Recently I purchased a used vehicle and on paper it looks like a very foolish choice. My youngest son is also thinking about his vehicle and wondering if he can save up and get something better. With that in mind I wanted to write a little bit about purchasing a vehicle and why I bought what I bought.
If you look above you can see the vehicle I purchased. It is a 2012 Mitsubishi i-MIEV. One of the worst selling, most poorly rated cars ever built.
To put things in perspective it sold about 100 units per year in Canada. Typical vehicle sales in Canada are around 2 Million vehicles per year.
A little math : If my math is right that means about 0.005% of the vehicle market. In total only about 600 were sold in Canada. Right now there are 26,000,000 vehicles registered in Canada. 600 or less are i-MIEV. There aren't many out there.
On Paper It's a Terrible Vehicle
Listing the downsides of this vehicle is easy!
- It's unattractive. I mean just look at the image above
- It's small. Seats 4 people max and not very spacious for four
- It can't carry much cargo
- It can only drive 80km on a full tank
- It is very slow in reaching highway speed
- It's interior feels cheap with lots of plastic
- It doesn't have any "modern" amenities like cruise control, nav system, bluetooth, infotainment unit and so on.
Again, Why buy something that sounds so bad?
First thing to consider:
When buying a vehicle buy the least expensive vehicle that fits your NEEDS
Second thing to consider:
The cost of the vehicle is made up of three costs: Purchase price, Fuel Price, and Maintenance cost
Third thing to consider:
When I was younger my Dad told me:
Son. Something you should always remember about a vehicle. It is NOT an extension of your personality OR a symbol of your status and worth. It IS a tool to get you where you need to go. If you remember this it will save you a lot of money in the future
My Rationale for buying an i-MIEV
I've wanted the i-MIEV for a very long time.
- However when it came out it was $35,000. Way too expensive.
- With government rebates it was about $21,000. Way too expensive.
- During the initial stages of COVID the price dropped to $10,000 (used) and I was seriously tempted
- After COVID gas prices spiked from 0.70/liter to $2.00/liter. i-MIEV prices spiked to $18,000. Almost the price of new for a 10yr old vehicle
- Last week I found this i-MIEV for $7100. Purchased with little thought
One of the benefits of watching a vehicle for a long time. I knew a fair price and that I wanted it so the decision was easy.
But WHY did I want it?
Quick answer?
It has dirt cheap operating costs!
But lets look at the operating costs:
Fuel Price : Nothing
- My city has free basic charging stations so I can fill up free of charge.
Regular Maintenance: Almost nothing
- The recommended maintenance is a yearly safety check. Cost $60
Yes tires and brakes wear out over time. However, its tires are small/cheap. It's brakes last a long time because it uses regenerative braking most of the time.
Let's compare to a regular gasoline powered vehicle
Gasoline currently costs $2.10/liter in Canada
Average fuel efficiency of a Canadian vehicle 9L/100km.
Typical maintenance service in Canada $100-$300/service
Number of services required : 3-4 per year depending on amount driven.
Average km driven by Canadian driver : 15,000km/year.
How much would that cost in fuel and maintenance?
3 services @ $200/service =>$ 600
15,000km * 6L / 100km ==> 900L @ 2.10/L ==>$1,890
Gasoline vehicle : $2,790
i-MIEV : $60
Based solely on operating expenses the i-MIEV will pay for itself in only two and a half years
But just for fun ... another comparison.
the i-MIEV uses 1000 Watts of power to drive 10km (roughly)
....Our power is 9.6 cents for those 1000 watts
....So the car can go 10Km for 9.6 cents of car food (electricity)
If I were to walk 10km I would need 450 calories of food.
....The cheapest food is bread at 99c/lb or 23 cents for 450 calories
....Sugar would be slightly cheaper at 15 cents for the same 450 calories
For those Nigerian readers...The vehicle costs about 1.7 Naira to travel 1km so 17 Naira to travel 10Km. I believe that's much cheaper than a Keke Napep (sorry if I get the name wrong).
Plus the Car is fun...sort of
Now I never thought I would say this of a slow car. It is actually fun to drive. I learned that while is has a low horsepower it has a high torque.
What does that mean?
It means that it takes forever to get to highway speed but it accelerates to city speed very quickly. It's small size make it easy to park. It has great visibility. It is snappy to pick up speed from stop signs.
Overall its a great car for what I need it for. Pick up groceries. Get to work. Do errands around town. Go to the park with the dog and so on.
Sure, I'll never take it on a long road trip
Sure, there are drives I just can't do in it
However, if I save 2,700 a year on regular vehicle expenses?
How can I say not to that?
Perhaps it will end up being a foolish decision but for now...I'm enjoying my ugly little vehicle and get a smile everytime I pass a gas station and a bigger smile when I get to charge up for free.
Thanks for reading
and as always, I love getting comments.
Well when buying things, it's not about what attractive, it's okay if it suits your needs. I've make the same decision before and it pays off. Enjoy your use with free charge up.
I love those words from your dad. I think people that live comfortably tend to purchase things moderately in most cases. I have seen many average civil servants in Nigeria saving their ass out to purchase an expensive vehicle. After purchasing, it becomes a burden.
I am marveled with the justification you highlighted for going for the car. Many people in Nigeria use car to present their worth to the public. It could be false presentation in some instances.
I don't have a car yet because I don't need one. Entering Keke Napep to my place of work is way cheaper than fueling a personal car. Some of my colleagues are stressing themselves to buy fuel into their vehicles. They don't want public transport because it is "demeaning."
My plan is to purchase a car before my son turns 5. I believe my family will need a car then. When that time comes, I will follow your footsteps in getting the least car that can serve the desired purpose.
I love your analysis. The way you break it down is interesting.
I don't know your budget or what's available in Nigeria but if I was looking I'd be checking out beforward.jp as I know they ship directly to Nigeria from Japan. Always interesting what you get but usually good price on used vehicles from there. A couple of years ago they had vehicles as little as $50HBD.....but shipping got expensive ;)
Yes, so many people here buy so much more vehicle than they need and then have to slave to pay for its upkeep. That is no way to live if you ask me
This is a good purchase. Since it isn't a car for conveying people or heavy items. The maintenance fees is also money saving
Did I hear you say that the inside is made of mostly plastics 😀.
God bless grandpa for those line.
They are a powerful guide.
Do enjoy your car 💖
And again almost two million purchase of car per year?.
Everyone must own a car in Canada following that.
How is the traffic, does it get all clumsy if everyone is goes out in their cars since it is likely that only few will take public transport.
Yes, the vehicle has a very "plastic" feel inside. Essentially when it was built they put an expensive battery in a "cheap" vehicle. The Mitsubishi I is a Japanese Kei car in Japan. Built to be small and cheap ($12,000 new). They put a $20,000 lithium battery in it and came up with the i-Miev. Result you have an Expensive cheap car--not a good idea if you want it to sell well and only 600 units sold in Canada.
Yes, 2 million per year and 26 million total cars in Canada. Only 6000 people..that's how rare the i-Miev would be. Yes, the majority of adult Canadians have vehicles. Reason: Canada is a huge country and long distances between locations. Public transit is very poor between major centers and only large cities have a somewhat decent bus system.
As for crowding on the roads. In the major cities and especially between major cities the traffic can be very bad.
On the major highways outside of major cities the roads are typically wide open. As an exampmle: If I travel from Abbotsford (where I live) to Rosswood (where I want to retire) the distance is 1400km. The first 80km is between two small cities and can be slow travel (60-80km/hr) but after that wide open (100+km/hr for the entire trip...except through the small towns along the way).
Getting a bus to do the same trip.
...No bus to Rosswood so you would have to walk 38km
Total bus trip time: 5+ days plus a 10hr walk.
There is a reason people have cars in Canada ;)
Of course the other option is a 1hr flight and shuttle bus from my city to destination. It's about the same price as fuel for a 1400km journey by car.
I know most Nigerians don't fly much but in Canada is can often be cheaper than driving and much faster.
I guess its better that everyone owns a car for convenience if they can afford it because of those distances.
Traveling by road is still cheaper here regardless of the fuel price hike. Not everyone gets to enter a plane even throughout their lifetime 😊
That's one of the reasons that I enjoy being in the Philippines. It's not a rich country so many people take tricycles (keke) and busses. That means I can around without a car and for not too much money. So much nicer than Canada where I have to drive everywhere.
I know you say I like cars. The truth is that its mostly required as a Canadian. I hate them so I spend a lot of time trying to find one that I hate the least.
The i-Miev doesn't pollute and is cheaper than walking. That means I hate it the least :)
You don't have to hate what is useful to you and very much needed😂
Perhaps I misspoke.
I do not hate cars.
I hate needing to have a car and all the expenses that go with it.
I wish Canada had cheap and accessible transit to places available instead of personal vehicles.
:(
Oh, now I get you.
I love cars too.
But I have the responsibility of servicing them and looking out for little faults every now and then..
May be when I have a car I will only drive around but have someone else who regularly checkup for proper functioning.
It's amazing that you got a vehicle that suits your needs. Sometimes, the best choice isn't the most costly, popular or flashy one. Your decision to consider important factors like operating costs and the rising fuel prices is a smart take. What is more fun than enjoying what brings a smile to our faces. Enjoy driving your i-MIEV! 🚗. I hope to owe a car one day too.
I planned on getting a motorcycle for transportation at as of then, it cost $300 for a brand new motorcycle. With the increase of petrol, everything has skyrocketed in the market. Getting a new motorcycle now cost close to $700.
Getting a motorcycle without actually provide me with what I planned on using it for and getting back my money for its purchase, I planned of getting a mini bus but a second hand and that was $1,500 as of then but getting this mini bus will impose much dilemma as high maintenance and trusting someone to it for commercial business purposes. Meanwhile my plan is still on hold. I love your choice of vehicles. Simple, nice and less stressful.
If I was in Nigeria I'd seriously consider this model. The components, economy and service are all identical to my i-Miev ... but it can carry people or cargo. Add some solar panels on top and now you have a vehicle free to drive.
.....as long as it isn't too far :)
Side note: I didn't mention in the article but you can use the vehicle to power your home or your electrical devices. Side benefit because I heard the power grid in Nigeria isn't very good.
As for motorcycle....I understand why you would want one...but perhaps follow @jjmusa2004 lead. Bicycle has less headaches and maintenance with lower initial cost. Then again, not really any prestige in it either ;)
thanks for reading and thanks for the reply
Interesting to know there are mini bus with solar powered, haven't seen one here though, I'm sure if I see this particular one I will go for it
You would have to add the solar yourself. At best you would only add 2-3km for 1hr of full sun. On sunny day maybe 15km of range. However, if its a short trip to work and back or if you only travel a few days a week that would be enough.
Unfortunately they only sell that model in Japan. So Nigerians and Canadians are out of luck :( Well....at least for a few more years. In Canada I can order "old" models from Japan by Canadian law...but have to be at least 15 years old. In Nigeria....no idea how that works :)
Oh, too bad. Have no ideas of importation of cars here but it is strict though. You have know somebody that knows somebody that can help out. Connection is the key here.
Almost the same in Canada.
You don't actually have to know someone but there is so much paperwork and legal process that you either (a) have to know someone who has done it or (b) do an awful lot of research and hope things go well :)
Different world...
....Same problems :)
Have a great day
It's been a while @tergan, hope you are fine?
All good here.
I've finished the "Alpha" version of this community and I am figuring out how to develop it in the future (the "Beta" version). In early October I should be adding about $600 HBD into the staking pool which I hold as @hiveabbyftp so I can bring in more income for rewards. I'll be creating a liquidity pool for the GLD token so the community can have its very own currency. I'll also hopefully be hiring someone to flesh out the community so we can have things like badges, pretty logo's and stuff like that...but will need to find someone capable who works for cheap.
I haven't forgotten the community and will personally be posting in it weekly(ish)....but under my main account @terganftp.
Okay no problem, goodluck