I always ask myself how is it that in Nairobi, every fourth vehicle is a luxury car or SUV. Where does this money come from, and ati we are 3rd world. I bumped into this article on BD. I always thought commercial, small business and mortgages would come first but apparently loan book has 68% of household loans. My principle in life is that, if it aint completely paid off, it aint yours. afathali niendeshe gari mzee, fully financed…gaki!!
Ndio hii article.
A car is very important. For starters your logbook is a powerful collateral against a loan even if you’re not employed. Secondly, owning a car projects a certain image. For example if you are a salesman for real estate, a lawyer or a lecturer. People won’t take you seriously if you don’t own a car. Third, the convenience that comes with owning a car is an asset especially if you live outside Nairobi County.
Take note…I said luxury cars. True that a vehicle is a necessity but at 68% loans going to personal use, this is beyond vehicles. It could be the day to day wants and not needs that are driving people to borrow borrow borrow…and it’s not like interest rates for those loans are low.
Boss umenena kabisa, lemme simplify for them…ok say you earn a net of 100k. you want a car and want to own a home, it will take you not less than 10 yrs to get both ukitumia savings. now scenario two, take a car loan of say payable 18k per month, then chukua sacco/bank loan kisha nunua ka ploti alafu jenga pole pole, in less than 5 yrs you have both a good car with log book under your name and a nice home. afterwards you can now leverage your car to get a loan for a future projects and businesses. in 10 yrs time mtu wa savings analialia tu, wewe uko kwenye 2009 Prado yeye bado ako kwa 2003 NZE. Oh! and dont forget image, class and RESPECT (n kanyau too;)) you’ll av gotten along the way.
Actually not that high, 10.5% p.a flat rate or 19.5% on reducing balance (CFC Stanbic rates). do the math if say you want a car worth 600k, then pay a deposit of 20% they finance you the 80%(480k) for 36 or 48 months…per month unalipa kitu 15k only
the best and the surest way to live life is in debt, but properly managed debt… you came into this world bila any and you will leave the same. if your icame can support the debt, take it up…
A car is not necessarily a luxury, especially if it helps you improve your efficiency. Think of a doctor who has to rush from one locum to the next, or that satellite installer who has to rush from one client to another, often towns apart.
But then again what do I know? I’m a card-carrying proud Footsubaru Turbo member.
Wewe ujaluo itakuua. How will people not take a lecturer serious because he doesn’t own a car? So guys go to Oraro n co advocates because they own cars? As long as you can deliver and also keep time nobody gives a rat’s ass about other things. Cliff Ombeta owned a battered phone but that did not stop kina Sonko and others from going to seek for his services http://www.sde.co.ke/m/thenairobian/article/2000115082/city-lawyer-cliff-ombeta-defends-his-trusted-kabambe-phone