Changing car/7 seater for school runs, etc

Lex Luthor

I was considering changing the car end of summer time for something with a liitle more boot space and convenience. Something along the lines of a Honda HR-V/CR-V type car.

However, the wife has just given up work and will be doing school runs in September for the 2 kids and was trying to rack her brains on how she could bring in a bit of extra cash. So she suggested the possibility of getting a 7-seater and using the 4 extra seats for taking 4 other kids to/from school to/from their homes or creche in the morning & afternoon for a fee. She can easily get 4 kids from other parents she knows that have kids in the same school as ours.

She'd obviously run it as a legit business, so she would end up leasing the car, getting tax & insurance on the company and declaring any income.

Looking at provisional figures and its only at an early stage, she would probably break even or cost her just under the €100/month, but that would mean that the car/fuel/tax&insurance would be paid for. Also, if I was not out of pocket by about €28-30k for the replacement car, it would mean less outgoings.

Any ideas how much a lease on a typical 7 seater car (circa €40k) would cost a month? Top of the list would probably be a Toyota for the simple fact you get a 3yr breakdown plan with every new car and that's essential when looking at the type of service she would be providing. Anyone know when the new larger Toyota 7 seater is being released?

Also, would the insurance be any more expensive than a personal policy for the same car? I'd imagine it would be.

Any advice/suggestions appreciated.

Anan1

Lex Luthor wrote:

I was considering changing the car end of summer time for something with a liitle more boot space and convenience. Something along the lines of a Honda HR-V/CR-V type car.

However, the wife has just given up work and will be doing school runs in September for the 2 kids and was trying to rack her brains on how she could bring in a bit of extra cash. So she suggested the possibility of getting a 7-seater and using the 4 extra seats for taking 4 other kids to/from school to/from their homes or creche in the morning & afternoon for a fee. She can easily get 4 kids from other parents she knows that have kids in the same school as ours.

She'd obviously run it as a legit business, so she would end up leasing the car, getting tax & insurance on the company and declaring any income.

Looking at provisional figures and its only at an early stage, she would probably break even or cost her just under the €100/month, but that would mean that the car/fuel/tax&insurance would be paid for. Also, if I was not out of pocket by about €28-30k for the replacement car, it would mean less outgoings.

Any ideas how much a lease on a typical 7 seater car (circa €40k) would cost a month? Top of the list would probably be a Toyota for the simple fact you get a 3yr breakdown plan with every new car and that's essential when looking at the type of service she would be providing. Anyone know when the new larger Toyota 7 seater is being released?

Also, would the insurance be any more expensive than a personal policy for the same car? I'd imagine it would be.

Any advice/suggestions appreciated.

You'd really need to call car dealers for lease costs and insurance companies for insurance details. Your wife needs actual figures, not guesstimates dreamed up by people on forums.;)

Good idea, by the way. She'll be making money, reducing congestion and helping the environment all at the same time.:)

andrew_ireland

Sorry, can't help at all but just want to wish the best of luck!

Lex Luthor

Anan1 wrote:

You'd really need to call car dealers for lease costs and insurance companies for insurance details. Your wife needs actual figures, not guesstimates dreamed up by people on forums.;)

Good idea, by the way. She'll be making money, reducing congestion and helping the environment all at the same time.:)

Thanks for the replies....guesstimates are a good place to start. We have some of the donkey work already.

Suggestions for car would be an idea but I think with the Toyota if its available would be the ideal choice. Another option she was looking at is the Ford S-Max 1.8TDCi Zetec with cruise control added.

Only costs for insurance & lease are needed.

colm_mcm

A contract hire is unlikely to be a good option, what happens there is the finance company or the garage will estimate the value of the car at the end of the finance agreement, and will guaruntee to buy the car back at the end of the agreement. The problem is, they will pick a very safe (=low) figure for the buyback. The disadvantages to this are high monthly payments and the fact that you won't own the car at the end of the agreement.

The other option is to Hire purchase the car. Your monthly payments should work out at about € 800, about €400 a month more than a family car costing €20,000.

When you factor in running costs, insurance, etc. you will be seriously out of pocket, not to mention tied to doing the school run every morning.

Rovi

Look into any licencing issues that may arise too; driving for hire or reward and all that.

Also, look into whatever child protection legislation/regulations may apply to getting paid for taking on responsibility for other people's children.
As a male, I'd strongly suggest that you personally never do this school run, unless accompanied at all times by another adult. And never, ever, put yourself in a position where you're alone with someone else's child. You could be leaving yourself open to all sorts of horrifying consequences.
Sorry to be something of a wet blanket, but that's the nature of the world in which we live.

colm_mcm

Yeah, it sounds like asking for trouble

bazz26

Without being an expert in such matters I would make a guess that insurance for this kind of thing would be very expensive, probably similar to that of a taxi. At the end of the day the vehicle would be used to transport people as part of a paying service. To me that means you need something similar to public liability insurance.

Definately worth checking out with an insurance costs first.

Dilbert75

Would prob need a PSV licence and subject the car to the rigours of whatever roadworthiness checks that taxis undergo (though, judging by some of them, that can't be too strict). If 4-5k insurance bills that you hear of for taxi drivers - and I wouldn't put it past any Irish insurance company to charge on that basis - are anything to go by, I suspect it could be difficult to make it pay.