Motorbike Rental As A Business

[RAZZELL]

Guys..

Just thinking about a business to keep the future wife out of trouble, give her or her staff something to do in the daytime.

Maybe our friendly Koh Chang Farang could help...

Situation...She lives on Koh Chang, and owns a "bar" (shack) in Kae Bae. As yet relatively underdeveloped...But I was there a few weeks ago and EVERYWHERE there are new huts being built.

Of course this will lead to an increase in bike rentals for "travellers" wanting a taste of "real Thailand"... for the maybe 6 months of the year when it's not pissing down in Koh Chang.

On a simple basis...the maths seem to add up. Of course it won't make her rich. But It would provide an income of sorts.

So, is it a good idea to buy a few second-hand bikes and let her rent them out?

Obviously, there will be quiet periods, damage, insurance, servicing etc etc to sort out but what do you reckon?

As a newbie please be gentle with me....

[Thaipwriter]

Guys..

Just thinking about a business to keep the future wife out of trouble, give her or her staff something to do in the daytime.

Maybe our friendly Koh Chang Farang could help...

Situation...She lives on Koh Chang, and owns a "bar" (shack) in Kae Bae. As yet relatively underdeveloped...But I was there a few weeks ago and EVERYWHERE there are new huts being built.

Of course this will lead to an increase in bike rentals for "travellers" wanting a taste of "real Thailand"... for the maybe 6 months of the year when it's not pissing down in Koh Chang.

On a simple basis...the maths seem to add up. Of course it won't make her rich. But It would provide an income of sorts.

So, is it a good idea to buy a few second-hand bikes and let her rent them out?

Obviously, there will be quiet periods, damage, insurance, servicing etc etc to sort out but what do you reckon?

As a newbie please be gentle with me....

Hi, Welcome to the forum....never been to Ko Chang so i cannot comment with much insight but its fair to say if you can find a service that is in demand in an area that has no supply then you can make money in thailand. second hand bike can be a problem, If a thai has a bike that is reliable then they tend to run it forever and then some, why would they sell it?

New bikes are not expensive but are a safe bet. honda would be the one to go for, any of the wave range will do the trick.

I would think closely about the desicision between just sending her some cash each month to spend, or starting this business, the former may be the wiser option

[Beachcomber]

Hi Welcome.

Actually the numbers don’t really add up. Second hand bikes are not a good idea for the reasons already mentioned. Anyway tourists like shinny new reliable bikes.

A new Honda Dream (best bet unless you want to specialize in more expensive trail bikes) will cost 40,000bt. The rental will be (depending on your location) 100 – 200bt per day so it will take most of the first year just to pay for the bike.

That is assuming the bike is rented out EVERY day which of course it won’t be. With the real tourist season only being 6 months and with competition you’ll be fortunate to rent out enough days to pay for the bike in maybe two years or maybe more.

In addition to you will need to have crash helmets available and a phone contact number for accidents and breakdowns. Don’t forget servicing and also bear in mind how rental bikes are treated.

At the end of one year your shinny new bikes will look decidedly “tired” and be no competition for the “New Farang” just down the road who has just set up his new girlfriend in business with a fleet of shinny new motorbikes.

Sorry just my humble opinion.

[justsignedin]

Hi Welcome.

Actually the numbers don’t really add up. Second hand bikes are not a good idea for the reasons already mentioned. Anyway tourists like shinny new reliable bikes.

A new Honda Dream (best bet unless you want to specialize in more expensive trail bikes) will cost 40,000bt. The rental will be (depending on your location) 100 – 200bt per day so it will take most of the first year just to pay for the bike.

That is assuming the bike is rented out EVERY day which of course it won’t be. With the real tourist season only being 6 months and with competition you’ll be fortunate to rent out enough days to pay for the bike in maybe two years or maybe more.

In addition to you will need to have crash helmets available and a phone contact number for accidents and breakdowns. Don’t forget servicing and also bear in mind how rental bikes are treated.

At the end of one year your shinny new bikes will look decidedly “tired” and be no competition for the “New Farang” just down the road who has just set up his new girlfriend in business with a fleet of shinny new motorbikes.

Sorry just my humble opinion.

<{POST_SNAPBACK}>

I personally would give it a go, get your bikes from union auctions at bangkok, 1-2 year old honda waves etc for half the new price. Start with four or five and see how it goes, if it does'nt work you will probably be able to sell the bikes for the amount you paid so it's certainly no big loss.

[~G~]

How much can you charge? Take into consideration that these new guesthouses will probably also offer bikes to rent. Can you compete?

Edited October 12, 2005 by ~G~

[RAZZELL]

Appreciate the input.

As regards to "shiny new bikes"...not one i've ever rented !!!

Where's Union Auctions? What do they sell? Finance Repo's?

As mentioned I realise this isn't going to make her rich...But after a year the bikes might be paid for...then...with any luck 2 years of rental before they're knackered.

Thanks for the advice guys.

[COBBER]

Razzell, A good friend has a resaurant in Pattaya and as a side line he decided to rent out motor bikes. He now has 7 bikes and takes over 20,000 per month in the high season and about 6000 per month in the low season. It takes roughly 2 years of rental return to cover the cost of new bikes and then all of the rest is profit.

The bikes in higher demand are the Yamaha Mio and the Nouva and you can get a better return on these bikes. Honda wave,Suzuki Best type bikes are becoming less popular with the renters.

I dont think there is a problem using second hand bikes as long as they are not too old and are at a reasonable price.

[justsignedin]

Appreciate the input.

As regards to "shiny new bikes"...not one i've ever rented !!! 

Where's Union Auctions? What do they sell? Finance Repo's?

As mentioned I realise this isn't going to make her rich...But after a year the bikes might be paid for...then...with any luck 2 years of rental before they're knackered.

Thanks for the advice guys.

<{POST_SNAPBACK}>

www.union-auction.com

they are in Bangkok although i can't tell you how to get there, only been the once.

i don't think you will see any bikes on the website but you could ring up to get an idea what they have at the time. Some nice bikes went through when i was there, decent 1-2 year old were going for an average 16-18,000.

[terdsak_12]

Try here: Manheim Auctions

[RAZZELL]

Cobber.

After a quick look, Mio's seem to sell for about 20,000 more than the others.

Are the returns worth the initial extra outlay or are they just better looking/more up to date?

Thanks again.

[RAZZELL]

Terdsak 12

Great link

Bidding just like an auction in the Uk? What do they go for?

[COBBER]

Cobber.

After a quick look, Mio's seem to sell for about 20,000 more than the others.

Are the returns worth the initial extra outlay or are they just better looking/more up to date?

Thanks again.

<{POST_SNAPBACK}>

RAZZELL, Mios go for around 42000 new and my mate gets 200bht per day.

Honda Wave is around 35000 new and they rent for about 150 bht per day.

A new Nouva is around 54000 new ,and they also rent for about 200 per day.

So on these figures the Mio gives a better return. Here in Pattaya the demand for Mio's is better hence they are being rented more days per month which also improves the return.

Personally if i was statring out in a business like this i would have a combination of both Wave and Mio , but here the demand is definately more towards the Mio.

[jrincon17]

Appreciate the input.

As regards to "shiny new bikes"...not one i've ever rented !!! 

Where's Union Auctions? What do they sell? Finance Repo's?

As mentioned I realise this isn't going to make her rich...But after a year the bikes might be paid for...then...with any luck 2 years of rental before they're knackered.

Thanks for the advice guys.

<{POST_SNAPBACK}>

The real money is when she says that they damaged it or when they crash it . cha ching ! trust me every country i've been too ive been in a accident . right she wont be rich but any extra is cool . go with the new bikes or 1 year old with little mileage .

[RAZZELL]

<{POST_SNAPBACK}>

The real money is when she says that they damaged it or when they crash it . cha ching ! trust me every country i've been too ive been in a accident . right she wont be rich but any extra is cool . go with the new bikes or 1 year old with little mileage .

<{POST_SNAPBACK}>

I know what you mean ...Was in Portugal with work and rented a car. Within a few hours ooopsss!!!

Luckily, returned it late at night and it was the day before Christamas Eve... so the girl wasn't bothered at all!!!

In the UK, small scatch on a van £250.

[TizMe]

The real money is when she says that they damaged it or when they crash it . cha ching  ! trust me every country i've been too ive been in a accident . right she wont be rich but any extra is cool . go with the new bikes or 1 year old with little mileage .

The real money is ducking around to the renter's hotel/guesthouse late at night and taking off with the bike using your spare key.

Then, they lost it, they pay for it.

[Buff-horns]

Guys..

rovide an income of sorts.

So, is it a good idea to buy a few second-hand bikes and let her rent them out?

Obviously, there will be quiet periods, damage, insurance, servicing etc etc to sort out but what do you reckon?

As a newbie please be gentle with me....

<{POST_SNAPBACK}>

i know a gent in pattaya who tried this and after 6 months most of them had been stolen never to be seen again.

lots of hassle with the rentees about replacing them .

[Heng]

Guys..

Just thinking about a business to keep the future wife out of trouble, give her or her staff something to do in the daytime.

Maybe our friendly Koh Chang Farang could help...

Situation...She lives on Koh Chang, and owns a "bar" (shack) in Kae Bae. As yet relatively underdeveloped...But I was there a few weeks ago and EVERYWHERE there are new huts being built.

Of course this will lead to an increase in bike rentals for "travellers" wanting a taste of "real Thailand"... for the maybe 6 months of the year when it's not pissing down in Koh Chang.

On a simple basis...the maths seem to add up. Of course it won't make her rich. But It would provide an income of sorts.

So, is it a good idea to buy a few second-hand bikes and let her rent them out?

Obviously, there will be quiet periods, damage, insurance, servicing etc etc to sort out but what do you reckon?

As a newbie please be gentle with me....

Why would she get into trouble? Is she a soccer hooligan?

It's a great idea, if she's not lazy.

Not lazy being... she'll keep the bikes well maintained and looking as new as possible (she'll think 'let's run this like a low cost budget airline... make our machinery work for us, no matter how old it gets'.... not 'these bikes are so old and ugly, let's buy new ones every few years'). She'll track down bikes that are late or overdue. She'll not let customers off easy for damaging bikes, for returning bikes late, no matter how attractive or honest looking they are, etc.

Edited October 12, 2005 by Heng

[bino]

After a quick look, Mio's seem to sell for about 20,000 more than the others.

Are the returns worth the initial extra outlay or are they just better looking/more up to date?

Hi Razzell,

Welcome to the forum.

The big difference in the Nuovo and Mio is that they have a CVT automatic transmission- ie no shifting gears.

I would imagine that these are much more user friendly and easier to ride, especially for a tourist who is not familiar with motorcycles. They may prove to be more reliable in the rental trade for that reason too.

Good luck.........

[KC_Farang]

This is the first time I've ever seen Kai Bae described as 'undeveloped' :-)

If you go the motorbike rental route then Mio's are the way to go. They're by far the most popular bike to rent on the island. Simple reason is that you can ride them up the hills with relative ease and you dont have to be able to ride a 'real' bike to ride them. Even if visitors are used to riding a bike back home they probably wont have tried to get two people up a steep, winding road on 115cc Wave whilst also watching out for crazed songtaew drivers. An Automatic makes things far easier.

You can rent them out for 200 or 250 baht/day. Another poster has already pointed out the obvious, why shouldnt the punters just get their bikes from the resort? Most resorts dont have their own bikes, they have agreements with people they know - in Kai Bae it's often members of the same extended family to supply them.

So, what you need to be successful is a tie up with one (or more) of the resorts. I know a Thai guy who has 20 bikes and even now most of them ar rented out every day, of course it helps that he has deals with a large hotel and a large backpakcer resort to supply bikes. Commission is generally 50 baht/day/bike.

If her place is in a roadside location in Kai Bae an she's presentable, personable & speaks Ok English why not set her up as a tour agent. No outlay other than a nicely designed booth and no limit to what she can get commission on - all she has to do is contact bungalows, bike hire places, baot tours, etc etc. No worries about a fleet of bikes getting smashed up, stolen etc

(If she does this and is interested in making money on speedboat hire . . .let me know)

[RAZZELL]

Kae Bae....Everything's relative... ;-)

I'll have a chat with her next time I'm back in KC...hopefully before Christmas.

She's quite presentable and speaks good English and some Japanese.

Thanks Ian for the advice and great website of yours.

By the way...I think I saw you in KC on the pier at Bang Bao with your Mrs and labrador about 4 weeks ago... :-)

[lampard10]

We have rented bikes and cars/pick-ups/SUV's for the last two years. That's how I keep my bar prices down. I rent out to customers, and that's where the main money comes in. In the two years, I have not had one stolen and the only accident was last year, when a numberplate fell off. Unfortunately after 9 months the Thai authorities have still not issued a replacment yet.

For details of prices etc check out http://www.farangconnection.com

Edited October 17, 2005 by lampard10