KENYA USED CAR MARKET

KEY FINDINGS

1)     The Kenya used car market is a growing industry that is primarily driven by Japanese vehicles. Kenyans look to the used car market in Japan because Japanese vehicles are of high quality, dependable, and reasonably priced. The country imports hundreds of Japanese automobiles to meet the growing demand.

2)   The used car market in Kenya faces several challenges. One of the major challenges is the competition from the used vehicle market, which is driven by the importation of used vehicles from Japan.

3)   The weak domestic vehicle production facilities, which are further compounded by constrained household finances, are also a major concern for the automotive industry in the region.

4)   Many used cars available in Kenya are relatively old and may have high mileage. This can lead to concerns about the condition and reliability of these vehicles.

5)   Used cars in Kenya typically come with limited or no warranties. This means that buyers are often responsible for any repairs or maintenance shortly after purchase.

6)   Due to the age and condition of some used cars, maintenance costs can be relatively high. Buyers may need to budget for repairs and servicing soon after purchase.

7)   The use of mobile apps and e-commerce platforms for browsing and purchasing used cars has gained popularity, providing convenience and transparency to buyers. Buyers are becoming more aware of the resale value of specific vehicle brands and models, leading to preferences for cars that retain their value well.

8)   The Kenya used car market is becoming more organized and formalized, with established dealerships and importers providing a higher level of professionalism and service.

9)   The sector continues to face challenges inhibiting its growth, among others, importation of vehicles, absence of a National Automotive Policy/Council, lack of skilled labor force, lack of research and development, and lack of long-term financial solutions for the sector to enable investments in technology.

10) Investment opportunities in Kenya's used car market can be lucrative due to the country's growing economy and increasing demand for affordable transportation.

INTRODUCTION TOKENYAUSED CAR MARKET

Since used cars account for all vehicles sold in Kenya, the population of Kenya prefers to purchase used vehicles.The Kenyan auto industry relies heavily on Japanese vehicles.Kenya imports a significant number of used cars from Japan.

Kenyans look to the used car market in Japan because Japanese vehicles are of high quality, dependable, and reasonably priced.Kenya imports hundreds of Japanese automobiles to meet the country's growing demand, which is primarily driven by Japanese vehicles.

The Toyota Corolla Fielder is a highly regarded vehicle in Kenya and is widely available.The Toyota Land Cruiser Prado is well-known not only in Kenya but also all over the world.The statistics and reviews indicate that the Toyota Passo ranks third among Kenyan automobiles.

BENEFITS OF KENYA'S USED CAR MARKET

• Affordability:Used cars are generally more affordable than new ones, making them accessible to a broader range of consumers, including those with limited budgets.

•  Variety:The market offers a wide variety of makes and models, allowing buyers to choose vehicles that suit their specific needs, preferences, and budgets.

• Availability:Used cars are readily available in Kenya, with many options to choose from in various conditions, ages, and price ranges.

• Immediate Ownership:Buyers can purchase a used car and take ownership immediately, avoiding the waiting period associated with ordering new vehicles.

•      Lower Depreciation:Used cars have already undergone significant depreciation, which means buyers may experience less depreciation in value compared to new cars.

• Lower Insurance Costs:Insurance premiums for used cars are generally lower than those for new ones, potentially reducing the overall cost of ownership.

• Less Risk from First-Owner Issues:Many new cars experience teething problems in the first few years. With used cars, these issues are often known and can be addressed before purchase.

•  Value for Money:Buyers often perceive used cars as offering good value for money, especially when they get a well-maintained vehicle at a lower price.

KENYA'S USED CAR MARKETCHALLENGES

•  Vehicle Age and Condition:Some used cars may be relatively old and have high mileage, raising concerns about their overall condition and reliability.

•  Uncertain Vehicle History:Verifying the complete history of a used car can be challenging, leading to concerns about undisclosed accidents, repairs, or other issues.

•  Import Duties and Taxes:Importing used cars into Kenya involves customs duties and taxes, which can significantly increase the overall cost of a vehicle.

•  Limited Warranty:Used cars typically come with limited or no warranties, meaning buyers are often responsible for any repairs or maintenance shortly after purchase.

• Quality Variations:The used car market lacks standardized pricing and quality assurance, leading to variations in prices and conditions among similar vehicles.

• High Maintenance Costs: Due to the age and condition of some used cars, maintenance costs can be relatively high, especially if major repairs are needed.

•  Counterfeit Spare Parts:The availability of counterfeit or substandard spare parts can pose a challenge for maintaining and repairing used cars in Kenya.

• Market Transparency:The used car market can lack transparency, making it difficult for buyers to assess fair market prices and identify reputable sellers.

• Depreciation:Used cars typically depreciate faster than new ones, leading to potential financial losses for buyers over time.

KENYAUSED CAR MARKETSEGMENTATION

Kenya Used car MarketBy Vehicle Type

•      Hatchbacks
•      Sedan
•      Sports Utility Vehicles and Multi-Purpose Vehicles
•      EVs

Kenya Used car MarketBy Vendor

•      Organized
•      Unorganized

Kenya Used car MarketBy Vehicle Age

•      Less than 3
•      4-8 Years
•      More than 9

Kenya Used car MarketSales Channels

•      Dealerships
•      Online Marketplaces
•      Private Sellers

KENYA USED CAR MARKET  SIZE AND FORECAST

The Kenya Used car Market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030. 

The market is primarily driven by Japanese vehicles, which are of high quality, dependable, and reasonably priced.

Peach Cars, a Kenyan used-car marketplace start-up, recently raised $5 million in seed investment to democratize car ownership in sub-Saharan Africa, starting with Kenya.

The startup aims to provide a delightful customer experience by offering price transparency, secure payments, and inspections. Peach Cars’ founders have more than a decade of combined experience living in sub-Saharan Africa and talking with friends and industry peers, which made them see an opportunity in Kenya’s used cars market.

The startup aims to provide a delightful customer experience by offering price transparency, secure payments, and inspections.

KENYAUSED CAR MARKET TRENDS

The demand for used cars in Kenya has been increasing in recent years, due to a number of factors, including the rising cost of new cars, the growing middle class, and the increasing popularity of online car buying platforms.

Economic conditions, including factors such as disposable income, unemployment rates, and consumer confidence, can influence the demand for used cars. Economic downturns may lead to increased interest in the used car market as consumers seek cost-effective alternatives.

The digital transformation of the automotive industry has impacted the used car market. Online platforms for buying and selling used cars have become increasingly popular, providing consumers with more convenience and transparency.

Government policies and incentives, especially those promoting the adoption of environmentally friendly vehicles, can influence the used car market. Subsidies for electric vehicles or stricter emissions standards may impact consumer preferences.

KENYAUSED CAR MARKET DYNAMICS

Toyota's current sales campaign involves trading in old vehicles for new ones. Toyota Kenya plans to enter the used automobile market as a means of boosting sales of its new cars. The option for a driver to give up their vehicle and pay more to get a new model will be available.

Kenya wants to improve the domestic automotive industry by lowering the dominance of the used car market by restricting the importation of old automobiles to newer models. According to a draft policy proposal, the government now plans to limit auto imports to models that are three years old or newer. 

KENYAUSED CAR MARKETRECENT PARTNERSHIP

Toyotsu Auto Mart Kenya Limited, one of the major used Japanese car dealers in Kenya, and NIC Bank have partnered to finance and make it possible for Kenyans to buy used cars from Japan.

With the option to extend the warranty to one year for a modest cost, the agreement will provide Toyotsu clients with up to 90% financing, a 60-month repayment schedule, and a two-month warranty for vehicles that match the warranty requirements.

KENYAUSED CAR MARKETCOMPANY PROFILE

• Kenya Auto Bazaar Association
• SBT Kenya
• Toyota Kenya 
• Toyotsu Auto Mart Kenya Limited
• Maridady Motors Ltd

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What is the average cost perKenya Used car Marketright now and how will it change in the next 5-6 years?
2. Average cost to set up aUsed car MarketinKenya?
3. How manyKenya Used car Marketare manufactured per annum globally? Who are the sub-component suppliers in different regions?
4. What is happening in the overall public, globally?
5. Cost breakup of aKenya Used car Marketand key vendor selection criteria
6. Where is theKenya Used car Market manufactured? What is the average margin per equipment?
7. Market share ofKenya Used car Marketmanufacturers and their upcoming products
8. The most important plannedKenya Used car Marketin next 2 years
9. Details on network of majorKenya Used car Marketand pricing plans
10. Cost advantage for OEMs who manufactureKenya Used car Marketin-house
11. 5 key predictions for next 5 years inKenya Used car Market
12. Average B-2-BKenya Used car Marketprice in all segments
13. Latest trends inKenya Used car Market, by every market segment
14. The market size (both volume and value) ofKenya Used car Marketin 2022-2030 and every year in between?
15. Global production breakup ofKenya Used car Market, by suppliers and their OEM relationship