What goes in a classic car co-ownership agreement

A good agreement is boring to read and saves friendships. This is the checklist we give every group.

Mile Club gives every group a plain-English template that follows the headings below. It is a starting point. Have a solicitor review the final version, especially for higher-value cars.

1. Who owns what

Names, addresses and the share each person owns. The agreed value of the car on the day you sign.

2. The lead owner

Who is the registered owner and policyholder, what they can decide alone (routine servicing, small repairs under an agreed limit), and what needs a vote.

3. Using the car

The booking rules (Mile Club's standard rules or your own), the mileage allowance per share, where the car is collected and returned, and a ban on paid hire.

4. Money

The monthly contribution per share, the separate account it goes into, who can spend from it, and how big unexpected bills are split. A common approach: repairs up to the reserve come out of the fund; anything bigger is split by share after a majority vote, with a cap on what any one person can be asked for in a year.

5. Insurance and drivers

Every co-owner named on the policy, the minimum age and licence history, and who else (if anyone) may drive. A partner or adult child can be added if the insurer agrees and everyone signs off.

6. Damage, fines and tolls

Whoever has the car pays for damage they cause, the insurance excess, fines, parking and tolls during their booking. Wear and tear is the fund's job.

7. Decisions

Simple majority by share for most things. Three-quarters by share to sell the car or spend above the agreed limit. Unanimous to change the agreement itself.

8. Selling your share

30 days' notice. The others get first refusal at an agreed price, usually the latest agreed value divided by the number of shares. If nobody takes it up, you can sell to an outsider the group approves, and approval can't be unreasonably refused.

9. If something happens to a co-owner

What happens to a share on death or serious illness, and how the estate is paid out.

10. Disputes and ending it

Talk first, then mediation, then the courts as a last resort. If the group votes to wind up, the car is sold, debts are paid and the balance is split by share.