Second-hand cars to get more expensive in new age limit rule

THURSDAY, MAY 25, 2017 21:07
BY MUTHOKI MUMO
Kenyans may have to dig deeper into their pockets to buy second-hand cars popular with the majority if proposals to lower the age limit for used-vehicle imports are implemented.
An East African Community (EAC) resolution has recommended the slashing of the age limit for imported cars to five years by 2021, in a raft of measures intended to promote local assembly in the region.
Kenya only allows the import of second-hand cars not older than eight years while Tanzania has set its limit at 10 years.
Rwanda, Burundi and South Sudan do not have any such limits. On average, cars in the region are 15 to 20 years old.
Second-hand imports are highly popular with majority of middle income Kenyans as they are cheaper.
New cars are out of reach for the majority, with most dealers only focusing on a few wealthy buyers, government, big companies and aid agencies.
The EAC report argues that the disjointed policies on age limits among the EAC member states are flooding regional markets with old cars and stifling the growth of new car manufacturing.
“Lack of clear policy on age limits has been identified as a factor contributing to increased imports of used vehicles, while also posing adverse impact on environment, safety and health,” states a policy brief on the report that was submitted to a summit of the EAC heads of state last week.
Under the proposals, EAC countries would harmonise the age limits for used car imports at eight years by 2019. This limit would then be lowered to five years by 2021.
Used car imports make up about 85 per cent of the 2.2 million cars on the road in the region.
The report, carried out by the EAC secretariat and the Japan International Co-operation Agency (JICA), estimates that the region loses about $2 billion in foreign exchange every year on importing cars.
It is argued that with more stringent limits on the cars coming in the EAC, a window will open up for local manufacturing to thrive, to meet growing demand.
The report also recommends that the EAC invests in two large-scale assembly plants that will produce cars with a price range of between Sh516,200 ($5,000) to Sh1 million ($10,000).
The region should aim to produce 500,000 units per year by 2027.
“It is expected that the growing economy and expansion of the middle class will continue to spur the demand of vehicles in the EAC region,” says the policy brief.
Currently East Africa has an average motorisation level of 15 vehicles per 1,000 people, lower even than the African average of 44 vehicles per 1,000 people. Whether these proposals will be implemented remains to be seen.
EAC partner states have been trying to harmonise age limits on cars for more than a decade with little success.
http://www.businessdailyafrica.com/news/Second-hand-cars-to-get-more-expensive/539546-3942312-44uiyp/index.html

Impending doom for those of us who are used to buying jalopies… Those cars don’t depreciate as fast before 6 years in Japan, with some 5 year old cars selling at 10% below retail price. Soon it will be harder to get your own wheels. Prepare for the future.

Halafu bei ya hizo locally assembled vehicles zitapandishwa bei kama unga

:smiley: :smiley: :smiley:

Hii harmonisation chieth irudishwe 10 years. Alafu ianze kupunguzwa na moja 2 years… Alfu tutaanza kudrive VW Polo sisi wote…2030

Wanted to say the same thing, a 5 year axio is more expensive than the polo, although this is the standard polo with zero options

I think hata with several options kama satnav/infotainment bado itabaki cheaper juu ya warrant/service…my take though…

Hata wakitaka waeke two years. Hii “my car generashen inabore”. On the brighter side tutajua nani mbirrionaire true

Kweli, jam itapunguka! A car will once again be a status symbol

Funny thing is stato unaeza pata gari ata na $200

ipunguzwe

Hii evil eye yenu is very ugly. So gari ikuwe expe ndio watu wakose alafu mfurahie? Umeffi.

Inakaa VW walinukishia watu wa hiyo committee vitunguu.

With the way future tech and trends is going, Africa may find itself a dumping ground for unused cars brought about by driverless tech and ride sharing software.

sasa itabidi tununue jalopy za @introvert za 1947

Cosmas, chunga venye unanitaja. I have @jumabekavu on speed dial.

I think no. Manufacturers are clever. they issue two year warranties but they are sure that thing will start breaking down year 5 saa ile umesahau kwenye ulinunua.

They should reduce taxes on vehicles so we afford newer imports na waweke limit at 4 years. Ama watoe serious initiative for locally made cars. Hii mambo ya kusema mnaban na bado hamna solution ni umavi. Wameban pikipiki za china na vile zimeleta misery hii kenya?

Good idea! Kila mtu ashike Bajaj :smiley: :smiley: :smiley:

If my eyes are so evil and ugly why do I see upside and opportunity? Mimi si mbirrionaire, just saying that the restrictions are welcome.
Juu umeniambia hivyo acha niende nisafishe mecho yengu kwa ile thread ya @Kill The Buzz

I bet it is only Kenya that has the luxury to implement that rule with a little disruption that will correct itself sooner rather than later. In UG or TZ, implementing that 5yr rule will see the number of vehicles on the roads reduce significantly - you know they are peasants, right?