Several people believe that one of the easiest ways to become a millionaire in Kenya is by selling cars. However, this is not the case as selling cars is quite tiring and frustrating especially if you are new to the business. If you ask around, you will realise that most car dealers sell a maximum of four cars in a month.
If you want to start a car dealership business, it is advisable to start as a broker so that you can gain some experience and contacts in the field. Even though most car dealers find it hard to make millions, some clever dealers love hire purchase.
Several Kenyans dream of owning a car but do not have enough money to purchase one. This is where some car dealers use the higher purchase to make money. Since Kenyans love to buy items on loan, several car dealers like to take advantage of this and sell cars on hire purchase.
Whether you are purchasing a new or a sued car, a car dealer will offer you a hire purchase option whereby you are given about 12 months to clear the remaining balance after giving out a deposit. Depending on the repayment period, one can pay up to twice the price of the car on hire purchase. This means that the car dealer makes more money.
In case you fail to pay as per the agreed terms, the car dealer has the option of repossessing the car and selling it to make more money.
As a car owner, you can opt for other car financing methods such as bank finance or Sacco finance since they are cheaper alternatives to hire purchase. You should always remember that it is not a must to own a car in Kenya.
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