Wazua
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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bird_man wrote:I usually hear people talk of "I hear they give 30-40k per month".....
But I dont know if they consider the following:
1.Interest on the loan e.g 1M loan @15% interest is maybe 7K per month for 4yrs.(Will the car last 4yrs?)
2.Comprehensive insurance premiums (could be about 6,500sh per month)
3.Service costs & maintenance.A kawaida personal maybe does 30Km per day.Yours could easily do or exceed 90Km per day.ie you need service every 1.5months...change of engine oil,plugs maybe,shocks & tires,dents etc.So lets give it 5K per month.
Total=7K+6.5K+5K=18.5K...So lets assume you are given 35K hio mwezi.Your real net is 16.5K.This is the amount you will use to pay the principal of the loan you took out for 4yrs.Will the car even last for 4years?In short, you might enrich everyone else & do good for the economy minus yourself! Hiyo no. 2,  . It may come to about 20k p.m. Here's how: Comprehensive for mats is computed at 10% of vehicle value (based on valuation report) + third party. If vehicle value is 1.5m, 10% = 150k. Third party premiums are usually about Ksh. 7820p.m, in a yr = 7820x12=93,840. 150,000 + 93,840 = 243,840/=. This is the total of premiums that you pay p.a. Over at DirectLine, they allow you to pay this in 10 equal monthly installments (243,840 / 10 =24,384/= p.m) and then they give you the last 2 months as a 'discount'. Additionally, they may discount the 150k figure and hence premiums may be marginally lower. They do not strictly use the 10%. At Invesco, they require you to pay the premiums quarterly i.e. every 3 months, which comes to 243,840 / 4 = 60,960/= every 3months. So far, these are the only 2 insurance companies that insure PSVs after BlueShield was placed under receivership. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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Rankaz13 wrote:bird_man wrote:I usually hear people talk of "I hear they give 30-40k per month".....
But I dont know if they consider the following:
1.Interest on the loan e.g 1M loan @15% interest is maybe 7K per month for 4yrs.(Will the car last 4yrs?)
2.Comprehensive insurance premiums (could be about 6,500sh per month)
3.Service costs & maintenance.A kawaida personal maybe does 30Km per day.Yours could easily do or exceed 90Km per day.ie you need service every 1.5months...change of engine oil,plugs maybe,shocks & tires,dents etc.So lets give it 5K per month.
Total=7K+6.5K+5K=18.5K...So lets assume you are given 35K hio mwezi.Your real net is 16.5K.This is the amount you will use to pay the principal of the loan you took out for 4yrs.Will the car even last for 4years?In short, you might enrich everyone else & do good for the economy minus yourself! Hiyo no. 2, . It may come to about 20k p.m. Here's how: Comprehensive for mats is computed at 10% of vehicle value (based on valuation report) + third party. If vehicle value is 1.5m, 10% = 150k. Third party premiums are usually about Ksh. 7820p.m, in a yr = 7820x12=93,840. 150,000 + 93,840 = 243,840/=. This is the total of premiums that you pay p.a. Over at DirectLine, they allow you to pay this in 10 equal monthly installments (243,840 / 10 =24,384/= p.m) and then they give you the last 2 months as a 'discount'. Additionally, they may discount the 150k figure and hence premiums may be marginally lower. They do not strictly use the 10%. At Invesco, they require you to pay the premiums quarterly i.e. every 3 months, which comes to 243,840 / 4 = 60,960/= every 3months. So far, these are the only 2 insurance companies that insure PSVs after BlueShield was placed under receivership. Thanks for the info @Rankaz13. So the question is...do most "kawaida" people buying a cab,mat or mini-bus make any money?Or do they just "see" cashflow & mistake it for money?I have always wondered.Maybe an insider can tell us. Formally employed people often live their employers' dream & forget about their own.
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Rank: Veteran Joined: 3/26/2012 Posts: 1,182
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bird_man wrote:
Thanks for the info @Rankaz13.
So the question is...do most "kawaida" people buying a cab,mat or mini-bus make any money?Or do they just "see" cashflow & mistake it for money?I have always wondered.Maybe an insider can tell us.
I think from rental cars guys make money. I have seen a guy move from a single unit to 3 cars in less than 4 years. Would one throw good money after bad money? Its the nitty-gritties that make the difference.
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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bird_man wrote:Rankaz13 wrote:bird_man wrote:I usually hear people talk of "I hear they give 30-40k per month".....
But I dont know if they consider the following:
1.Interest on the loan e.g 1M loan @15% interest is maybe 7K per month for 4yrs.(Will the car last 4yrs?)
2.Comprehensive insurance premiums (could be about 6,500sh per month)
3.Service costs & maintenance.A kawaida personal maybe does 30Km per day.Yours could easily do or exceed 90Km per day.ie you need service every 1.5months...change of engine oil,plugs maybe,shocks & tires,dents etc.So lets give it 5K per month.
Total=7K+6.5K+5K=18.5K...So lets assume you are given 35K hio mwezi.Your real net is 16.5K.This is the amount you will use to pay the principal of the loan you took out for 4yrs.Will the car even last for 4years?In short, you might enrich everyone else & do good for the economy minus yourself! Hiyo no. 2, . It may come to about 20k p.m. Here's how: Comprehensive for mats is computed at 10% of vehicle value (based on valuation report) + third party. If vehicle value is 1.5m, 10% = 150k. Third party premiums are usually about Ksh. 7820p.m, in a yr = 7820x12=93,840. 150,000 + 93,840 = 243,840/=. This is the total of premiums that you pay p.a. Over at DirectLine, they allow you to pay this in 10 equal monthly installments (243,840 / 10 =24,384/= p.m) and then they give you the last 2 months as a 'discount'. Additionally, they may discount the 150k figure and hence premiums may be marginally lower. They do not strictly use the 10%. At Invesco, they require you to pay the premiums quarterly i.e. every 3 months, which comes to 243,840 / 4 = 60,960/= every 3months. So far, these are the only 2 insurance companies that insure PSVs after BlueShield was placed under receivership. Thanks for the info @Rankaz13. So the question is...do most "kawaida" people buying a cab,mat or mini-bus make any money?Or do they just "see" cashflow & mistake it for money?I have always wondered.Maybe an insider can tell us. People do indeed make money, just not by the sackfuls as envisaged. Pesa huja polepole. The other thing, with one unit there usually isn't much. One has to strive to acquire at least a second unit within the shortest time possible. Life is like playing a violin solo in public and learning the instrument as one goes on.
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