The ITA (International Trade Administration) recently said 60% of Nigeria used cars come from the United States. Most of these cars are Japanese brands, like Toyota, Hyundai, and Kia. They are popular because people think they’re good.
Toyota, Hyundai, and Kia sell a lot in Nigeria, almost one-third of all new and used cars. They are like American cars but cheaper and better.
Americans make cars too, but Nigerians do not like them much. They think they are not so good. But some American cars are slowly getting popular.
Nigeria does not make many cars. They need to buy a lot from other countries, especially the United States. In 2021, they spent more than $1 billion on American cars.
Since 2014, Nigeria has tried to make more cars in the country. But out of 54 licenses they gave, only 6 factories still make cars. They have problems like money, roads, and space.
Some car companies have moved to Ghana because it is easier to make cars there. They plan to send cars back to Nigeria.
Nigeria needs 720,000 cars every year, but they can only make 14,000. So they still need to buy a lot of cars from other countries, mostly used ones.
Nigeria spends $8 billion on cars every year, but they can not get enough foreign money to pay for them. So cars get more expensive, and fewer people want to buy them. Companies also do not want to buy as many cars, so they keep their old ones for longer.
Nigeria made its first electric car with help from the Stallion Group and NADDC (National Automotive Design and Development Council) in February 2021. They want electric cars to be 30% of all cars by 2025.
In 2018, Nigeria had 11.8 million cars. Most were owned by regular people, some by businesses, a little by the government, and a few by diplomats.
Most used cars in Nigeria come from the US, and people like Japanese cars the most. Nigeria needs to make more cars, but it is not easy. They are trying, but it is hard.
What you need to know about used cars in Nigeria?
Popularity of Used Cars:
In Nigeria, used cars are highly popular due to their affordability compared to brand-new vehicles. The majority of people in Nigeria buy used cars due to budget constraints.
Sources of Used Cars in Nigeria:
Used cars can be sourced from various places, including local dealerships, private sellers, online marketplaces, and auctions. It’s essential to research the market thoroughly and exercise caution when buying from private sellers to avoid potential scams.
Condition and Inspection:
Due to concerns about vehicle condition and fraudulent practices, it’s crucial to have a used car inspected by a trusted mechanic before purchasing. This inspection helps identify any hidden issues or potential problems with the vehicle.
Pricing of Used Cars in Nigeria:
The pricing of used cars in Nigeria can vary significantly based on factors such as the make and model, age, condition, mileage, and location. Prices may also fluctuate due to economic conditions and currency exchange rates.
Popular Brands of Used Cars:
Some car brands are more popular and widely available in Nigeria’s used car market than others. Brands like Toyota, Honda, Nissan, and Mercedes-Benz are often preferred due to their reputation for durability and reliability.
Market Challenges of Used Cars:
Nigeria’s used car market has faced challenges such as issues with counterfeit spare parts, odometer fraud, and a lack of transparency in vehicle history. Therefore, conducting thorough research and using trusted sources is crucial when buying a used car.
Vehicle Import Regulations:
Nigeria has specific regulations and policies governing the importation of used cars. These regulations may affect the availability and pricing of used cars in the market. It’s important to be aware of these regulations if you plan to import a used vehicle.
Payment and Financing:
While some buyers pay for used cars in cash, others may opt for financing options. Be sure to explore financing options with banks or lending institutions if needed, and carefully review the terms and interest rates.
Documentation of Used Cars in Nigeria:
Ensure that all necessary documentation, including the vehicle’s title, registration, and insurance, is in order when purchasing a used car. This helps you avoid legal issues and ensures you have proof of ownership.
The ITA report sheds light on a significant aspect of Nigeria’s automobile landscape – the heavy reliance on imported used cars from the United States. This trend highlights the preference for American-made vehicles among Nigerian consumers. While efforts to boost local car production and assembly are ongoing, challenges persist in closing the gap between demand and domestic supply.