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Old 18th January 2012, 17:08   #1
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Default An MUV for commercial use

One of my friends got a contract from a cellular provider to operate a MUV for transportation of their engineers from office to sites. Mostly the vehicle will be used in rural roads. The expected KMs per month is around 3500 to 4000 KMs. He is looking for a MUV with basic features like AC and power streeing, reliable, easy to maintain and give good mileage. He is expecting the vehicle to be driven atleast 2lakhs KMs.

He will be given Rs30000.00 for 3000KMs assured revenue, Rs9 per KM after the first 3000KMs per month. In addition to that he will get additional Rs 350.00 per night/holiday call. He is expecting at least 10 night/holiday call per month.

The budget is around Rs 6 lakhs. The MUVs under his search radar were Tavera, Sumo and Bolero. After getting the quote, Tavera was striked out. So it will be between Bolero and Sumo and he is inclining more to Bolero. Reason being more reliability, less maintenance and better resale.

He has been working as a driver till now and this is his first entrepreneur step. I think he has taken a logical selection regarding the vehicle and I thought of sharing it with T-BHPs for any suggestions.
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Old 18th January 2012, 17:20   #2
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Default Re: An MUV for commercial use

This is actually a very good business proposition. Just last week our driver was actively discussing similar plans of his with me that he is going to buy a car and rent it out to some govt office. The mathematics of the deal looks extremely good from the outside for sure.

As far as the cars are considered I feel the Bolero is a better choice here. Its more rugged. I somehow never got fond of the new Tata Sumo although I may be wrong.

Edit: You might want to refer to this thread for a detailed discussion in between the bolero and the Sumo.
http://www.team-bhp.com/forum/suvs-m...ande-mkii.html

Last edited by drmohitg : 18th January 2012 at 17:28.
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Old 18th January 2012, 17:29   #3
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Default Re: An MUV for commercial use

Another option is to buy a used Innova. It will just keep running and be more comfortable than the others. The Tavera is not a bad option either though, except the ride is not too great.
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Old 18th January 2012, 17:40   #4
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Default Re: An MUV for commercial use

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Originally Posted by akshay1234 View Post
Another option is to buy a used Innova. It will just keep running and be more comfortable than the others. The Tavera is not a bad option either though, except the ride is not too great.
But the used Innova will be a little costly to maintain I guess compared to a Bolero. I am not aware of Bolero's servicing costs. But with the Innova the spare parts are costly, although regular service is pretty cheap. For instance for my Innova which has done 80k kms now, the break pads costed me 15k. I got them changed at the recent 76k kms service. The service adviser also told that the gear plate is almost nearing its life and will be required to change in the next 10k kms maximum. Cost for the same will be approximately 5k. So do factor in these costs before option for any Used car from a higher segment. The comfort levels will ofcourse be unmatched.
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Old 18th January 2012, 17:42   #5
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Default Re: An MUV for commercial use

Tavera is a damn good option and more comfortable IIRC. Do remember that if he settles for a lesser vehicle, it means lesser demand later. bolero/sumo has lesser in delhi than tavera.

Secondly, if he is turning an entrepreneur, then he needs to realize "what if" scenarios - i.e if the cellular guys kill the contract in 30 days, then he has a car but no one to sell the miles to, but payments looming on his head.

Riskiness for his current saving level needs to be understood.
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Old 18th January 2012, 19:52   #6
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Default Re: An MUV for commercial use

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Tavera is a damn good option and more comfortable IIRC. Do remember that if he settles for a lesser vehicle, it means lesser demand later. bolero/sumo has lesser in delhi than tavera.
Good advice, also what needs to be kept in mind is the fact that even after the expiry of the contract, the Tavera would fetch higher incomes compared to a Bolero/Sumo in the open market. In fact, he can use it as a tourist taxi in Kerala where it is already quite popular.
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Old 18th January 2012, 23:37   #7
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Default Re: An MUV for commercial use

If the purpose is to transport engineers, You could also consider vehicles like Tata Venture or Tata Winger? I have seen few Venture Tourist Taxis at my place. Is not Uninor uses Tata Xenons for the same purpose, i have seen their Blue Xenos in TVM i believe.
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Old 19th January 2012, 11:50   #8
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Default Re: An MUV for commercial use

Quote:
Originally Posted by akshay1234 View Post
Another option is to buy a used Innova. It will just keep running and be more comfortable than the others. The Tavera is not a bad option either though, except the ride is not too great.
The prices of used Innova/Tavera is too high. Also vehicle will be used in rural road means more of suspension work. Wouldnt Bolero will be better for that.

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Originally Posted by drmohitg View Post
But the used Innova will be a little costly to maintain I guess compared to a Bolero. I am not aware of Bolero's servicing costs. But with the Innova the spare parts are costly, although regular service is pretty cheap.....
Please see my comment above.

Quote:
Originally Posted by n.devdath View Post
Good advice, also what needs to be kept in mind is the fact that even after the expiry of the contract, the Tavera would fetch higher incomes compared to a Bolero/Sumo in the open market. In fact, he can use it as a tourist taxi in Kerala where it is already quite popular.
The contract will be valid for a minimum 2 years, though the rates may change. Tavera was ruled out as its atleast 1.5lakhs more than Bolero on road.

Quote:
Originally Posted by teamveevee View Post
If the purpose is to transport engineers, You could also consider vehicles like Tata Venture or Tata Winger? I have seen few Venture Tourist Taxis at my place. Is not Uninor uses Tata Xenons for the same purpose, i have seen their Blue Xenos in TVM i believe.
The vehicle have to be used in bad roads too often. Also lots of night works. We think a bigger vehicle will be better due to reliability and safety reasons. Xenon/pickup were ruled out due to factors like 4 to 5 people travel most of the time, resale factor and numbers of buyers will be less if he intend to sell it off.
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Old 19th January 2012, 11:58   #9
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Default Re: An MUV for commercial use

Your best options are Sumo and Bolero. Apart from these you can also consider Xylo with D2 engine which is more comfortable than the lot and offers much better comfort at the price of Bolero.

Cheers,
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Old 19th January 2012, 12:07   #10
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Default Re: An MUV for commercial use

Innova is built to last. 2 lac kms is a cakewalk.I have seen people with more than that on the odo and all they have changed are tyres & regular wear and tear stuff.

Xylo also seems a good option.

Quote:
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For instance for my Innova which has done 80k kms now, the break pads costed me 15k. I got them changed at the recent 76k kms service.
15k for the break pads
Are you sure? Coz i got my Innova's break pads changed for Rs.3700/- 3 months ago from TASS.All the taxi people get it changed from outside for around 1000 bucks, the RANE ones-pretty decent stuff.

Last edited by k2max6 : 19th January 2012 at 12:11.
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Old 19th January 2012, 12:10   #11
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Default Re: An MUV for commercial use

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15k for the break pads
Are you sure? Coz i got my Innova's break pads changed for Rs.3700/- 3 months ago from TASS.All the taxi people get it changed from outside for around 1000 bucks, the RANE ones-pretty decent stuff.
Are you sure? I am talking about all 4. I have the bill from the Toyota Dealer, Galaxy Toyota in my case. Total is around 14.2k. The cost is similar for the Altis so I am guessing you mentioned the price for just 1 break pad.
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Old 19th January 2012, 12:26   #12
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Default Re: An MUV for commercial use

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Originally Posted by drmohitg View Post
Are you sure? I am talking about all 4. I have the bill from the Toyota Dealer, Galaxy Toyota in my case. Total is around 14.2k. The cost is similar for the Altis so I am guessing you mentioned the price for just 1 break pad.
Yes, i am sure all 4 Front break-pads.Total was around Rs.4500 Inclusive of Labour.Mine is a 2008 2.5 V.
I don't know if yours are any performance pads.You can even call & confirm from any other workshop.

Last edited by k2max6 : 19th January 2012 at 12:27.
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Old 19th January 2012, 14:39   #13
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Default Re: An MUV for commercial use

The two options I would suggest:
- Bolero DI LWB
- Force Cruiser

Both of them are extremely well priced and built to last Lacs of kms.
Both of them can take more than 8 people excluding the Driver, so provides scalability, should the situation demand, are fairly frugal in fuel consumption and cheap to maintain.
Both of these can be very easily and quickly resold to the Taxi market anywhere in this country.
Of these two, the Cruiser would also have spare space to carry some small equipment or supplies if required, and has a very comfortable ride.

Given the implied usage pattern and the requirements, I'd suggest that you stay away from 'delicate' vehicles.
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Old 19th January 2012, 16:19   #14
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Default Re: An MUV for commercial use

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Originally Posted by k2max6 View Post
Yes, i am sure all 4 Front break-pads.Total was around Rs.4500 Inclusive of Labour.Mine is a 2008 2.5 V.
I don't know if yours are any performance pads.You can even call & confirm from any other workshop.
I will have to check the bill again then. May be they changed the break drums also then.
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Old 19th January 2012, 17:18   #15
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Default Re: An MUV for commercial use

Has he found out how many persons and how much stuff will be carried on an average trip? If it is a longish distance then the trip will be uncomfortable with a lot of persons and goods in a Bolero. He will need a bigger vehicle in that case.
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