Need Advise - Buying A Suzuki Alto And Renting To A Taxi Service

[Iroshw]

Hi guys,

I'm planning to buy a Suzuki Alto (with a lease) and rent it to a taxi/cab service (Kangaroo or any). I spoke to a few cab services and they all have the same story.

* They need a driver

* No minimum/maximum income guarantee

* Deposit needed (like Rs. 10000)

* Pay is Rs. 45 per KM. So we need to make a note on the lost KMs after dropping a person to a place and need to come back. So there is a lost.

* We will have to do the service/ repairs

* Minimum 12hrs needed to run the car

If anyone in this forum has given their Alto to a cab/taxi service, please help me to figure this out.

* What is the best model of Alto to rent? (Means less repairs and high efficiency)

* What is the average income (net) we can gain per month after paying the cab service fee, driver's fee, monthly service fee?

* I have never used an Alto before, please help me to understand the maintenance cost (common repairs, part replacements)?

* At what time they normally need the car? Is it possible for me to get the car back after 7pm?

Guys, I need your advice on this decision. I simply need to pay the lease (nearly 23000 per month) from the income and save some money.

Please let me know the whole process if possible.

Regards,

Irosh

3

[The Don]

Irosh, I can only answer one of your questions.

The best version of the Alto to buy for this purpose is the Indian Alto. This is because the parts are cheap, and running costs reasonable, and you don't have to worry about things like comfort because its being rented off as a taxi. The most common repairs are clutch, brakes, suspension and steering repairs. The car is fairly hardy and can't really be considered unreliable.

[Iroshw]

Irosh, I can only answer one of your questions.

The best version of the Alto to buy for this purpose is the Indian Alto. This is because the parts are cheap, and running costs reasonable, and you don't have to worry about things like comfort because its being rented off as a taxi. The most common repairs are clutch, brakes, suspension and steering repairs. The car is fairly hardy and can't really be considered unreliable.

Thanks for the comment Don. Which year?

This is what I can do at this moment. I can make 200,000 as the down payment and can go maximum for 23,000 monthly lease installment. Hope I can get a good Alto for 12 laks (down payment 2 laks and the rest to lease, at LB Rs. 23000 per month for 10 laks for 5 years).

[The Don]

Thanks for the comment Don. Which year?

This is what I can do at this moment. I can make 200,000 as the down payment and can go maximum for 23,000 monthly lease installment. Hope I can get a good Alto for 12 laks (down payment 2 laks and the rest to lease, at LB Rs. 23000 per month for 10 laks for 5 years).

I don't know, and to be honest prices should have come down due to the recent tax break. The brand new goes for around 1.5 so 1.2 should buy you a fairly new one.

but what do you plan to do with this car afterwards? The maths your present is very cheallenging, because unless you are going to drive the car, you have to factor in maintenance, fuel, driver salary, return costs etc into that Rs 45 per km.

[Iroshw]

I don't know, and to be honest prices should have come down due to the recent tax break. The brand new goes for around 1.5 so 1.2 should buy you a fairly new one.

but what do you plan to do with this car afterwards? The maths your present is very cheallenging, because unless you are going to drive the car, you have to factor in maintenance, fuel, driver salary, return costs etc into that Rs 45 per km.

Exactly. That is why I have posted this here to get an advise from an experienced person.

I'm planning to rent this car for at least 2-3 years. I know Alto cars are very hardy and easy to maintain as the vehicle is designed for middle level people for daily use.

[Crosswind]

Hi guys,

I'm planning to buy a Suzuki Alto (with a lease) and rent it to a taxi/cab service (Kangaroo or any). I spoke to a few cab services and they all have the same story.

* They need a driver

* No minimum/maximum income guarantee

* Deposit needed (like Rs. 10000)

* Pay is Rs. 45 per KM. So we need to make a note on the lost KMs after dropping a person to a place and need to come back. So there is a lost.

* We will have to do the service/ repairs

* Minimum 12hrs needed to run the car

If anyone in this forum has given their Alto to a cab/taxi service, please help me to figure this out.

* What is the best model of Alto to rent? (Means less repairs and high efficiency)

* What is the average income (net) we can gain per month after paying the cab service fee, driver's fee, monthly service fee?

* I have never used an Alto before, please help me to understand the maintenance cost (common repairs, part replacements)?

* At what time they normally need the car? Is it possible for me to get the car back after 7pm?

Guys, I need your advice on this decision. I simply need to pay the lease (nearly 23000 per month) from the income and save some money.

Please let me know the whole process if possible.

Regards,

Irosh

3

Talk to rent-a-car companies not taxi companies. If you want a few names, PM me. They will take your car without a driver but will pay about 30,000 - 35,000 a month for an Alto. You still have to do the services/maintenance and replace tyres when needed. You also need to buy rent-a-car insurance, which will be double of the usual full insurance premium.

For your budget, you should be able to get a 2011/2012 Indian Alto.

Your opinion about Altos being hardy is not true but spares are cheap.

[The Don]

Exactly. That is why I have posted this here to get an advise from an experienced person.

I'm planning to rent this car for at least 2-3 years. I know Alto cars are very hardy and easy to maintain as the vehicle is designed for middle level people for daily use.

Crosswind has provided a good answer above. In an SL context I don't think an Alto can be considered a middle class vehicle. At best its a starter car, and while its easy to maintain and parts are plenty, it has the durability of a tin can. The only thing is parts are cheap, so the cost of ownership is low. I've not heard of much engine issues though.

[amilawuk]

I think crosswind's suggestion is better than your idea of renting it to a taxi. I use an Indian alto built in 2004 and it does 13 km/l. So one way it'll cost you around 11 ruppees only for fuel . So if you consider the return without a passenger cost will be 22 ruppees. On top of that you have to do the service and maintenance plus replace the worn out parts. (Tyres/breaks etc). Then you have to pay drivers salary before taking out the lease payment. So the math is tricky. Furtehr I have been going here and there from the taxi services like budget taxi/ nano taxi etc for my office work. Almost all the drivers own the car (but mostly they are Tata nanos). According to them its not worth to give the car to a driver.

[invisibleuser]

Me also looking for a good company to give my alto k10. In my case I'm searching for medical reps.

[Iroshw]

I think crosswind's suggestion is better than your idea of renting it to a taxi. I use an Indian alto built in 2004 and it does 13 km/l. So one way it'll cost you around 11 ruppees only for fuel . So if you consider the return without a passenger cost will be 22 ruppees. On top of that you have to do the service and maintenance plus replace the worn out parts. (Tyres/breaksetc). Then you have to pay drivers salary before taking out the lease payment. So the math is tricky. Furtehr I have been going here and there from the taxi services like budget taxi/ nano taxi etc for my office work. Almost all the drivers own the car (but mostly they are Tata nanos). According to them its not worth to give the car to a driver.

Ok, what about rent a car service? They pay a fixed amount monthly or vary? Are there places paying a fixed rate per month for a fixed number of Kms? And paying extra for additional KMs?

12

[Iroshw]

Me also looking for a good company to give my alto k10. In my case I'm searching for medical reps.

Bro, you can't expect a good income from Medical reps. I know a few working at Swiss Biogenics and they are looking for vehicles for about 25-30k per month. And they run around the country without a limit.

[amilawuk]

Ok, what about rent a car service? They pay a fixed amount monthly or vary? Are there places paying a fixed rate per month for a fixed number of Kms? And paying extra for additional KMs?

12

As far as I know they pay you a fixed amount per month. I don't think they fix the milage for you though they charge a premium from the customers. Bottom line is they do a business and they want to maximise their share of profits. Anyway if you want more than 30k per month rent a car won't be an option for you 'coz most of the places rent out altos for 1500/= per day. So the chances of they paying you more than 30k is bit remote. Anyway check with crosswinds contacts you might be lucky.

If you have a reliable driver do the math again and take a calculated risk by putting it to a taxi. Consider Tata Nano in that scenario since fuel efficiency is good but not sure about the other costs.

If you don't have a reliable driver don't even think about taxi option.

[Iroshw]

Thanks guys.

Any place where I can put my Alto and get 35-40k per month?