Expect a significant increase in the cost of ex Japan /Europe cars in the coming months. In a few months, small cars for 2014 will be selling at 800k and above while cars that used to sell for 1.4M will be approaching 2 Million. A spot check on most auction sites as well as car selling websites shows car prices are up as much as $6,000/=. A car that was costing $10,000/- is easily averaging $15,000/- or more. This is because of a few reasons:
Covid effect on supply - Due to Covid, many people in Japan are opting to use cars and avoid public transport. This has reduced the supply of cars as people are holding on to their cars for personal use instead of selling them. Covid also means people in Japan are not moving around as much and therefore no point to upgrade their cars leaving few units available for export. This has reduced supply so the few available units are costing much higher.
Covid effect on auctions - The Japanese and other markets themselves are buying the few cars available before they get to auction. People who used to use trains are buying cars before they get to the export market because they want to move in private and avoid crowded places.
Some Auction Houses Closed - Some auction houses have scaled down operations or closed temporarily to reduce chances of Covid spreading.
Change of models - Somehow, many models started changing shape rapidly around 2014 and introduced shapes that look very different from 2013…C Class, E Class, Outback, Legacy, Demio, Note and so on. There was a significant change in shape for a number of favorite cars in 2014. Of course car traders will capitalize on “new shape” factor to hike prices.
I am not sure if the prices will come down or this will be the new normal. Also keep in mind work from home and other changes in how we live may stay beyond Covid and the way we view cars may change forever.
2008 to 2013 C Class vs 2014 C Class:
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Uhunye ndio aliongeza import duty december when Kenyans were busy celebrating … ask anyone whose car wasn’t cleared by 31st december 2020 watakwambia venye wamenyoroshwa na KRA 2021
All your reasons are bullchieth except, vaguely, the last one…
Japanese do not hold on to cars older than 3-4yrs because their system to makes them too expensive and tedious to hold onto… From increased taxes, to expensive and more frequent inspections…
Most japan auction houses are automated, and very little human physical contact happens to warrant any serious covid impact on auction activities…
Thirdly any real increase in prices is purely a function of kenya government tax regime and policy
Boss during importation kuna kitu inaitwa Bad month basically Duty yenye utapigwa nayo na KRA itakufanya u scratch hadi mabolingo [ATTACH=full]349323[/ATTACH]
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Angalia CIF prices. Before even gari ifike Kenya and before kra duty costs the prices are already significantly higher. Even if auction is automated, these are not self driving cars…they need people in the supply chain…from drivers, inspectors and so on.