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How
can people afford to pay for a BUV? (continue)
Where financing is available, annual income is no
longer the primary concern of BUV manufacturers in selecting a
target market. The key question is "How quickly will the BUV
pay for itself and how well can the buyer justify his debt?".
This depends on the needs of the particular market. The following
conditions may critically affect the BUV's ability to generate
income:
| Factors
affecting ability to generate income: |
Reason: |
| Used
cars and trucks are NOT plentiful |
Few
substitute products for the BUV |
| Dirt
roads are in poor condition |
Higher
top speed of substitute products is not valuable |
| Local
economy is agricultural-based |
Need to
transport bulky goods to market; M-bikes not effective |
| Much
trade with many surrounding villages |
Requires
people and products to be transported |
| Region
has electricity shortages |
A BUV
can be used to generate electricity (income) |
| Several
development projects underway |
A BUV
can power cement mixers, water pumps (income) |
| Fuel is
available, acceptable, and stable in price |
Owners
income is more predictable. |
Where financing is available, annual income is no
longer the primary concern of BUV manufacturers in selecting a
target market. The key question is "How quickly will the BUV
pay for itself and how well can the buyer justify his debt?".
This depends on the needs of the particular market. The following
conditions may critically affect the BUV's ability to generate
income:
Factors affecting ability to generate income:
Availability of fuel at acceptable prices and
quality. Availability of used cars and trucks and substitute
products for the BUV. Dirt roads are in poor condition.
Local economy is
agricultural-based... need to transport bulky goods to market
(motorcycles not effective). Much trade with many surrounding villages
requires
people and products to be transported. Region has electricity
shortages...a BUV can be used to generate electricity (income) since
rural regions often have electrical shortages. For development projects,
a BUV can power cement mixers, water
pumps, etc.
Vehicle License:
This is a more important issue than one might
think. In some countries, annual licenses are expensive. BUV
manufacturers will target countries that will not require licenses
for BUVs. Some countries might assign BUVs a favorable
classification, or a new classification. For instance, it might be
called a wagon, a motorized cart, an "off-road" or
"recreational" vehicle or simply a BUV. In remote
villages, many authorities won't mind if a BUV operates on dirt
roads if it helps the community. Naturally, as BUVs become more
popular, local governments will require them to be licensed. In the
interim, the consumer will not have to pay annual license fees.
Annual Operating Costs:
Annual operating costs are estimated based on
short trips (5 km or less), poor road conditions, and three-wheeled
vehicle of similar size. Using "A Handbook of Rural Transport
Vehicles in Developing Countries" by Crossley and Ellis, we use
the Scooter Rear Platform classification which shows annual
operating costs of $1400 per year.
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