In Just a Few Months, Used Car Prices Have Skyrocketed

Used car prices in Kenya have increased by an average of 37% in the past six months. This has pushed low-range automobiles such as Vitz and Nissan Note above the one million shilling mark.

According to the Kenya Auto Bazaar Association, popular 2015 Japanese models like Toyota Rav 4, Toyota Fielder, Toyota Harrier, and Toyota Premio import prices have jumped up from Sh 408,000 to Sh 791,000 since August.

“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“, says  Charles Munyori, Secretary-General, Kenya Auto Bazaar Association.

The Covid-19 pandemic resulted in economic insecurity which has seen consumers keep their cars for longer than usual, further reducing supplies to Kenya, which relies on imports. Most buyers would purchase new cars but have now opted to buy second-hand models in response to shortages.

Dealers are facing increased competition from source markets like Japan and UK. Automakers have also scaled down production owing to shortages of semiconductors used in electronic devices.