- Car dealers are facing a hard time getting clients as it used to be sometimes back, thanks to the effect of Coronavirus pandemic.
If you are looking forward to buying a used car in Kenya, then the times we are in now presents the best opportunity to accomplish your dream.
This is a result of falling prices of used cars on the local market.
Car dealers are facing a hard time getting clients as it used to be sometimes back, thanks to the effect of Coronavirus pandemic.
A cording to a report published by the Business Daily, Dealers in Used Cars have been forced to reduce the prices of used cars due to low demand.
The reduced demand has adverse effect on the market as the more the car stays in the yard the more its value depreciates due to demand for the latest number plate. This has forced car dealers to cut used car prices by 15%. This is in attempt to clear stocks in a market where the more a car remains unsold the more it loses value, partly due to a greater preference for the latest number plates.
Small business owners and professionals are the main buyers of second-hand cars and most of them have seen their incomes fall significantly from a mix of layoffs, unpaid leave, salary cuts and collapse of activity in various sectors.
“People (dealers) have been forced to throw them away and there is no money flowing in the economy. Demand is not there. Dealers are stuck with the old stock from last year,” said Charles Munyori, the secretary-general of Kenya Auto Bazaar Association, which represents used car dealers.
Current Market Prices
Dealers make profits as low as Sh100,000 on some models, meaning that they risk having to merely break even or suffer losses in these crisis times.
A Subaru Outback station wagon manufactured in 2014 can now be bought at Sh2.3 million, down from Sh2.5 million.
Toyota V8, Mazda Demio and Subaru Outback have seen their market price drop by a range of between Sh.100,000 to Sh.1.2 million
The market price of Toyota Corolla fell the most at 46.5 percent to 2,256 units in the five months ended May from 4,219 units a year earlier.
The importation of cars has also drastically reduced ever since the pandemic broke.
Mr. Munyori noted that dealers would normally enjoy brisk business from April.
“People are importing fewer cars unlike other years due to the panic caused by Coronavirus,” Mr Munyori said.
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