Dealers increase prices of used cars

A graphic representation of the the new rates

Kampala- The prices of second-hand cars have increased by more than Shs4 million each after government announced a ban on the importation of vehicles manufactured more than 15 years ago.

A survey in car bonds in Kampala indicated that prices of cars manufactured before and after 2003 have increased and the sales have also drastically dropped.

Dealers in used cars said buyers were more interested in cars manufactured between 1996 and 2001 because they are strong and cheap to maintain.

Mr Peter Kemba, a supervisor of Jambo Car Bond in Nakawa Division, said as soon as Parliament announced the ban, the prices shot up.

“A Toyota Premio that was manufactured between 1996 and 2000 has been going for Shs21m. You cannot import it in the country, but its demand is still high because it is strong and cheap to maintain. Car dealers that still have such Premios in stock have increased their prices to Shs26m each,” Mr Kemba said last week.

In June, Parliament passed a Bill that banned importation of cars, except trucks, that were manufactured 15 years ago. The banned cars are alleged to emit fumes that affect the environment.
The law is expected to come into effect on September 30.

“There is an anticipation that those who prefer driving Toyota Premios will resort to those manufactured in 2004 when the ban takes effect,” Mr Kemba said.

Mr Joseph Komakech, the chairman of car dealers, said Jambo car bond used to sell and release about 120 cars a day, but they are now selling 40 a day.

“It has affected both the final consumer and the car dealer. We are seeing fewer people in car bonds,” Mr Komokech said.

Most of the vehicles produced after 2004 heavily depend on computerised systems.
Mr Kemba said many of their clients are unable to service and maintain them.
“A person buys it and in two years, he or she is looking for a buyer because of high cost of maintenance. Many mechanics in Uganda do not have the skills and equipment to diagnose the mechanical problems of the new cars,” he said.


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