The price of second-hand cars has gone up by Sh100,000 at a time when demand has risen driving up sales by 10.5 per cent between December to March.
Why second-hand cars will become more expensive
The price of second-hand cars has gone up following...
Kenyans bought 15,858 used vehicles in the first quarter of 2017, compared to 14,346 units in the same period last year.
The price increase was caused partly by higher demand for Japanese models manufactured in 2010 given the government’s rule to only import cars under the age of eight years.
For instance, popular second-hand models like a seven-year old Toyota Belta imported from Japan increased to Sh721,000 from Sh618,000 in December. This does not include duty, freight and dealers margins.
In addition, new car sales went down to 2,687 units which was 27.3 per cent drop.
The weakening of the Kenyan shilling against the US Dollar was also a contributing factor to the increase in prices of imports.
Total sales of used and new cars grew by 2.7 per cent to 18,545 units in the first quarter of the year.
Station wagons were the most sold second-hand cars at 11,005 units followed by saloon cars (2,615) while vans and pickups bought in the period stood at 2,437,according to data from the Kenya National Bureau of Statistics.
On the other hand, lorries, buses and mini-buses recorded drops in sales of 1,718, 302 and 89 units respectively.
The Kenya Auto Bazaar secretary-general Charles Munyori however said that the prices should decrease later in the month when demands related to the eight year rule ease.
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