Caetano Kenya, the local franchise holder of Hyundai and Renault cars, has entered the used vehicles market where it is selling a wide range of brands including Toyota, Mitsubishi, and Jeep.
The formal dealer joins CFAO Group –the owner of the Toyota franchise in Kenya— which was the first to start selling used cars through its subsidiary Automark.
The moves mark the new vehicle dealers’ quest for a piece of the secondhand car market which is bigger compared to showroom sales.
The formal dealers say they are bringing higher quality and customer service standards to the used car business that has been dominated by individuals and roadside yards operated by small business owners.
“Caetano has announced their official entry into the used car market with Carplus, their pre-owned car dealership,” the company said in a statement.
“There tends to be a few uncertainties associated with used cars. Therefore, a buyer may want to learn as much as possible before signing on the dotted line. Carplus personnel feels confident that buyers will find the answers they are looking for at their dealership.”
Used imports account for an estimated 85 percent of all passenger car sales in Kenya. They are popular among bargaining-hunting professionals, small business owners, and even some wealthy individuals.
New cars are mostly bought by the government, non-governmental organisations, and large private companies, with some of the buyers able to deduct their spending on automobiles from their tax obligations.
Used cars are substantially cheaper compared to new ones of the same or similar specifications, with their lower price tag arising from depreciation after years of use in local or foreign markets.
Caetano says the used cars will be imported from Japan, South Africa, Dubai, and Singapore.
“Buying a used car can be challenging even for the most experienced car shopper. Price gouging, title washing, high maintenance costs, and bogus back-end deals are just some of the hazards that a consumer faces,” the company said.
“At Carplus, customers will have complete peace of mind as they will be provided with vehicle financing solutions, warranty, insurance, professional aftersales services, and trade-in options.”
The company says all the vehicles will go through extensive technical inspections for functionality, quality, and reliability checks.