Motorbike and Scooter Investor's Info Page

Proposal for Motorcycle Investors

Philosophy:

Wild Freedom Motorcycle Rentals Ltd will contract to receive motorcycles and scooters from their owners to rent out to Riders, commuters and Tourists. The Owners get a large proportion of the net rental sales collected, currently set at 50%. The Riders pay a rental price per day, or per period, including all costs. The Company gets a margin of the rental sales to operate the business.

 

Example.

A Suzuki AN125 scooter has been hire out for 8 months virtually continuously since Sept 2013 (sales and pre-bookings) grossing sales to the owner of $1152 already. The purchase cost of the scooter is $2200. This is 52% gross sales in the first 9 months. 

The Suzuki Intruder 1400 on the other hand had only two rentals, one for 6 weeks grossing $3000, and another where the bike crashed in the first hour. That bike was then pulled from service, repaired and sold for an amount close to its purchase price. The insurance and excess covered the cost of repairs.

 

Benefits.

Large return for the investment of your motorcycle- this will vary from investor to investor, and rates of return will be uncertain until trading has occurred for some months but we anticipate returns from 20% to 100% per annum on the value of your bike or scooter.

The costs for maintenance, tyres, licensing will be paid by the owner, either through Wild Freedom Motorcycle Rentals service processes or by your own maintenance process. 

You always continue to own the motorcycle or scooter. It’s yours. At any stage you wish to recover your motorcycle, it will be available to you, apart from pre-booked rentals.

You can have access to your own motorcycle for personal use whenever it is not already pre-booked to a rider.

 

Liabilities and Risks

Your motorcycle will need to be brought up to a condition suitable for public rentals, including tyres, registration, servicing, WOF or COF (Certificate of Fitness), all switches functioning. This cost belongs with the owner. An additional cost the owner needs to bear is the insurance endorsement cost. This is an annual insurance premium of about 9% the value of the insured bike amount. This premium is over and above what rental riders pay for their hire insurance.

Some other costs that will need to be covered by the owner include installing accessories power source for GPS unit and/or i-pod or cellphone power, panniers and/or top box. These then belong to the motorcycle or scooter and will be returned with the motorcycle or scooter.

Your motorcycle will need to be maintained to that same condition, including tyres, COF,licencing, and regular servicing. This ongoing cost will be covered by the owner’s portion of the rental sales.

Your risk is limited to little or no rental sales received. Conversely, if your machine is hired out continuously, you stand to earn as much as 100% return in a year.

In the case of rider damage during a rental period, insurance paid for by the rider as a compulsory component of the rental will cover the repairs or replacement or cash value of your motorcycle refunded to you in full, as assessed by the insurance assessor.

 

What Next?

Have you a motorbike suitable for rental? or a scooter?

Fill out the submit form below and lets get you wealthy!


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Frequently Asked Questions.

What annual revenue and kilometres would you expect?

 

Predicting revenue is fraught with difficulty.
If your motorbike rents out for 10 days, you will receive enough to pay for the insurance and a little cash, but if it rents out for 80 days, you will get enough to buy an extra motorbike.
The rental price includes several components:-
Rental price
-less GST 15%
-less Insurance $45/day
= Net rental - this is then proportioned 60% to you, 40% to Wild Freedom.
  
If we rent your motorbike out for $145/day, less $45 insurance, less 15%GST =$87/day, =$52 to you each day.
The greater the rent the better.
The longer the rental the better.

 

What annual kilometres would you expect?

The kilometers ridden in a season depends on the popularity of the bike - A very popular bike may do 30,000km, and a little scooter may do 3000km. Servicing for bigger bikes happens each 5000km and more frequently for smaller bikes/scooters.


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