Installment sales bring in buyers who can't pay cash, and for many Kenyan car yards they are a big part of the business. They also carry risk: late payments, disputes about what was paid and cars that are hard to recover. A car dealer system with proper installment tracking makes them much safer.
1. Agree the deal clearly
Before the car leaves the yard, agree and record:
- the price and any discount,
- the deposit paid today,
- any trade-in value,
- the number of months and the due day each month,
- who the salesperson was.
The system then works out the schedule: each installment, its amount and its due date.
2. Give a receipt for every shilling
Every payment, by M-Pesa, bank or cash, should get a receipt that shows the amount, the reference and the balance left. Receipts end disputes before they start.
3. Remind before, not after
Most late payments are forgotten payments. An SMS a few days before each due date, with the amount and the balance, gets far more paid on time than a phone call after it's late.
4. Watch the overdue list
Every week, open the list of installments due and overdue. Call early, agree a date and record it. A buyer two weeks behind is easier to help than one three months behind.
5. Keep the logbook position clear
Agree in writing what happens with the logbook until the car is paid off, and keep the signed agreement and documents on the buyer's file in the system.
6. Know your money
The dashboard should show how much you have collected on sales, how much is still owed on installments and what is due this month. That tells you how much cash is really coming.
7. When a buyer pays off early
Record the final payment and the system marks the car fully paid, so you can release the logbook with confidence.
Afritelligence handles cash and installment sales, deposits, trade-ins, schedules, receipts and reminders as part of its car dealer software in Kenya. see the prices.
Frequently asked questions
How is the installment schedule worked out?
From the price less the deposit and any trade-in, spread over the number of months, due on the day you choose.
Can a buyer pay more than the installment?
Yes. Extra payments reduce the balance and the next installments.
Are reminders sent automatically?
With SMS reminders on, buyers get a message a few days before each installment is due.
Can I record a trade-in as part of the deposit?
Yes. The trade-in value is credited on the sale and the car comes into your stock.
What does the buyer get as proof of payment?
A receipt for every payment, showing the amount, reference and the balance left.
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