Tips For Starting A Motor Vehicle Rental Business

Motor became one of the most widely used transportation capital by the people in Indonesia. Moreover, coupled with the often jammed road conditions make the motorcycle the most effective means of Transportation.

However, if you are traveling away from home and do not happen to use a motor vehicle, then a motor vehicle rental is one of the best choices.

Motor vehicle rental businesses are often found in big cities, tourist areas, areas near campuses and areas adjacent to other public facilities.

Especially during the long weekend or new school year, usually full boked motorcycle rental everything.

For capital to open a motorcycle rental business does not require large capital, you can use the motor you have to start this business, then the income from the rented motor can be collected to increase the fleet of motor vehicles.

To be successful in the motor vehicle rental business, you must prepare carefully.

Preparation Of Motorcycle Rental Business
Some preparations you must do so that your motor vehicle rental business is successful:

Find a place that is strategic and close to your customers.
Choose a motorcycle brand that has low maintenance costs and spare parts are easy to get.
Choose a vehicle that suits the consumer.
Establish a good relationship with the workshop around, so that if there is a problem on the road you just need to call the mechanic workshop around.
Insure all motor vehicles that you rent, so that in case of unwanted things can be covered through insurance services.
Install each motor vehicle with GPS, so that in case of theft you can track it easily.
Do a good and complete administration to every tenant of your motorbike rental, so that if a problem occurs you don’t bother looking for information.
Implement a good security system. Such as making a letter of agreement, confiscation of identity cards.
Join the Association of car renters, to get a wider market.
Working with taxi or ojek online partners
Also read: How to read and understand used car Showroom Financial Statements

Determine The Target Market
To determine this target market depends on where you open your rental business. When you’ve got a location to open the right rental, you can provide a motorcycle in accordance with the characteristics of its target market, such as:

If the location is in the middle of the city such as campus, city tour, then the motorcycle that is much sought after is the matic motorcycle.
If the location is close to natural attractions and mountains, then a suitable motorcycle can be a motorcycle with a manual transmission or a trail bike.
Also read: Tips to implement business management for Small Business

Calculation Of Motor Vehicle Tax
Any motor vehicle you own will be taxed annually. And those who are late in paying taxes will be fined according to their delay.

In addition, if there is a police raid, you will get a ticket because you have not paid the annual tax.

Vehicle registration is a letter whose function is to identify motor vehicles ranging from motor brands, types, engine numbers, frame numbers, colors, and so on.

Please also note that for those of you who have a motor vehicle rental business, if you have more than one motor with the same name and address, you will be subject to progressive motor vehicle tax. Here’s the progressive motor tax count :

No. Ownership Amount Of Tax
1 First Motor 1.5%
2 Second Motor 2%
3 Third Motor 2.5%
4 Fourth Motor 3%
5 Fifth Motor 3.5%
For each motorcycle added, the progressive tax will increase by 0.5 percent. Here’s an example of calculating motor vehicle tax:
Mr. Adi has a motorcycle rental business with a total of 5 Honda Beat 110cc motorcycles, so Mr. Adi is exposed to a progressive motor vehicle tax count.
How to calculate Motor Vehicle Tax (CLA):

The selling value of the Honda Beat 110cc motorized vehicle (NJK) consider it Rp10, 000, 000, so the tax calculation is :

PKB first motor = Rp10, 000, 000 x 1.5% = Rp150, 000

PKB second motor = Rp10, 000, 000 x 2% = Rp200, 000

Third motor CLA = Rp10, 000, 000 x 2.5% = Rp250, 000

PKB fourth motor = Rp10, 000, 000 x 3% = Rp300, 000

Fifth motor CLA = Rp10, 000, 000 x 3.5% = Rp350, 000

So, the solution so that you are not subject to progressive tax is to buy a second motorcycle, so that the tax is on behalf of the first buyer.

Thus the discussion about how to start a motor vehicle rental business and how to calculate taxes.

Don’t forget if your business is getting bigger, start doing financial administration properly and don’t mix personal property finances with business.

Read: More