Kenyans seeking to import or buy second-hand cars will have to dig deeper into their pockets following a spike in prices of vehicles as basic as a Toyota Vitz.
According to the latest global trends, the price of importing a second-hand Vitz in Kenya has crossed the Ksh1 million mark from the usual Ksh600,000 recorded mid-2021.
Considered a low-range vehicle, the price of Toyota Vitz as well as that of Nissan Note are now over Ksh1 million in what experts reckon is set to worsen as the year progresses.
Speaking to Business Daily, Kenya Auto Bazaar Association Secretary General, Charles Munyori, noted that the prices began surging in October 2021.
A newly imported Toyota Vitz.
He further noted that the situation was exacerbated by the shortage of new cars due to a shortage in the production of semi-conductors used in the motor vehicle manufacture.
“Prices have gone haywire since the start of quarter four last year and are unlikely to come down and will defy the January-March cycle.
“The market will stabilise once there is a sharp rise in new cars in Asia and western countries. This will take time,” Munyori stated.
According to the publication, several other high-range cars also recorded a sharp increase in their prices including Toyota Harrier, Toyota Fielder, Toyota Rav 4 and Toyota Premio.
The price increase for the cars gravitated between Ksh400,000 and Ksh791,000.
Globally, car manufacturers were also hit with shortage in copper, aluminium and cobalt materials forcing users from those countries to rely on second-hand cars.
At the beginning of February, an expert had cautioned Fox Business, US media outlet, that all prices for new, new-second-hand and old-second-hand cars would experience a surge in pricing.
“New car prices, used car prices, old used cars, trade-ins, I don’t care what it is. If you’re looking at car anything, it’s getting expensive.
“Nothing, absolutely nothing compares to what we’re seeing in today’s market,” stated Edmunds.com senior manager of insights, Ivan Drury, regarding the US market.
An undated image of a semi-conductor chip used in manufacture of cars.