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Expats advise on Rental Car and Motorcycle Rental Business


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I need your advise on Rental Car and Motorcycle business in Beach Road.

My partner wants me to put 100% money to buy car and 6 new bikes (3 bikes with over 900 CC motor, and 3 new scooters with 135cc).

Since all vehicles are in my ownership, there is very little risk to make money. He was saying its better money return business than

renting condo to tenants. He will do all books for me and take 40% of profit 10% for insurance and rent space in beach road, and maintenance

and rest 50% will be mine.

Does anyone knows about this business in Pattaya area and what do you think about all this.

Your advise is greatly appricated it.

Thx

 

Pattayafun

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I need your advise on Rental Car and Motorcycle business in Beach Road.

My partner wants me to put 100% money to buy car and 6 new bikes (3 bikes with over 900 CC motor, and 3 new scooters with 135cc).

Since all vehicles are in my ownership, there is very little risk to make money. He was saying its better money return business than

renting condo to tenants. He will do all books for me and take 40% of profit 10% for insurance and rent space in beach road, and maintenance

and rest 50% will be mine.

Does anyone knows about this business in Pattaya area and what do you think about all this.

Your advise is greatly appricated it.

Thx

 

Pattayafun

 

dont know anything about this type of business, but what does worry me is 2 things...

 

1 he is taking 50% of the business for little work

 

2 renting space on beach road would be VERY VERY expensive even if he could find space on a road that isalready full of bike and car rentals....and the spaces left taken up by moto taxi's and parking bays.

 

also it was my understanding that they were trying to clear beach road of such businesses to aid the flow of traffic, but that was 2 years ago!!

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I need your advise on Rental Car and Motorcycle business in Beach Road.

My partner wants me to put 100% money to buy car and 6 new bikes (3 bikes with over 900 CC motor, and 3 new scooters with 135cc).

Since all vehicles are in my ownership, there is very little risk to make money. He was saying its better money return business than

renting condo to tenants. He will do all books for me and take 40% of profit 10% for insurance and rent space in beach road, and maintenance

and rest 50% will be mine.

Does anyone knows about this business in Pattaya area and what do you think about all this.

Your advise is greatly appricated it.

Thx

 

Pattayafun

Have you known this partner very long? How well do you know him?

First impression is that you are putting out 100% of the money for 1/2 the profits.

For him it looks like a good deal.

The competition is stiff on beach rd and I am unsure who you rent from, as it is City Property.

Edited by jacko
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I would also worry about liability. If you are considered as the owner (you financed 100%) you could be held liable in some cases of accidents or other problems. Would 50% cover your costs as i.e. intrest and depreciation and can you both agree on the definition of 'profit' ?

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This maybe be of use to you ! Just think on the occassions you have been there the number of bikes parked up for hire on a regular basis, there are plenty even some of the bars and hotels have them for hire. Also regarding the bigger bikes well a lot of young lads even older ones reliving their youth end up binning them and well where do you stand then? brings to mind those two young lads last year killed near big C. I would say to you be very careful I always rent a 125 (cannot see any point anything bigger in Pattaya) from the same man on beach road and he is easy to bargain with for the reasons I have staed I believe also his brother in Soi 8 rents too. I was trying last time I was there to rent a 400 cc scooter but could not seem to find one maybe an opening there?

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You cannot get comprehensive insurance on smaller bikes. We had some and dumped them when we could not get realistic cover.

 

The profit on many rental schemes comes from the fact that the insurance is not legit. It is 1st class but not for hiring out the vehicles. Claim and they want you to pretend to be a "friend".

 

On the face of it, renting a truck seems a great business. Near top range, Bt800,000, 20% down and around Bt12.5k a month. You can rent Bt1500 a day or Bt25k a month. Seems like a great deal if you can get more than 50% rentals. Even put down the full 800k, depreciation is 100k over 4 years, you'd only need 4 months rented out plus another 2 for costs so again 50%.

 

Trouble is that unless you can go the whole hog and set it up big style, you are competing against people who rent their truck out on dodgy insurance and can give you it for 18/20k a month which means you need it out all year which is not possible.

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If anybody knows of a business that can make at least 3,000-4,000 baht a week nett profit let me know quick as i will defo buy.

 

The reality is that most business here in Pattaya makes a loss over the 12 months.I have not heard of 1 business owner who is happy with their profits

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The reality is that most business here in Pattaya makes a loss over the 12 months.I have not heard of 1 business owner who is happy with their profits

 

Allegedly there is a beer bar on LK metro that keeps on having its best month yet when directly compared to the previous years figures :wanker :wanker

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Allegedly there is a beer bar on LK metro that keeps on having its best month yet when directly compared to the previous years figures :wanker :wanker

 

 

Naughty naughty lol.

 

THAT bar does have plenty of customers in at certain times of the day and great music too.I actualy like the place and the women are fun too,not the best lookers but great fun.

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Thanks guys for your input on this matter.

Let me clarify little bit more on my prospective business with partner in pattaya.

So this way you guys can make better assessment on what i'm trying to do in pattaya.

My partner have lived in Pattaya for almost 20 yrs and had many business dealing with

thai people and group tourists from other country. One of the business he was in

was Bike and Scooter Rental business in beach rd for some time.

Till today, there are thai guys he worked with before on same spot on beach rd.

So he knows about bike rental business and he has guys to take care of bike rental

and he go collect money and deposit'em to my account.

So breakdown on profit goes like this:

Thai guys on beach rd who rent out bikes to customers get 20%

He will do collecting money and do banking and managing business 20%

Insurance, pay to city for beach rd spot, overall maintenance 10%

My share is 50%.

 

It seems comeout ahead later 5 yrs later.

after 5yrs of rental business, 40% of car value depressiate so renewal a new car afterward.

Tell me what you think about this business. Your feedback definitely helps me

make right decision to do it or not.

 

Cheers,

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It's too late to ask Martin who owned the Farang Connection in Surin. (RIP). He would have told you about the rental vehicles he had stolen from him.

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Don't waste your money. Too much risk not enough return even on the small locally made bikes. Large capacity bikes are made outside Thailand & incur taxes so are expensive, Even without the possibility of thefts etc mentioned before the cost of repairing damage after even minor spills can be huge.

 

stevoh

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It's too late to ask Martin who owned the Farang Connection in Surin. (RIP). He would have told you about the rental vehicles he had stolen from him.

 

Indeed. Though I suspect his health failing this past year didn't help when it came to keeping two eyes on the ball. He was a westerner who rented to Thais.

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Thanks guys for your input on this matter.

Let me clarify little bit more on my prospective business with partner in pattaya.

So this way you guys can make better assessment on what i'm trying to do in pattaya.

My partner have lived in Pattaya for almost 20 yrs and had many business dealing with

thai people and group tourists from other country. One of the business he was in

was Bike and Scooter Rental business in beach rd for some time.

Till today, there are thai guys he worked with before on same spot on beach rd.

So he knows about bike rental business and he has guys to take care of bike rental

and he go collect money and deposit'em to my account.

So breakdown on profit goes like this:

Thai guys on beach rd who rent out bikes to customers get 20%

He will do collecting money and do banking and managing business 20%

Insurance, pay to city for beach rd spot, overall maintenance 10%

My share is 50%.

 

It seems comeout ahead later 5 yrs later.

after 5yrs of rental business, 40% of car value depressiate so renewal a new car afterward.

Tell me what you think about this business. Your feedback definitely helps me

make right decision to do it or not.

 

Cheers,

 

Chuck your money on black or red, you have at least a 50% chance of doubling it. Or walk away with 100%. You are in over your knowledge threshold with this one I'm afraid.

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If anybody knows of a business that can make at least 3,000-4,000 baht a week nett profit let me know quick as i will defo buy.

 

The reality is that most business here in Pattaya makes a loss over the 12 months.I have not heard of 1 business owner who is happy with their profits

 

You contradict yourself in one sentence. If someone is not happy with their profits, then they have profits, which goes against your attitude that most businesses lose money.

 

Most businesses do not lose money. What has happened is that they are not making what they once did and now that level has fallen below what is required for a single small business operator to live comfortably. That means that the value of their business is worth less than before and the risk of losing money is higher, further depressing the true market price but owners cannot get out for a decent price and thus remain, stuck in their business with no means of either selling or earning enough to live comfortably.

 

I'd say that to live comfortably, you need to earn 1.5m at least, preferably 2m a year. My estimate is that bars in 2009 made around 50% of what they did in 2006/7. That makes them worth about 1/3rd to 1/2 of their 2006/7 values.

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