Lately, car business people have been getting millions from Kenyans who purchase cars. All dealers are now making millions every month from showrooms all the way to direct imports.
However, Kenyans wonder how the car business can make you a millionaire. The increase in car duty did not scare away the investors in the car business. Consequently, they are even getting more money.
Starting with the motorcycle business, here is how they make a lot of money.
Purchasing a motorbike can be hard for some people. The only way they could get is through paying the amount in small instalments. A motorbike roughly would cost a person about 120,000 Kenyan shillings when paid in cash. The business people are now making deals with motorists and boda boda business. They will allow them to pay in instalments and a deposit of about 15,000.
However, when you fail to pay, they have a right to take back their motorcycle. Paying in instalments will cost you more money than the initial price. This is how they make much money from motorbikes.
Most car business people also hire vehicles. They will charge you between 2000 Kenyan shillings to 5000 shillings a day. In a month, they would at least get 60,000 for every car they hired.
New number plates
Kenyan car dealers also take advantage of new number plates. A person would be convinced that KCD XXX for instance would cost much more money than KCA XXX.
Just like motorbikes on hire purchase, car dealers might convince you to get their car on hire purchase. This will cost you more money and more profit to them.
If one fails to pay them on time, they have all rights to claim their car back. If a car costs one million Kenyan shillings, it might cost you 1.3 to 1.4 million shillings when bought on hire purchase.