Can I Get a Car with 100K in Kenya?
You’ve saved up KES 100,000 and now dream of owning your first car.
It’s an exciting milestone, but before you jump into buying, there’s one critical question you need to ask yourself:
Is it possible to get a car with 100K in Kenya? While it might seem within reach, the truth is that buying a cheap vehicle often comes with hidden costs that could end up costing you much more in the long run.
The Hidden Costs of a Cheap Car
At first glance, KES 100,000 may seem enough to get you a car, which is likely a locally used second-hand option. However, it’s important to remember the phrase “cheap is expensive.” Here’s why:
Maintenance Issues
Older, second-hand cars come with wear and tear that may not be visible at first.
Maintenance costs for these vehicles are often much higher because old parts need constant repairs or replacements.
While the purchase price may be low, the cumulative cost of maintaining such a vehicle could easily surpass what you paid for it within two months.
Reliability
A cheap car can be a gamble when it comes to reliability.
Older cars tend to break down more frequently, so you could spend more on repairs, towing, and other emergency services.
Ultimately, your “affordable” car could cost you money and time.
Resale Value
A car purchased for 100K is unlikely to retain much value, especially if it’s several years old.
If you decide to sell it later, you may struggle to find a buyer or be forced to sell at a loss.
In comparison, newer cars, though more expensive upfront, maintain better resale value over time.
Understanding Car Financing Options
Given the potential pitfalls of buying a cheap car, it might be worth considering car financing as an alternative.
Car financing allows you to purchase a vehicle through a loan, where you make a down payment and spread the remaining cost across monthly installments.
This can be a good option if you use the car to generate income.
Here’s why financing might be a better option if you have KES 100,000:
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Get a Better-Quality Car: With financing, you’re not limited to second-hand vehicles with high maintenance costs. You can afford a newer, more reliable used car that won’t break down every few weeks, saving you money in the long run.
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Flexible Repayment Plans: Most financing institutions in Kenya offer flexible repayment terms tailored to your financial situation. With your KES 100,000, you can make a reasonable deposit and pay off the rest monthly, ensuring you’re driving a reliable car without overstretching your budget.
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Long-Term Savings: While financing might sound like a big commitment, the overall savings on maintenance, fuel efficiency, and resale value can make the investment worthwhile. You won’t have to deal with the constant stress of breakdowns, and you’ll likely get more years out of a financed car than you would with a cheap second-hand one.
Are You Really Ready to Buy a Car?
Owning a car is a big responsibility; the initial purchase price is just one part of the equation.
Before you commit to buying a car, whether outright or through financing, consider these critical factors:
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Budget Beyond the Purchase Price: In addition to the cost of the car, you need to factor in other expenses like insurance, regular servicing, fuel, and road taxes. If buying an older vehicle, you should also budget for more frequent repairs and part replacements.
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Emergency Funds: Owning a car means being prepared for emergencies. Whether it’s a sudden breakdown or an accident, having a little extra saved up can prevent financial strain when the unexpected happens.
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Commitment to Repayments: If you choose to finance, make sure your monthly income can comfortably cover the installments. Missing payments could lead to additional fees or, in the worst case, car repossession.
Conclusion
While it’s tempting to look for a cheap car when you have 100K, the reality is that a low-budget vehicle often ends up being more costly in the long run. An affordable car's maintenance, repairs, and hidden issues can quickly add up, making what seemed like a good deal into a financial burden.
Car financing offers a more thoughtful alternative, allowing you to drive a better-quality vehicle with manageable monthly payments. Ultimately, your car is an investment, so it’s essential to choose wisely and ensure you’re financially prepared for the responsibilities that come with ownership.
Take your time, consider your options, and make a choice that will not only get you on the road but also keep your finances on track.
When you are ready, you may need to find a trusted used car dealer to sell you a vehicle.
