Sure, we all like to buy new, but there are huge money savings to be made in buying used. If you are looking to get the most value for your shilling, it would do your wallet good to check out secondhand options. Many used goods still have plenty of life in them years after their original purchase, and they are usually resold at a fraction of the retail price.

Buying used goods is not a simple “yes” or “no” situation. Given the prospects of our more or less slowed down economy, continued inflation and a weakening shilling, buying used goods may be wise, but that’s if you go about it in an informed and cautions manner. Here are a few guidelines that may be useful when you are doing your “mtumba” shopping.

Know value

If you don’t know what something is worth, you face the risk of paying way too much for it. To avoid overpaying for these secondhand goods, compare prices by window-shopping. Walk into different retail shops and check out the price for new items then compare the price with those for similar but secondhand items. There are circumstances where the difference may be very minimal thus you could opt to get a new item as opposed to a secondhand one. But still, knowing the difference in price of new goods as opposed to secondhand ones will give you a basis for bargaining when buying “mtumba” items thus enabling you to get a good deal in your purchase.

Control your desire to buy

Avoid impulse buying. Muthurwa or Gikomba may offer you a wide variety of cheap secondhand goods and you could find yourself making purchases that are least likely to fit your current or future needs. One of the pitfalls of buying many used items is that one becomes the owner of a lot of seldom or never used possessions. In the long run you could find yourself spending more when shopping for secondhand goods as opposed to shopping for new goods, so try to control your impulse buying habit. Only get those things you need and make a big saving.

Deliberate a day or two on major investments

Yes, the secondhand market may offer you cheaper goods, but in the long run it could cost you a lot more than you would have spent if you would shopped for brand new similar items. We have all heard about Njoroge who bought a used pick-up track, for his light transport business, only to find that he had taken over the previous owners problems. It is advisable to seek second opinion when shopping for secondhand goods. Getting a mechanics opinion, even if it costs you, may be a wise precaution. If we all were required to deliberate on decisions, the volume of money wasted on secondhand sales would decline sharply. One person’s junk might appear to be your treasure, but tomorrow you may have a different view-point.

Consider additional costs.

No matter how little you pay for an item, this may be only a part of your cost. In addition to the cost of transportation, alteration, repair, etc, you have an investment of your time. If the item is unsatisfactory for you, you may have to resell it, perhaps at a loss. Before making any purchase, ask yourself if you are willing take this risk.

So, as before you go to Muthurwa, Ngara or Gikomba, decide what would constitute a reasonable price. A good rule of thumb is to pay no more than 50% of an items original retail value. Be there early, around 7 in the morning is more ideal since the selection will be better and you will have more of an opportunity to examine the merchandise. If you are an interested buyer and are willing to expend the energy, you may save money if you make a counter offer to the asking price. Do not assume that “Bei ya mwisho” is a firm price, bargain a little more until you get that good deal.

Always remember that all sellers have their needs and personal goals. Without undue taking advantage of this, you may save on the purchase of furniture or any other household items from a seller who is moving and needs to dispose of his or her property.

Assume that the seller has some experience with the item he or she is selling. If the seller has owned and used the item, he or she has knowledge about its condition and value but may not share it with you unless you ask and probe intelligently.

The world of second hand purchases is a fascinating and interesting one. Yes, there are risks as we have pointed out, but off course there are numerous rewards. If you carefully assessed your needs and have decided to buy something, if you know something about what you are buying and use the same good judgment you have used in buying new items, you will undoubtedly have many successful experiences.

This article was first published at moneyacademy