Funding your tuition car, preparing a business plan and estimating income and expenditure are all essential research topics before you sign anything. National companies often emphasise potential earnings of £30,000 per year, yet have little to say about how, or even if this is achievable and very often leading to false hopes and shattered dreams. You can avoid this pitfall with proper research and advice.
Lesson costs vary throughout the country, however for the purpose of this article, and as a new independent ADI we will assume a minimum figure of £18.00 per one hour lesson.
A 35 lesson week will produce a gross income of £630.00 from which you must deduct the cost of operating your vehicle including repayments, insurance, road tax, servicing, repairs, tyres and of course fuel. (add a minimum 15 minutes between lessons = 45-hr average working week.)
Typical weekly costs.
Income gross as above
Car costs if leased
Motor Insurance for tuition
Fuel (minimum)
Less car costs
Balance before tax, franchise fee or expenses
This example over 48 weeks would produce an annual income of £23,040.00 before tax. Remember to deduct cost of phones, advertising, stationery, printing, etc. or the franchise fee if you join an established school. You will not have holiday, sickness pay or pension entitlements unless you buy insurance based products. Your first year is unlikely to average 35 lessons weekly except with the very busiest of schools, your income may be less than that shown in our example.
As a general rule, the better busier schools will charge higher franchise fees with more pupil introductions. Those with ultra-low franchise rates commonly mean you will need to find most of your own pupils after a token introductory period.
Only a fully booked instructor can pick and choose pupils, others will work over a wider area with increased operating costs, time spent per lesson and consequent higher pro-rata mileages.
A 35 lesson week will produce a gross income of £630.00 from which you must deduct the cost of operating your vehicle including repayments, insurance, road tax, servicing, repairs, tyres and of course fuel. (add a minimum 15 minutes between lessons = 45-
Typical weekly costs.
Income gross as above
Car costs if leased
Motor Insurance for tuition
Fuel (minimum)
Less car costs
Balance before tax, franchise fee or expenses
This example over 48 weeks would produce an annual income of £23,040.00 before tax. Remember to deduct cost of phones, advertising, stationery, printing, etc. or the franchise fee if you join an established school. You will not have holiday, sickness pay or pension entitlements unless you buy insurance based products. Your first year is unlikely to average 35 lessons weekly except with the very busiest of schools, your income may be less than that shown in our example.
As a general rule, the better busier schools will charge higher franchise fees with more pupil introductions. Those with ultra-
Only a fully booked instructor can pick and choose pupils, others will work over a wider area with increased operating costs, time spent per lesson and consequent higher pro-
When you have qualified, or have applied for your Trainee licence ..
The lease option
Leasing, the sensible option!
The car you choose and how you finance it will have a direct bearing on your weekly/monthly costs. The most popular cars for driving schools are Vauxhall Corsa and Renault Clio’s, these ranges come in 3/5 door and petrol/diesel options.
Leasing will cost around £80 weekly with dual controls pre-fitted, road tax, servicing, replacement tyres and breakdown assistance all included. In simple terms you ‘just add fuel’ to cover typical weekly costs. With all major expenses covered, leasing makes for easier budgeting and means you can change your car more frequently without worrying about depreciation or outstanding finance.
Leasing will cost around £80 weekly with dual controls pre-
Additionally lease payments are also tax deductible.
£ 80 00
£ 15 00
£ 55 00
£ 150.00
£ 15 00
£ 55 00
£ 150.00
£630 .00
£150.00
£480.00
£150.00
£480.00
Buying your own car.
When purchasing your own car you will usually need to find up to 25% deposit with the balance financed over 2, 3 or 4-years. Beware the longer term credit offers, a driving school car typically covers 30,000 miles per annum. By the time it’s due for an MoT it will have been driven over 85,000 miles, be well out of warranty and worth just a fraction of its original cost.
Monthly outlay on a finance agreement is not likely to significantly reduce your weekly operating costs and, in the long term once repairs, road tax, servicing, tyres, purchase and fitting of the dual controls is included could prove more to be expensive than leasing.
So you’re thinking of becoming a driving instructor? (Driving Instructors Association advice)
General advice from Alliance & Leicester on starting a new driving school business
Advice from HM Inland Revenue driving instructors
Monthly outlay on a finance agreement is not likely to significantly reduce your weekly operating costs and, in the long term once repairs, road tax, servicing, tyres, purchase and fitting of the dual controls is included could prove more to be expensive than leasing.
So you’re thinking of becoming a driving instructor? (Driving Instructors Association advice)
General advice from Alliance & Leicester on starting a new driving school business
Advice from HM Inland Revenue driving instructors
