BY ROWAN BENN
Importing a car is no longer the preserve of the super-rich. NIC Bank has recently launched import finance in Kenya with their supply partners MHH International. They have recognised that consumers want to benefit from the highly competitive prices that quality cars are sold for overseas. Previously imports needed cash payments to be made in full before the car left its country of origin. Kenyan consumers can now buy their cars overseas and spread the cost of their import just as you would when using asset finance for a local purchase.
Straightforward importing
Imagine you have found a car on the Internet that is exactly what you have been looking for. What do you do next? It’s simple. Call MHH International and they run checks on the car to make sure it is everything you hope it will be. Alternatively they’ll track down your ideal car for you, just let them know what you would like to buy. Once your car is checked out, they give you their quote. This includes all your costs for your car to be purchased, insured, shipped, registered and delivered to Nairobi. No extras, no surprises. You visit NIC to arrange your loan just as you would for a local asset finance loan. No additional security is required even though this is an import car. Once it’s approved, MHH International purchases your car with a 20% deposit and imports it on your behalf. Repayments begin when you receive your car, so there’s a breather of a few weeks while your car is on the water. It is that simple.
Virtual Showroom
Import finance opens up the market place significantly for Kenyan consumers, offering a wider choice and highly competitive pricing. What could that potentially mean for you in terms of monthly repayment plans? We have created a virtual showroom, to illustrate some of the best purchases available overseas at the moment. It is worth noting that if you can pay in US dollars you will make considerable additional savings. Exchange rates allowing, it could save you upwards of $2,000 per year if you can repay in dollars. This reaches up to an annual $6,000 saving on the larger cars (based on current exchange rates and pricing at the time of going to press.) A cheaper dollar could see greater savings still.
2013 Volkswagen Touareg MK2 3.0 TDI V6 SE
Face lifted in 2011, the VW Touareg is a more capable 4×4 than people give it credit for. With the recent awarding of the VW franchise contract to DT Dobie, the old stigma of servicing issues is now a thing of the past. The main models are the SE and for the more sporty, the R Line. These are available from the UK as a 3-litre V6 diesel in two power outputs.
Purchase Price (includes all costs to Nairobi) Sh6.1
20% Deposit Sh1.2 M
Monthly Repayment (Ksh): Sh181,358
Monthly Repayment (US Dollars): $1577
Projected USD saving* $2,000 p.a.
Terms: 36 month loan with NIC Bank Kenya
2009 Mercedes Benz S Class 350 CDI BlueEfficiency
The most prestigious saloon of them all, the Mercedes S class offers the perfect combination of luxury and practicality. Very few cars can morph from the everyday run around to the preferred limousine for heads of state. The 350 is the successor to the 320 with more modern technology improving efficiency and performance.
Purchase Price (includes all costs to Nairobi) Sh5.1 M
20% Deposit Sh1.02 M
Monthly Repayment (Sh): 157,945
Monthly Repayment (US Dollars): $ 1,418
Projected USD saving* $ 1,800 p.a.
Terms: 36 month loan with NIC Bank Kenya
2013 Range Rover Sport 3.0 Sdv6 HSE
The hugely popular Range Rover Sport earns its reputation from its stunning lines, luxurious interior and highly capable off road features. The 3L V6 is the most popular engine and the HSE is the full specification, which is only beaten by the prestigious Autobiography. The new model was released in 2013, keeping the key design features whilst adding a fresh new twist.
Purchase Price (includes all costs to Nairobi) Sh12.8 M
20% Deposit Sh2.56 M
Monthly Repayment (Sh): 396,411
Monthly Repayment (US Dollars): $ 3,559
Projected USD saving* $ 6,000 p.a.
Terms: 36 month loan with NIC Bank Kenya
2010 Mercedes Benz E250 CGI Blue-efficiency
The 2010 is the start of the new model for the E class. These are usually sourced from Japan because they tend to be available with exceptionally low mileages. The E class is extremely popular for family life and executive use. You can choose between the SE, the Avantgarde and AMG Sport. The latter two have the lower suspension, which gives it a sportier look, but beware the compromise you make on anything other than smooth roads.
Purchase Price (includes all costs to Nairobi) Sh4.2 M
20% Deposit Sh0.84 M
Monthly Repayment (Sh): 130,027
Monthly Repayment (US Dollars): $ 1,167
Projected USD saving* $ 1,680 p.a.
Terms: 36 month loan with NIC Bank Kenya
2010 Toyota Prado TX 2.7L
The Toyota Prado TX is the entry level Prado from Japan. This new shape petrol comes at a very affordable price in comparison to the diesel. As the entry-level model, this really is a stripped back version of its bigger brothers. Expect cloth seats, automatic gearbox, electric windows, alloy rims and climate control.
Purchase Price (includes all costs to Nairobi) Sh4.3 M
20% Deposit Sh0.86 M
Monthly Repayment (Sh): 133,169
Monthly Repayment (US Dollars): $ 1,169
Projected USD saving* $ 2,172 p.a.
Terms: 36 month loan with NIC Bank Kenya
2015 Land Rover Discovery 4 HSE Lux
The HSE Lux is a higher specification than local models. Highlights include 20-inch diamond cut Landmark alloys, luxury leather interior and rear entertainment. The 3-year international warranty is valid in Kenya and you should have at least 18 months warranty available depending on your specific car. As a 7 seater, the Discovery is ideal for the larger family.
Purchase Price (includes all costs to Nairobi) Sh11.3 M
20% Deposit Sh2.26 M
Monthly Repayment (Sh): 349,957
Monthly Repayment (US Dollars): $ 3,142
Projected USD saving* $ 5,712 p.a.
Terms: 36 month loan with NIC Bank Kenya
*Based on pricing and exchange rates at the time of going to press.
This is just a small taster for what’s out there. With a worldwide market place at your feet, it’s definitely worth finding out what import options could fit your budget before you buy your next car. Spreading the costs could bring a little more luxury into your life and who wouldn’t like that? If you look after it well, your higher value asset should repay you with a higher resale value later on.
