You have probably heard of someone who bought an imported car and a few weeks later, they were in the garage with a major issue.
Having worked at several car dealerships here in Kenya, I noticed something. Kenyans do not ask for the auction papers of the car they want to buy.
You see, wherever the car was imported, it must have gone through a thorough inspection process. This inspection determines whether the car will be exported. If declared okay for export, it is given a grade, which is indicated on the auction papers.
The grade is given according to how well-kept the car is or how mechanically or physically clean it is.
Knowing that most Kenyans never ask to see the grade of the car, most dealers will, therefore, sell cars with the same price despite having different grades.
So what are the different car grades?
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The highest grade you can get is the S grade. This means the car is less than 12 months old since it was produced, has less than 10,000 kms mileage, and has no visible dents or scratches.
After the S grade, we go down to the 6th grade. This means the car is not older than 36 months since the day it was produced, has traveled 30,000 kms or less, and has no visible dents and scratches.
Next is grade 5. The year of production does not matter, however, the car should have done no more than 50,000 kms mileage, and has no dents and no visible scratches.
We then get to grade 4.5 which is the most common grade here in Kenya, they are cars under 100,000 kms on mileage, no dents and very minor scratches if any. They require repairs.
After grade 4.5 we get to grade 4. These are cars under 150,000 kms mileage, and have minor dents and scratches. Grade 4 cars need some repairs.
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The second last grade is the 3.5. Here, the mileage of the car does not matter, the car has dents and scratches and will need some repairs.
The last grade is grade 3. This is a car in poor condition, has several dents and major scratches, mileage on grade 3 cars does not matter.
There is also a special grade known as R. It means the car has gone through major repairs before being imported into the country. I would avoid a grade R car because the car might have had an accident while abroad.
But how does the grade impact the car prices assuming we have two cars, same model and same year of manufacture?
A grade S car will probably cost the same as a grade 6, because of their almost new condition. The same car will however cost more by 25-30% than a grade 4.5 car. For example, if the Grade S is going for Ksh1.25 - Ksh1.3 million, then the Grade 4.5 will cost about Ksh875,000 to Ksh1 million.
A grade 4.5 car will cost 10-15% higher than a grade 3.5 because of its better physical and mechanical condition.
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A grade S car should have a very high significant difference in price compared to a grade R. This is because a Grade R car has been involved in an accident or has had major car parts changed while the S grade is still relatively new.
So before you make that transaction at a dealership, ask for the auction papers and the grade will be clearly indicated. I also advocate for tagging a mechanic along, they can spot what you cannot, such as suspension issues, brake issues, engines issues or gearbox issues.
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