16/05/2017
Mercedes Benz, V220d.
R 1 , 2 million.
Financed, R 24 000 a month.
Over 72 months.
Totals R 1, 728 000.
Insurance at R 3 000 a month.
Totals R 216 000.
Diesel at R 5 000 a month.
Totals R 360 000
Service at R 12 000 a year.
TotalsR 60 000 after four years.
Assuming the first two years was covered by a service plan.
Tyres assuming are changed every two years at R12 000.
Totals R 36 000.
Other associated cost on wear and tear after 6 years totals R 100 000.
Assuming you kept the car for six years,
You would have spent a total of:
R 2 500 000.
A start up business of Tyre Fitment & car service centre will cost,
R 1 million.
Assuming a monthly turnover of R 200 000,
With a profit of R 50 000.
After six years, total turn over will average around R 14 400 000.
Average profit of R 3 , 600 000.
Surprisingly the bank will finance the car and not the business.
Car will be sold for R 480 000 if you drove less than 20 000 km's a year after six years
Business could be sold for R 5 000 000 or more after six years.
This had me thinking that perhaps I should delay my gratification until I can buy the car cash or it can pay for itself.
I hope it makes sense.