Buy a car in Kenya or Tanzania?

Hi all, I've already posted this question on the Kenya page (see link below) but would love to hear how the process of buying a car in Tanzania differs from Kenya currently. We will be on a tourist visa. The concern in Kenya is that we may need an alien registration card in order to get a tax pin which is a lengthy process. We want to buy the car and have all the legalities sorted in as little time as possible. Ideally no more than 2 weeks. Is this possible in Dar or Arusha?

Thanks!

Kelly

http://www.lonelyplanet.com/thorntree/thread.jspa?threadID=2319117&messageID=20846751#20846751

Yes, no problem in TZ, whether in Dar nor in Arusha. I've done this several times.

Sorry I forgot to write, it is not only a no problem issue, it is also a one day job. You can ask me for more information, but I've done this for me, when I came to TZ, and also for friends, who came on tourist visa.

@johannestz

Would you be willing to share your story here? There are a few of us who want to buy cars and we'd like to hear all about the process in Tanzania.

#3 Hi, I wrote in different threads already the way to buy and register a car here in TZ, and it is not even a story. We buy cars once or twice per year in Japan, because we drive our cars not much longer then 2 years here. (Last week we sold our Pajero io for 3,500 Euro). You order in Japan (I recommend TRUST), after around 2 months the car arrives in Dar, two weeks before he (your agent, if you need contact I can help) has to get from you the money for the different taxes, VAT, registration, and insurance (he needs a copy of your passport and an adress, maybe a hotel), your cars arrives, the next day it is out with plates and ready for the road. I offerd once this business with sell and buy back, but I didn't even get one who was interested, so I stoped this.
If you fly and buy a car from a dealer here (there are some in Dar or Arusha) check the car proper, and if he tells you it is a big thing, then don't trust him even with the car.
When you get the invoice with price of the car, shipping, insurance and inspection you have to add approximately the same amount for taxes and VAT in TZ. So really not a big thing to make a story.
Johannes

Edited by: johannestz

Thanks for description johannestz. Very helpful. I am not able to find your previous posts so thank you for repeating the info. The website looks as straight forward as you described. Have you ever had any issues getting the car on time. Is there an advantage to buying the car in Japan and having it shipped versus buying a car that just arrived. Is there less selection or a higher mark up on price for cars once they arrive in country?

Is the VAT and import duty calculated based on the purchase price or CIF(cost insurance freight)?

Yes, the website is good, I bought up to now about 10 cars from them. The fees in TZ are counted from the total amount of the bill, including car, shipping FOB, insurance, and inspection. It depends on different things, for instance if the car is older then 10 years they add 10% more, if the engine is over 2ltrs also 10%. The time between payment arrived and you get the car can't be calculated proper. At present we bought a Toyota Surf and payment arrived in Japan on 25th of April, now the car is on the ship and is scheduled for 17th of June to be in DAR, so around 18th or 19th we can pick it up ready to drive (if nothing unexpected happened). But the timetable is not like the timetable of an European train network. The advantage to buy direct in Japan is that you know, ther is nothing changed on your car, eventhough there are reliable car dealers. But it can be more expensive. I know one in Arusha (Image Motors close to Impala Hotel roundabout on the road to Njiro), where it looks like it is reliable.
But you need to have an agent who is allowed to di the business, you can't do it alone.
I hope you got the necessary information.
Johannes

Edited by: johannestz

Johannes,

Can you explain a little more about your last point, the agent? I am understanding from what you wrote that if you want to buy a second-hand car from a dealer in Tanzania (rather than importing from Japan yourself) you need such an agent. What kind of agent is this? And what ministry or other body qualifies/licenses these agents? Can the dealer himself act as the agent?

It adds a layer of opaqueness to what I was optimistically seeing as a simple process.

No, when you buy from a dealer in TZ he can do the job, even you (if you like to find the right counter, run around and ask dozens of people). The agent is appointed I think from the port authority, I never asked ours. If you need the contact I can give you. To pay is at the TRA (Tanzania Revenue Authority) wher you get the TIN (Tax Identification Number) automatically, when you register on your name. Never let a guy outside tell you he knows an officer who is doing every job for a little soda for less money, only when you are the type of gambler who likes the thrill of fighting with TZ law enforcers. When we sell a car to a tourist we do the job by ourself. When you go to Kenya you have to give your original registration card to the border officers (you get a receit), on return to TZ you get it back. But you have to pass the same border post.
Don't hesitate to ask more questions
Johannes

Johannes,

A couple more questions if you will, as you have been so helpful.

My husband is very keen on buying a Mitsubishi Delica. I know it to be a great 4wd car but is not common like the Land Cruiser. Will we have a problem with selling it when our trip is done?

Also, I have heard of people shipping cars into Kenya or Tanzania from Europe as a temporary import, driving them around and then shipping them back. Are you familiar with this scenario?

Thanks,
Kelly

Hi Kelly,

okay Mitsubishi. The Delica is not a coomon car here, we are at present selling all our Mitsubishis because of spare problems. We have one Pajero V6 parking now for one year (!) at the garage (okay, it was also problem of wrongdoing by former garages). Now we are in the stage, that we hope the car will be running in June, when we are back inTZ (cross fingers).
If you like to have only small problems go for a Toyota. To ship a car to TZ I can only say NEVER. It is taking weeks until you get the car out of the harbour at least a fried of mine did this last year with this problem. The problem is, that the cars from Europe are shipped in containers, from Japan in RoRo. I did it once and shipped to South Africa, but you need a Carnet. The ship (Wallenius Line) was like a German train, came to the port in Port Elizabeth morning on the minute, afternoon I drove the car already with all paperwork done. Then we travelled in 5 days to TZ, visiting Victoria Falls. If you like to ship, take my advise and go to SA.
To ship it back to Europe I have no experience, but I know one, who did it, I'll get in touch with him. But also it was from SA.
If you like to buy a car in Japan, go for a Toyota Surf (in Europe 4Runner). It is reliable and no probelm with spare parts. But for me I have to admit that my favoured car is Subaru, I drove in Europe and TZ about 7 cars, at present a Forester in TZ and an Impreza in Germany. It depends what you like to do, for sure the Sernegeti with the corrugation and the crater are not recommendable (even the Landcruisers need after the Serengeti a check), but everything else is fine.
I hope my help was sufficient. Enjoy the planning, it is more then half of the fun.

Johannes

Johannes you are so right about the planning. I love it. thanks to your excellent advice we have decided to import a car from Japan into Tanzania. Now we have one problem. The car we want is not offered through Trust but tradecarview.com and http://nbcjapan.com/

Do you have any experience with these companies?

I had a very bad experience with a trader from UAE, that's why I only use Trust. I can't say anything about these companies, they can be good or bad. I only know that once in tradecarview there was a warning from several companies, I forgot which one, for sure I don't mention NBCJapan. I visited the website, looks reliable. Which special car is this? But you have to be satisfied, and if you are it is okay.
Johannes

Here is a link to the car http://www.nbcjapan.com/product.php?product_id=5146 I welcome your thoughts on this car. It appears to have been used for towing which we wonder about but more importantly we are uncertain about the credibility of the company.

My husband says to tell you thanks for all the help. We would like to buy you a drink after our arrival if your time permits it.

Kelly

Hi Kelly,
I've visited the web site and had a look to the car. I also wrote to know the price including shipping and insurance also about the state of the car. Up to now I didn't get an answer. Good sign or not? To give advise about a certain car is very difficult, becaue cars are like haumans, it is difficould to look in heart and brain. What I can say is, that the 3.4 ltrs. engine is not so common like the 2.7 ltrs. But this doesn't mean it is not good, but it can be that spare parts are not so available. What I can warn you from is the 2.4 ltrs. Diesel turbo charged, likes very much to overheat. In Europe it was no problem, but in Japan the car has automaitc transmission and air condition, this makes the difference. The Surf is reliable, Toyota is also good, but you have to know that some roads are car breaking, so you have to drive careful. Even the Landcruiser Trooper needs maintenance after a Serengeti safari.

Of course we don't expect you to make a decision for us however your insight and experience are invaluable. You mentioned you had a bad experience getting a car from a UAE dealer. Can you elaborate so we know what could happen.

Thanks,
Kelly

Okay, it was the first time to buy a car there, and I bought a Subaru Legacy 4WD. When I got the car it was a 2WD (very rare for a Subaru). And in Japan there are criminals who have a web site just to cash the money, as you have to pay in advance, and this is the last time you heard from this company. And forget police in Japan, you just see neither your car nor nor money again. So that's wjy I trade with Trust, bot there is another I think reliable company (also many cars running in TZ with their sticker, as far as I remember the name is Autotrader (I'm at present on a 3 months leave in Germany). But this nbc is not looking reliable, because no response to my mail about freight or condition of the car you mentioned.
#####
I have to say sorry about this comment, because I found the mail in my spam folder. The answer was fast. The car is about 5,000 USD, so car, transport and fees until registered in TZ it will be about 10,000 USD. If you are interested in the response of nbc I nee an mail addres, because I cant post it here (long answer).
#####
Have a nice day.
Johannes

Edited by: johannestz

Thanks so much Johannes, After getting to know these different dealers and reading their reviews we are focusing in on getting a car though TRUST (japanesevehicles.com )as they seem most reputable. As a second option, the reviews for Imperial Solutions Limited were also very good. We found them going through Tradecarview.com. I'll post once we place the order and share how the experience goes until we get the car in Tanzania.

Cheers!
Kelly

Ok so we have already hit our first bump in the road so to speak. (I suspect it won't be the last) In order to buy the car from Trust we need an address in Tanzania. Any advice on how to get one?

Okay, when you place your order, you give the address, where you like to have the papers sent to. About 3 to 4 weeks after you ordered the car (about one week after the ship left Nagoya) you get to this address the Bill of Lading and other papers like the inspection from JAAI, technical details of the car. When you sign in on their web site you can follow the state of order. After shioment you can follow every day on a map, where the ship is. When you got the papers you fly to Dar, give the papers and a copy of your passport to the agent, after he made the calculation you give him the money, he pays (you get a detailed bil from the Tax department, that you can follow your payments) and about one or two day after the ship arrived you can drive your car. You need for the TRA a Tanzania address, can be the hotel where you stay, but write only the address, with your name, don't mention "Hotel" or so (but the aget can gibe advise). About payment it is rough and ready the same amount which is on your Invoice. For our surf (Invoice 6,000 USD) it is 9,1 Mill. TZS. Sounds difficult, but it isn't. If you like, we give you the contanct to an agent. Only thing you have to know (but I mentioned it before), when you like to go to Kenya you have to give your original - registration card to the border authorities, you get a receit and your card back when you come to TZ again. But it has to be the same border post. Tell the agent he should make at TRA a certified copy and keep the original only for this purpose. I wish you the best for your journey.
Johannes

In case anyone is following, we have made some progress. We purchased a 2002 Toyota Hilux Surf through Trust (japanesevehicles.com) We paid $7100.00 USD including the shipping and inspection and have received notice the car will be shipped on June 22nd, estimated to arrive Aug 1. Payment can be made by bank transfer or paypal. The agent fees to receive the car, pay import duty and register are about $7300.00. Perhaps we are overcharged for that part? Anyway, so far we are happy with the service. I will continue to update.

Edited by: klcinaz

Congratulation. We got our Surf and paid duty (invoice was USD 6,000 straight) 9,1 Mio TZS (I don't know, why you got a USD invoice from the TZ agent). Anyway enjoy your car and a thrilling journey.
Johannes

Johannes, we are in Dar now and the agent has sent my husband a "revised" invoice for the car. He said the import tax went from 20-25%. Are you familiar with this? We paid 7100 USD total to purchase the car and shipping. the original estimate including registration was $7300. The total he is asking for now is $8300 ( converted from shillings) which is more than we expected. Do you think we are getting taken advantage of? I can get the itemized details a bit later if you have time to look it over. We are fresh in country and it is hard to know if he is being honest.

Thanks for your help.

Kelly

Hi Kelly, yes it is true, that the iumport tax went in the last session of the parliament about one month ago from 20 to 25 %. I can look over it, I wrote you once that we paid for our Surf (bill 6,000 USD) 9,1 Million altogether. But this was before the new tax. It can be that the agent take a higher share, but what I think (but I didn't see the bill he gave you) it is about 500 USD overpriced (for my feeling). When you see the amount in USD for our car (roughly 5,700 USD tax for 6,000 USD car), which is about 95% of the Japaneses price, and for your car , which is about 103% of the Japanese invoice, it can be, that he charge a big payment for himself.
I wrote once that I was surprised that you got an invoice in USD. But I'm sorry, you will have now no big choice, you only can negociate with the forwarder, because the job is over already.
But for sure I look over it to see, why it is so high. The good thing is, that when you sell the car, you will get also more money.

Johannes

I am relieved to here about the tax increase although it means more money out of pocket initially. I have attached the estimate. Please tell me if anything looks too high. Many many thanks!!

Please find the estimated cost for the said consignment; Used HILUX SURF, CIF $7100; 2700cc; Year 2001; NOTE: Estimates based on the INVOICE price i.e. $7100.

Item
Base
Rate
Amount

A: Duties and taxes:

1
Import Duty
$7100
25%
$1775
2
EXA(Dumping fees)
($7100+$1775)
25%
$2,218.75
3
Excise Duty
($710017752218.75)
10%
$1109.375
4
VAT
($7100$1775+2218.75$1109.375)
18%
$2196.5625

Total taxes and duties in US Dollar
$7,299.6875

Total taxes and duties in Tanzanian Shilling (exchange rate 1630 per 1US $)
11,898,490

B: Other charges:

1
REGISTRATION,PLATES&FIRE
480,000
2
Port charges (Estimates) THIS IS ONLY DUE IF WE DO NOT PICK UP THE CAR IN TIME.
850,000
3
Shipping Line delivery order fee(Estimates)
130,000
4
Agency fees
200,000

Grand Total
13,558,490

Hi Kelly, I see the invoice now. My problem is, to give it to our forwarder in Dar. But what is the problem, I see, that if you do not pay immidiately they let the car in the harbour. And then you have not only to pay the storing (which is expensive as you can see), als the possibility, that things are stolen is great. What is wondering is, that almost everything is in USD, but the invoices from TRA are all in TZS. And the exchange rate is written there on the invoices. But also I see, that all the import taxes are 7,300 USD, which is okay. So with all other fees including agency fees I come to an amount of 7,800 USD. A shipping line delivery fee I never heard of. And the harbour charges you have not to pay, because now that the fees can be paid in advance a car never is longer then one week (this is free) in the harbour. So this 850,000 have to be reduced from the roughly 13,500,000 TZS.
You have at present little chance to avoid to pay the invoice, but I send you a copy of our latest invoice from June. Please give me a mail address, mine is oh I don't know, whether it is allowed or not. But to give me yours is allowed. And tell the company, that the port charge is only, when they don't pay in time. At least the agency fee is not sooo high.
Hope, I've been able to help you.
Johannes

According to the agent the car cannot be released until the appraisal is done. The appraisal could not be submitted until we got our TIN which just happened Friday. the agent believes it will take 5 days and with the holidays coming up there may be issues. I would appreciate seeing your invoice. You can send to: klcinaz@yahoo.com

Thank you once again.
Kelly