Hello,

I'm a transporter. I've been in this business since 2013 and I just love it.

I started as a cab man and I'm still in the business till today.

Over time we have witnessed a lot of changed and E hailing as we call it now has come to stay. The major E- hailing operators are Uber and Taxify.

They present a business opportunity for investors and a form of employment for the drivers as well.

I want shed more light on a particular model that can produce profitable results for any potential or existing investor.

The business model is this.

1. Buy a car or use the car you have already ( if its good enough for the business)

2. Give it to a driver on Hire Purchase.

That's all. Sounds so simple but there are several factors involved and an entire process to follow.

That's the essence of this thread.

Welcome on board....

continue your tutorial and shared experience

I'm interested in higher purchase if there is any one that want to invest on higher purchase.. The car will be used mainly on UBER & TAXIFY. You can call or whatsapp this number 08065805412

nifemi25:
I'm interested in higher purchase if there is any one that want to invest on higher purchase.. The car will be used mainly on UBER & TAXIFY. You can call or whatsapp this number 08065805412

We will get to this stage later. For now just keep reading. Thanks

Hire Purchase Plan

The hire purchase plan was first developed in the United Kingdom, but it is more commonly known in the United States as a rent-to-own plan.

A hire purchase is most commonly employed when a company or individual does not wish to make the capital outlay (or can not afford ) to purchase a piece of equipment.

The company or individual therefore, signs a rent-to-own agreement in which it makes regular rental payments, a portion of which is applied to the eventual purchase price.

If the company or individual carries the agreement to term, then at the end of the agreement, it owns the equipment.


Now let's bring it home,

An average Uber or Taxify driver will love to own a car after some time. I know this as someone in the system.

However an average driver can not afford to buy a car. A Tokunbo Toyota Corolla costs about N1.8M.

I know for a fact that an average driver can not afford this. I still drive ( part time ) till today.

To be continued.....

Benefits Of Hire Purchase to an investor

1. You retain full ownership of the car until full payment is received.

2. If the driver decided to pull out of the agreement, at any time you have nothing to lose. You are not obliged to refund any money to the driver.

Let me give an example. Bayo decides to pick up a Toyota Corolla on Hire Purchase from Obasanjo.

Car value at point of purchase N1M.
Amount to be repaid 2.4M.
Duration 2 years

After a year Bayo will have paid exactly 1.2M to Obasanjo.
If Bayo decides to pull out at the point, Obasanjo will just take possession of the Car and move on.

Obasanjo will not refund the 1.2M he has received over time.

Thats how it works.

mrsage:
Hello,

I'm a transporter. I've been in this business since 2013 and I just love it.

I started as a cab man and I'm still in the business till today.

Over time we have witnessed a lot of changed and E hailing as we call it now has come to stay. The major E- hailing operators are Uber and Taxify.

They present a business opportunity for investors and a form of employment for the drivers as well.

I want shed more light on a particular model that can produce profitable results for any potential or existing investor.

The business model is this.

1. Buy a car or use the car you have already ( if its good enough for the business)

2. Give it to a driver on Hire Purchase.

That's all. Sounds so simple but there are several factors involved and an entire process to follow.

That's the essence of this thread.

Welcome on board....

Spot-on. To succeed in E- hailing business "HIRE PURCHASE " is the best way to go. Though, it has its ' Pros and Cons '. I have been deeply involved in it for over two years and i will say the business is thriving.

akaynezi:

Spot-on. To succeed in E- hailing business "HIRE PURCHASE " is the best way to go. Though, it has its ' Pros and Cons '. I have been deeply involved in it for over two years and i will say the business is thriving.

Bless you. The business has changed over time and every investor should also embrace change.

The dynamics are different now. At the moment, every driver wants a sense of ownership. Investors should also accept this new reality.

At the end of the day, its a win win situation for every party involved

I'm here to guide us on how to get it right...

Another Reason you should consider Hire Purchase:


3. Sense of ownership because of the down payment .

One of the reasons drivers default in payment is because they do not have ownership.

They can afford to use a car and dump it at any time.

However in a Hire Purchase situation, it's completely different.

The driver usually pays an agreed amount of money ( down payment ) to the owner even before he picks up the car.

Drivers pays anything from 10 to 40% as down payment.

The driver has equity in the car and this triggers an automatic sense of responsibility.

4. The owner doesn't handle repairs and maintainance. This is the responsibility of the driver.

This alone can help to cure a lot of headache associated with transport business in Nigeria.

5. The owner already knows exactly what he will get and the duration is fixed. The owner can plan ahead.

6. A lot if risks can be transferred to an insurance company.

Theft, vandalism, fire, flood, accidents and several unforeseen circumstances will handled by an insurance company.

A car tracker can also be installed to mitigate the risk of theft. A tracker can also be used as a security measure to monitor the driver.

7. A good legal agreement also helps to solve several problems.

Practical example coming soon...

nifemi25:
I'm interested in higher purchase if there is any one that want to invest on higher purchase.. The car will be used mainly on UBER & TAXIFY. You can call or whatsapp this number 08065805412

What's your location?

mantosa:


What's your location?

I reside at Akute. Akute is not far from Ojodu berger.

Feel free to ask questions or state your comments.


Thanks

mrsage:
Feel free to ask questions or state your comments.


Thanks

Please can you give a practical example as well as challenges and tips for the hire purchase

ahmedshehu:


Please can you give a practical example as well as challenges and tips for the hire purchase

For this business I strongly recommend the following:

Toyota Corolla 2003-2006 model

Honda Civic 2003- 2006 model

ahmedshehu:


Please can you give a practical example as well as challenges and tips for the hire purchase

For this business I strongly recommend the following:

Toyota Corolla 2003-2006 model

Honda Civic 2003- 2006 model..

Im a driver on the Bolt/uber platform with a 4.75 rating,

Currently in need of a vehicle(car) uber/bolt spec.
For higher purchase, i have a down payment of 200k and my pastor can stand as a guarantor.

Am a very careful driver and I don't like driving a vehicle wit dent or scratches on the body.(trust me I'll be very careful with the vehicle)

I reside at idimu, pipeline bustop precisely (in a fence house)
Pls hit me up on 09068713655....im also on whatsapp

Over time I have come to realise that you can start small and expand with time.

I have come up with a strategy. You can start with exactly N1,000,000 and make good profit.

Here is the Case Study.

Car Purchase (Honda Civic 2003 model Naija Used). 800,000

Pre Purchase Inspection.. 20,000

Vehicle Registration/ Change of Ownership.. 45,000

Comprehensive Insurance ... 30,000

Car tracker and installation.. 40,000

Miscellaneous expenses... 65,000

Total.. 1,000,000

Hire Purchase Value N1,500,000

Initial deposit of N200,000

Then the driver will repay N1,300,000 over a period of 13 months .

The driver will pay 25,000 weekly. N100,000 every month for 13 months.

The Honda Civic is ideal for the business and it has very good fuel economy.

With N800,000 you will get a Civic in good shape.

The car will be certified and checked by a competent mechanic before purchase.

I always go for a car that has only been used for a few months here in Nigeria.

The Custom Papers usually will reveal when the car was shipped into Nigeria.

Wonderful and insightful thread

Weldone sir.

olenime:
Wonderful and insightful thread

Weldone sir.

You welcome...

Hello everyone. I'm a new bie here. I'm looking to start the business as a side hustle cuz I'm a low income earner. I've saved up a little 500k and hoping to get a Nigerian used car. Pls which car will you advice I go for?

I wanted to try KIA Rio but I was seriously discouraged. I am also thinking of Toyota Camry the pencil light version but people are saying its expensive to maintain.

I really need your advice guys.

God bless us all. Thanks

Williams004:
Hello everyone. I'm a new bie here. I'm looking to start the business as a side hustle cuz I'm a low income earner. I've saved up a little 500k and hoping to get a Nigerian used car. Pls which car will you advice I go for?

I wanted to try KIA Rio but I was seriously discouraged. I am also thinking of Toyota Camry the pencil light version but people are saying its expensive to maintain.

I really need your advice guys.

God bless us all. Thanks

Increase your budget and get a Honda Civic 2003 model.

mrsage:

4. The owner doesn't handle repairs and maintainance. This is the responsibility of the driver.

This alone can help to cure a lot of headache associated with transport business in Nigeria.

5. The owner already knows exactly what he will get and the duration is fixed. The owner can plan ahead.

6. A lot if risks can be transferred to an insurance company.

Theft, vandalism, fire, flood, accidents and several unforeseen circumstances will handled by an insurance company.

A car tracker can also be installed to mitigate the risk of theft. A tracker can also be used as a security measure to monitor the driver.

7. A good legal agreement also helps to solve several problems.

Thanks for the tutorials. Really great stuffs!
So, in this model of hire purchase, where's the car parked after the days hustle? With the owner or the driver?

Also, do you control the period the driver drives the car or you don't worry about this so far the money is coming in?

Thanks

Very informative.

mrsage:


Increase your budget and get a Honda Civic 2003 model.

Thanks for this informative thread. I want to go into Uber as a side hustle. I want someone to drive for me. How much will I be getting weekly or monthly?

mrsage:


For this business I strongly recommend the following:

Toyota Corolla 2003-2006 model

Honda Civic 2003- 2006 model..

,


Any particular reason why you left out the Honda civic 07 and 08 models

I love this idea. Can you shed more light on driving yourself maybe like a mini bus, shuttling locality what profit and risk factor involved.

I have spoken to many car owners and seem they all want between 30k - 35k weekly delivery or no Deal. Considering the many challenges that comes with driving on Lagos roads, I don't want to start mentioning them as that is a topic for another day. Can one commit himself to a HP deal where you are expected to make weekly payment of 30k to 35k? If you DEDUCT your weekly 30k or 35k for OWNER/HIRE PURCHASE, How much will you have left?


Maybe this is possible when you have your own car and not obligated to make delivery or payment for a Hire Purchase plan. I am asking for those who don't own a car of their own; do weekly rentals/delivery or are on HIRE PURCHASE.

I hear sales/rides on Uber/Bolt is falling and fares are reducing drastically
Drivers stay hours without seeing a request
Trips that used to be like 4k before have been reduced to like 2k or 2500k now so riders can be happy(this done specifically to please riders) by Uber/Bolt
What is therefore the gain of drivers.


I am new to this, I don't want to go into a deal I may not be able to meet up at the end of the day and labeled all sorts of names because I can't deliver. What advice can Uber drivers in the House share on this TREND that can help me make my final decision in the coming days?