In the previous article, we discussed extensively the benefits accrued from buying a new car. However, as you know 90% of cars imported in Kenya are grey imports/ used cars.
The reasons why Kenyans prefer purchasing used cars is due to numerous factors like affordability, cost price, availability of spares, just to mention a few. Today we look at the benefits of purchasing a used car and this should help you determine what vehicle works for you.
Since the liberalisation of the vehicle industry in 1994, more Kenyans are able to buy used cars that are below eight years old. They meet the set standards of conformity prescribed by the Kenya Bureau of Standards (KEBS).
These cars attract less duty hence are affordable to the majority of the working population. With the boom of the middle class, financing institutions like Saccos and banks are now targeting this segment for growth. Many Kenyans can now access credit to purchase these cars easily.
High specification levels
Grey imports are sourced from developed nations like the United Kingdom, Japan, Singapore and Australia. These regions equip their cars with high specification equipment like leather seats, sunroof and satellite navigation to meet the needs of buyers in their countries.
You may find that the vehicle imported in Kenya has a dealer version that’s expensive and has lesser features due to severity rating and costs. This is the main reason why many Kenyans prefer to import cars from overseas than get them locally. Their value for money spent on purchasing the grey import.
Availability of affordable, spare car parts
Availability of spare parts plays a big role in choosing the perfect grey import. Many times, dealers overcharge customers as they put exorbitant margins on spare parts, shunning a major chunk of buyers.
Like mentioned earlier with the liberalisation of the motor industry, spare parts became readily available at a much lower price than what dealers retail. Certain models like the Toyota Corolla became very popular with buyers thus making grey imports the choice of many Kenyans.
Asset finance institutions initially shunned grey import sector as it was a high risk to them, however with the growth of the insurance industry (a big player in the motor industry), banks can now provide a line of credit to grey import buyers.
They insulate themselves by taking insurance over loans issued in case of default. This has led to competition between banks, enticing the consumer with asset finance packages that are hard to resist.
Easy importation process
One can generally decide to purchase a grey import from the numerous showrooms dotted along the streets of Nairobi, or import from overseas which is generally cheaper.
With internet penetration at an all-time high, many Kenyans are able to purchase vehicles from the comfort of their mobile phone or computer.
This may be advantageous to the consumer but the risk of fraud is high.