Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

longtomsilver

Is It Worth Buying A Wv California For Personal And Weekly Rental.

Recommended Posts

I'm a bored housewifehusband my daughter started school in September I'm down to one child under 4 in the day times.

Soon to VT my Renault Clio and need a second vehicle.

Numbers ~

£15, 000 cash in bank, pcp on a new £40k 7 seater WV california putting down £12k is £400 a month inclusive of VAT over 36month with a final payment of £20k

Looks like they rent for between £450-825 a week depending on season.

I would only be looking to rent it for say 13weeks of the year with a few weeks in the summer for myself.

Is this a viable cottage industry (other mums in my village do sewing, cakes etc etc) and what would the advantages be (if any) of setting up a ltd company and doing it through that.

Housekeeping more than covers my initial outlay and on-going burn rate upto ~£400 a month aka the pcp rental payment.

What are my costs likely to be. I really don't care if all I do is reduced the net cost of running the vehicle for myself this way and getting a job to make use of my unused annual allowance.

Thanks guys and girls.

Share this post


Link to post
Share on other sites

That settles that then :D

You should buy something large, stupid and cheap, like me! :blink:

Share this post


Link to post
Share on other sites

what's the depreciation like after say 3-5 years?

how about buying a decent old VW camper for 5grand or so and renting that out? said decent old VW camper will always be worth said 5grand or so.

Share this post


Link to post
Share on other sites

what's the depreciation like after say 3-5 years?

how about buying a decent old VW camper for 5grand or so and renting that out? said decent old VW camper will always be worth said 5grand or so.

That's the problem... said old campervans don't depreciate/exist, more like £12-15k for an old rust bucket. Depreciation is rock solid, maybe worth £27k year 3 down to £22k year 5 where it will remain.

Share this post


Link to post
Share on other sites

I don't see how this PCP type deal makes any sense. You commit a loas of money, barely make enough to cover your payments and at the end you have some 'equity' in something you need to sell and pay off the finance. Sound familiar?

Only if you were going to buy one anyway.

Share this post


Link to post
Share on other sites

I would only be looking to rent it for say 13weeks of the year with a few weeks in the summer for myself.

Is this a viable cottage industry

Not if you want to use it during any of the peak booking weeks.

Share this post


Link to post
Share on other sites

That's the problem... said old campervans don't depreciate/exist, more like £12-15k for an old rust bucket. Depreciation is rock solid, maybe worth £27k year 3 down to £22k year 5 where it will remain.

fair enough, didn't realise they were getting so expensive (the old campers).

it sort of sounds to me you might just break-even with the 40k venture with a couple of holidays or so thrown in.... why not just rent one for two or three weeks during the summer for a couple of grand a year, without the hassles of running it as a business? perhaps trying another business to supplement the driving holidays instead.

Share this post


Link to post
Share on other sites

You can get a basic California Beach for £500 a month through Lings Cars (other mad as a box of frogs car leasing firms available) on 3/36 but of course you will never own it.

I think you are thinking about renting the vehicle out yourself. This is likely to be a world of pain, legislation to learn, business insurance, advertising, down time, the hirers will be numpties and you need to collect and return deposit monies, check the vehicle over each time it is hired, etc. There are companies doing it so must be the business there but not a part time hobby http://www.vancations.com/ maybe you could find a broker who would let out the vehicle for you?

Did you know you can still buy a new Type 2

Share this post


Link to post
Share on other sites

I've had a go with a Danbury one about 5 years ago. It won't matter how strong the residuals are they're essentially a crap old van and feel like it every time you get behind the wheel.

Know of several people who've tried the motorhome rental business and they never fly. Firstly, the standard interiors are nowhere near robust enough. Other problems were from breakdowns, where generally it's expected they're provided with a replacement vehicle, which will wipe out entire profit and some, to just moronic things you could never anticipate like filling the fresh water tank with fuel accidentally - seem to recall the entire interior had to be ripped out to get rid of the smell.

Share this post


Link to post
Share on other sites

The fact that the OP does not even mention insurance (business, vehicle, third party) suggests to me that this sketchy business plan is doomed from the start.

I didn't feel it necessary to talk about insurances as it is a legal requirement would rather get a feel about the uncertainties.

Share this post


Link to post
Share on other sites

I've had a go with a Danbury one about 5 years ago. It won't matter how strong the residuals are they're essentially a crap old van and feel like it every time you get behind the wheel.

Know of several people who've tried the motorhome rental business and they never fly. Firstly, the standard interiors are nowhere near robust enough. Other problems were from breakdowns, where generally it's expected they're provided with a replacement vehicle, which will wipe out entire profit and some, to just moronic things you could never anticipate like filling the fresh water tank with fuel accidentally - seem to recall the entire interior had to be ripped out to get rid of the smell.

Thank you. Most constructive comment so far with a mention to things that I hadn't previously considered ie break downs and misfuelings.

I will stay on the otherside of the fence and look to renting (not buying/pcp) myself. I'll try one out next year.

Share this post


Link to post
Share on other sites

fair enough, didn't realise they were getting so expensive (the old campers).

it sort of sounds to me you might just break-even with the 40k venture with a couple of holidays or so thrown in.... why not just rent one for two or three weeks during the summer for a couple of grand a year, without the hassles of running it as a business? perhaps trying another business to supplement the driving holidays instead.

+1

Plan B was always to register as a licenced taxi and get a minibus but knowing you lot this will be blown out the water too :D

I need to do something and it has to be flexible for school drop offs.

Share this post


Link to post
Share on other sites

To add to the questions on this thread - I'm thinking of taking two months in 2015 or 2016 to potter round UK and Europe in a campervan with the better half and nippers. Will a VW campervan really be good for that? Or is it the apple of campervans where the cool look covers many sins?

ages of kids will be between 2-10.

Share this post


Link to post
Share on other sites

Thank you. Most constructive comment so far with a mention to things that I hadn't previously considered ie break downs and misfuelings.

I will stay on the otherside of the fence and look to renting (not buying/pcp) myself. I'll try one out next year.

how about a couple of narrowboats? maybe team up with Harry on here.

Share this post


Link to post
Share on other sites

Thank you. Most constructive comment so far with a mention to things that I hadn't previously considered ie break downs and misfuelings.

I will stay on the otherside of the fence and look to renting (not buying/pcp) myself. I'll try one out next year.

Can't you just open a B&B like everyone else?

Share this post


Link to post
Share on other sites

I've had a go with a Danbury one about 5 years ago. It won't matter how strong the residuals are they're essentially a crap old van and feel like it every time you get behind the wheel.

Know of several people who've tried the motorhome rental business and they never fly. Firstly, the standard interiors are nowhere near robust enough. Other problems were from breakdowns, where generally it's expected they're provided with a replacement vehicle, which will wipe out entire profit and some, to just moronic things you could never anticipate like filling the fresh water tank with fuel accidentally - seem to recall the entire interior had to be ripped out to get rid of the smell.

would that be the T2 or something a bit more modern?

this damn thread got me looking again...campervan dreams of satisfying the wanderlust.

Share this post


Link to post
Share on other sites

would that be the T2 or something a bit more modern?

this damn thread got me looking again...campervan dreams of satisfying the wanderlust.

Yep, the new old one they import the van version from South America and convert.

Share this post


Link to post
Share on other sites

The T2 is being discontinued in the near future. The factory is in Brazil, and the modifications required to nudge it to the postdiluvial age are apparently not worth the effort. That's airbags and ABS btw, not exactly cutting edge tech.

http://www.telegraph.co.uk/motoring/car-manufacturers/volkswagen/10252309/Volkswagen-Kombi-camper-van-bows-out.html

I've been on a motorway in an air cooled T2 (current ones have a more modern water cooled engine hence the crap looking radiator grille on the front) which was pretty scary tbh. The only thing between your knees and the end of the shipping container on the truck in front is a thin sheet of steel, and maybe a metal ashtray. Carnage in the making.

wherebee- a factor might be whether you want to have a toilet onboard, and whether you are going to be going to places that have the height restrictions in car parks. You might have to compromise one or the other.

OP, sounds like a risky venture. Would the terms of the lease prohibit commercial use? You're probably better doing as others have said and just hiring one when you like.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   224 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.