by "AntiSpeed" (AntiSpeed)
Published 09/18/2017 at 17:16
by "AntiSpeed" (AntiSpeed)
Published 09/18/2017 at 17:16
No Tags
STARS: 28
Today I officially became a motorsports entrepreneur. I purchased one of these brand new Pro Mazda cars with an agreement to lease it to a team for the next 2-4 years. I likely won’t get to drive it but I’ll be making a pretty good chunk of money from it, that I will use to fund my Formula Ford activities and YouTube ambitions.
And don’t worry, I’m well protected from the consequences of any on-track shenanigans!
"EL_ULY" (uly)
09/18/2017 at 17:18, STARS: 0
duuuuuuuuuuuuuude flippin AWEOSME!!!!!!!!!!!!!!!!!!!!
"If only EssExTee could be so grossly incandescent" (essextee)
09/18/2017 at 17:24, STARS: 0
Put a seat time clause into the lease agreement
"boredalways" (boredalway666)
09/18/2017 at 17:28, STARS: 1
But seriously, that’s fantastic. Congratulations!
* it will need a photo op with a Puffalump for 4 years of good luck and +10 hp for every Oppo decal
"NoahthePorscheGuy" (porsche)
09/18/2017 at 17:32, STARS: 0
What team is going to run it?
"tromoly" (tromoly)
09/18/2017 at 17:40, STARS: 0
Nice! You’ll have to drive it at least once, because owning it and all...
I couldn’t put my finder on why it looked familiar until finding out it’s made by Tatuus, I’ve driven the Formula Abart Tatuus FA01 in Assetto Corsa and it’s a neat car, completely explains why they look similar.
"Elumerere" (elumerere)
09/18/2017 at 17:52, STARS: 1
I’ve got so many questions!!
How does this work?
Do you have to have insurance in case they crash it?
Where did you hook this deal up?
What’s your expected ROI on this?
"RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars" (rallydarkstrike)
09/18/2017 at 17:58, STARS: 1
When can I have a go? :P
"shop-teacher" (shop-teacher)
09/18/2017 at 18:06, STARS: 0
Daaaaaaang!!!!
"Mini Guy- Now has a 4Runner" (gavinharter30)
09/18/2017 at 18:06, STARS: 0
Congrats! Trying to get this thing to become eligible to race
https://atlanta.craigslist.org/wat/cto/d/1992-van-diemen-formula-ford/6276651302.html
"AntiSpeed" (AntiSpeed)
09/18/2017 at 18:18, STARS: 1
Nice! That’s an awesome winter project!
"TheTurbochargedSquirrel" (thatsquirrel)
09/18/2017 at 18:40, STARS: 1
I like how there is 0 roll ability in the front suspension.
"TheTurbochargedSquirrel" (thatsquirrel)
09/18/2017 at 18:41, STARS: 0
You are going to take it for a rip yourself at least once right?
"AntiSpeed" (AntiSpeed)
09/18/2017 at 18:55, STARS: 0
I’m sure as hell going to try!
"AntiSpeed" (AntiSpeed)
09/18/2017 at 19:02, STARS: 0
Monoshock. The roll stability comes completely from the anti-roll bars. They have them on the Formula Renault 2.0 cars and the old Formula BMW’s.
"AntiSpeed" (AntiSpeed)
09/18/2017 at 19:03, STARS: 2
You’ll have to call the team to schedule a test. :P
But start saving, because a test day will cost about $10,000.
"AntiSpeed" (AntiSpeed)
09/18/2017 at 19:19, STARS: 1
It’s actually pretty simple, I bought the car and the team runs it as if they own it. They just pay me instead of the manufacturer. That way they don’t have a ton of capital tied up in equipment, and they pass the rental fee to their customers (the drivers).
I have provisions in our lease that state the team is responsible for fixing crash damage, up to and including buying me a new car if it is written off. The team also passes that cost to the driver. Racing has a very strict you-break-it-you-buy it rule, so whoever is driving the car when it has an accident is ultimately responsible. Even if it’s another driver’s fault. My biggest risk is depreciation, which is mostly tied to the series popularity. IndyCar seems to be on an upswing so hopefully that enthusiasm trickles down to our level and keeps the number of entries high, which will help keep depreciation low.
I raced in this series 10 years ago so I know people in the industry. The team manager I struck a deal with is actually someone I raced with from back then.
I’ll make back 100% of the purchase price after 4 years. After that I can continue leasing it or sell it and cash out.
"AntiSpeed" (AntiSpeed)
09/18/2017 at 19:21, STARS: 0
Pelfrey, they’re one of the biggest teams in the Road To Indy and run cars at every level from Indy Lights to Formula Ford. I know they’ll take good care of my new baby!
"Elumerere" (elumerere)
09/18/2017 at 19:22, STARS: 0
Thanks! That’s very comprehensive. And coming from having raced them yourself back in the day, makes absolute sense.
Regarding the initial investment: are we talking in the ballpark of a house somewhere not too urban or a NYC condo? Or just a luxury german automobile?
"TheTurbochargedSquirrel" (thatsquirrel)
09/18/2017 at 19:24, STARS: 0
On the BMW there is some ability for the suspension to twist where the bellcranks come together under the shock. On the Formula Ford they are mounted into a solid block only allowing them to move in a heave motion. Thus any roll would be coming from components of the suspension flexing.
"AntiSpeed" (AntiSpeed)
09/18/2017 at 19:28, STARS: 2
Apparently Warren Buffet says you should invest in what you know. Racing is a tough business to make money in but it’s what I know, so...
The initial investment is less than a new NSX. As a point of interest, an IndyCar chassis, without the engine lease, is somewhere around $650,000.
"TheTurbochargedSquirrel" (thatsquirrel)
09/18/2017 at 19:56, STARS: 0
Reading the comments it sounds like you have a really good relationship with the team who is running it.
"SilentButNotReallyDeadly...killed by G/O Media" (silentbutnotreallydeadly)
09/18/2017 at 20:09, STARS: 0
You’re mad! That’s brilliant!
"Elumerere" (elumerere)
09/18/2017 at 20:14, STARS: 0
I know mostly working class poverty. A bad way to start. ;)
Thanks for all the open info, I really appreciate it.
"RallyDarkstrike - Fan of 2-cyl FIATs, Eastern Bloc & Kei cars" (rallydarkstrike)
09/18/2017 at 20:16, STARS: 1
...you’re not helping. :P
"Jayhawk Jake" (jayhawkjake)
09/19/2017 at 00:17, STARS: 0
How many years of racing will a chassis get before it needs retiring? And I assume the engine is replaced during its career, does that cost fall to you?
"AntiSpeed" (AntiSpeed)
09/19/2017 at 07:58, STARS: 0
The old car, that this one is replacing, was introduced in 2004. I’m assuming that this one will last around 10 years.
The engine shouldn’t need to be replaced but it will need to be rebuilt frequently. The team is responsible for all maintenance and engine rebuilds would fall under that. They also tear down and rebuild the car from the frame up every off-season, to ensure competitiveness and reliability. If you ever wonder what full-time race car mechanics do in the off-season, that’s it.
"Jayhawk Jake" (jayhawkjake)
09/19/2017 at 09:30, STARS: 0
Interesting. So how many years has the team you’re leasing it to signed on for? If/when they move on to something else I assume they’re responsible for the cost of getting it race ready for the next team?
"AntiSpeed" (AntiSpeed)
09/19/2017 at 11:25, STARS: 0
4 years, and yep, they must return it to me in race-ready condition.