Prices Of Second Hand Imported Cars Slump By Over 15 Percent

The prices of secondhand imported cars of popular brands like Mazda Demio, Toyota Fielder, Toyota V8 and Subaru Outback  have dropped by between Ksh100,000 and Ksh1.2 million.

The drop represents over 15 percent of the normal prices even as importers grapple with reduced demand due to the effects of Covid-19 pandemic to the economy.

The price of a 2013 model of Toyota V8 has dropped from Ksh9.2 million to Ksh8 million, while that of a 2013 Subaru Outback is going for Ksh2.3 million, down from Ksh2.5 million.

According to Charles Munyori, the secretary-general of Kenya Auto Bazaar Association, dealers are stuck with last year’s stock, which is losing value the more it stays in the yards.

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“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 Mr Munyori.

With the dropping demand and prices, the dealers make as little as Ksh100,000 per car or even are forced to sell at negligible margins to avoid selling the car in future at a loss. The more the car stays in the yard, the more it loses value since people prefer the latest models and number pplates.

Munyori, who spoke to Business daily, says that there is no hope that there will be good sales this year, even after the economy was reopened.

“The year is basically written off. We expect things to start picking up from the end of the first quarter next year,” he said.

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