Have you really noticed that the prices of Nigerian used cars are often ridiculously lower compared to used cars from other countries? For instance, a Tokunbo version of a 2005 Toyota Corolla could sell at N4.5 million, whereas the Nigerian-used version of the same car would sell for about N2.5 million or less.
What could be the reason behind this? There are several reasons why Nigerian-used cars are the lowest-priced cars in the car market. Here’s why:
- The Age and Condition Factor
Nigerian used cars usually have higher mileage and are in poorer condition than those from other countries. It’s this that makes Nigerian-used cars less desirable to buyers.
- The Maintenance and Repair Issue
Vehicles used in Nigeria are believed to have gotten inadequate maintenance and care compared to Tokunbo cars. Only a few Nigerian practice regular car care tips; the less maintenance is practised in a car, the more its value decreases. Due to the lack of proper maintenance and repairs, Nigerian used cars may have more mechanical problems and require more repairs, which decreases their value in the market.
- Availability of Tokunbo-Used Cars
The number of Tokunbo-used cars in Nigeria has increased in recent years, making Nigerian-used cars less desirable to buyers. The more buyers gain access to these cars, the less they want to purchase Nigerian-used cars.
- Import Taxes
The high import taxes on Tokunbo-used cars in Nigeria make them more expensive and competitive in price compared to the Nigerian-used versions of those same cars.
- The Nigerian Perception
Many Nigerians have a particular perception of Nigerian-used cars, and this equally affects the price of these cars in the market. The perception that Nigerian used cars are often stolen or have a history of accidents may affect their value in the market.
While Nigerian-used cars are sold at a lower value compared to the Tokunbo versions of the same cars, that does not apply to all cars. There are still a few Nigerian-used cars that’ll outsell Tokunbo vehicles in the market. But, they are usually recent model vehicles.