I have this cash 'wasting' somewhere. So I want to buy a car (maybe Jetta/Golf/Vento) and give out to a driver. Now the thing is, I am confused. I have not been in transport business before.

Do I give the car out for hire purchase or does the driver remit an agreed amount to me on weekly basis? If you were in my shoes, which will you go for?

I ask this because I have heard of dishonest drivers here and there and I wouldnt want to experience such.

Thanks in advance for your input.

N.B: Personally I am looking at the weekly accounting to be better because the car will remain mine (not so in the case of hire purchase which, if the driver completes the payment, the car becomes his) and the income I get weekly will help me in doing some small small expenses.

But like I said earlier, I will welcome everyones advice and opinion. Who knows, I may be wrong in my views.

lonelydora: As you are about to buy the car, buy alongside HEADACHE/HYPERTENSION drugs, incase you mistakenly give it to the wrong driver. I tried the transport business before now, i kept getting complains even though the car was a clean 1st grade Mazda 323. I had to sell off the car with anger. I am not discouraging you, you might be lucky to get a God-fearing driver. Mine was in PH, i don't know about your locations, though. Goodluck in your future endeavors.

Hmmm sounds discouraging o. Was it on hire purchase or daily/weekly account basis you gave it out?

I'm not an expert but I have always been skeptical about Mazda. Could it be that you bought the wrong car?

Yes I stay at PH too. And you know that here in PH, the top cars for taxi are Jetta/Vento, Golf and Nissan Sunny/Almera. Maybe Mazda is not just good for taxi business. Did you buy it directly as tokunbo

So from your experience, what are the pros and cons of hire purchase?

Giving it out on hire purchase isyour best bet.
You get payments remitted to you on a weekly basis.
If the driver renege,you simply take back your vehicle.Shikena.

femmy2010: Giving it out on hire purchase isyour best bet.
You get payments remitted to you on a weekly basis.
If the driver renege,you simply take back your vehicle.Shikena.

I see.

Dont be discouraged on investing in transport biz but be determined. the only thing that owns transport biz is proper maintenance.
I am in phc too and in the biz for four years now, I dont do hire purchase but daily pay, but you have to be comitted to good maintenance of your cars I have some cars at are up to 2 yrs old but except they told you you will not know
People that see transport as bad are those hat are gready hat will no want to spend money on maintenance, so there is no way you can make anything out of the business.
Its up to you but I will tell you the business is good.
for more advice osnufbanks@yahoo.com

obamat: Dont be discouraged on investing in transport biz but be determined. the only thing that owns transport biz is proper maintenance.
I am in phc too and in the biz for four years now, I dont do hire purchase but daily pay, but you have to be comitted to good maintenance of your cars I have some cars at are up to 2 yrs old but except they told you you will not know
People that see transport as bad are those hat are gready hat will no want to spend money on maintenance, so there is no way you can make anything out of the business.
Its up to you but I will tell you the business is good.
for more advice osnufbanks@yahoo.com

So are you advising that daily pay is better?

Where in PH are you?

OP, please go for Hire purchase with a concrete agreement and all terms well stated in it. Hire Purchase has advantage over delivery, because the driver is responsible for all maintenance and repairs in the car and since he knows the car revert to him later, he use the car carefully and also hasten up to complete his payment.

Fogman: OP, please go for Hire purchase with a concrete agreement and all terms well stated in it. Hire Purchase has advantage over delivery, because the driver is responsible for all maintenance and repairs in the car and since he knows the car revert to him later, he use the car carefully and also hasten up to complete his payment.

Thanks for your input.

Personally I am looking at the weekly accounting to be better because the car will remain mine (not so in the case of hire purchase which, if the driver completes the payment, the car becomes his) and the income I get weekly will help me in doing some small small expenses.

this is where greediness comes in, the main reason why many drivers will not remit as agreed rather they work for themselves because what you are demanding from them is high. assuming the driver is getting 5k for the day, 2k for fuel, 2 or 3k for you. what is left for him and his family?
if you want to do such business it should be hire purchase.
my advice is if you buy the car 450k do not double the amount. add 200 too 300k to the actual amount if you ever want to see you money.
remember there are bad drivers you can never please. do not be greedy
Good luck

JUO: this is where greediness comes in, the main reason why many drivers will not remit as agreed rather they work for themselves because what you are demanding from them is high. assuming the driver is getting 5k for the day, 2k for fuel, 2 or 3k for you. what is left for him and his family?
if you want to do such business it should be hire purchase.
my advice is if you buy the car 450k do not double the amount. add 200 too 300k to the actual amount if you ever want to see you money.
remember there are bad drivers you can never please. do not be greedy
Good luck

I'm not being greedy. Go check the meaning of that word before using it. If I want daily returns, we will reach an agreement on how much he will be remitting. If he cant meet up, he will simply drop the key. You will accuse me of greediness only when I ask for too much or when I expect him to pay more than we agreed.

If the driver knows the average he will make each day is 5k, then its up to him to bargain what his daily returns will be. You cant agree to be remitting 3k daily when you know you make just 5k.

There is no greediness there bro.

Thanks anyway for your comment.

I'm interested sir

seems hire purchase is really the best option.