Despite the tough economic conditions, millennials bought more cars in 2022 than any other age group. Could the increased availability of car financing be the driving force behind this trend?
In this Q&A interview, we discuss the rising trend of car purchases among millennials in Uganda with Faith Margaret Naikayu, the Commercial Manager at Autochek Uganda, a digital car financing marketplace. Faith explains that the increase in disposable income among young people, and the availability of car financing are some of the factors driving this trend. We also learn about the types of cars millennials are buying, how much they are willing to spend, and the role of ride-sharing services in contributing to the rise in car culture in Uganda. Overall, the interview sheds light on the changing economic and social landscape in Uganda that is fueling the demand for cars among young people.
There are several factors that contribute to the rise in car purchases among millennials in Uganda. Firstly, Uganda has been experiencing steady economic growth in recent years, leading to an increase in disposable income among young people. Many millennials now have the financial means to purchase a car, and they are doing so in large numbers.
Secondly, the availability of car financing offered by a number of financial institutions including banks and MFIs. This has enabled millennials to continue buying cars even as prices have kept rising over the past 3 years. There are a number of factors that have caused the prices of used cars to shoot up but the most notable ones are the tough economic conditions along with the shortage in supply of new cars. These have forced car owners to shelve the idea of disposing of their current vehicles with the fear of not being able to afford newer ones or lack of availability of the recent model they desire.
