With the aim of becoming the primary platform for all car transactions in the Sh4.84 billion ($45 billion) African used car market and expanding through Africa, Cars45, Nigeria’s leading automotive trading platform, entered the Kenyan market in 2019. Two years on and the company has announced plans to increase its investment in the country.
The firm plans to open two branches, on Kiambu Road and in Mombasa as they look to attract the growing middle class. According to Andrew Agbro, Cars45 regional manager, despite Covid-19 having a negative impact on the economy, Kenya’s automotive market is currently ripe for investment.
“We have seen demand for cars, especially during Covid-19 Pandemic as people are afraid of using public transport and are now going for cars, we have also seen people offloading vehicles as their economic status went on a down hill,” he said.
In fact, data collected by Cars45 shows that used foreign cars have increased by 13.21% on average due to the pandemic and the fact that Japanese car owners were not releasing their cars for sale to the companies that import to Kenya. As a result, foreign cars have become more expensive than they were the year before. “For instance, a foreign used Mazda Demio that would cost Sh530,000 in 2020 is currently at Sh600,000,” said Mr Agbro.
Apart from providing users with a trading platform that allows them to sell their used cars and get paid in less than an hour, the platform also offers sellers access to standardized pricing with 100% visibility into price offers as well as providing vehicle financing background checks, history of the vehicle, sales support, servicing and insurance.
Mr Agbro believes that when it comes to used cars, the price is dependent on the condition and for that reason buying a second hand vehicle is only half the battle of the decision making process. The other half comes into play where you have to be cautious about the fraudulent nature around the used car market not to mention the actual condition of the car you want to purchase.
“This is why Cars45 carries a 212-point inspection which helps the individuals to know the actual state of the cars they purchase which in turn helps them make a more informed decision before buying,” he said.