Used car firm offers trade-in model for EVs

From the newsletter

Kenyan used car company Peach Cars will allow customers to trade in their used fuel vehicles to get electric ones. If a customer has a used car, they can sell it through Peach and get an EV replacement, most likely by adding extra cash as EVs are costlier. This is being done through a partnership with Moja EV, a local EV importer. Peach also offers financing for car purchases. 

• The trade-in programme directly addresses one of the biggest barriers to EV adoption: High upfront cost. This is particularly significant in a market where used cars are prevalent. 

• The number of used EVs put up for sale in Africa is also growing. Peach’s trade-in programme caters for swapping used EVs for new ones as well. 

More details

• “By working with partners like Moja EV, we are turning our interest towards electric vehicles, specifically helping our customers sell their (internal) combustion vehicles to access these EVs,” said Fabien Vetil, the Head of Business Development at Peach Cars. “A big fear for customers is the battery. Peach is working with its inspectors to get a better understanding of exactly how a battery evolves over time and degrades in condition,” he said. 

• Peach Cars COO Zachary John-Pillow Petroni and CEO Kaoru Kaganoi, both former SafeBoda senior executives, teamed up in 2020 to establish the company. They led the company to raise $11 million in a Series A funding round in June 2025. The duo previously steered the firm to raise $5 million in June 2023 for expansion. 

• The company seeks to streamline Kenya’s chaotic used car marketplace, which is riddled with fraud. Despite used cars fetching considerably lower prices than new cars, the majority of customers still rely on loans to finance their cars. Peach has partnered with banks, saccos, microfinance institutions and digital lenders to finance buyers. 

• The African used car market was valued at around $8.2 billion in 2024 and is projected to reach around $14.3 billion by 2030. As much as 85% of all vehicles on the road in Africa are estimated to be used, with the continent being the ultimate destination for about 40% of all used light-duty vehicles exported globally.

• The model of trading in these used cars for EVs can help offset the high upfront cost of buying an EV. At the same time, used EVs are merging. Used electric cars are now selling for less than two-thirds of the price of new ones in South Africa. This model can make the process of transitioning from a used fuel car to a used EV easier and cheaper. 

• Africa is expected to be a major recipient of used EV imports from major economies, especially China, Europe, the US and Japan. These markets already have large fleets of older and smaller EVs such as the Nissan Leaf. These used vehicles will likely dominate the market as it has happened in the fuel vehicle market. 

Our take

• Scaling up the trade-in program to cover a wider range of EVs and include more partners, such as other EV importers and a larger network of financial institutions should be Peach’s next plan. This will make EVs accessible to a broader customer base.

• To address customer fears about battery degradation, Peach Cars and similar companies should invest in and publicly promote a standardized, transparent, and third-party-verified battery health check program for used EVs. 

• If Peach’s trade-in model works, other used car companies across Africa can learn from it and implement it in their own markets. This has the potential to fast-track EV adoption on the continent if implemented well.