Hi Wazuans,
I salute you all and appreciate lots of the knowledge and life hacks you have shared.
Thanks again, and I hope to do the same in due course.
Quick Disclaimer; (apologies for a long post-wanted to be on point.)
Note;1) I have read all threads on matatu bizness and have gained lots of wisdom on the same, hence consider me “educated” from past posts.
2) I have also realized matatu bizness is not for the faint hearted you have to get yourself dirty and be able to have hands on approach for its success.
3) I have a fair understanding of various matatu options available for an investor;
--14 seater (shuttle/long distance & town plying)
–MY INTEREST- town service--33/51 seater bus CFG/Dodi/Banbros etc
--Citi Hoppa/KBS etc leased.
My Question/My Interest; Interested running a 14 sitter Matatu Bizness in a town route (of a well managed sacco) ,alone as I don’t intend to do partnership as of now + other reasons i.e…quick decision making.
I wish to enter the matatu bizness starting from the bottom pyramid due to cash constraints. I have a budget of ksh 400,000 cash. I can squeeze another 300k through a sacco loan, readily available, hence total available and willing to spend 600K-700k at most.
What are the best options to acquire a 2nd hand Matatu reg’ (KAX-KBD) ,a Manual & Diesel run out of these below, in relations to low risk and consistent returns, easy to maintain etc.
1) Buy an X tour- Nissan caravan van(not 4wd); preferably (a good tested model); cost price; 650K onwards and convert to a matatu ,after registrations etc total comes to approx’ ksh 850k onwards.My take; very costly above my budget, but am told they perform well reliably over 4yrs with usual repairs & maintenance.
My query; Any ideas where I get one at a good price and are my costing above fair? Any other counsel appreciated.
2) Buy an old matatu Toyota/Nissan (a good tested model) but still in service and do an overhaul; cost price ;300k onwards,do engine and gear box (overhaul/change) ,change seats, do the paint job and change key other parts. Overhauling & repairs costs ; 250K total costs 550-600K.
My take; No idea whether it can serve me reliably and the costs not sure and risks of overhauling /changing engine or gearbox.
My query; Do you know routes/yards/auction companies where one can get a good deal and what ‘s your take on my maths. Can you advise one to go for this option?
3) Buy a clean long distance matatu shuttle (a good tested model) in service and good condition.
Cost price ; 950k onwards .
My take; Reliable and will serve me a few years before the usual challenges of old models. The problem is my budget is 700k tops and can’t afford to stretch myself further as of now.
My query; Do you know people who can offer the same at a cheaper costs/down payment with low interests especially those owned by a Sacco and pay them in six months etc.
Bottomline;I will appreciate any suggestions from those who had to start from scratch and how they hacked their way up the matatu pyramid. I would really appreciate any relevant information as per above.
Feel free to share any own experience is really welcomed.
Thanks a ton in advance!