AfriPulse
Soaring living costs, high exchange rates, and rising import tariffs are pushing foreign-used cars out of reach for many Nigerians, with Nigerian-used cars becoming the popular option.
This trend is fuelling a boom in the Nigerian-used cars market as more buyers turn to locally pre-owned vehicles for affordability.
Findings revealed a sharp increase in vehicle listings by private owners, particularly on online marketplaces, social media platforms, and roadside car lots.
This is even as car dealers lamented the rising costs and falling demand for imported vehicles.
The price of used cars — popularly known as tokunbo — has continued to climb in Nigeria, leaving many buyers wondering if owning a car is still within reach. From Toyota Corolla to Lexus RX, vehicles that were once considered affordable are now being sold at record-high prices.
Several factors are driving the surge. Import costs have risen due to fluctuating foreign exchange rates and new tariffs on vehicle clearance. Global shortages in the used car market, caused by slower production of new cars during the pandemic years, are also pushing prices upward.
Speaking on the development, founder of Carlots.ng, Ikwu Onyeka, explained the current trend. He said: “A Corolla that sold for ₦5 million in 2021 now sells for around ₦9 million to ₦10 million, depending on mileage and condition. The naira depreciation has made imports more expensive, and buyers are now competing for fewer available cars.”
Industry observers say buyers are being forced to adapt by either holding on to their old cars longer or opting for cheaper models. Carlots.ng’s internal data from its Free Car Price Checker tool shows that Toyota, Honda, and Lexus remain the most searched brands in Nigeria, with SUVs leading demand in Abuja and Port Harcourt.
For some, car financing has become the only path to ownership. Banks and auto-finance firms report more inquiries from middle-income Nigerians who would rather spread payments over two to three years than pay lump sums up front.
While the market remains uncertain, Onyeka believes demand will remain steady.
“Cars in Nigeria are not a luxury anymore; they are a necessity. People will continue to buy, but they are becoming smarter about checking valuations and negotiating fairly,” he added.
Analysts warn prices are unlikely to drop soon unless there is significant improvement in foreign exchange stability and government import policies. For now, the average Nigerian buyer will have to weigh whether to buy now before prices rise further, or wait and risk being priced out altogether.
Source: Guardian Nigeria | Read the Full Story…
