We live in an unofficial dollarized economy.
What that means is that most of what we do in this part of the world is directly or indirectly influenced by the U.S. dollar. If you don’t want to hold naira, you can hold dollars.
Of course, the likes of Dangote Refinery and Made-in-Nigeria products, plus the unification of the exchange rate have to a large extent reduced our dependence on forex but not completely yet.
I said this to say that before we can truly determine if you made profit or not is when we convert your ₦6.5M in 2022 to USD and convert your ₦10M in 2025 to USD then we can compare their dollar equivalent.
Are you ready for the maths?
Let’s go.
In 2022, $1 was equivalent to ₦430.
Meaning, your ₦6.5M was equivalent to $15,116 in 2022.
In 2025, $1 was equivalent to ₦1,545.
Meaning, your ₦10M was equivalent to $6,472.
In 3 years, the car depreciated in value by $8,644.
This was an imported car so it’s okay if we check the true value in USD.
If what your ₦6.5M could afford in 2022, your ₦10M still couldn’t afford it in 2025, you can’t boldly say that you made a profit.
I do not hold it against you because saloon cars are generally believed to depreciate over time.
This is not an attack on car ownership. Of course, the car must have helped you to make more money in your business; it gave you comfort and made life easier for you. It’s safe to say that it served its purpose.
Whether a car is an asset or a liability depends on who owns it and for what purpose.
This is why I’m not in the category of realtors who outrightly condemn car ownership just because they want to promote real estate.
If you do this, I’m sorry, that’s a bad way to market real estate because you are putting everyone in one basket. It won’t matter if you don’t care to know why people are buying your property.
My job is to guide you so that you will be sure it’s actually what you want at that very phase in your business.
Generally, I can talk about reasons to own a property but when conversing one-on-one with a client, I focus on selling to you based on your reason(s).
If getting a car can help you secure a big contract, choosing land ownership over that will be tantamount to s t u p i d i t y. And if buying a property in a choice location with the money will help you build wealth faster, deciding to buy a car with it so show that you’ve arrived will be f o o l i s h n e s s.
Seek professional advice from an unbiased person like me so that you don’t make a mistake you will later regret in the future.
I hope I’ve been able to answer your question.
Have a great day.
— Emenike Emmanuel C.
What that means is that most of what we do in this part of the world is directly or indirectly influenced by the U.S. dollar. If you don’t want to hold naira, you can hold dollars.
Of course, the likes of Dangote Refinery and Made-in-Nigeria products, plus the unification of the exchange rate have to a large extent reduced our dependence on forex but not completely yet.
I said this to say that before we can truly determine if you made profit or not is when we convert your ₦6.5M in 2022 to USD and convert your ₦10M in 2025 to USD then we can compare their dollar equivalent.
Are you ready for the maths?
Let’s go.
In 2022, $1 was equivalent to ₦430.
Meaning, your ₦6.5M was equivalent to $15,116 in 2022.
In 2025, $1 was equivalent to ₦1,545.
Meaning, your ₦10M was equivalent to $6,472.
In 3 years, the car depreciated in value by $8,644.
This was an imported car so it’s okay if we check the true value in USD.
If what your ₦6.5M could afford in 2022, your ₦10M still couldn’t afford it in 2025, you can’t boldly say that you made a profit.
I do not hold it against you because saloon cars are generally believed to depreciate over time.
This is not an attack on car ownership. Of course, the car must have helped you to make more money in your business; it gave you comfort and made life easier for you. It’s safe to say that it served its purpose.
Whether a car is an asset or a liability depends on who owns it and for what purpose.
This is why I’m not in the category of realtors who outrightly condemn car ownership just because they want to promote real estate.
If you do this, I’m sorry, that’s a bad way to market real estate because you are putting everyone in one basket. It won’t matter if you don’t care to know why people are buying your property.
My job is to guide you so that you will be sure it’s actually what you want at that very phase in your business.
Generally, I can talk about reasons to own a property but when conversing one-on-one with a client, I focus on selling to you based on your reason(s).
If getting a car can help you secure a big contract, choosing land ownership over that will be tantamount to s t u p i d i t y. And if buying a property in a choice location with the money will help you build wealth faster, deciding to buy a car with it so show that you’ve arrived will be f o o l i s h n e s s.
Seek professional advice from an unbiased person like me so that you don’t make a mistake you will later regret in the future.
I hope I’ve been able to answer your question.
Have a great day.
— Emenike Emmanuel C.