Starting a car and motorbike rental business in the Philippines can be a lucrative venture, especially with the growing demand for affordable and convenient transportation. With over 10 years of market experience, Book2Wheel has gathered valuable insights to help you succeed in this business. In this guide, we will discuss the necessary permits, most rented vehicles, ideal locations, rental requirements, and practical tips to maximize your success.
Step 1: Getting the Right Business Permit
Before starting your rental business, you must secure the appropriate permits. The type of permit needed will vary based on the size and structure of your business.
- Small Single-Person Business: You can start by registering your business with your local Barangay. There are income limits per year that you must consider, so consult a local bookkeeper for accurate advice.
- Larger Rental Business: If you plan to operate on a larger scale, register your business with either the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC), depending on your company structure. Again, hiring a local accountant or bookkeeper is highly recommended to ensure compliance with regulations.
Additionally, you must register with the Bureau of Internal Revenue (BIR) to issue official receipts. Book2Wheel’s platform automatically generates electronic receipts for online payments, making it easier to stay compliant.
Step 2: Choosing the Right Vehicles
Choosing the right vehicles is essential to maximize bookings and profits. Here’s what Book2Wheel’s data shows about the most popular rentals:
Most Rented Motorbike: Honda Click 125cc
The Honda Click 125cc is the most rented motorbike on the Book2Wheel platform. It is highly preferred across cities and islands for its reliability and affordability. Typically rented at 500 pesos per day, it generates an average monthly income of 8,000 to 9,000 pesos depending on the number of rental days.
Most Rented Car: Sedan (Toyota Vios or Toyota Wigo)
Sedans are the most rented cars, especially Toyota Vios and Toyota Wigo. These 5-seater vehicles are popular due to their comfort and fuel efficiency. Rental prices vary by region:
- Cebu, Bohol, Palawan: 1,500 to 1,800 pesos per day
- Luzon area: 1,600 to 1,800 pesos per day (setting rates around 1,600 pesos increases bookings)
- Visayas regions: 1,300 to 1,600 pesos per day
To boost long-term rentals, consider offering discounts, such as 10% for weekly rentals and 20% for monthly rentals.
Step 3: Choosing Your Location
The location of your rental business greatly influences demand. Here are some of the top-performing cities for rentals:
- Quezon City
- Makati
- Cebu City
- Lapu-Lapu City
- Taguig
- Puerto Princesa
- Mandaue City
- Las Piñas
- Manila
- Pasig
Regardless of your chosen city, setting the right rental rates is crucial. Many businesses set rates too high and receive few or no bookings. Analyze local competition and adjust prices to remain competitive.
Step 4: Setting Standard Rental Requirements
To ensure smooth and secure rentals, establish clear requirements:
- Valid Driving License
- Government ID
- 5,000 pesos cash refundable deposit
- Verification Process: Check the renter’s phone number, social media presence (e.g., Facebook), and call family or friends for verification.
- GPS Tracker and Comprehensive Insurance: Ensure that each vehicle has a GPS tracker and proper insurance coverage.
Step 5: Payment and Verification
When renting through Book2Wheel, verify the payment method used (e.g., GCash, debit card, or Visa). Ensure that the name on the payment matches the name on the driving license.
Final Thoughts
By following these steps and leveraging the data from Book2Wheel’s years of experience, you can build a successful and profitable car and motorbike rental business in the Philippines. The key is to choose the right vehicles, set competitive rates, and ensure customer verification to minimize risks. Stay updated with local regulations and make use of Book2Wheel’s automated systems to simplify management.
Start your rental business with Book2Wheel today and take advantage of a thriving market!