Published on 20/01/2025
Many people buy imported cars without realizing the importance of auction papers which are often overlooked. Having worked at car dealerships in Uganda, Kenya and Tanzania, I saw this mistake repeatedly. Most buyers didn’t know that auction papers reveal crucial details about the vehicle’s condition.
Before a car is exported it undergoes a rigorous inspection in its home country. The results of this inspection are recorded and assigned a grade, which is then displayed on the auction papers. Without these papers, you can’t know if the car was truly in good condition before it was shipped.
This lack of awareness can lead to major issues weeks after purchase, when the car suddenly breaks down. It’s a risk many don’t consider when making the decision to buy an imported vehicle.
The grade is given according to how well-kept the car is or how mechanically or physically clean it is.
Knowing that most Ugandans and Kenyans never ask to see the grade of the car, most dealers will, therefore, sell cars with the same price despite having different grades.
What are the different car grades?
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, which is the most common grade here in Uganda. These are cars under 150,000 kms mileage and have minor dents and scratches. Grade 4 cars need some repairs.
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, which in most cases these end up in Uganda and are always the cheapest on auction in home countries before purchase. 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 (Ugx 36,931,761), then the Grade 4.5 will cost about Ksh875,000 to Ksh1 million (Ugx 28,409,047).
A grade 4.5 car will cost 10-15% higher than a grade 3.5 because of its better physical and mechanical condition.
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.
