It is a norm that when we land our first job, a prioritized asset that comes to mind is a car. In fact, it can serve as motivation to toil besides the need to sustain a livelihood. For a majority of Kenyans, buying a car is usually a new experience.
In 2019, 130,000 cars were imported into the country. By September 2020, imports were reported to have dropped by 50 percent to 65,000 vehicles shipped in. Among other factors, this was mainly owed to the Covid-19 pandemic which saw a multitude of economic activities experience disruptions.
Production in Japan receded due to the pandemic. It resulted in people holding onto their cars. Second-hand cars, mainly of eight years old, became increasingly difficult to acquire.
In addition to that, the government proposed to reduce the age of imported cars down to 5 years from 8, resulting in higher final prices. The government’s original plan was to ultimately reduce the age of imported cars to 3 years by 2021.
Nonetheless, locally pre-owned cars have had a ripe market, well-balanced in terms of quality, supply, and demand. As more Kenyans turn to this alternative, we at Kenyans.co.ke, spoke to experts on key factors you should consult with when buying a second-hand car in Kenya.
1. Budget
It is imperative for potential buyers to have a budget in mind. It is important to have a realistic idea of what one can spend as well as how much they should spend.
Anticipated future costs should be considered too. They include costs of maintenance such as spare parts and insurance. We recommend that one begins with an online search for prices in their prospects for a second-hand vehicle.
2. Inspection
It is advisable to bring along a mechanic or third-party valuer to assess mechanical conditions you may not immediately observe. Once you have identified your preferred car, ensure you have checked with your mechanical expert.
It is not uncommon for clients to incur vehicular problems after buying second-hand cars. Moreover, a potential buyer should always request a test drive to verify the feel of it.
The car’s body must also be as pristine as possible. A vehicle whose body has different shades of paint, rough patches, and cracks present noteworthy red flags.
3. Vehicle Ownership
When buying from a private seller or organization, one must ask for the original logbook. It is the only way to verify ownership of the car as well as required registration details. Ensure to obtain a copy of the same.
4.Verification
To reinforce the process of verification, one should confirm the car details on NTSA (National Transport and Safety Authority) at a fee of Ksh 500.
One must conduct an Online Logbook Car Search using the car’s registration number to confirm the details of the logbook against the Search Results.
This clarifies car ownership, that car duty has been paid in full, engine and chassis numbers have not been tampered with. It further ascertains that the car has not been stolen or used for something illegal.
5. Sales agreement
One must draft a Car Sales Agreement Contract where he/she, the seller/owner, and a witness should fill in the car’s details and sign.
6. Payment
The best form of payment is through a banker’s cheque or money transfer as a receipt is generated to serve as proof of remission.
7. Documentation
The buyer than gets a copy of the car owner’s PIN (Personal Identification Number) and ID card then request them to initiate an Online Transfer Of Ownership through the NTSA TIMS (Transport Integrated Management System) platform.
8. Transfer fees and Insurance Cover.
It is required by law that transfer fees are remitted for purchase tax which is based on the car’s engine capacity. It is paid through the TIMS (Transport Integrated Management System) Online platform. Obtain a comprehensive car insurance policy from your preferred provider.
