Used Cars Skyrocket in Nigeria as Naira Hit New Milestone Over Dollar

• The start of 2024 has seen the Naira devalue even more as against the Dollar.
• This devaluation has meant a spike in the price of commodities like cars in Nigeria.
• As such, used cars have become the only relatively affordable vehicle option for the average Nigerian today.

Following the start of 2024, the Nigerian Naira dropped even more below the dollar, by crossing the official N1,000 foreign exchange rate. Reports note that the naira fell to 1,089.51/$ on Tuesday, 2nd January 2024, from 856.57/$ on the previous day at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from the FMDQ Exchange.

Speaking on the continuous decline of the dollar, BusinessDay noted: “During Tuesday’s trading, willing buyers and sellers quoted the dollar at N1,251, representing the highest bid rate, and at N720/$, the lowest spot rate. The daily FX market turnover witnessed a 63.34 per cent surge to $97.45 million on Tuesday, compared to the $59.66 million recorded the day before.”

The publication noted that the reasons for the continuous devaluation of the Naira are multifaceted, however, they involve economic uncertainties, global market dynamics, and domestic fiscal challenges.

This gradual fall of the Naira has had its impact on everyday goods in the country, with car purchases and sales being one of them. For car importers, what this means is that there’s been an increase in the cost of importing cars into the country.

In an earlier article from December 2023, Business Insider Africa noted that the increase in new car prices in Nigeria due to the devaluation of the Naira and the increase in exchange rates has further increased the demand for used cars in the country. The report quoted the auto market analysis report from Mordor Intelligence that highlighted that the prices of new cars rose extensively in July 2023 due to the devaluation of the naira and the increase in exchange rates for clearing imports, causing car prices to increase in Nigeria by 15%.

Due to this harsh economic reality in Nigeria, car buyers have had to focus more on buying Tokunbo cars which are popular for their affordability and reliability. The report also noted that the emergence of online auto platforms has made it easier for consumers to access vehicle information, compare prices, and make informed decisions when purchasing a used car.

According to the analysis from Mordor Intelligence, the used car market in Nigeria which was $1.14 billion, will likely surpass $1.74 billion in 2024. We are already seeing that in Nigeria as the prices of new cars continue to skyrocket and many Nigerians are forced to go for 15+ years old Tokunbo cars that match their budget. However, those buying used cars in Nigeria are not safe from this situation either as the prices of Tokunbo cars in Nigeria “increased by almost 100% after the Nigeria Customs Service (NCS) increased the import duty on vehicles from 39.45% to 39.62% to reduce the dependency on imported cars while promoting the domestic manufacturing sector.

What this meant was that a 2005 Toyota Corolla that used to be sold for N1.9 million in 2021 is now being sold for N4.5 million while a 2004 Honda Accord that was N1.6 million in 2021 is now being sold at  N3.5 million as of 2024.

Yet, due to the current economic situation in Nigeria, used cars will remain the “preferred vehicle type,” because their prices seem to be even more affordable for the average Nigerian compared to new models.

With this, some of the top-selling used cars in Nigeria have remained the Toyota Corolla, the Honda Accord, the Toyota Camry, and a handful of other vehicle models like the Kia (which is relatively more affordable) and the Hyundai sedans.

Top 5 Cheap Used Cars to Buy in Nigeria in 2024

If you are looking for a cheap used car to purchase in Nigeria in 2024, here are the top 5 cars we recommend for everyone:

1. Toyota Camry

The Toyota Camry brand is one of the most popular cars on the streets of Nigeria. It has even been given many nicknames because of its popularity, easy maintenance, and fuel economy. It is also a comfortable car, with in-built safety features, brakes, tires, and engines. In Nigeria, you can get a used, durable, and efficient Toyota Corolla for one million naira or below depending on the model.

• 2015-2017 Toyota Camry – N1.5 million – N6 million
• 2010-2014 Toyota Camry – N2.5 million – N5 million
• 2003-2009 Toyota Camry – N2 million – N4 million
• 1996-2002 Toyota Camry – N900,000 – N2 million

2. Volkswagen Golf 3 & 4

Volkswagen Golf is one of the cheapest cars to make its way into Nigeria. The brand is most popular for durability, affordability, and its capability to go through long journeys. The Volkswagen Golf series used to be one of the most popular cars in Nigeria, used by members of the upper class in the 1990s, and over the years it is still a tested and trusted brand. Averagely, a used Volkswagen Golf 3 & 4 has a selling price of N350,000 to N750,000.

3. Honda CR-V

The Honda CR-V is a popular brand in Nigeria widely known for the comfort it gives to young families. A family that isn’t large, will find the car durable, and efficient. It has in-built safety features, it is easy to clean and maintain, and it can manage fuel efficiently, among other advantages. If you are looking for a car that gives an SUV feel and is also affordable, this car is right. In Nigeria, a used Honda CR-V costs between N2,000,000 to around N3,500,000

4. Mercedes Benz C200

The brand Mercedes-Benz is a popular one in Nigeria and the latest models of the brand are luxury cars. The C200 is a sleek-looking car that can be gotten at an affordable price. Mercedes-Benz often related to luxury, leads people to believe that it can only be afforded by the rich, but a luxury-looking Mercedes Benz C200 can be sold for N1,850,000 and above, depending on your car dealer.

5. Toyota Sienna 2001

Talk about a family car, and the Toyota Sienna comes up. The Toyota Sienna is a Sports Utility Vehicle known for giving its riders comfortability and security. It is a great choice for a large family as a family car, although it does not have a sleek look, it will do the job of transporting its owners to and fro for a very long time. A used version of the Toyota Sienna 2001 can be purchased in Nigeria for N1 million or more.