Thinking of hiring out my cali ?

[Calihire]

We're doing this, appreciate all the comments so far, especially from a company like BMVS who have knowledge about what it takes.

Looks like you are close to us? We are just outside Worthing and we are launching our Cali Hire business in May with just one to start with, however the way bookings have been coming in we are looking at purchasing another Ex Demo. I will keep a look out for you

 

[andyinluton]

If you are correct and all the £9,355.00 costs above can be set against the income of £7k you have made a loss of £2,355.00 - more if you don't get £7k of bookings, you would also need to balance the books with you either "paying" for the weeks you use it or reducing your £9,355.00 pro rata.

Have you set up a limited Company to do this through? is it the ltd company that owns the van? if not how are you going to offset the depreciation? I would suggest you need to speak to an accountant.

There is an easy way to save money, don't hire it out! you will be left with costs of say £500 insurance, £200 maintenance, £255 tax. depreciation will be just about zero as you bought at hopefully a good price & its taken the initial hit already & if you only use it for a few weeks a year it should hold the value extremely well even if you put in £1k a year for that you have only lost £1955.00

What is your back up plan when a hirer damages the van so its not available for the next person on time? or something else goes wrong. Who is going to be cleaning the van inside & out every weekend through the summer?

Sorry to sound so negative but I previously looked into hiring out our coach built motorhome that spent 48 weeks a year blocking our lounge window & decided that it just wasn't worth the hassle & risk.

All the same good luck with your new venture.

 

[Splitrich]

The website is up though we have lots to add, I'll be blogging about the whole experience too [/QUOTE]

Like the website, just a thought be careful with the VW pictures and videos unless you have permission from Volkswagen to use them

Good luck, I think it's a great idea, although I am not convinced of the returns others have quoted. We have a holiday home we let out and we make a nice return and have great holidays as well

Rich

Sent from my iPad using Tapatalk

 

[Martin]

You might all want to look at our sister forum over here, loads more information:

Camper Hire Business Owners Forum • View forum - Campervan and Motorhome Members List

 

[GrannyJen]

Looks like you are close to us? We are just outside Worthing

East or West?

 

[Calihire]

Hi, just outside East Preston

 

[reserves]

Looks like you are close to us? We are just outside Worthing and we are launching our Cali Hire business in May with just one to start with, however the way bookings have been coming in we are looking at purchasing another Ex Demo. I will keep a look out for you

We're in Brighton, lots of companies around these parts doing the same, which I see as healthy

We are over the on http://www.camperhireforum.co.uk too

 

[GrannyJen]

Hi, just outside East Preston

Hello Neighbour

If you ever toodle down to the beach where the Bella Vista car park is then you will probably see my van in the drive.

 

[Calihire]

Yes loads plus there is Mark over at Kamperhire with 15 Cali's now?

 

[Calihire]

Hello Neighbour

If you ever toodle down to the beach where the Bella Vista car park is then you will probably see my van in the drive.

I will keep a look out ours is Dark Wood, we are just having some graphics put on it

 

[GrannyJen]

I will keep a look out ours is Dark Wood, we are just having some graphics put on it

looking out of the window mine could be about to become as white as snow It's off to the very far North on Satiurday, as far north as it gets in Mainland UK., so might as well acclimatise now

 

[reserves]

If you are correct and all the £9,355.00 costs above can be set against the income of £7k you have made a loss of £2,355.00 - more if you don't get £7k of bookings, you would also need to balance the books with you either "paying" for the weeks you use it or reducing your £9,355.00 pro rata.

For me it depends on how you look at it.

From the list of expenses the ones that we're spending because of renting it totals £1900 (Insurance), £200 (Liability), £1000 Misc, lets say £500 extra accessories (bike rack, awning, roof rack etc. crockery I need anyway), so that's £3600, less the £600 we would be paying for insurance = £3,000.

Depreciation will happen regardless, though the extra miles will increase this. I have to have a garage as parking here is terrible!

The £7,000 rental figures are conservative, this takes into account July & August being busy (yes, hard work!) and a few weekends.

Have you set up a limited Company to do this through? is it the ltd company that owns the van? if not how are you going to offset the depreciation? I would suggest you need to speak to an accountant.

Yes, LTD Company

There is an easy way to save money, don't hire it out! you will be left with costs of say £500 insurance, £200 maintenance, £255 tax. depreciation will be just about zero as you bought at hopefully a good price & its taken the initial hit already & if you only use it for a few weeks a year it should hold the value extremely well even if you put in £1k a year for that you have only lost £1955.00

Again, food for thought, depreciation may hit more when the T6 arrives, I think £1,000 sounds fairly conservative, but no-one can knows for sure.

Sorry to sound so negative but I previously looked into hiring out our coach built motorhome that spent 48 weeks a year blocking our lounge window & decided that it just wasn't worth the hassle & risk.

All the same good luck with your new venture.

Thank you, appreciate your comments

 

[Maud]

Sorry for the irrelevant post from me earlier - the 'new posts' sent me to the thread and I didn't scroll through properly, hence missing the latest updates.

 

[reserves]

Like the website, just a thought be careful with the VW pictures and videos unless you have permission from Volkswagen to use them

Good luck, I think it's a great idea, although I am not convinced of the returns others have quoted. We have a holiday home we let out and we make a nice return and have great holidays as well

Rich

Sent from my iPad using Tapatalk

Thank you

We'll be replacing the stock VW pics as soon as there's a nice day to get some proper photos of the Cali done, just needed to get the site live

 

[Maud]

Good luck with your new venture, reserves. I hope it is a success for you; keep us posted!

Maud

 

[reserves]

Good luck with your new venture, reserves. I hope it is a success for you; keep us posted!

Maud

Thank you

 

[calikev]

Yes good luck worth a go

 

[reserves]

We're doing this, appreciate all the comments so far, especially from a company like BMVS who have knowledge about what it takes.

We thought long and hard before we went ahead, we're only at the start of the journey.

For us it came down to the fact that we couldn't justify or afford having such a luxury, we are very envious of those that can afford this and understanding that renting our pride and joy out will have its downsides.

We also like the idea of enabling others to have a great experience too, as well as lending to friends & family.

Our calculations are quite conservative and are based on us covering the cost of the Cali, not making a profit.

Our costs are:

Insurance: £1900
Liability insurance: £200
Garage: £1000
Misc: £1000
Depreciation: £3000
Accessories: £2000 (£1000 resale value)
Tax: £255

We brought an ex-demo outright so hopefully saved on depreciation but who knows how the future this will go.

We don't have kids so our idea is to rent out during peak periods and use the Cali for the rest of the time, we're keen surfers and I'm used to doing this out of season.

We're hoping for around £7,000 pa in rentals which should roughly cover us and take into account that we would have to pay Tax & Insurance anyway.

We're going in eyes open, albeit you never know until it all starts.

The website is up at www.vwcalifornia4hire.co.uk though we have lots to add, I'll be blogging about the whole experience too

Love that someone has marked this post 'Optimistic' Nice feature of the forum!

 

[Adderley13]

Hi, we have just bought a VW Cali which we will be hiring out - we collect at end of Aug.

Looking at getting a card machine in order to pre-auth security deposits as people not keen on handing over cash - how much would people advise to take as a security deposit?

Any other tips also much appreciated

 

[Annik]

Hi, we are also hiring ours out from next May as it really does not get the use it deserves, we have worked out that we can block out the weekends we want to use it and hire it for the rest. This will more than cover our insurance, servicing, depreciation and leave us some pocket money.

 

[Rippin]

Re: thinking of hiring out my cali

Hi Malcolm, we have been hiring out Cali out for the best part of a year now as we only really using it for around 5 weeks of the year, the rest of the time we advertise it on Ebay and Gum Tree to hire out. So far we have rented it out for for about 19 weeks since we started in March last year and in the summer hols we achieve around £750 per week. The first time we hired it out we were dreading what it would come back like but everyone takes so much care of it ( probably more than us ) we also charge a deposit just incase something does go wrong ! Insurance was also easy as many companies now offer ‘pay as you go’ policies for self drive hire. In the past 12 month we have made around £12,000 after cots plus we have had our holidays on top of this.

If anyone has any questions please pm me

Rgs

V

Hi Malcolm, we are thinking of getting another califonia t6 and renting the other one, can you give me some idea of the cost of the payg insurance.
Regards George.

 

[steve and lisa]

We hired out our Cali this year and it has by far exceeded our expectations, the insurance was paid for in just one hire that we had in July! We have met some wondeful people and the Cali has always been treated with care.

We are now looking at adding another one for next year and I understand the club has something in the pipeline for people hiring their Cali's out which we are hoping to be involved in.

 

[Rippin]

We hired out our Cali this year and it has by far exceeded our expectations, the insurance was paid for in just one hire that we had in July! We have met some wondeful people and the Cali has always been treated with care.

We are now looking at adding another one for next year and I understand the club has something in the pipeline for people hiring their Cali's out.

 

[Rippin]

Thanks for for your reply Steve and Lisa, can I ask you what sort of cost was the insurance ? And who did you go with, what about advertising, sorry to be blunt.

Regards George.

 

[larrylamb]

We hired out our Cali this year and it has by far exceeded our expectations, the insurance was paid for in just one hire that we had in July! We have met some wondeful people and the Cali has always been treated with care.

We are now looking at adding another one for next year and I understand the club has something in the pipeline for people hiring their Cali's out which we are hoping to be involved in.

Isn't the insurance about £2k for hiring out the Cali??