₦airaland Forum

bot101:
People that are saying FG bought FG should go read up how Central Banks are run. USA's Federal Reserve Bank (their equivalent of our CBN) is a public/private entity. I don't really know what this shares sale entails, and it's consequences, but the FG should have made an announcement before taking this course of action. N.a. so these people go take sell all of us ooo.

MobilityExpress:
This is one very strange logic I found on this thread that I still don’t understand. And I find it equally surprising how many investors here have embraced it, whether grudgingly or otherwise. But the thing is, everyone has their own perspective or understanding of what works for them and it’s better for everyone to do whatever works for them. Now, in relation to your statement, let me just say share my own PERSONAL perspective and understanding that works for me:

An investor spends as much as 2.5m to buy a tokunbo car (let’s say a 2007 corolla) and put on the Uber platform. 2.5m includes money to
- pay for the tokunbo car
- pay to fix one or two things or issues that came with the car
- pay for general servicing (fluid changes like engine oil, transmission oil, coolants etc), parts changes like brake pads and/or lining, etc) in order to begin your own service history afresh because you don’t have the service history record of the last user abroad and since it’s for commercial use it’s better to do a comprehensive service before starting
- pay for comprehensive insurance
- pay for tracker
- pay for vehicle registration
- pay for Uber and Taxify registration
- pay for the logistics involved and other miscellaneous

Now the investor invested in the business to make profit, it’s not a charity organization. Now the average ROI he receives weekly is 35k, which means it will take approx about 72 weeks (1 year and 5 months) just to recover the capital invested alone, in an ideal situation where all things perfect and the 35k is paid consistently all throughout the period! But 72 weeks is not a small time and in practicality all things will not be perfect in that 72 weeks. Therefore, if we consider and make allowance for unforeseen circumstances etc, it might take 2 years just to recover his capital. So then what’s his profit? Simple, the value of the car is what every John Doe would say. But for the critical thinker, who can see outside the box, that’s not a good place to be, in fact it is a gamble where there a higher probability to lose than to win. Because the state or condition of the car in 2 years isn’t guaranteed and it is dependent mainly on the driver’s usage. So in 2 years, figuratively speaking, the car might be a dead car, a nearly dead car on life support, a car in coma, a car in average condition or a car in good condition. But the fact is, whichever the case is, the value of the car has significantly depreciated. Right now (September 2018), the average market range of a Nigerian used 2007 Corolla in pristine condition might go for around 1.5m assuming, but 2 years from now (September 2020), there is no way the car will be worth that much. A Corolla in pristine condition then might be around 700k, who knows, as the demand for Corolla might have dropped drastically. And that’s even for a personally used Corolla, now imagine if the buyer discovers the car was used for Uber for 2 years, it’s either the buyer runs away or offers you a ridiculously low price. Because he believes the car will be prone to plenty repairs due to heavy use. So to rely on the value of the car as your profit is blind gamble. You might win (if lucky) or you might lose (most likely). There’s no certainty with the outcome. The associated risks are just many and too dynamic to control. So it’s not wise for any sensible investor to depend on the car’s 3rd / 4th hand value as profit. I said 3rd / 4th hand value because this is a car that was driven for commercial purposes, not personal, so it has a faster depreciation rate and higher wear and tear. So to call it a 2nd hand car might be tantamount to an exaggeration or a subtle lie. Because of this factors, any serious investor that’s serious about making profits has to factor in his profits with the ROI generated during the cars usage. So then, we already established it might take approx 2 years to make 2.5m capital back, then depending on what the investor sees as profit, but for the sake of illustration, let’s say 2m, then it might take another approx 58 weeks (1 year, a month and half) in an ideal situation. But the situation can never be ideal. It will be real. So in reality it might take a year and half), if we factor in the realism of the business. This makes it 3 1/2 years. Let’s round it up and say 4 years. So looking at this business critically and practically, a 2.5m investment of a tokunbo car in perfect condition to run on Uber and Taxify will only be profitable with CERTAINTY if the car runs for 4 years at 35k weekly. 4 years is not a joke! That’s the time it takes to graduate from a social science course in a private Uni in Nigeria. 4 years of hard labor on a car (even though properly serviced within that 4 years) driving on our bad roads shared with many crazy road users will still take it’s toll on the car and eat its pound of flesh. So the state / value of the car at that point is almost negligible. And if it’s has average value, then you know heavy money has been invested into its upkeep.

Now if the 35k weekly is going mainly as an ROI to the investor, then someone still wants the investor to take out of the same money for vehicle maintenance, then that person is a joker. The investment will crash and then investor will ultimately never make any profits but also will eventually lose his initial investment. People need to understand that until they make their capital back, they have not even started business at all. This is the undiluted irrefutable truth. Therefore, the only feasible recovery plan and path to profitability is for the car to generate not only the investors ROI weekly but also money for maintenance. In other words, the car operates on a dynamo system, the investors job is to kickstart it (make an investment of a car in excellent condition), then the car runs itself continuously by itself without needing the investors to pump in more money endlessly like pouring water inside a leaking basket.

There’s more to say but i’m tired of typing do now. Maybe later today (or tomorrow or next week, or next month ) when I’m in the mood again and have the time, I will re-edit this post and add the other things I want to include. After I finish the investors perspective, I will also add from a driver/partners perspective. But as a further reminder, this is personal to me, this is what I believe and know will work for me, so nobody should take it as a blueprint for everybody. Do whatever makes you happy as an investor, but whatever you do, try not to lose your investment because i’m yet to meet anyone that was happy he lost his millions for nothing. And for anyone that’s not in agreement with my post or has objections or angry about it, just ignore the post, no need for endless arguments, confrontation or bitter utterances. I will not respond.

MobilityExpress:
I think the best drivers are the ones who have not been corrupted by greed, the regular office drivers, who work on and have adjusted / disciplined their habits to be contented with what they earn and live within their means. Not a driver that wants to overwork the investors / employers asset to earn 140k a week and grudgingly pay the investor 35k on one hand, while harassing him constantly for a reduction to 25k on the other hand. So that he can make 75k to 90k for himself in a week. And then after 3 months of excessive overuse, reject the car as a dead car and jump to another investor victim. But karma is well and alive. It’s a circle of life. What goes around comes around.

shollywendy1:
Thumb up.. corrected. I actually thought only landed properties are fixed asset..thanks bro

shollywendy1:
Proof. If ur proof is right , surely I'm going to gain from ur point as we are all here to share experience and learn.

Ehiscotch:
Because you have failed to realise how religiously sensitive this country is. Most of these people that call you up either attend these churches whose pastors you criticize or do not want their guest to be saddled with putting up with your presence; your unpredictability is your undoing; nobody wants you to start lashing out on pastors at their events.

Vested:
Clean Toks Mercedes E320 2005 model for sale.

Vehicle is in good condition, buy and drive.




Location: Apapa.

Vested:
Neat Peugeot 406 Prestige,
Manual transmission,
Tyres were recently replaced,
Ew10 i4 engine,
AC is chilling. A/c regulator is faulty as it only blows at highest level once switched on.
PAN assembled and so no custom papers.
Just few normal scratches due to use but still smart. It's on comprehensive insurance which will expire on 27th December 2018. If you want to use the insurance cover, we can talk over that. I am also open to swapping of vehicles if the offer is right.

Location: Okota

Vested:
Hi.
It's a HP Pavilion - 15-au185na laptop available for sale.
It was bought brand new last year but is open for sale and in good condition.
Price is 160k but negotiable.
See specs in pix below.


Location is Okota, Lagos.

Vested:
Neat Peugeot 406 Prestige,
Manual transmission,
Tyres were recently replaced,
Ew10 i4 engine,
AC is chilling. A/c regulator is faulty as it only blows at highest level once switched on.
PAN assembled and so no custom papers.
Just few normal scratches due to use but still smart. It's on comprehensive insurance which will expire on 27th December 2018. If you want to use the insurance cover, we can talk over that. I am also open to swapping of vehicles if the offer is right.

Location: Okota

Vested:
Clean Toks Mercedes E320 2005 model for sale.

Vehicle is in good condition, buy and drive.




Location: Apapa.

mammanbawa:
Wrong!!!!!
The d8 means pre-facelift Peugeot 406 models
Only few had the 2.0l ew10 engine
Most of the d8 had ew7 and xu engines
The D9 is the facelift Peugeot 406
PAN assembled mostly ew10 D9s and they adorned the prestige badges
This car has a 2.0l ew10 engine
The 2.2l is the ew12 which is more powerful and rare
With the Aluminium manifold