Toyota is set to jolt the second-hand car dealer industry when it begins to import used Toyotas into the country for auction.
The company will set up the car bazaar near Belle Vue on Mombasa Road where it has bought land across from the Kenya Bureau of Standards premises.Toyota will bring in cars ranging from five to seven years old which it will also guarantee in quality, mileage and function. The move is likely to hit second hand auto dealers hard as Toyota is the most sold brand in this category.
Outgoing Toyota Kenya MD Hylton Bannon said work is currently ongoing to put up the auction premises and a Toyota service centre at the location. “We will bring them and sell them by auction,” Bannon said. He spoke during the opening of Toyota’s Westlands’ service centre on Monday evening.
The facility is meant to serve the firm’s clients in the area who have previously been forced to go to Industrial Area for service. Another facility is to be put up in Gigiri.
Toyota reckons by selling used vehicles it will not cannibalize its new vehicles sales as they address different demographics. “The average Japanese trades in their vehicle after five years,” a Toyota representative said explaining why the company will bring in vehicles starting at five years old.
Currently, most of the used vehicles imported tend to be eight years old in accordance with the law. Some, Toyota said, have their odometers rolled back to reflect false mileage or have been in accidents. The vehicles Toyota will bring in will have a warranty of about three months.
The move will also ease the load for Kenyans who have to go through middle men and sometimes lose their money seeking to import ex-Japan vehicles. Toyota will also set up a major parts centre at the auction that will serve the region. The only other one is in South Africa.
Source: http://allafrica.com/stories/201112020075.html
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