The prices of secondhand imported cars of popular brands like Mazda Demio, Toyota Fielder, Toyota V8 and Subaru Outback have dropped by between Ksh100,000 and Ksh1.2 million.
The drop represents over 15 percent of the normal prices even as importers grapple with reduced demand due to the effects of Covid-19 pandemic to the economy.
The price of a 2013 model of Toyota V8 has dropped from Ksh9.2 million to Ksh8 million, while that of a 2013 Subaru Outback is going for Ksh2.3 million, down from Ksh2.5 million.
A 2013 Toyota Premio can now be bought for Ksh1.6 million down from Ksh1.8 million while a 2013 Mazda Demio goes for as low as Ksh550,000, down from Ksh650,000.
According to Charles Munyori, the secretary-general of Kenya Auto Bazaar Association, dealers are stuck with last year’s stock, which is losing value the more it stays in the yards.
“People (dealers) have been forced to throw them away and there is no money flowing in the economy. Demand is not there. Dealers are stuck with the old stock from last year,” said Mr Munyori.
With the dropping demand and prices, the dealers make as little as Ksh100,000 per car or even are forced to sell at negligible margins to avoid selling the car in future at a loss. The more the car stays in the yard, the more it loses value since people prefer the latest models and number pplates.
Munyori, who spoke to Business daily, says that there is no hope that there will be good sales this year, even after the economy was reopened.
“The year is basically written off. We expect things to start picking up from the end of the first quarter next year,” he said.
The sales for Toyota Corolla by 46.5 percent to 2,256 units in the five months ended May from 4,219 units a year earlier while the sales of station wagons like Subaru Outback dropped by 36.4 percent to 18,934 units from 29,772 unit.
The registration of cars, pick-ups, mini buses, lorries, trailers and buses, fell by 36.5 percent to 27,250 units in the same period.