ASSET

Majority of Kenyan youth prefer cars to homes–Cars45

This is for ease of movement and a status symbol.

In Summary

•Cars45 which opened shop in Kenya in 2019 buys, sells, prices,and rates the condition of pre-owned autos.

•Second–hand units dominate the Kenyan market accounting for 85 per cent of car purchases, with Japan leading as the top source(85 per cent of imports).

used: Imported cars at the Port of Mombasa await clearance
used: Imported cars at the Port of Mombasa await clearance
Image: /FILE

About 90 per cent of Kenyan youth settling in life desires to purchase a vehicle than a house, a survey by automotive trading platform–Cars45 indicates.

This is for ease of movement and a status symbol, according to the company which has operations in Kenya, Nigeria and Ghana.

“Every young individual starting up life at the age of 25 desires to purchase a vehicle. As they grow older and start to have families only then do they feel the need to purchase a house," notes Cars45, Kenya marketing manager, Christine Muthoni.

This, as second–hand units dominate the Kenyan market accounting for 85 per cent of car purchases, with Japan leading as the top source(85 per cent of imports).

Other sources are United Kingdom, United Arab Emirates,Singapore and South Africa.

Buyers spend an estimated Sh60 billion annually on the units, whose prices range from between Sh500,000 to an average Sh2.5 million.

Cars45 which opened shop in Kenya in 2019  buys, sells, prices, and rates the condition of pre-owned autos, with branches in Nairobi's Lavington area and along Langata Road.

It plans to open other branches along Kiambu Road and in Mombasa, expansion management says is driven by demand for well-conditioned used units.

“Ninety per cent of our primary focus is on locally used cars, with the remaining ten per cent on imports to meet our imports client demands,”Muthoni said.

According to the company, used car buyers in Kenya need to be cautious about fraudulent deals and the condition of the car they are purchasing.

“This is why Cars45 carries a 212-point inspection which helps the individuals know the actual condition of the cars they are purchasing. Which, in turn, helps them make informed decisions before buying,” said Muthoni.

Meanwhile, the Covid-19 pandemic which has led to job losses and reduced disposable income in households has affected the uptake of cars in Kenya, the firm says, with the local market facing an oversupply of units for sale.

The reopening of the economy is however expected to push up demand as the middle -class regains gainful employment with businesses starting to pick up.

“The reopening of schools with parents buying vehicles for school runs to protect children from crowded school buses is also expected to drive demand for vehicles,”she said.