Economic hardship : More Nigerians sell off cars to feed family

Acquiring a vehicle constituted one of the numerous accomplishments of the average Nigerian. The jubilation that envelops one upon purchase transcends all boundaries.

A gathering of parents, relatives, and friends convenes, where supplication are offered to multiple deities in the form of gin in an attempt to preserve the vehicle’s and the car owner’s lives.

However, the current state of the nation compels car proprietors to liquidate their vehicles, if only to ensure adequate sustenance, according to Vanguard.

An observation was made that individuals desiring automobiles now prefer to purchase used models from Nigeria rather than importing vehicles, colloquially referred to as “Tokunbo cars.”

Presently, automobile ownership is no longer considered a benchmark of success.

Investigations have uncovered the fact that individuals who acquire used vehicles in Nigeria do not do so for personal use, but rather primarily to facilitate ride-hailing services such as Bolt, inDrive, and Uber, among others.

A labourer named Mr. Salami Shotunde stated that he was compelled to sell his vehicle after storing it at home for several days because he was unable to fuel it under the current gasoline outlet price regime.

“The present living conditions of a great number of Nigerians sadden me greatly.” Recently, feeding has become increasingly problematic.

“I was compelled to sell my 2006 Toyota Camry after months of storing it at home.

“Purchasing fuel is costly, and there is absolutely no business activity.” Remaining healthful is currently the utmost priority, and nourishment is a significant component of that.

“In order to provide for my family, I was forced to sell my car.”

Additionally, Mr. Olamide Balogun, an entrepreneur who recently acquired a Toyota Sienna automobile, stated: “A few days ago, I paid N3.8 million for a used Toyota Sienna automobile that was in Nigeria.

“At this time, individuals purchase these Tokunbo automobiles due to their exorbitant price.”

“In the interim, I purchased it for transport business; not pleasure.” I was astounded by the owner’s distress over having to give up the vehicle. He acknowledgement was given that he had to sell the automobile in order to provide for his family.

According to automobile dealer in Berger, Mr. Chiemezie Onuoha, the exorbitant price of imported pre-owned vehicles has substantially diminished their market demand.

“Among other factors, increased freight, duty, and logistics expenses have significantly increased the price of imported automobiles.”

“During this time last year, a Toyota automobile cost between N3 million and N3.8 million to purchase, depending on the year.”

However, it has since risen to N7 million.

“Sales were at a peak at that time; I would sell five to six automobiles per month.”

“At this time, I barely sell three automobiles.

“Understood automobiles from Nigeria are gaining popularity as they are now more affordable.”

The federal government, via the Central Bank of Nigeria (CBN), declared on June 26, 2023 that the official exchange rate utilised by the Nigeria Customs Service (NCS) for the computation of import duties and levies has been raised from N422.30 per dollar to N589 per dollar.

As a result, the cost of import duty for the clearance of cargoes at the country’s seaports will increase for importers.

The observed increase can be attributed to the naira’s floating status, which delegated the exchange rate of its currency to market forces.

Many automobiles have been sold, according to Mr. Oluwaseyi Adeji, an engineer and car dealer in Egbeda, because of the economic climate and the necessity to sustain oneself.

He continued, “Those who purchase used automobiles in Nigeria prefer the Toyota and Lexus brands.”

“This is because Toyota vehicles are fuel-efficient, making them the best option in the current climate of rising fuel prices; they are also durable, operate frequently at high speeds, and are stronger than vehicles from competing brands.”

“However, individuals purchase them for business purposes.” Such belongs to Uber. Additionally, some individuals are permitted to make payments in installments.

“Few of the recently developed, aesthetically pleasing automobiles do not perform well on fuel.

“Their front wheel drive retracts effortlessly at high speeds, and their bodies, which were once coated metal pans, are now composed of plastic.” “Technology has altered their appearance.”