Buy Now, Pay Later (BNPL), became popular during the pandemic. And it has since spread like wildfire all over the world.
There's been lots of argument around its sustainability in the US. That's none of my problems, lol.
However, as someone living in a developing country, many have argued that BNPL would ruin the people. They are right, there's poverty in the land so lending credit to poor folks isn't smart.
That said, I've found something that seems counterintuitive. Use BNPL to beat inflation.
Here's the math.
- A fairly used 2006 Toyota Corolla S in 2020 was around 1.2 million naira. Now It's upward of 2 million naira.
- In January 2020 naira averaged 360 to 1$. Now a dollar is 620.
- In January 2022 it was 400 - 420 to 1$. Now it's 620
So if I intend to get a car, I should use BNPL to lock down the price and beat inflation as against saving up.
There's been lots of argument around its sustainability in the US. That's none of my problems, lol.
However, as someone living in a developing country, many have argued that BNPL would ruin the people. They are right, there's poverty in the land so lending credit to poor folks isn't smart.
That said, I've found something that seems counterintuitive. Use BNPL to beat inflation.
Here's the math.
- A fairly used 2006 Toyota Corolla S in 2020 was around 1.2 million naira. Now It's upward of 2 million naira.
- In January 2020 naira averaged 360 to 1$. Now a dollar is 620.
- In January 2022 it was 400 - 420 to 1$. Now it's 620
So if I intend to get a car, I should use BNPL to lock down the price and beat inflation as against saving up.
Locally used.
and
foreign used (mostly from North America & Europe). These are often in fair condition and within reasonable mileage.
2M in naira is about 4.8k in $