I have a pal who wants to venture into real estate i.e constructing houses.
He is torn between buying a second hand lorry to transport construction materials.
Who has done construction ya flats hivi to guide on which is a better option.
acquire…transport is a killer and when he is not using ana hire out so it recoups some of its costs…
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^^^^^ ushajibiwa if he can afford the said lorry na asinunue jiko ina stall hata kwa mteremko
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Chinnese and indian trucks have flooded the market. They are quite cheap compared to japannese models but they deliver. They are real workhorses.
Instead of a secondhand japannese truck let him get a chinku truck or a Tata
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If your pal has good credit, my advice to him would be to buy a brand new ashock leyland tipper, goes for about 5.2m, comes with a Volvo gear box (very important because Indian gear boxes are crap), All he will need is 10% of the total cost ie 520k, the rest he can pay in up to 48 months.
Kama an roho mwambiye anione nimunganishe na msee na jua huko
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If its a long term investment he is looking at, buying is better.
Otherwise hiring is the best option coz there are no hustles of maintenance.
@Son of soil,that deal sounds good.Ni wapi huko?
Hapa Nairobi, Ashock Leyland offices ziko sameer bussines park on msa rd, i bought one a few months ago, can give u the number of the employee who help me out ama you just pay them a visit
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How much do they hire at per km? If one bought it for hiring out, can it repay the loan?
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How big of a truck would he be looking for? You have to hit critical mass in this hire or acquire scenario. I.e will you break even if you own the truck as opposed to hiring it? If your cost of hiring transport is hire than cost of buying the truck, you’d rather buy.
I have a deal on brand new Sinotruk trucks for 7.5m total cost. 340bhp. Dump truck. I’d need 750k deposit, balance in 36 months.
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hii deal yako ni mbaya kuliko ya son of soil
When buying a second hand commercial vehicle you inherit the previous owner problems…yaani mashida za io gari n kupeleka commercial vehcle garage time after time io ni dooh,so my advice buy a new truck it will serve you well in the long run compared to a second hand
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Take this advice VERY serious.
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MCA dont forget when the deal is too good…
But this is a different model from a different vendor.
Forget about outright acquisition for a minute. Is the option of leasing the truck on the table? If it is, he should take it.
I have a pal who’s in construction. For him he opted to use a mix of buy and hire. He bought a Mitsubishi light truck to handle some of the transport, then occasionally hires the huge 10-wheelers as, if and when need arises. That’s another option worth considering.
Don’t forget, when you buy the truck you now are saddled with all ownership and running costs. How does that sit with him in the general picture of his anticipated activities? Don’t forget, too, that important as transport is, it is not his core business. So is he willing to tie up those many millions in the truck? What effect will that have on his working capital in construction?
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He should buy new, that is if he doesn’t want to be constructing the truck more than the said houses.
so many banks are willing to offer credit for such.
If he is not capable then hire but lorry mzee ni moto ya kuotea mbali.
Get a new FAW 3380 truck. Bank statement and a deposit of 300k then negotiate your repayment. Construction is dependent on transport,once you buy a truck you’ll need to also know where the quarry is otherwise the driver will teach a lesson.
:D:D:D:D:D teach you a lesson
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@ son of soil,seems you got info i have been seeking since klost. Do you mind inboxing me ama how can you save my ass? Hii pick-up imekataa kua kubwa.
acquire. any time