Buying a 2010 Demio Cash Vs the 2016 Axela Through Car Financing?

EDITOR'S NOTE: This article is a part of our Money254 Partner Series and is produced in partnership with Autochek. For more on Money254’s editorial policy, read here. 

Picture this: you’ve saved Ksh600,000 to buy a car. It’s enough to buy a 2010 Mazda Demio in cash, and you’re excited to own a car finally. 

But then, you start thinking—what if you could drive away in a 2016 Mazda Axela instead of settling for an older model? The catch? The Axela is going for Ksh1.7 million - but has the option to pay pole pole in two years. 

Now, you're faced with a decision: do you pay for the Demio upfront and forgo the monthly payments, or take a loan to own a newer, better vehicle? It’s a dilemma many Kenyans face—especially in today’s market where car prices continue to rise. This choice isn’t just about which car you want to drive, but how you manage your finances over the long term.

In this article, we’ll dive into why financing your car might be a smarter financial move than you think, and how Autochek’s car financing options can help you make that dream car a reality.

Preserve Savings with Flexible Monthly PaymentsPaying cash for a car can drain your savings or emergency fund, leaving you vulnerable. Car financing lets you keep your savings intact, ensuring you have funds for long-term goals or business needs. For example, a hardware store owner could finance a Ksh3.5 million truck instead of depleting Ksh1 million in cash for a second-hand vehicle. This way, they preserve working capital for stock and other opportunities, improving operations and profitability.

Financing also offers affordable monthly payments. Instead of paying Ksh2 million upfront, you can pay as low as Ksh50,000 per month, with down payments as low as 40%, making car ownership easier on your budget while supporting your other financial priorities.

Tailored Deals and Bundled Savings

Car dealerships often reward buyers who finance with exclusive discounts. Platforms like Autochek Kenya take it a step further by bundling vehicle financing with essential services like insurance, tracking, and maintenance. For instance, through their partnership with Turaco, you can get comprehensive insurance with flexible monthly premiums starting as low as Ksh5,000.

By combining these services, you not only simplify your car ownership but also unlock potential savings through lower insurance rates, discounted maintenance, and real-time tracking—advantages that cash buyers miss out on!

Upgrade with Ease

Car financing makes it easier to upgrade to a newer model without needing to save from scratch. With Autochek’s vast car dealer network, you can use your current car’s value as part of the down payment for your next vehicle. Whether you're moving from a Toyota Axio to a Toyota Wish or CX5 to accommodate a growing family, financing gives you the flexibility to upgrade without the financial strain of paying full price upfront.

Case Study: Financing a Car with Autochek

Autochek is revolutionizing car buying across Africa by providing a tech-driven platform that simplifies vehicle sourcing, financing, insurance, and after-sales support. Partnering with financial institutions, dealerships, and insurance providers, Autochek makes car ownership more accessible and affordable.

Their partnership with Turaco offers comprehensive motor insurance with flexible monthly premiums, easing the burden of annual payments for Kenyan car owners.

Why Choose Autochek?

1. Bundled Car Financing and Insurance
   Autochek’s partnership with Turaco allows you to finance your car and pay for comprehensive insurance in affordable monthly installments, instead of a lump sum upfront.
2. Low Payments & Flexible Terms
   Enjoy low monthly payments and flexible loan terms, ensuring your car fits your budget.
3. Fast Digital Approvals
   Get your car loan pre-approved within seconds and drive off within a day. 
4. Comprehensive Insurance Coverage
   Full vehicle protection, paid monthly, keeps your finances balanced.

How to Apply for Autochek Financing

1. Explore Cars
   Visit www.autochek.africa/ke  to browse available vehicles.
2. Submit Documents
   Provide your copy of your ID, KRA PIN, and bank statements to kickstart your loan application.
3. Pre-Qualification
   Get pre-qualified in 60 seconds to see how much financing you’re eligible for.
4. Compare Offers
   Receive a financing offer immediately,  review and accept the offer.
5. Pay & Drive Away
   Finalize the deal by paying the down payment, and drive off in your new car!

Start your journey with Autochek here and enjoy seamless car ownership today.

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