STEPS TO TAKE WHEN BUYING A USED CAR IN KENYA
Buying a used car is an easy way of getting a car that suits your needs, especially if you budget is limited.
The process is easy but not so secure. With an increase in the use of classified, eCommerce and social media websites, finding a used car is as easy as clicking a button hence need for some caution to be taken when buying a car.
Here are some steps to take in exercise of due diligence.
1. If you are buying from a Private Seller, make sure you obtain copy of the logbook (Proof of ownership) from the owner.(Check and verify the details are in order i.e if log book is an original or Duplicate)If duplicate find the reasons why and ask for an abstract if possible as in some instances some people obtain loans using the original and obtain a duplicate which they sell the car using hence potential of causing problems later.Approach with due diligence if logbook is a duplicate. Don’t make any payments until you verify details as to why.It is also worth noting that a duplicate has no problem in itself and is still a valid document to enforce a transfer.
2. Go to NTSA and, with a fee of Ksh. 500/-, undergo a search for the vehicle. This ensures that the all duty has been paid in full. – Also makes sure that the car has not been stolen or been previously used for something illegal.
3. Write an Agreement of Sale, which will be signed by you, the owner and a witness.(you can find a sample here CAR SALE AGREEMENT SAMPLE)
4. It is advisable to pay in the form of a bankers cheque, which will in turn act as a receipt(if buying in cash it is advisable to go through a lawyer who will write an acknowledgement which acts as your receipt)
The Following are the requirements for transfer of ownership of motor vehicles and trailers:
- A duly filled and signed transfer TrafficActFormC
- The logbook: one is expected to fill up the first vacant ‘change’ giving his/her full name, address and signature.
- Copies of National Identity card or passport of both buyer and seller or a Certificate of Business Registration in the case of corporate bodies.
- Both purchase tax and transfer fee in accordance with the engine capacity rating of the vehicle.check TrafficActFormC for applicable fees
- Pin cards of both seller and buyer.
5. Go to NTSA to register the changes on the logbook.
6 Pay the Purchase Tax and the Transfer Fee at the KRA.
7 Get your own car insurance.
Good news about the NTSA taking over the functions above from KRA is that you can do some of those activities online through the E-Citizen Platform. The NTSA is currently piloting a system that will centralize all vehicle related functions in the country.