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Second-hand vehicle dealers opt for short-term rentals

Some second-hand car dealers have resorted to renting out vehicles for events due to low sales attributed to the global supply chain woes hurting imports.
Kenya imports most second-hand vehicles from Japan and other Asian countries, but the Covid-19 pandemic slowed down the production of new vehicles, which has had a spiral effect on prices.
Most new car buyers overseas have been holding onto their vehicles much longer resulting in fewer units being available for resale in developing markets. With a drop in sales due to the rising prices, dealers have crafted new sources of revenue through car hire services.
“The economic crisis has affected us. During the pandemic, there were no weddings and we were out of business, however, now it’s picking up,” said Mr John Ndwati, a sales manager at an auto dealership in Nairobi.
He says the weddings and other pompous events are coming back hence some of the vehicles in the dealership are hired out.
“This limousine [pointing at a parked goldish black limo] goes for Sh20,000 per hour,” he said.
Weddings and ceremonies in Kenya are typically lavish functions hosting hundreds of people. The car hire business has started picking among second-hand vehicle dealers since last year.
Some merchants however still remain in the sales business strictly.
“At our auto shop, we strictly sell vehicles and not rent them out,” said Ms Terry Mwihaki, a used car dealer.
The Kenyan wedding industry was among the hardest hit sectors of the economy during the pandemic. – businessdailyafrica.

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