Pros and Cons of Buying New vs. Used Cars in the USA for the Kenyan Market

Market

When I first started looking at cars to import from the USA to Kenya, I was hit with a classic dilemma: should I go for a brand-new car or try my luck with a used one? On paper, the answer might seem obvious. New cars are shiny, come with warranties, and feel like they’re straight out of a dream. Used cars, on the other hand, are cheaper but carry some risk. But as I quickly discovered, the reality isn’t that black and white, especially when you factor in the Kenyan market, import regulations, shipping costs, and the quirks of American dealerships.

Let’s break it down in a way that feels more like a conversation than a textbook lecture. I’ll share what I’ve learned, some real-world examples, and a few hard truths that dealers might not always highlight.

Why Buying New Cars from the USA Seems Tempting

At first glance, a brand-new car is almost irresistible. Imagine stepping off the plane in Nairobi, knowing your Toyota RAV4 or Ford Explorer is untouched, gleaming, and equipped with the latest tech. The appeal is clear: zero wear and tear, the latest safety features, and—if you’re into that sort of thing—a sense of status that comes with driving something straight off the assembly line.

New cars also typically come with a factory warranty, which is a big deal if you’re worried about repairs once it lands in Kenya. Even though the warranty may only be valid in the USA, it often buys you peace of mind while arranging service locally or dealing with the first few minor issues that inevitably pop up during shipping and importation.

But here’s where the nuance kicks in: new cars are, unsurprisingly, expensive. The MSRP (Manufacturer’s Suggested Retail Price) in the USA may seem reasonable when compared to Nairobi prices at first, but add shipping, clearing fees, insurance, and other import costs, and suddenly that “affordable” new vehicle starts edging close to twice its US price.

For instance, I once helped a friend import a 2023 Chevrolet Traverse. The sticker price in the US was around $38,000. By the time it cleared customs in Mombasa and reached Nairobi, with shipping, import duty (around 25% of the vehicle’s value for Kenya), VAT, and port handling fees, the landed cost approached $52,000. That’s almost a 37% increase on top of the original price. The math made him rethink whether the brand-new factor was worth it.

The Pros of New Cars

Let’s list some clear advantages, because they are significant:

Latest Technology and Safety Features: Modern infotainment systems, adaptive cruise control, lane assist, and blind-spot detection can make a difference, especially if you spend a lot of time on highways in Kenya or roads with tricky traffic patterns.

Peace of Mind: No history, no hidden damages, and no “what-if” scenarios. You know exactly what you’re paying for.

Resale Value: Believe it or not, brand-new cars in Kenya sometimes hold value slightly better in the first year because some buyers prefer untouched vehicles, particularly premium models like Lexus, Mercedes, or BMW.

Financing Options: In the US, dealerships often offer loans or leasing options that may make buying new a bit more accessible, though getting financing from a Kenyan bank for a US purchase can be more complicated.

Still, while these points sound great, there are subtle drawbacks that might make a used car more appealing for the Kenyan market.

Why Used Cars from the USA Can Make Sense

Used cars, especially those that have been lightly driven or are only a few years old, offer a different kind of value proposition. First, the initial price is lower, sometimes dramatically. A 2019 Honda CR-V, for example, might cost $25,000 in the USA, and even after shipping and import duties, the total landed cost might still undercut a brand-new 2023 model by thousands of dollars.

The second big factor is depreciation. A new car loses value the moment it leaves the dealership. In the US market, cars depreciate fastest in the first 2–3 years, which means a slightly used car can be significantly cheaper but still in excellent condition. For Kenyan importers, this often makes more financial sense.

I remember a cousin who imported a 2020 Ford F-150. It had 25,000 miles on the clock but was priced at $35,000 in the US. Once it arrived in Nairobi, all in, the total cost was around $42,000. Compare that with a brand-new 2023 F-150 that would have cost over $55,000 landed. The savings were too significant to ignore, and the truck still felt practically new.

The Pros of Used Cars

Cost Efficiency: Lower purchase price, lower depreciation hit, and often better value for money in terms of features vs. price.

Better Insurance Premiums: In some cases, older cars can attract slightly lower insurance premiums, although this depends on the model and engine size.

Variety and Availability: Certain models may no longer be sold new in the US but are still desirable in Kenya. For example, some luxury or large SUVs from 2018–2021 might be perfect for local conditions but unavailable as brand-new models in the US market.

Customizable Options: Often, lightly used vehicles have had optional upgrades already installed, like premium wheels, sunroofs, or aftermarket tech, giving you a better spec without the brand-new price tag.

The Cons of Buying New Cars

Of course, the main downside, and it can’t be overlooked, is cost. New cars demand a hefty initial investment, which may not make sense for everyone. In addition, certain features, like touchscreens or advanced driver-assist systems, may not perform optimally in Kenya’s climate or on rougher roads, meaning you’re paying for tech that may never get fully utilized.

Another subtle issue: customization. New cars often come in limited stock or configurations for export, which may not match your preferences. Importing directly from the US might limit your choice in color, trim, or certain options unless you’re willing to wait months or pay extra.

Finally, a new car might attract more attention on the streets of Nairobi or Mombasa, which could be a security consideration. Expensive-looking vehicles sometimes invite petty theft or other risks in certain neighborhoods.

The Cons of Buying Used Cars

Used cars are cheaper, but they come with their own risks:

Potential Hidden Damage: Even cars with clean histories might have had minor accidents, frame damage, or flood exposure that isn’t immediately obvious. This is why it’s crucial to check the CARFAX or AutoCheck history reports and, if possible, have an independent inspection done before shipping.

Warranty Limitations: Most used cars are either out of warranty or have very limited coverage. Repair costs in Kenya can be high if the part is US-specific and hard to source.

Higher Maintenance Risk: Older cars may need tires, brakes, or other consumables replaced sooner than a new vehicle would. Shipping these parts can also add time and cost.

Resale Perception: While slightly used cars are often smart buys, some buyers in Kenya still prefer new vehicles for prestige or social reasons. This can affect resale in niche markets, particularly for luxury or premium models.

A Few Practical Tips for Kenyan Importers

If you’re considering either option, here are a few lessons I learned the hard way:

Do the Math on Total Cost: Always calculate the total landed cost—including shipping, clearing, import duty, VAT, insurance, and port handling fees. Sometimes the difference between new and used narrows more than you’d expect.

Check Vehicle History for Used Cars: Sites like CARFAX, AutoCheck, and even dealer records can save you from buying a lemon. For example, some vehicles listed as “clean” may still have had minor flood damage that could affect electronics years later.

Factor in Local Compatibility: Consider road conditions, fuel quality, and spare parts availability in Kenya. Some US models may use premium parts or engines sensitive to local conditions.

Think Long-Term: Sometimes, paying slightly more for a well-maintained used vehicle is smarter than buying a new car that depreciates heavily in the first few years.

Real-World Anecdotes

I once met a Kenyan entrepreneur who imported a 2018 Lexus RX350 from Texas. He got a top-spec model with leather seats, sunroof, and advanced safety tech for $30,000 in the US. Landed in Mombasa, it cost him about $39,000. Compare that to a new 2023 model, which would have landed at over $50,000. The Lexus looked and drove nearly like new, and he saved more than $10,000.

On the other hand, a friend bought a brand-new Jeep Grand Cherokee. While he loved the feeling of “newness,” he noticed that after shipping and customs, the total price was around $60,000, and some features, like the adaptive cruise control, were sometimes unreliable on rough roads around Nakuru. The car was beautiful but expensive, and in hindsight, a slightly used 2021 model might have delivered almost the same experience for $15,000 less.

Balancing the Choice

Ultimately, the decision isn’t just about cost; it’s about personal priorities and risk tolerance. If you value peace of mind, brand-new features, and the thrill of being the first owner, a new car may suit you—even if it’s a bigger investment. If you’re looking for smarter economics, minimal depreciation hit, and willingness to do a bit of homework, a used car often makes more sense.

For the Kenyan market, used cars from the US are particularly attractive because the savings can be substantial, and many models come with only light mileage and excellent maintenance histories. Meanwhile, the niche market for new cars often caters to buyers who prioritize prestige, the latest tech, or long-term reliability with fewer unknowns.

Final Thoughts

After my own experiences importing cars, I’ve come to see that there’s no one-size-fits-all answer. The US market offers incredible variety, but each option has its quirks and hidden costs. New cars provide confidence and status but come at a premium. Used cars deliver better financial sense but require careful research and a willingness to navigate minor uncertainties.

In the end, whether you go new or used, doing your homework, checking history reports, calculating total landed costs, and considering local conditions in Kenya will make all the difference. And if nothing else, having the chance to drive a piece of American engineering on Kenyan roads—new or slightly used—is a story worth telling.

Published on: Sep 08, 2025

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