Carshopper:


Depends how u look at it...

shollywendy1:

You dnt understand my point sir.
We are on the same page.
Dont get me wrong.
I mean buying car above 1.5m naira for the business is not worth it anymore

radautoworks:

Objectively there not many businesses where this is feasible

Carshopper:


Depends how u look at it...

izzou:


We are still saying the same thing na

The period to recoup your principal on a Corolla is more than a year, which is very bad

rationalmind:



As far as ROI goes with respect to a one year time frame, I don't think any car is better than the other.

Lets say we both decide to invest in Uber. I buy a corolla for 1.7m and it makes 1.3m at the end of the year. Let's say I sold the corolla for 1.2m. My profit is N800,000.

You buy a civic at N1.3m and recoup your money in a year. You can hardly sell your civic for more than N800,000 which is the same as my profit.


Note that I am assuming that the civic and corolla were trouble free and only needed routine maintenance through the year.

radautoworks:


They're poorly built, have terrible resale value and high maintenance costs.

rationalmind:



As far as ROI goes with respect to a one year time frame, I don't think any car is better than the other.

Lets say we both decide to invest in Uber. I buy a corolla for 1.7m and it makes 1.3m at the end of the year. Let's say I sold the corolla for 1.2m. My profit is N800,000.

You buy a civic at N1.3m and recoup your money in a year. You can hardly sell your civic for more than N800,000 which is the same as my profit.


Note that I am assuming that the civic and corolla were trouble free and only needed routine maintenance through the year.

Let's keep the issue of resale aside

Cost price for the tools
Corolla: 1.7 meeeellliiiooonn
Civic: 1.3 meeeellliiiooonn

Let's also assume that we have an ideal situation (Chemistry )

Every month, both makes 100k

In 2 years, they made 2.4 meeeellliiiooonn

It means the Corolla made a net of 700k, while the civic made a net of 1.1m

Like I said, considering the purchase cost in relation to Uber pricing, the Corolla is now a wrong tool for the job

Felicity0001:

Izzuo I think you have your answer here couple with what carshopper said.

So go for a car not too expensive so you can recoup your investment within 18months

izzou:


Let's keep the issue of resale aside

Cost price for the tools
Corolla: 1.7 meeeellliiiooonn
Civic: 1.3 meeeellliiiooonn

Let's also assume that we have an ideal situation (Chemistry )

Every month, both makes 100k

In 2 years, they made 2.4 meeeellliiiooonn

It means the Corolla made a net of 700k, while the civic made a net of 1.1m

Like I said, considering the purchase cost in relation to Uber pricing, the Corolla is now a wrong tool for the job

OJURONGBE1:
Hi everyone ,it feels good to be back on this thread after 4 months absence.
Deactivated my previous account(Freshprince91) when my Ford Mondeo wanted to kill me .
It plunged me into debt and i was sad ,empty and clueless but it feels a little better now .
Missed everyone (POPE ,IZZOU ,NDUBUIS, JAYDEE ,GENTLE LIFE ,ANGRYIGBO MAN, COOLADEX, NORTHBIRD, and all the wonderful driverprenuers like Luxurydriversng usually put it)
FELICITY, Baba i appreciate your gesture last week .Anyone who's had a negative impression about this fella should perish that thought ,he's humble and kind . My friend attested to it last week. Bless you bro!

Carshopper:


Best analysis I have seen in a long time ...

Thank you Baba mi

shollywendy1:

But if you are driving it yourself. I believe corolla is better as you can equally recoup the N1.7m in a year, and still sell for N1m or more self

izzou:


Let's keep the issue of resale aside

Cost price for the tools
Corolla: 1.7 meeeellliiiooonn
Civic: 1.3 meeeellliiiooonn

Let's also assume that we have an ideal situation (Chemistry )

Every month, both makes 100k

In 2 years, they made 2.4 meeeellliiiooonn

It means the Corolla made a net of 700k, while the civic made a net of 1.1m

Like I said, considering the purchase cost in relation to Uber pricing, the Corolla is now a wrong tool for the job

mrjaydee:


You will spend more on the maintenance of a civic and at the end the civic has no second hand value.

mrjaydee:


You will spend more on the maintenance of a civic and at the end the civic has no second hand value.

mrjaydee:


You will spend more on the maintenance of a civic and at the end the civic has no second hand value.

Kindly share your experience on this abeg

izzou:


Let's keep the issue of resale aside

Cost price for the tools
Corolla: 1.7 meeeellliiiooonn
Civic: 1.3 meeeellliiiooonn

Let's also assume that we have an ideal situation (Chemistry )

Every month, both makes 100k

In 2 years, they made 2.4 meeeellliiiooonn

It means the Corolla made a net of 700k, while the civic made a net of 1.1m

Like I said, considering the purchase cost in relation to Uber pricing, the Corolla is now a wrong tool for the job

rationalmind:


No, you cannot keep resale value aside. You are not going to use the vehicle forever.

Eventually when you sell, the money you'll realise from the sale of the corolla will compensate for the "extra money" the civic made.

Resale is relative, that's why you have to keep it aside

There is no fixed price for resaleing. And there is no guarantee that it will be sold at that price

Calculating it using a period (2 to 3 years) will show that the Corolla would yield lesser than a civic.

rationalmind:


No, you cannot keep resale value aside. You are not going to use the vehicle forever.

Eventually when you sell, the money you'll realise from the sale of the corolla will compensate for the "extra money" the civic made

Carshopper:


I beg to differ...

Every vehicle will command a resale value worth its depreciation. After resale the Corolla will still lag

Eizenburg:


I believe if you assume “good chemistry” like suggested, and maintenance does not go beyond the basics, at the end of the day, your ROI on both vehicles would be very similar.

Mr Eizenburg, lemme ask you

How many years do you think it's suitable for a Tokunboh car to be on Uber?

Eizenburg:


I believe if you assume “good chemistry” like izzou suggested, and maintenance does not go beyond the basics, at the end of the day, your ROI on both vehicles would be very similar.

izzou:


Mr Eizenburg, lemme ask you

How many years do you think it's suitable for a Tokunboh car to be on Uber?

izzou:


Resale is relative, that's why you have to keep it aside

There is no fixed price for resaleing. And there is no guarantee that it will be sold at that price

Calculating it using a period (2 to 3 years) will show that the Corolla would yield lesser than a civic.

rationalmind:




There's a price bracket for used vehicles and that is sufficient for this discussion. We will all consider it insanity to buy a used 05 civic for 1.2m.

@Bolded, I don't think so. Except you still want to discount resale value. You'll be lucky to sell the civic for 600k after 2-3 years. That means the civic has lost more than half it's purchase price.

The corolla can still sell for more than a million. Again, all things being equal.

Carshopper:


Using @izzou 'ideal state'

Cost of vehicle
1.3m vs 1.7m

100k monthly

Over 2years 2.4mil

That's

1.1m vs 700k

Resale value
After 2years on ehailing a Corolla will sell for say 700k

A civic say 400k


That's

1.5m vs 1.4mil

Eizenburg:


That’s very subjective. Personally, I’d do my calculations with anything between 18 months and 24 months, with a 50% depreciation in the value of the car.

Good Good

So let's choose 24 months, and let's agree with an ideal situation

Corolla - 1.7m
Civic - 1.3m

A corolla makes 700k, while a civic makes 1.1m

So how much will be the resale value on both after two years?

Blackbishop:


The resale aspect I agree. I have worked on some and the part price is just within range . But yhu know better ma'am. You are the oga patapata of all mechanic... Respect once again ma'am

Eizenburg:


That still boils down to roughly the same percentage ROI