star restaurant. You can order à la carte or the chef’s menu. We’re giving you the chef’s menu. Put money in where there is an appreciating asset and not money into a depreciating asset. That is the golden rule of investment.”
He capped off the membership at 50 because he deemed it to be manageable logistically. Basically, the ratio is about 1.5 cars available to each member all year long, though some cars will be unavailable due to accidents, mechanical issues, service and maintenance.
He said the membership initiation fees will help pay for the acquisition of the inventory, which he said took him 24 months to acquire. He used his dealer license and industry connections to source the vehicles. He is investing some of his own money and has secured a line of credit.
He launched news of the club through social media before officially announcing it earlier this month. He said the response has been overwhelming, including more than 200 inquiries from across Canada. He said they will be vetted to those within close proximity of Vancouver. The cars will either be picked up or there will be a valet service.
His anticipates it will take three to six months to settle on the members.
While Vancouver is the “test pilot” for the club, he said Calgary and Toronto are the next targets, to be followed by Seattle and then cities in California.
For further information, go to vancouverluxurycarclub.com.
