How to Buy a Car in Kenya- Everything You Need to Know

When buying your first car, either new or used, you might spend hours and hours poring over different models, makes, colors, and even worse, dealers. On top of this, you are probably shopping for a car loan as well, and this can be as daunting.

Usually, you will find that it is easier to get a loan with a credit union or a local bank that it is with dealer financing. You will also have more bargaining power if you are not financing through the dealer. In this article, you will not only learn how to buy a car in Kenya, but you will also learn how to buy a car on loan in Kenya.

READ ALSO: How to Buy A Car on Cheki.co.ke

Factors to Consider When Buying A Car in Kenya

New or Used

Determine whether you want a new or used car before you start shopping. They are both advantages and disadvantages to either choice, so depending on your needs as well as your budget, consider all the aspects and then settle for one. This is an important factor to consider when deciding how to buy a car in Kenya.

Imported or Locally Bought

The second dilemma you have to solve is whether you want to buy locally or import from overseas. There are numerous places you can buy used cars in Nairobi, and even though they might be a little bit more expensive than imported cars, you'll get your hands on it immediately.

You have to be very careful when buying a used car in Kenya, because you might be conned into buying a stolen car or one that is in very bad shape and needs multiple repairs. Imported cars on the other hand, usually have an upper hand because they are cheaper, even with the added taxes, but it is always very frustrating to wait before the car is duty free.

Determine how much of a car you can afford

Determine how much money you have and how much you need to borrow. How much do you really want to spend on a car? A good deal should be one you can easily pay off over a short period of time. The amount of money you borrow could depend on the type of car you want, so decide on your make and model before you shop for a loan. However, don't get carried away by the excitement because taking a loan you are unable to pay is risky.

How to find a loan to buy a car in Kenya

Most lenders do not guarantee a loan until you sign papers, but they do give a pre-approval for a loan amount as well as a current rate. Start by contacting your bank, and then check out your credit union or Sacco. You should opt for the deal with the lowest interest rates as well as automatic payments. Unless you must, or you are offered an impeccable deal, then don't use the local dealer for financing.

Factors to Consider When Checking Out the Car

Where Should You Buy A Car in Kenya?

Now that you have determined the kind of car you want, and the amount of money you can get for it, it's time to do some shopping. There are several places you can buy your car, either online or offline. If you want to buy online, especially if you want to import, you should buy through a reputable website such as cheki.com.

Cheki is a reputable online website that deals with cars and other types of merchandise and it offers one of the easiest ways to buy a car in Kenya. Cheki has some of the best second hand cars to buy in Kenya and it is very easy to find the kind of car you want listed either by dealers or by the owners. It is always a better option to buy from the owner, but you can also make a good deal with a dealer. You can also buy your car from car dealerships in Nairobi. Going to one dealer is not enough because you need to compare prices before you settle for a car of your choice.

How available are the Spare Parts of the Car in Kenya?

Truth be told, Kenyan roads are not the best and will take a toll on your car after a while. For this reason, check the availability of the spare parts for your chosen car. There’s no reason to have a car lying in the garage simply because you couldn't find the right spare parts. Shipping pair parts could be very expensive and it may take a while before you repair it, which means you’ll have to use public transport in the meantime.

Check the Car Thoroughly

A car is a big investment and you should not be sloppy when making inspection, especially when you're buying a used car in Kenya. Whether you are dealing with the car owner or a car dealer, don't take the word for anything they say. The procedure of buying a used car in Kenya is longer compared to getting a new one. Ensure you know exactly what to check, or better yet, hire a mechanic to give the car a thorough inspection so you know the exact condition it is in.

A mechanic will also give you an estimated worth of that car so you're not conned. Buying a new car in Kenya could be easier because you don’t need to check for anything. It is advisable to take the car for a test drive to ensure you get exactly what you desire.

Check the paperwork

This is the next thing you should not be sloppy with. Ensure that the car is legal before you purchase it. If you are dealing with an owner, then you should get proof of ownership, which is the original logbook. You should also conduct an online search of the car registration as well as full information about the car from NTSA. With only a fee of about 500 shillings, you will get all the information you need about that specific car, and whether its accident free or it has any due fees.

Finish the Loan Process

Once you find the right car and negotiate a deal, it’s time to pay for your car. Go back to your lender to confirm the loan and sign up. You can have the bank pay the dealer directly because they will need to have the car identification number or the title to process the loan. You also need to give them the title once you get it from the car owner.

READ ALSO: A step-by-step guide to securing online purchases

How to Pay for the Car

If you are not getting a loan and are paying for the car yourself, you need to use a secure payment method to ensure you are not conned. One of the best ways to do it in Kenya is through an escrow service, such as escrow Kenya. The escrow service provider will hold on to your funds until you have the car and everything in order, and once you give the green light, EscrowKenya.com will release the money to the seller.

This is an incredible way to ensure that you are not cheated, and that you don’t lose your money. You also need to transfer the car ownership from the owner to yourself, and you need to purchase stocks from the TIMS website.

Bottom Line

Now you know how to buy a car in Kenya. It doesn’t have to be hard, but you have to be careful because you will be investing a lot in it. Consider all your options, in all aspects before you finally make a deal.