A recent study conducted by one of Nigeria’s online vehicle marketplace Carmudi has shown that Nigeria is the most expensive country to purchase a car, compared to neighbouring West African countries. The study which focused on used car models created between 2008 and 2013 provided insights into the price difference in some of the West African countries surveyed.
From the study, Nigeria, Senegal and Ghana rank among the top three to buy a car in the most expensive countries. The study noted that more than 500,000 units of cars were imported into Nigeria in 2013, 75% of which were used cars. Although the number of used cars imported decreased in 2014 and 2015, the Nigerians surveyed agreed that it was due to the rise in customs tariffs rather than the availability of locally produced cars.
According to the study, with an average price of $ 19,547 (N7,451,316 at current rates), buying a car in Nigeria is way more expensive than other West African countries, with Senegal and Ghana at about $18,923 and $17,654 respectively.
Why are cars so expensive in Nigeria? One major reason has been given for this situation.
Lack of Vehicle Financing
Carmudi pointed out that the lack of vehicle financing options makes it difficult for the Nigerians to is one of the difficulties experienced by Nigerians in buying brand new cars, as financial institutions provide car loans with very high-interest rates.
Amy Muoneke, Managing Director of Carmudi Nigeria, spoke to the Vanguard about the findings of the study and recommended affordable loan options to help individuals who want to own cars.
Nigeria still has a high demand for cars
The study, however, revealed that Nigeria still has a strong demand for vehicles, despite being the most expensive country to purchase a used car in West Africa. It noted that while in the last decade and a half, the middle class has tripled in size, relatively few brand new cars have been purchased.
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