Car/Bike Rental Business

[gpnexxus]

Hi everybody!

I will appreciate any advice from members with experience with car and motorbike rental companies in Thailand. 

I have the capital for 6-8 pre-owned cars for starting, and more or less I am familiar with setting up a business in Thailand. Of course I know that I have to use a lawyer. 

 

 

Thanks In advance!

[stingray]

Not easy. Most of customers here want brand new cars for cheap money. Cheap new cars cost about 6++'k and you can rent them it about 500 to max. 800 per day (but you never rent them every day). That's about 15'k per month. 15 years ago a new Soluna cost 3++'k and we can rent them at 1'00 to 1'500 per day. That's the different. Spare parts was dirt cheap too, at that time.

 

At the present situation cars depreciating more on value, than what you can made profit with rental. Example new "floor model" cost 6++'k, you can make about 120 to 150'k per year, but after 3 years, your car is only half of the value of a new one. Not including money spent on insurance, tires, service, etc. So in the end you turned only money, but no profit. Insurance coverage isn't like in Europe. If you car getting repaired after en accident and stay for 1 month in a work shop, no insurance pay you for lost income (time). But you still have to pay the bank, if you have it on finance. Devaluation (because it's a accident car now), will not be compensated by the insurance.

10 Year old cars can't be rented, because they are not accepted by the rental car insurance (to old).. BTW, you need a rental car insurance (code 120), otherwise nothing will be covered in case of accident. You need to get a license at city or town hall. If you are foreigner, you need work permit and company.

 

If you still interested to set up this business, i'm happy to sell you mine. I have top location in Pattaya.