NaijaFutbol:
Good point

The truth is that a car is hardly an asset and the perception of worth depends on what it is bringing in for you.

If you are worth 4m and you invest 2m in a car to use for Uber, that May be 50% but it sure doesn’t make you irresponsible. If your luxury car gives you access to and wins you confidence of clients in your business, then it may not be a stupid idea to own such.

Also, you may go higher than 20% to avoid buying problems. A heavily degraded car may cost less now but it’s maintenance may drain the owner.

The problem is buying a car as a symbol of wealth. Borrowing to buy a car just because you can borrow or because you want to “belong”; that is the poverty mentality.

For a normal family car, 20% of net worth looks like a good benchmark. But the worth depreciates by half once you drive it out of the dealership.

Keep that in mind.

The worth of a car doesn't depreciate by half once you drive it out of the dealership.

Do some research and save yourself from ignorance. A lot of cars can hold value for a couple of years. Especially luxury cars. If you buy a 2020 luxury model this year and sell it next year, you will be shocked how much you'll get for it. You can't sell it for the same price you bought it since it's considered used, except it's a very rare car.

.it doesn't make sense to buy an expensive car and u are still living in a rental apartment. You do not have any property or no savings and you are living like a King. You lack business sense.

Slawormir:
Damnnnnn niggarrr
Isoright

I understand op very well

But sometimes ehnnn the easiest way to also conquer poverty is to also fake this life and package your life


Even if you don't have much just try and buy that expensive ride. Form big boy for area. That can even attract those people that will even make you to be big

Take for example: you want award contract give two people. One drive Audi car come and the other person drive venza come. Instantly your mind go first tell you say na this venza guy deserve the contract

Ogbeni Audi get levels o

samzepaparazi:


I have a question
Why do companies give their employees cars that cost more than their annual income then

We call something the golden handcuffs, it is a strategy to put them pepertualy in the rat race and to prevent them from having appreciating and income generating assets or Investments

Xisnin:

Yes. Loans are bad and it is crippling America.

The majority of them do not have $1000 in savings and they live from paycheck to paycheck.

The day of reckoning is coming.

If you missed an economy class, the whole world literally runs on debt! Loans aren't necessarily bad, even communist China owes a ton of debt. Unhealthy loans are the ones that are bad. I would rather live in a credit economy where the quality of life is good than in a hell hole like Nigeria not owing.
I sometimes laugh at people who scoff at consumerism in the world like it isn't what drives the global economy. If everyone just went back to the basics and stopped borrowing, then the world drives a lot more slowly and some people would have no place. There is no big world economy with a significant population that isn't debt-driven.

Slawormir:
Damnnnnn niggarrr
Isoright



Take for example: you want award contract give two people. One drive Audi car come and the other person drive venza come. Instantly your mind go first tell you say na this venza guy deserve the contract

Audi quattro or R8? Specify please

ednut1:
networth to car value. He is saying for u to use a Toyota corrola 2004 model which is like1.6m u must be worth 8m. How is that reasonable

20% is too much (especially for salary earners). 10% of your gross annual income is the benchmark. Cars are depreciating assets with little or no residual value after it's estimated useful life. The argument isn't about comfort, it's about making sound financial decisions with the future and retirement in mind.

For instance, you're required to have atleast 2500% of your annual expenses saved up by the time you're retiring, to enable you maintain your regular lifestyle for another 25 years (in which you can invest in an investment yielding atleast 5% with that money for the years to be more than 25 years).

My point is, cash rules. Not your car, house or any illiquid asset. It's your liquid assets that will come to your rescue when the chips are down.

While I agree it's all about preferences, but for any forward thinking individual with no established lucrative business, the op is simply echoing what any financial expert out there will advise.

homeboy205:


Yes true and I also knew someone who made money from illegal businesses. Instead of flaunting the money, he went ahead and get loan of 35M from the bank with properties belonging to his family.

Dude bought 10M car and use the rest for business, whereas he has the money. He just need to wash it legitly into the economy. Like some Power stunts


Because people do these things don’t confirm they are broke.

People getting loan knows they will payback one way or the other and they have plans.

I WILL SAY THIS AGAIN, IF YOU FORM RICH IN NIGERIA THEY WILL DRAIN YOU



I don’t know if you have came across a video of an Igbo guy counting money still telling someone on the phone that he hasn’t eat since morning. Still asking the person to bring the food he has so they can eat together while he was counting thousand LOL...

Some will tell you they use all their money to buy a car of 2 million, they can’t flex you self. Before you know gossip go don enter town say he buy car he broke.. Whereas dude was Escaping Billings

Do you know you could be arrested for what you just posted here?, don't argue go n ask a lawyer n be careful.

MrPaul2:

God go bless you hare
I could remember when I was using one old car, they always stop me, it got to a point that I will stop even before they stop me just to tip them something, last year God change my story and I got a fairly nice ride. Once I'm coming I notice they don't stop me the way they use to, even if they do, I give them my papers as usual they will tell me sorry join without bribe. I couldn't believe my eyes the first week, this days its like most of them know me now on my way to work, they will be shouting oga yellow anything for the boys when I slow down. If anyone tell you there is benefit in driving a jalopy tell him or her to try a beautiful ride.

That's because of the mentality of the country you're in.

What's the name of the nice ride you changed to by the way?

homeboy205:
I understand, but check a situation out.

Let’s say you have 10m in your bank account today and you REALLY REALLY wish to drive a Benz(I MEAN THOSE MONEY YOU WILL SPEND WITHOUT THINKING TWICE NO MATTER WHAT). You can still opt for 3m Benz just to be safe.

Ok. You are my friend, you just bought Benz of 3m, in this Nigeria economy. I know you don’t have only 3m, I will predict you having 5m(not to exaggerate)...

But after buying the car if you go lowest key and let 1 or 2 people know you are broke. (I mean having people buy fuel in the new Benz)Mehn believe me everybody will believe you are broke..

What OP is trying to say is that those homeboys are broke and they are driving big cars forming big boys. You need to stay under the same roof with anyone before concluding they are broke.


So to answer own questions , IF YOU DONT ACT BROKE IN NIGERIA THEY WILL DRAIN YOU ....

I have first hand experience...

At bolded.....So very true, I am still in that pot as i type and I am tired. This pandemic is sort of giving most people reason to ask...

...and may be they are genuinely broke

samsard:
Most American car purchases are financed, AKA bank loans. The problem is that our mentality is that loans are bad. Developed economies literally run on debt! The issue is that it should be healthy debt

From a finance perspective, debt is a means of leverage.

hustla:



This is the dumbest ever way to wash money and your friend is not smart

I am sure the loan rates are at least 15% -

So he bought a car of 10M and then took up a loan -

Assuming the loan is at 15%, that means he will pay interest of 5,250,000. Add that to the 10M naira and he has lost almost 16M just by being extremely mumu

Someone that got a car of 10M also wont want to stay in Ketu Alapere or goto Clubs on the Mainland, you see where I am going with this? Na so people dey take finish money come talk say Satan dey do them

Me I've even vowed never to take loan again, except to start a business.

I'm just completing a loan of 536k I collected last year May, and I realised I didn't use it to do ANYTHING! Except to buy gadgets, fvck olosho, and drink fine wine. Even Car sef I no buy!

Na now my eyes just dey clear after paying above 100k in interest. I just dey shake head for myself, but e go better sha.

Now, the next loan I collect, I go make sure sey i don get my biz plan ready, b4 I collect am...

The tin just be like sey na devil dey do me of, walahi!

lebete3000:


That's because of the mentality of the country you're in.

What's the name of the nice ride you changed to by the way?

The guy you quoted is kinda right.

Ever since I picked up a prado 2016 (or so because i am not even sure of the year again) (upgraded) and then i personalized the registration number, I have never been stopped by the Police. When they do, it is always about what I have for them, no one talks about papers. Some in the earlier days were so funny that they will only touch the body of the suv and touch themselves and then raise both hands towards heaven.

A whack country this is...

[quote author=Kingpele post=88988979][/quote]

I can see the Benzy in your dp, you're doing very well man!

Can you tutor me on some biz tips man?

[quote author=Kingpele post=88989180][/quote]

No mind me jarey, just dey feel your vibes...I've always known a benz is in a different class entirely.

hopefulLandlord:
you must be very ignorant if you think Audi that makes performance cars is inferior to venza

No mind the guy jarey...

duality:


Okay na... She go ask you make you help am with house rent money.

Story DE finish for mouth..guy no know how spirit of liein work. Be like you no get am.

maynation:


The point OP is trying to make has nothing to do with people pretending to be broke.
It should strictly be about one's personal worth. I am the one who truly knows how much I am worth, and as such I am the one to opt in for a car that relatively fits with my worth, and not opt for something that will eat up my fortunes all in the name of trying to feel among.

and if someone decides to use all his money to buy a car to feel among?how does that concerns anybody's parents?or who asked for his advice?

hardbody:


The guy you quoted is kinda right.

Ever since I picked up a prado 2016 (or so because i am not even sure of the year again) (upgraded) and then i personalized the registration number, I have never been stopped by the Police. When they do, it is always about what I have for them, no one talks about papers. Some in the earlier days were so funny that they will only touch the body of the suv and touch themselves and then raise both hands towards heaven.

A whack country this is...

Gosh!!!

But people dey ball for naija sha...meen I need to roll with men like you, to know how to setup a business man!

I'm a medical Doctor but not interested in opening a Hospital biz, cos naija patients no dey like pay Hospital bills.

I'm thinking more of setting up a beer parlor and then upgrading it to a bar. What do you think?

IkpuNnegiEwu44:
How do u calculate networth of a civil servant.

In 2016, I saved and used all my savings to buy car. Next month I got paid and managed for some months and started saving again. In 2018 I bought 2 plots of land, completed d fencing in 2019, now saving for d house.

So how did using my whole saving to buy car an unwise decision?

Life is full of uncertainty, imagine if you had lost your job after you used all your savings to get a car and after two months you lost your car to theft?. I don't support using all your savings to get a car. You should have a level of hope with your stream of income to do so.

baconline:
I think the value of your cars relative to your net worth should be between 0 to 20% , anything more than that might be irresponsible.

I have seen guys who value their cars eat up 80% of their net worth. They are just forming big boys. I don talk my own two cents

So I must have 15m before I can buy a car of 3m?

grandstar:


You may be right and wrong.

It all depends on your networth. If you bought an 800,000 car as a young white collar worker, it might seem very prudent.

If however, if you're worth 100m and you're drinking a 20m Toyota jeep, then you're reckless.

I heard of a guy who made 100m in a property transaction and spent 20m on a Lexus jeep. An 8m car would have done.

Because he likes the car and can afford it. It's not hard to understand.

Not everyone cares about what you care about, same way you don't care about what he cares about.

maynation:


The point OP is trying to make has nothing to do with people pretending to be broke.
It should strictly be about one's personal worth. I am the one who truly knows how much I am worth, and as such I am the one to opt in for a car that relatively fits with my worth, and not opt for something that will eat up my fortunes all in the name of trying to feel among.

I agree with the OP. I am a dealer and i can tell you for a fact that. Utility Value of cars in Nigeria is really low compared to the value it was bought as foreign used. My justification owe its evidence to how bad the cars get when put up for sale after 2yrs.

Major Internal problems
1.Bad gear
2.Engine problem due to being worked on too many times (oga mechanic wey like dey buy Half engine lol)
3. Electrical problems

These problems arises due to scarcity of professional mechanics and negligence of owners to assess lifecyle cost (i.eOperational, maintenance and parts replacement cost etc) of buying any desired cars..


Whether Naija used or Foreign used they are all used. However, the difference is, foreigners have better roads, auto mechanics and are knowledgeable about lifecycle cost of cars.

their economy isnt as volatile as ours, therefore people can easily afford cars through proper segmented payment structure that is proportional to their networth unlike here where we buy cars full payment without cognizance of networth

Someone7:


Applause. In fact standing ovation. I and my wife saved almost a year to buy a car for 3.5m, when our brothers and sisters were disturbing us to "buy land, buy land", "you are living in rented apartment". My response is everybody spend your money the way you like. Now we're saving to buy our own house, not just land.
Everybody with their poison sir

Exactly,

1+2+3+4=10

4+3+2+1= 10

Las las, any road you take, you still arrive at that same 10. Buying your first Ferrari at 60 years because you wanted to buy house first? It's a sign the person didn't grow up well. What is life expectancy in Nigeria again? Some people don't know that cars are also adult toys, not just means of transportation. Enjoy it while you're young.

Kudos!

lebete3000:


That's because of the mentality of the country you're in.

What's the name of the nice ride you changed to by the way?

There are different brands Benz, Toyota, Lexus etc but I'm Toyota fan I currently use voltron

thebigkendo:
Escuz me sir op, you are thinking in the rubbish,
did you help them think how they made the money? So what now concern your thinking with how they spend their money??


Mainwhile "the buy land/build house" crew will soon arrive, telling us how we should not buy car because it is a liability, all our money should be used to buy waterlogged land at ibeju lekki or 1 bed room self contain at Moye

My brother,instead I will buy land in Lekki I rather invest that money buying village land in my state.

grandstar:


You may be right and wrong.

It all depends on your networth. If you bought an 800,000 car as a young white collar worker, it might seem very prudent.

If however, if you're worth 100m and you're drinking a 20m Toyota jeep, then you're reckless.

I heard of a guy who made 100m in a property transaction and spent 20m on a Lexus jeep. An 8m car would have done.

20m Isn’t too much from 100m.. It’s compliment well. If I have 100m today, I’m buying a new Benz tear nylon of between 35-40m. I believe before a year go complete, I go don make the money back.

In Naija, if you riding a better car, you stand a chance to jam opportunities..

Sometimes you have to use money to attract more money!

GeneralPula:


20m Isn’t too much from 100m.. It’s compliment well. If I have 100m today, I’m buying a new Benz tear nylon of between 35-40m. I believe before a year go complete, I go don make the money back.

In Naija, if you riding a better car, you stand a chance to jam opportunities..

Sometimes you have to use money to attract more money!

Unless you know you'll DEFINITELY make another 100m within the next three months, that's not a very smart move.

amordi:

Life is full of uncertainty, imagine if you had lost your job after you used all your savings to get a car and after two months you lost your car to theft?. I don't support using all your savings to get a car. You should have a level of hope with your stream of income to do so.

Well u call it uncertainty. I call it risk. But y will u be that pessimistic? After losing job, I still lose car? If I lost my job, d car can still fend for me till I bounce back. I'm not gonna lose car join na village pipo?

lebete3000:


Gosh!!!

But people dey ball for naija sha...meen I need to roll with men like you, to know how to setup a business man!

I'm a medical Doctor but not interested in opening a Hospital biz, cos naija patients no dey like pay Hospital bills.

I'm thinking more of setting up a beer parlor and then upgrading it to a bar. What do you think?

Lol i am not a business man bro, well i have a law practise by the side but i am a legit employee. I am also looking at going into the line of business you hinted but it is a retirement plan for me.

homeboy205:
I understand, but check a situation out.

Let’s say you have 10m in your bank account today and you REALLY REALLY wish to drive a Benz(I MEAN THOSE MONEY YOU WILL SPEND WITHOUT THINKING TWICE NO MATTER WHAT). You can still opt for 3m Benz just to be safe.

Ok. You are my friend, you just bought Benz of 3m, in this Nigeria economy. I know you don’t have only 3m, I will predict you having 5m(not to exaggerate)...

But after buying the car if you go lowest key and let 1 or 2 people know you are broke. (I mean having people buy fuel in the new Benz)Mehn believe me everybody will believe you are broke..

What OP is trying to say is that those homeboys are broke and they are driving big cars forming big boys. You need to stay under the same roof with anyone before concluding they are broke.


So to answer own questions , IF YOU DONT ACT BROKE IN NIGERIA THEY WILL DRAIN YOU ....

I have first hand experience...

Seems u no wats on ma mind... nice one!

Bbbwings:

It seems I'm qualified.
Will collect cooperative at the end of the year

Oga, don't allow anyone brainwash you based on their personal preferences. Do whatever is at rest with your heart. Life is too short o