Cars are selling like hot cake in Nairobi and every Tom Dick and Harry wants to own one since the buying prices are relatively affordable.It is also becoming a status quo thing, where people are simply buying cars to belong, or to earn a certain respect among the peers. Many are seeking the help of the banks to make these purchases, then a few months down the line, they find that they can’t afford the car they just bought.
It would be disastrous to find out too late that you can afford to buy the car, but you can’t afford to own it due to its high operating expenses, insurance, fuel mileage, and other costs of ownership. It is just like buying a house, where there’s more to it than the monthly mortgage payment. These careless purchases without prior planning have landed many into financial trouble because their bank told them they can afford the monthly loan payment, but in reality, they can’t afford to keep the car.
First time car buyers often don’t consider the higher costs of repair and maintenance for certain models, tires that cost twice as much as those on other cars, higher fuel costs, and higher insurance rates. It would be good, for example, to consider the repair record of the make and model. Does that particular model you are eying have a history of problems with transmissions? Brakes? Electronic systems? What does it cost for routine repairs and maintenance? It makes no sense to find a good deal on a car only to find out you’ll be spending KES 50,000 or more a year fixing common problems.
We will begin a weekly feature on the cost of owning particular car models, giving you detailed information on their maintenance and repair costs, fuel costs, insurance rates, depreciation value, just to mention a few. The series is aimed at preventing you from wasting your hard earned cash on a car you can’t afford.
Remember, a less expensive car can cost you more in the long run.