If you are on a budget to buy a second-hand car in April, you could pay up to Sh400,000 more owing to the weakening of the shilling against the dollar.
Since the coronavirus scourge hit the world and weakening of the shilling against the dollar, the Port Of Mombasa has seen a drastic reduction in the number of imported cars by nearly 1,000 units from the 7,000 units imported every month.
Dealers now warn that due to the shortage, prices of used cars will shoot by around seven percent beginning April.
Charles Munyori, the Secretary-General of Kenya Auto Bazaar Association noted that the weakening of the shilling against the dollar is a pain for dealers.
“We are buying dollars from banks at Sh108 compared to a range of Sh100.5 and Sh101 early last month. Prices will rise by between Sh50,000 and Sh400,000 depending on the capacity of the cars. And the new shipments should reflect this higher prices,” he told Business Daily.
He cited that for a 2013 model of Toyota Vitz, it will cost Sh880,000 from the current Sh850,000 while a Toyota Premio 2013 model currently selling at Sh1.6 million will retail at Sh1.8 million – both the 1800 cc and 1500 cc.
A Toyota V8 Landcruiser selling at Sh6 million will jump to Sh6.4 million should the pressure on the shilling continue in April when car sales begin to peak.
Japanese second-hand cars take up 80 percent of the Kenyan automotive market. Imports are low between January and March but pick up starting in April.
Mr Munyori adds that “Depending on demand and how the shilling behaves in the coming month, car prices would come under pressure.
