Curvy Road article - interview with Management Today

1. Weekends / Spring 2010
// Lamborghinis “seem to define the exotic car experience.”
A Business in
The
Fast INTERVIEW BY:
John
Krukowski
Lane
Car enthusiast George Kiebala gives busy
executives a hassle-free way to drive some
of the world’s most elite automobiles.
THE
front
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2. Weekends / Spring 2010
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3. Weekends / Spring 2010
Who doesn’t appreciate desire to own great cars as they have the
desire to drive them. Custom-car owners
a really cool car? The way a Lamborghini Murcielago and folks who work on project cars, etc.,
tend not to be our market as much as
or a Ferrari 430 Spider looks, feels, sounds? The way
busy executives who find it easier to have
it looks pulling up to the country club or zipping to someone else take care of the logistics
the vacation home for a long weekend? and hassles and present them with a de-
tailed, maintained, inspected and insured
exotic car – all ready to drive – when they
What’s often less appreciated is the even RVs was available, but exotic cars have the time to enjoy the automobile.
cost of upkeep and maintenance for one still had to be bought outright. So, then Most of our members tend to have a
of these sexy beasts. George Kiebala, a we conducted an extensive Internet young family or – to a lesser extent – are
businessman and car enthusiast in the search for anyone else doing this in the single. Most have demanding professions
Chicago area, knew firsthand about the U.S., and no one was.” that take up a significant amount of their
frustration many current or would-be ex- The Kiebalas struck gold, first with the time. My sense is that they appreciate our
otic car owners feel when it comes to the launch in 2000 of Exotic Car Share and program as much for the convenience as
vehicles of their dreams. But more impor- later with sister company Curvy Road, for the cost savings.
tantly, about 10 years ago, he identified a which provides access to vehicles in the
business niche and launched a service to $150,000 to $450,000 price range. The MT What are the most popular cars in
provide the thrills of ownership without Palatine, Ill.-based company today boasts the collection?
the attendant responsibilities. more than 900 members that it serves GK Ferraris, Lamborghinis and Bent-
“I do a little amateur road racing in an from its headquarters, as well as offices in leys seem to define the exotic car experi-
Alfa Romeo, and so we knew what a has- Miami; New York City; and ence. While there are many other types
sle it was to store specialty cars and Norwalk, Calif. Management Today re- of exotics – and we are brand-agnostic –
sports cars in general,” Kiebala relates. cently spoke with Kiebala about his com- the instant recognition and the long,
“While I was still VP of emerging mar- pany, clients and, of course, cars. great histories of these brands probably
kets at Experian Marketing Services, my contribute to their popularity. Also, the
wife, Kathy, and I started a small hobby Management Today Who is the typi- reliability of German engineering crossed
business providing indoor, heated storage cal Curvy Road member? with the beauty of Italian and British
of exotic cars for Chicago winters.” George Kiebala The typical Curvy design – as in the Lamborghinis and
Kiebala recalls the fledgling business Road member is a 28- to 48-year-old male Bentleys – make them some of the most
was “sold-out right from the beginning, in the financial services industry, or the sought-after vehicles in the world. And
but we soon realized that so many owners legal or medical professions. So, traders, Ferrari … well, after all, it is a Ferrari.
of exotic cars – when the only way to have brokers, investment advisors, doctors,
an exotic car was to buy the whole thing lawyers, consultants and developers. MT Do your members tend to have
and pay someone to store it in the off-sea- They’re generally high-net-worth experience in other types of fractional
son –were only driving their great high- individuals who already own one or a ownership?
end cars a few weeks a year, at a huge handful of extremely nice cars, and want GK Some of our members do own a
cost-per-driving experience.” to use their money effectively in order to time-share condo or a fractional share of
The entrepreneurial couple saw a “sig- be able to enjoy driving a super car or a luxury resort, and a few own shares in
nificant untapped business opportunity multiple exotics. a recreational watercraft. It seems that
there,” he says. “Fractional ownership of Perhaps the main thing our members having experienced the benefits of one
private jets, luxury condos, yachts and tend to have in common is not so much a type of fractional ownership is a positive
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4. THE
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factor when evaluating another.
The similarities between fractional
ownership of exotic cars and fractional
ownership of private jets, for example,
are that you can essentially trade the
time you own for different vehicles or
aircraft within the program. In our case,
there aren’t any fees associated with the
trades unless you’re upgrading level.
The differences are that in our program,
while it’s true that you’re flying, you’re still
on the ground. Seriously, though, there
aren’t a lot of differences in concept. A
share of a vehicle in Chicago allows you to
trade for weeks in a vehicle in Los Angeles,
Boca Raton, New York or Albuquerque.
MT How long do members tend to take
out a vehicle, and what do they tend to
use it for? Weekend getaways?
GK Our Private Access Plan is set up in
one-week units; so, generally Tuesday
through the following Monday. That way
the member’s weekend plans aren’t in-
terrupted by having the exotic car deliv-
ered, etc. They “own” the car for that
week, and we’ll even store their daily car // “With fractional ownership, you may drive your time-share car five or six times across the year, and then
maybe a different exotic a couple of weeks out of the year,” Kiebala explains. “Our members tend to plan
at Curvy Road, if they choose.
their weeks of usage around their schedule.”
Living with a car for a week is more fun
than alternatives like renting an exotic.
With a rental, you’re like on a clock and on
a mileage meter, and the car itself is some- weeks of usage around their schedule. In MT Car collecting is a passion with
times in a slightly different condition than other words, when they’re in town – and some people. What sets a fractional
a fractionally owned automobile. Short- not on international travel – (or) when owner apart from one who owns his or
term, quick in-and-out rentals tend to take they have either client, business associate, her own vehicles?
their toll on finicky, handmade, high-per- or friend and family events, dinners, short GK Perhaps the main thing that de-
formance automobiles like Bentleys, Fer- trips, etc. fines our member is that they like to drive
raris and Lamborghinis. Others tend to plan for vacation weeks, great cars and just not be bothered with
Instead, with fractional ownership, you when they plan to head up to Galena, Ill., the hassles. Appreciating fine art would be
may drive your time-share car five or six from Chicago, or to the Hamptons from a real hassle if you had to regularly take
times across the year, and then maybe a Manhattan. Shares can be scheduled for each painting in for maintenance and
different exotic a couple of weeks out of one, two or up to three weeks at a time, have it detailed every couple of weeks.
the year. Our members tend to plan their depending on the share type. The car collector differs from the col-
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5. Weekends / Spring 2010 THE
front
“No Guessing” lector of other fine items in that car col- high-net-worth individuals, who in bet-
Curvy Road isn’t the only firm offering lecting can be a punishing experience – ter times would be purchasing a $250K+
a chance to drive an expensive car, but over and over! Also, if the car sits and sports car, instead are seeing us as a
George Kiebala maintains there are signifi- you don’t drive it regularly – especially a more appropriate use of money. The
cant differences between his business high-performance car – it often requires depreciation alone, which would be lost
and its competitors. These basically break major maintenance before very long at on a purchased exotic, can almost fund
down to keeping the experience as simple all. That’s right: That great exotic on eBay a fractional share of the same car!
as possible for his client drivers. with “only 2,000 miles” is a money pit
“Our competitors have generally set that will sour anyone’s experience with MT What challenges have you had to
up complicated point systems, where great automobiles. overcome as you’ve grown this business?
instead of time ownership, people are pay- Fractional ownership is instead a re- GK In the year 2000, when we started
ing up front for a series of points, where a peatedly positive experience. One frac- this concept, no one knew what we did.
certain car in July is worth different points tional owner told me that after driving Also, no one else at that time was offering
than a different car in September, and is the Bentley for a couple of weeks, it just a service like this. So, we had to convince
worth different points depending on the became a car. Drive it over to the grocery a lot of people that the concept was in
days of the week, season, car, etc.,” Kiebala store to pick up a gallon of milk, sandy their interest.
says. “It’s up to our competitor’s customer beach towels in the trunk. But to spend What helped a lot was the media. Our
to figure out what $200K for a Bentley company was featured in local newspa-
they’ve really paid for.” and then have it be- pers first, then radio stations, then na-
Kiebala says Curvy come a car seems tional publications and TV networks, and
Road members like a shame. there’s even a chapter on our company in
are “guaranteed their Instead, with the the Harvard Business School book
weeks in a specific Private Access Plan “Mass Affluence.”
automobile, yet the program, there’s that This helped expand the reach of our
member still retains new-car anticipation message that you don’t need to be mar-
the flexibility to trade every month or so, ried to one exotic car to be able to drive
weeks. So, there’s no guessing, and you’re when you know you’ll be driving the great automobiles.
sure you’ll get what you paid for.” Lamborghini or Bentley or other exotic, Solving logistics issues, member pre-
Curvy Road cars are delivered: the week after next. The car is always screening methodology, funding for in-
• Fully fueled, detailed, inspected perfectly detailed and ready to drive creased inventory prior to share sales
and insured; when it arrives. and overall pricing has been a learning
• With a pre-paid tollway pass in some experience. We feel fortunate to be
states; and MT How has the economy impacted you? where we’re at today, entering our 11th
• With a full driver orientation. GK The economic slowdown the past year this summer and having experi-
“There’s also no nickel and diming, as in no few years has both challenged us and enced the incredible changes that we
fuel charges, (and) no mileage charges – up to helped us. Folks who were not necessar- have to the economy, the exotic car mar-
a very generous mileage allowance,” Kiebala ily purchasing time-ownership instead ket and to our own company.
notes. “Our concept is based on the market of outright purchasing a high-end luxury
we serve: high-net-worth individuals who car, and folks who were planning to pur- MT What advice do you have for
expect simplicity, respect and convenience.” chase a share with limited discretionary someone who is interested in fractional
income have held back as the economy ownership of cars?
has gone through its tantrum. GK Call 888-358-7524 and ask for a
On the other hand, a greater number of Private Access Plan specialist. •mt
Published by Schofield Media Ltd. Tel: 312.236.4090 Fax: 312.236.4266
On behalf of Curvy Road © 2010 Schofield Media Ltd. All rights reserved.