So far Kenya seems to be the leading country in East Africa on importation of second hand cars. Currently it is estimated that around 65% of the population own cars. Previously cars were owned by very rich people, but at the moment it seems that there are most middle class people that own cars.
Currently there are many car dealers in Kenya. Most of the big car dealer companies are based in Mombasa. Most of the car buzzers in Mombasa have been flooded with different models of cars. The major challenge this dealers face is change of market demand. Currently many of those buying the vehicles go for the latest model in the market. This is a big blow to the owners of the buzzers who in turn are left with old model vehicles in display for longer time.
Putting in mind that this business people pay rent, tax, license and insurance sometimes they end up running into losses in case the vehicles stay for a longer period at the buzzer. At times they may even be forced to sell the vehicles at a lower price due to drop in market price for the overstayed model.
Many of those in this business have complained of illegal importation of cars by some cartels. There are many vehicles that are flooded at the port that have been brought illegally. This denies genuine business operators a change to make good profit. When the illegal cars enter the market they are sold at a cheaper price leading to loses of other people on the car selling business.
Content created and supplied by: Handcheque (via Opera News )