Financial PlanIncome Stream

Make Money From Your Vehicle By Getting A Tourist Permit From RTO

Is your vehicle underutilized? Have you been thinking of selling it because it is not in use anymore? Do you want to convert your liability into an asset? If you have been pondering over the above three questions, this article is for you. Converting your private vehicle into a tourist vehicle is a productive way of monetizing it. Read ahead to know how to make money from your vehicle by getting a tourist permit from the Road Transport Office (RTO).

Zooming ahead with technology

Indian metro cities now have an alternate mode of transport in the form of cabs (app-based booking). They are a much-needed option to the overcrowded public transport modes. With the rise of smartphones and generous internet data packs, millennials have welcomed the app-based cab booking model. While such business models have been a hit in developed countries, they took time to reach India. Now, they are fairly confident of the business model and it is here to stay.

Apart from big brands, there are a lot of small-time app-based service providers as well. As more and more people get familiar with the benefits associated with such a service, the service providers will need more cars. This is where converting your private car into a commercial vehicle and partnering with such service providers can be helpful. A commercial vehicle can also be used for inter-city and inter-state tourism, the relevant permit needs to be availed respectively.

What is a tourist vehicle permit?

A tourist vehicle permit in simple words is a permission given by the authorities to a car owner allowing the use of a vehicle for commercial purposes. The purpose when it comes to a tourist vehicle is to help passengers move from one place to another. Central and state government’s transport vehicles do not need such a permit.

Why is there a need for a tourist vehicle permit?

One cannot use a private vehicle as a taxi or a tourist vehicle. There are strict rules regarding the same. There is a different process to even apply for a RTO driving license for those who want to drive a commercial vehicle.

Vehicles designated as tourist vehicles have a yellow number plate so that they can be easily identified. Heavy fines are levied if a private vehicle is caught while transporting passengers from one point to another in exchange for money, like a commercial vehicle.

What is the procedure to convert a private vehicle to a commercial vehicle?

The exact process might vary as per the RTO governing your area.  If you reside in Mumbai, you have to apply to the RTO in Mumbai. A general process involves, filling up Form 45 & 46 as per Central Motor Vehicle Rules, 1989. They are similar to the form involved while applying for RTO license online. These forms need to be accompanied by relevant documents and submitted to the RTO along with the fees. The forms demand information pertaining to the applicant’s name, address and the vehicle’s make, model, engine number, chassis number, etc.

List of documents to be submitted with the application:

  • Vehicle’s registration certificate
  • Vehicle’s insurance document
  • Applicant’s address proof
  • Two copies of applicant’s passport-size photographs
  • Photograph of the vehicle with number plate 

Long-term Plan

If you are thinking of converting your private vehicle to a commercial vehicle, make sure to have a long-term plan in place. The process required is not too tedious. Visit the RTO in your area (example – RTO in Mumbai) if you have any specific doubts pertaining to tourist vehicle permit.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of Finaacle.com - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.
%d bloggers like this: