Hidden Costs to Consider Before Buying or Selling a Used Car in Nairobi

Purchasing or selling a used car in the city of Nairobi may appear simple. But the process also entails some unseen costs that may affect you financially. By being aware of the costs involved beforehand, you will make better judgments.

Importation and Registration Charges

Many of the used cars in Nairobi come from abroad. The purchase price may not include the cost of importation duties, excises, and Value Added Tax. The importation duties are charged by the KRA according to the age of the car, its engine capacity, and the CIF price. Add to that the fee for the clearing agent’s charge. Registration for the NTSA numbers also. Altogether, this will increase the cost by 30-50%.

Insurance Premiums

Third-party insurance is compulsory. However, many people purchase comprehensive insurance plans for their cars. This is especially the case for those who own more expensive cars. Insurance premiums differ according to car models, usage levels, etc.

Maintenance and Repairs

Kenyan roads are very harsh on cars. Second-hand cars may require immediate repairs to the braking system, tires, suspension, etc. Repairs also depend on the model of the car.

Fuel Costs

Fuels are also subject to varying prices. Vehicles that drink much fuel due to their engines’ size or low mileage per liter make commuting very expensive.

Parking, Toll, & Other Urban Charges

Parking tariffs, toll roads (e.g. the Nairobi Expressway), and occasional fines represent small but constant expenditures.

Depreciation & Resale Issues

Second-hand cars will keep depreciating in value, and the seller must also consider the market demands that may influence the selling price.

Avoiding the Hidden Pitfalls;

• Check all the fees in the purchase/sale process
• Use sites like fnlcarmarket.com for transparent pricing
• Demand all legal documents related to the sale.