I recall my dad’s laughter at our family dinner in Ntcheu as we were about to head to my brother’s graduation the next day – when I told him I had ordered a car by myself.
My dad is very protective; and will most times choose to handle most of the “tough stuff” for my siblings and I. My mom at times thinks he spoils us – and I was a little offended at him thinking I would not be able to do this on my own; but Lord knows he was right!
Buying a car (online) is such a frustrating experience, to say the least.
It started off smooth for me. I got an offer, a really good offer, from the service provider – and I jumped on it.
I did not have the cash; but knew I was not going to get an offer this good again. I was awaiting a loan from my office; and chose to to reserve the car (hoping my loan would clear within the 2 day grace period).
Knowing my office, and our usual delays, I knew I was taking a huge chance – and quickly opted to look for a plan B. I asked the service provider for an extension on the payment grace period, which they approved of and added two more days to my grace period. I knew that was still not enough, and started looking for a plan C. I am huge on thinking fast and clearing all hitches ahead of time. My Plan C was to secure an interest-free loan from a friend, who was happy to assist.
By the time my the grace period was done; my loan was not yet approved (as I had expected), and I was grateful I had made other plans. I used my friend’s money to make the payment on the car; which I refunded to him the following day, when my loan came through.
I was thrilled, to say the least.
First, I did not think I could be able afford a convertible for myself till I was perhaps 30. Second, I got a really good offer on it. I had been dying to get myself another car since my last accident, and this meant a lot to my heart.
So then begun the wait to hear back from my service provider on when they would be shipping my car. That was the beginning of the series of disappointments and acceptances that were to follow.
They alerted me that they would be shipping my car in two weeks from the day I paid (eh?); and that it would arrive in Dar Es Salaam in 4 weeks after shipment. I was disappointed in the amount of time presented to me, but swallowed hard and accepted.
After purchasing my car, I had assumed that my duty would be at most 100% of my purchase price – and boy was I wrong! I was surprised with a near 200% duty cost due to the car’s year of make – which was still cheap for such a car to me; but a lot of money nonetheless. It meant I had to hustle – and I was prepared. I had been expecting a payment from a client that month end; and now knew I would use all of that payment (6 full months of work) to clear my car. Another hard swallow.
One of my friends warned me that people who go to pick up cars from Dar Es Salaam can charge up to MK700,000 (1000$) and that seemed just so extreme to me (plus I did not have all that money). I started weighing my options – when I received an email from a clearing agency in Dar – offering to clear my car and deliver in to Songwe!
I jumped on it, and asked them for their costs. They gave me a pretty good offer – 300$ to clear, and 600$ to clear and deliver. That was way cheaper than the $1000, and I went for it. More costs. Need I note that I took a huge chance, as I did not know if these guys were even legit.
As the days for my car arrival were approaching; I had a chat with a friend of mine; who asked me which agency was clearing my car at Songwe border. What? I did not even know I needed to do that.
I contacted an agent he had suggested, who was happy to assist. When the car arrives at Songwe, if your clearing agency from Dar does not have offices in Malawi at Songwe, the car will be delivered to Kasumulu Border in Tanzania, and your agent is expected to go and collect it, and bring it to MRA at Songwe Border for clearance.
To add to my troubles; the Kwacha devalued – which meant that now the value of my duty went up.
When I had told my boyfriend that my duty was a lot – he offered to go 50-50 on it with me; as a birthday present from him. I was really grateful for that.
When it came to payment, I was presented with several options I was not aware of before:
The payment I was expecting from my client delayed, and by the time my car arrived; I had only about half of the money I needed to clear my car. Now the real dance begun.
Paying duty by instalments. I did not even know that was a thing.
What this implies is that you pay 50% of duty; and pay the other 50% of the duty over a period of 3 months… and oh yes there is a catch… with interest.
Seems a little exciting still; till you have to go through the process. First step in emailing the Commissioner General of the MRA, who must approve, and assign a relevant officer to take up your case.
It took me a whole week, after the Commissioner General approved, with no feedback from the officers in my case.
In that time period, I was exploring my other options.
I was worried about the interest rates that would come with the payment by installments, and that made me look up other options. I thought of acquiring a loan with a lower interest rate – but was unlucky, and I can say for sure that money is clearly tight in Malawi. One should not have to struggle to acquire a loan that small.
A week later, I contacted the MRA office – only to be told that the case officer assigned to my case had in fact done nothing to follow up on my issue. This meant that we had to restart the process. I know!
I got the letter of approval for my duty by instalments application in the next two days – on a condition of course; that my banker must give me postdated cheques as a guarantee my duty will be paid.
When I got to my bank; they told me that I needed to have an active business bank for them to approve the guarantee.
I have never regretted not having a separate bank account for my business, as I did in that moment.
I was already reluctant about the payment in instalments by now; and it was time to look for other options.
My bankers were so kind, and invited me to private banking and the rest is history. I will just say that Standard Bank services are lekker, so lekker!
I of course still had to secure more money; and ended up calling my daddy (something I really did not want to do); and he came through for his baby. I guess independent womaning is not going as well as I thought; but shite I am giving it a pretty good shot.
Having secured enough money to pay off my duty – my private banker quickly cleared that for me with MRA; and I sent someone to collect my car from Songwe.
You would think that was the end of my troubles; but I was to be surprised.
I got a call around 9AM from my agent, to let me know that MRA was not going to release my car, because by their records, my car was terribly undervalued, and worth so much more.
I think that is literally what buying a car on offer means – it is discounted!
I had to present proofs of payments; including my conversations with my service provider to the office – to which they still failed to clear my car; doubled the value of my car and presented me with a claim asking me to pay the real value. I, of course, had the option to appeal to the Commissioner General, which I did so immediately.
I got no response in the morning hours; and kept calling everyone I would call to assist me. I got a call back around 2PM. The officer was so helpful, and told me that they would resolve my complaint in under 48hrs. He also told me that the process can take up to 4 days.
I was grateful for his offer, but 48HRS? I had already paid my mechanic to collect the car; and he was already at the border! I did not have the money to have him sleeping at the border, even if it was just for a night. What do you mean 48hrs?!
He calmed me down; and referred me to another officer – who resolved the complaint in less than 2 hours.
Many anxiety attacks later – that is how I managed to get my baby home.
Her name is Beastie 1 (The first of my many beasts to come). She is not my dream Aston Martin Vantage, but still is pretty cool.
She is worth way more than I paid for her (like 4/5 times more); but I am so happy to have her home, and so happy she gets to be called mine for a while.
COSTS TO EXPECT WHEN BUYING A CAR FOR THE FIRST TIME:
- The CIF to the Service provider
- Clerance of the car at the port
- Delivery from Dar Es Salaam to Malawi
- Duty (which can go up to 200% of your CIF depending on the year of make of your car
- Payment of the agent at Songwe Border
- Payment of the driver to pick up your car
Time it may take for your car to get here: 6-10 weeks.
I ordered my car on 3 June, and it got in Malawi on 2 August.
I hope this information was helpful, and you have an easier time purchasing your car online for the first time.
All my love,
Ntha
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