•Major and minor servicing, insurance premiums, and unforeseen repairs can add up quickly if not managed effectively.
•A basic car with 1500cc to 2000cc will need about 2 minor services per year estimated at 10,000 each and one major service estimated at 25,000 per year.
Image: JACKTONE LAWI
In Kenya's thriving automotive market, many are shocked by the cost of ownership after purchasing a car.
The decision to buy a car involves more than just choosing the right model.
It requires careful consideration of the source of funds, set budget, the purpose of the car, maintenance expenses, and long-term affordability that goes towards ownership costs, including major and minor servicing, insurance, repairs, and proactive budgeting strategies.
The ultimate consideration when making a car purchase that consumers often face is the dilemma of paying in cash or opting for a loan.
While buying outright with cash eliminates interest charges and keeps you out of debt, it may strain your savings and not only limit financial flexibility but also getting a car with the latest features that you need.
On the other hand, securing a car loan allows for spreading the cost over time, preserving liquidity for other investments, and getting a car that works for you and one that you will not necessarily need an upgrade from in some years to come.
Most informed buyers base their decisions on the expenses associated with ownership. The first consideration is where to service the car and what it would cost.
Major and minor servicing, insurance premiums, and unforeseen repairs can add up quickly if not managed effectively.
Most new car owners do not factor in the cost of ownership when buying a car, as they only focus on affordability.
A basic car with 1500cc to 2000cc will need about 2 minor services per year estimated at 10,000 each and one major service estimated at 25,000 per year.
One should also factor in miscellaneous costs of between 20,000 to 40,000 a year in unforeseen repairs.
Insurance would set you back another 70,000 to 100,000 each year and a security tracker about 30,000.
This brings the cost of ownership to roughly 200,000 each year on the higher side.
In some financing schemes Kenyan car owners can gain access to a network of trusted service providers and insurance partners, ensuring quality maintenance and competitive coverage.
Autochek's car financing for instance includes comprehensive insurance and maintenance services.
By proactively budgeting for routine maintenance and setting aside funds for emergencies, one can safeguard against unexpected financial burdens and enjoy peace of mind on the road.
To mitigate the impact of maintenance costs on your monthly budget, it's essential to establish a proactive savings strategy.
Allocate a fixed amount each month towards a dedicated maintenance fund, taking into account factors such as vehicle age, mileage, and anticipated service intervals.
This provides tools for Kenyan car owners to track maintenance expenses and optimize savings, making routine servicing easier and helping preserve vehicle value.
By utilizing technology and partnerships, car ownership experience, from financing to maintenance, enabling informed decisions and savings.
Navigating the complexities of car ownership in Kenya requires careful financial planning and proactive management of expenses.
By weighing the pros and cons of cash versus loans and prioritizing budgeting for maintenance, Kenyan consumers can optimize their savings and enjoy a stress-free ownership experience.
Marketing manager at Autochek.