Why your Vitz, Nissan Note imported unit will cost you over Sh1 million

Toyota Vitz

Toyota Vitz

Photo credit: Pool

Used car prices in Kenya have jumped by an average 37 percent over the past six months as demand outstrips supply globally on production cuts, pushing low range vehicles like Nissan Note and Vitz above the one-million-shilling mark.

Popular 2015 Japanese models such as Toyota Harrier, Toyota Fielder, Toyota Rav 4, Toyota Premio and Nissan X-Trail have seen their import prices, which excludes dealers’ margin, increase by a range of between Sh408,000 and Sh791,000 since August, according to data from Kenya Auto Bazaar Association, which represents used car dealers.

Dealers are now facing increased competition from buyers in source markets such as Japan and the UK as automakers have scaled down production owing to shortages of semiconductors used in electronic devices.

Most buyers in the developed markets would typically buy new cars but have now resorted to purchasing second-hand models in response to shortages.

Economic uncertainty brought by the Covid-19 pandemic has also seen consumers in the developed world keep their cars for longer than usual, further reducing supplies to Kenya, which relies on imports.

"Prices have gone haywire since the start of quarter four last year and are unlikely to come down and will defy the January-March cycle," said Charles Munyori, the secretary-general of Kenya Auto Bazaar Association.

Traditionally, car prices gradually fall from April to December. But dealers reckon this trend is unlikely to play out this year. "The market will stabilise once there is a sharp rise in new cars in Asia and western countries. This will take time," said Mr Munyori.

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