LunagisthubNigerian Used Car Market Sees Unprecedented Boom
The economic hardship in Nigeria has led to a significant surge in the used car market, particularly for Nigerian-used vehicles. With soaring living costs, high exchange rates, and rising import tariffs making foreign-used cars unaffordable for many, Nigerians are turning to locally pre-owned vehicles as a more affordable option.
Unaffordable Foreign-Used Cars: The depreciating naira and heavy import charges have caused prices of foreign-used vehicles, known as “Tokunbo,” to double or even triple in the past year.
Increased Demand for Nigerian-Used Cars: Locally pre-owned vehicles are becoming increasingly popular, with many buyers seeking affordable options on online marketplaces, social media platforms, and roadside car lots.
Cross-Border Sales:Nigerian-used cars are attracting buyers from neighboring countries like Niger Republic, Benin Republic, and Cameroon, due to the relative strength of their currencies against the naira.
The boom in the Nigerian-used car market has significant implications for the automotive industry. With many car dealers lamenting the rising costs and falling demand for imported vehicles, the Association of Motor Dealers of Nigeria is urging the government to increase support for locally assembled cars as a sustainable alternative .
The prices of used cars in Nigeria vary depending on factors like brand, model, mileage, and condition. For instance:
– *Toyota Corolla (2016)*: ₦2.5 million to ₦3.5 million
– *Honda Civic (2016)*: ₦2 million to ₦3 million
As the economic situation continues to affect domestic buyers, the demand for Nigerian-used cars is likely to persist. Car dealers are exploring new strategies, including car swap options, to address the situation .
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