Tokunbo Car Prices Soar as Import Costs Squeeze Nigerian Buyers

Tokunbo car prices have climbed sharply across Nigeria, with a 2005 Toyota Corolla now selling for between N8 million and N8.5 million, up from about N1.5 million three years ago. Dealers say high import duties, exchange rate pressures and clearing charges are driving the increase and weakening sales.

Toyota models lead price surge

Paul Uche, a car dealer and importer, said prices have risen dramatically over the past three years, with some models now selling for more than five times their previous prices. A 2010 Toyota Camry that previously cost between N2.2 million and N3 million now sells for between N9 million and N10 million. The 2005 Corolla, once about N1.5 million, now commands N8 million to N8.5 million, depending on its condition and grade.

The pressure is not limited to imported vehicles. A Nigerian-used 2005 Toyota Corolla that previously sold for between N750,000 and N850,000 now costs about N4.3 million to N4.5 million. Uche said the prices are estimates and may vary by vehicle condition, location and other market factors.

Clearing costs add to burden

Uche identified exchange rate pressures, customs duties and vehicle clearing charges as major contributors. Clearing a Toyota Corolla, which previously cost between N200,000 and N350,000, now requires about N2.5 million to N3.5 million. Those additional expenses are passed on to buyers, making it harder for dealers to attract customers.

Declining patronage has become a major concern. Uche said some dealers now spend several months without recording a single sale. 'You can even stay three to four months without making any sales; the situation is frustrating for people struggling to keep their businesses afloat,' he said.

Household budgets under pressure

Uche also blamed rising living costs for weaker vehicle sales. He said higher food prices, accommodation costs and other financial obligations have reduced disposable income. 'You wouldn't expect somebody who is struggling to survive to look at buying a car,' he said.

The dealer urged the federal government to review the cost burden associated with vehicle imports to ease pressure on businesses and prospective buyers.

The situation highlights affordability challenges in Nigeria's automobile market. Rising import costs and weaker purchasing power are squeezing dealers and buyers. For many Nigerians hoping to buy a first car, even older Toyota models are becoming difficult to afford. Nigerians with budgets below N10 million can still find selected models from Toyota, Honda and Hyundai that offer relatively economical fuel consumption.