Business
Only 5% of imported vehicles are road worthy
Publish Date: May 16, 2013
Only 5% of imported vehicles are road worthy
A Closer look at vehicles lined up in most bonds shows that most of them are over 10 years
  • mail
  • img
newvision

By Joshua Kato    
 
There are at least ten big car bonds lining around areas of Nakawa, Nitnda, Banda, Kyambogo and Industrial area. To an ordinary Ugandan, those bonds are actually selling ‘brand new cars’. 
 
However a closer look at the vehicles lined up in most of these bonds shows that most of the vehicles are over 10 years old-some like the famous Toyota Hiaces that is used for mainly Passenger Services over 20 years old. 
 
This means that if the ban on importation of vehicles older than 7 years is enforced, all these bonds would simply close shop in their current state.  
 
Only government vehicles may stay on the roads if such ban is implemented, since the government does not import vehicles that are older than five years. 
 
“We know the proposed ban will affect many Ugandans because they cannot afford to buy brand new cars, but at least there must be a policy to prevent the cars in a very poor condition from getting into the Ugandan market,” Micheal Werikhe, Chairperson of the natural resources committee of parliament said. 
 
The bonds are filled with the popular Toyota Ipsums, Toyota Touring, Subaru Foresters, Toyota Duets, Toyota Allex, with the latest of these being model 2003. To a Ugandan, a 2003 model is ‘brand new’ and it is difficult to convince the ordinary Ugandan that this is now 10 years old. 
 
“The Ipsum 2003 model has got ‘new eyes’ and nobody will convince me that it is too old to come to Uganda. If it is old then what is new?” asks Abbey Ssebunya, a car dealer. 
 
On the morning of May 16th, this reporter stood for over 20 minutes along 3rd Street industry area, watching vehicles zooming past, and trying to count which of them could qualify under the new law. 
 
First, an Isuzu Canter UAM…drove passed carrying private security men, it was a 1991 model, it was followed by a Toyota Hilux UAA….it was a 1995 model, then a Mark II UAQ…drove passed, it was a 1998 model. 
 
These were followed by a Toyota Corsa 1995, a Super Custom 1995, a Toyota Noah UAR…that is the ‘latest’ on the Ugandan roads, but is a 2002 model, a Land cruiser TX UAT…2000 model, then a government owned Mitsubishi L200 2007 model….
 
The conclusion was that perhaps only government can buy brand new vehicles. According to the latest Ministry of Transport and Works statistics, there are close to 1m vehicles in Uganda and of these at least 40,000 are owned by government.  
Expensive 
 
There is a very big price gap between a used car and a brand new car. In other words, the newer the car, the more expensive it is.  
 
At Bafta car dealers of Japan, an Ipsum 2007 model, that will be least accepted if the ban comes into force goes for an average US$14,500 or at least sh40m before taxes while a model 1998 Ipsum goes for an average US$1,500 or sh4m before taxes. 
 
At the same car dealership, a Subaru Forester 2007 model goes for an average US$18,000 or sh50m before taxes compared to a 1998 model that goes for an average US$1,500 or sh4m before taxes. This applies to all the other vehicle models. 
 
If one is to go for 2010 to 2013 models, the average cost of a Toyota Hilux pick up may cost over US$40,000 or sh125m before taxes according to a source at Toyota Uganda, a Toyota Premio 2010 costs US$30,000 on average before taxes too.  
“Given the manner in which we buy our cars and that is through salary loans mainly, an ordinary employee will not be able to own a car since the average salary loan he can get is sh15 to 20m,” says a journalist who imported a car direct from Japan a few months ago. 
 
Because his Ipsum was a 1998 model, it cost him less than sh10m after registration. The ban will hence forth mean less cars on the road. 
  
 
 
 
 
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Microsoft launches free Windows 10 upgrade
Microsoft’s latest version of Windows operating system is finally here.The long-time leader in PC software launched its much-awaited Windows 10 on Wednesday in Nairobi Kenya....
Barclays bank says net profit jumps 43% in first half
Barclays increased net profits by 43 percent in the first half of the year, the troubled British bank announced on Wednesday....
Egypt promises more investments in Uganda
The Egyptian government recently offered Uganda a team of experts in modern water harvesting and deforestation in a move aimed at increasing domestic water supply...
Dollar under pressure on China equity rout concerns
The dollar recovered slightly against the yen Tuesday, although gains were limited as investors remain on edge after a sharp plunge in Chinese markets hit risk sentiment, but the euro was supported by upbeat German data....
Determination has enabled Mabirizi live his farming dream
Jackson Mabirizi says his love for farming is inborn and he has been growing Irish potatoes for 15 years. When you go to Bweyongede village in Mubende district and ask Mabirizi, the all village knows him as Mr. Irish....
Farmers asked to practice “climate smart agriculture”
Experts Monday asked farmers to use fertilizers and improved seeds and engage in climate change friendly practices to improve production....
Should faith based organisations be registered as Non-government organisations?
Yes
No
Can't Say
follow us
subscribe to our news letter