wazua Mon, Dec 2, 2024
Welcome Guest Search | Active Topics | Log In | Register

Buying a vehicle as a Taxi
Options
Previous Topic · Next Topic
doubletap
#1 Posted : Friday, September 18, 2015 6:04:30 PM
Rank: Member


Joined: 7/17/2014
Posts: 132
Location: Wherethewindblows
A friend is contemplating on getting a loan to buy a car that he will then use as a taxi with expected income of about 30k per month. He says he could repay the loan in two years and end up with the car.

Question, If taking a loan to buy a depreciating asset like a car is a bad idea how would he go about it, and is it a wise decision?

You have to learn the rules of the game. And then you have to play better than anyone else - Albert Einstein
Back to top
 Report Abusive | Report SPAM
nakujua
#2 Posted : Friday, September 18, 2015 6:46:02 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
If the loan is for the taxi business then that should be ok, if he knows how to run such a biashara.

Hata loan ya giru si mbaya, if the same makes you happy - kwani hi pesa hutafutwa ya nini.
Back to top
 Report Abusive | Report SPAM
sparkly
#3 Posted : Friday, September 18, 2015 7:06:08 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
doubletap wrote:
A friend is contemplating on getting a loan to buy a car that he will then use as a taxi with expected income of about 30k per month. He says he could repay the loan in two years and end up with the car.

Question, If taking a loan to buy a depreciating asset like a car is a bad idea how would he go about it, and is it a wise decision?



Depends on what he means by income of 30k. If he is able to fuel the taxi, pay driver, pay insurance, service the car, deduct depreciation, deduct loan interest and still be left with KShs 360k per annum, that looks like a good return assuming the car costs 1m.
Life is short. Live passionately.
Back to top
 Report Abusive | Report SPAM
doubletap
#4 Posted : Friday, September 18, 2015 10:16:51 PM
Rank: Member


Joined: 7/17/2014
Posts: 132
Location: Wherethewindblows
sparkly wrote:

Depends on what he means by income of 30k. If he is able to fuel the taxi, pay driver, pay insurance, service the car, deduct depreciation, deduct loan interest and still be left with KShs 360k per annum, that looks like a good return assuming the car costs 1m.


Yes the car was to cost about 1m but the 30k was after fuelling and driver but the rest he would have covered from his pocket. In essence he was looking at it as a way of getting a family car after the loan is all paid out.

Thanks for the insight that you have shared here... Applause
You have to learn the rules of the game. And then you have to play better than anyone else - Albert Einstein
Back to top
 Report Abusive | Report SPAM
Impunity
#5 Posted : Sunday, September 20, 2015 7:38:48 PM
Rank: Elder


Joined: 3/2/2009
Posts: 26,328
Location: Masada
He better use that loan money to buy a garden snail, place it on tarmac and then sit back and watch it cover the entire Thika road length.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
Back to top
 Report Abusive | Report SPAM
Tara
#6 Posted : Monday, September 21, 2015 8:32:07 PM
Rank: New-farer


Joined: 12/18/2012
Posts: 94
Not to hijack the thread but how is Uber working out in Nairobi versus a regular taxi?
Back to top
 Report Abusive | Report SPAM
Users browsing this topic
Guest
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Market Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2024 Wazua.co.ke. All Rights Reserved.