|
How
can people afford a BUV?
A sum of $2000 can seem like a fortune in rural
Africa. People in targeted
regions may have these financing options:
The Freedom Rebate (FR) could be funded
through other foundations and government grants. FR would commit 99% of funds to end customers in
the form of rebates. Local banks and micro-credit agencies
could help administer the rebate program in foreign
countries.
A combination of rebates and loans can reduce the
initial cash payment to as low as $600. The example below assumes 0%
local content (worst case scenario). Within a year, local content
may rise to 20%, making the numbers more attractive because exchange
issues, freight, and duties on the local parts are reduced or
eliminated.
| Sell
Price (MSRP) |
$2000 |
|
| Freedom
Foundation Rebate |
-$300 |
Check
sent to local BUV manufacturer |
| Net Cost
to Consumer |
$1700 |
Price
as % of buyer income is similar to USA |
|
|
|
| Micro-credit
Loan |
$850 |
by
Enterprise Development agency.
Buyer repays over time. |
| CASH
PAYMENT |
$850 |
(BUV
purchase may require less cash than a typcial motorcycle
purchase) |
continue
|
