Anybody here into Rent-A-Car Business? :)

[Palongkilang]

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Hi to all business minded istoryans. I need your inputs about this business.

My wife P.O. business partner who recently have an early retirement from a well known company in Mandaue is now back as an agent of Rent-A-Car. She is actually have a 12 years experience as an agent of rent-a-car. She gets a 20% share for every customer she got. Currently she have 50K/month billing to one of there regular customer. She told my wife that the minimum average rent is 1.5K/day. At present the rent-a-car company she is working with is having a shortage of vehicle and she proposed to us to invest on this business and she will be our agent.

Assuming that my capital will be the amount I will be paying for the down payment for the brand new car and the monthly dues will be from the monthly income including the maintenance cost (regular change oil, etc.).
- How long I could get the ROI.
- What is the usual arrangement with the driver.
- What is the ideal car for for this kind of business. (The proposed car was Toyota Vios.)
Also, to avoid the high maintenance/repair cost my plan is to sell the car after the warranty period ends usually 3 years and replace with a new one, because I don’t have a mechanical background for car repairs. (If ever this will be a successful business.)

I still plan to continue with my job (bisag faet ka a u) until this business becomes stable. If in God’s will, my wife will be partly managing the business because she is also working, but the problem is my wife is not knowledgeable about cars she just recently learned how to drive. The only advantage, brand new car has no head ache.

Anybody here can please share your tips about this business... Basin ang agent ug and driver lang ang ma bolahan ani.

Any inputs about this business will be highly appreciated.

TIA.

[smurkydad]

1. keep your job!

- good realization on your part when you said
this: " I still plan to continue with my job (bisag faet kaa u)
until this business becomes stable..."

2. throw back those questions to your wife's P.O. business partner.

- ask your "agent" friend with these questions:
A. How long I could get the ROI?
B. What is the usual arrangement with the driver?
C. What is the ideal car for for this kind of business?

- your "rental" friend should easily answer these basic questions
coz he/she's been in this business for decades.


3. analyzethe business (in terms of profitability).

- you said the average rental is 1.5k/day.

- check your profits (my computation):
1,500 (daily car rental)
300 (less 20% commission of the car-rental agent)
300 (less driver's salary)
_____________________
P 900.00 (estimated daily profit)

- oops.... wa pa nako ma-apil diha sa computation (deduction)
kung pila imong payment sa car if you decided to get it on a
monthly installment (depends on the type and brand of car you want)

- add to your deduction ang imong monthly maintenance sa
car para always "conditioned" ang performance ani.

- you notice, i didnt complete the computation. i want you to
practice your "math skills". more importantly your "analytic" skills.
afterall, this is your business.


4. How credible is that car-rental agent?.

- maybe there's a lighter word for "investigate" but that's the
first thing popped out in my mind. find out how credible your
"rental" agent is. (ask his former employer? check his/her
background)

- it's not always" rainy days" in business. there will be days
nga walay bookings. trust me. i call this "lean" times.


5. Why not have your own TAXI business instead?

- with Rent-a-car business, your income is dependent on your
friend's car-booking skills (no customer booking from your agent
means no car rental for the day).

on a sidenote, if by chance (i hope it wont happens) your
"agent' decided to leave your "roof" and go to another car-rental
company, naturally he'll "pirate" the customers you have. be
prepared for that!

- with your Taxi business, your income is more consistent coz
you got a daily " rental" from your taxi drivers -- is it P700 or P800
ang hatag ron nila daily sa ilang amo?

6. Listen to your "gut instinct" (intuition)

7. Go for it!

- after weighing your options and you still believe that "car rental"
is the business you want to invest, then by all means, go for it!

- make sure (during your assessment) that this business is at
least 70% workable/doable for you and your wife.

8. Always be on the look out for new opportunities.


my 2 cents.

Hi to all business minded istoryans. I need your inputs about this business.

My wife P.O. business partner who recently have an early retirement from a well known company in Mandaue is now back as an agent of Rent-A-Car. She is actually have a 12 years experience as an agent of rent-a-car. She gets a 20% share for every customer she got. Currently she have 50K/month billing to one of there regular customer. She told my wife that the minimum average rent is 1.5K/day. At present the rent-a-car company she is working with is having a shortage of vehicle and she proposed to us to invest on this business and she will be our agent.

Assuming that my capital will be the amount I will be paying for the down payment for the brand new car and the monthly dues will be from the monthly income including the maintenance cost (regular change oil, etc.).
- How long I could get the ROI.
- What is the usual arrangement with the driver.
- What is the ideal car for for this kind of business. (The proposed car was Toyota Vios.)
Also, to avoid the high maintenance/repair cost my plan is to sell the car after the warranty period ends usually 3 years and replace with a new one, because I don’t have a mechanical background for car repairs. (If ever this will be a successful business.)

I still plan to continue with my job (bisag faet ka a u) until this business becomes stable. If in God’s will, my wife will be partly managing the business because she is also working, but the problem is my wife is not knowledgeable about cars she just recently learned how to drive. The only advantage, brand new car has no head ache.

Anybody here can please share your tips about this business... Basin ang agent ug and driver lang ang ma bolahan ani.

Any inputs about this business will be highly appreciated.

TIA.

[dodiemanliguez]

"Basin ang agent ug and driver lang ang ma bolahan ani. "

most likely....kay klaro ila income

[smurkydad]

well said.... hehehe

"Basin ang agent ug and driver lang ang ma bolahan ani. "

most likely....kay klaro ila income

[ed168III]

k bya ni, basta pang wedding car imong ipa rent, like pinakamahal na bmw, mercedes, etc. imong personaly gamiton nya ipa rent pud, tabunan lng ang plate no. hehe

[dodiemanliguez]

well said.... hehehe

wala kaayo ko idea ani nga biz pero tan aw nako even without looking closely sa details, dili siya promising....kana 1.5 k na ingon niya average daily...hmmmm, kon moingon nuon siya u'll get at least 1.5 k a day ...cud be higher depending on bookings...morag pede ra

[Palongkilang]

Thanks to all of you guys for your valuable prompt response and to smurky who did a lengthy sensible response.

Actually I did a calculation after I post my thread, but it turn out alkansi man ka a u ang owner sa car. Ang monthly net income, kulang pa I bayad sa monthly amortization. Assuming ako down payment is only 200K with 36months monthly amortization of 19.5K.

Base from Toyota - Motor Philippines financial calculator

Toyota Vios 1.5GM/T - SRP 750,000.00
187,500.00 Down Payment
19,363.00 Amortization monthly x 36
697,068.00 Total amortization
884,568.00 Total Cost DP+ Amort

Warranty 3 years.
Car Registration – Brand new car good for 3 years Additional Capita. Pesos #,###.#?

Additional cost.
Periodical maintenance – Change oil, oil filter, tire, minor etc.

Conservative calculation 1K x 6days x 4wks = 24,000/month

24,000.00 Assuming monthly sales
4,800.00 - agent commission 20%
19,200.00 sub total
0.00 - driver's fee "Agent daw ang bahala" <-- murag impossible louy ang driver.
19,200.00 sub total
0.00 - Fuel I don't know (As far as I know from outside of Phil. Fuel is renter's responsibility & mileage per day is limited.)
19,200.00 sub total owners monthly income
576.00 - 3% set aside for periodical maintenance
18,624.00 Net sub total owners monthly income
19,363.00 - Monthly amortization for 36months
-739.00 Net owners profit/month
Loser ang owner

I believe there is something wrong with my assumptions… because it makes me wonder how come na a man daghan pud ni asenso ani nga business started with 1 car and have 2 car within 5 years.

Some more inputs please.

Ask lang ko da an advance sa fellow istoryans aron na koy ideas ika question ig present sa proposal sa business partner sa akong wife.

TIA

[i.draw.fast]

ilisi ug model imo toyota. ayaw na ang pinakaka high end sa vios. naay 1.3J model nila nga mas barato.

[Palongkilang]

ilisi ug model imo toyota. ayaw na ang pinakaka high end sa vios. naay 1.3J model nila nga mas barato.

Yeah.. you're right... I did a calculation for vios 1.3j model and assuming of 36K income per month net profit 13.8K per month and ROI of 4 years & 2 months but this doesn't include yet the insurance cost.
This is only for 175.5K down payment, the higher the down payment mas profitable pa jud.

[Palongkilang]

Anybody knows if how much is the boundary for brand new Taxi here in Cebu?
As per tsikot.com in Manila it's 1.5K per day/for the Toyota vios, that was 2007 rate.
Pila kaha deri sa Cebu?