Overview Of The Nigerian Used Car Market 

The Nigerian car market is one that is expanding more and more over the years. More importantly, the Nigerian used car market is one that has been expanding much more in recent times.

Why is this? This article will discuss that. 

The high cost of new cars is the reason for this. However, there are several other reasons including the relatively low purchasing power of individuals in the country. 

In this article, we’ll look into the Nigerian used car market, give reasons as to why the market is growing rapidly in recent times and also prefer solutions to some of the challenges the market faces on a daily basis. 

Overview of the Nigerian Used Car Market 

Did you know that more than 80 per cent of the average Nigerian population would rather purchase used cars than buy new ones? According to Ganguly Soumobroto, the Chief Executive Officer of Cars45, the used car market constitutes 95% of the automobile market in Nigeria. Why is this? Let’s discuss that in detail. 

Reasons Why The Nigerian Used Car Market Is Rapidly Growing 

A number of reasons can be attributed to the rapidly growing market of Nigerian used cars. Amongst these reasons are: 

1. High Cost of New Cars: Above other things, new cars cost a lot more than used ones, not forgetting the exorbitant amount that also comes with maintaining the new cars. Here’s a thing. People who sell their used cars must’ve already spent money on maintenance prior to selling the car which makes it even cheaper for people who buy used cars to maintain them. “Nigerians would rather spend money on food and shelter than spend on new cars”, according to the CEO of Cars45. 
2. High Import Duties: One of the contributing factors to the enormously high cost of new cars in Nigeria is import duties. A car could cost relatively less where it is manufactured. However, when it is imported, there are additional fees that are paid to get it into the country, making the cost even higher for the end user. The government has imposed certain regulations guiding the import of cars, making it even more difficult for car dealers to purchase new ones. 
3. Increase in the Number of Car Dealerships: As more and more individuals navigate towards the purchase of used cars, another set of individuals find it as a valuable opportunity to make more money by becoming car dealers themselves. Thus, you will find that there are more used car dealers than new car dealers. Likewise, there are more used car dealers than used car purchasers. 

Challenges Faced By The Nigerian Used Car Market

Although the Nigerian used car market is a rapidly evolving one, there are some challenges that affect the market. Some of these challenges are: 

1. Distance Between the Buyer and the Seller: Location is a crucial factor that affects the prices of used cars in Nigeria. You cannot expect to purchase a car in Lagos at a particular price and expect it to be delivered to another state at the same price. Delivery attracts its own price too. 
2. Location of the Car Dealer: This has to do with the area where the car dealer is. If the car dealer is in an area where there’s usually an excessive demand for used cars, that would only be to the advantage of the car dealer because used cars will then be more expensive there. 
3. Type of Car: This is also another factor that affects the prices of used cars. What type of used car do you want to purchase? What are the make and model of the car? All used cars cannot sell for the same price. 
4. The Age of the Car: When was the car originally purchased? What year was the car developed? These are factors that also affect the prices of used cars. A car that was manufactured in 2000 would obviously cost less than a car that was manufactured in 2012. 
5. Condition of the Car: Is the car in good shape? Does it have any dents? Are there existing problems you’d need to fix before using the car? Is the paint good? These are questions that should be asked. A car that is in good shape would sell higher compared to a car in bad shape. 

Conclusion 

The Nigerian used car market is one to stay for a long period of time. Whether for consumers or for business owners, this market is a thriving one. Used cars are always available even in different models and brands. It is left to you to choose which one best suits your needs and which one you can afford better.