Car prices in Nigeria have risen sharply, with a 2005 Toyota Corolla now costing up to N8.5 million compared with N1.5 million three years agoHigh exchange rates, import duties and clearing charges have made cars more expensive and reduced buyers’ purchasing powerCar dealers say sales have dropped as Nigerians struggle with rising food prices, rent and other living expensesPAY ATTENTION: Find it fast with our new search feature at Legit.ng! Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.Nigerians hoping to buy a used car are facing a steep financial hurdle as prices of older vehicles rise into millions of naira, putting car ownership further out of reach for households already struggling with living expenses.A 2005 Toyota Corolla that sold for about N1.5 million three years ago now costs between N8 million and N8.5 million, while a locally used version of the same model has risen from N750,000–N850,000 to N4.3 million–N4.5 million.Toyota Corolla, Camry Prices Surge in Nigeria as Car Dealers Reveal Market Challenges Source: UGCCar dealers said the price increases, driven by high import duties, exchange rate pressures and rising vehicle clearance costs, have weakened demand and left businesses struggling to find buyers.PAY ATTENTION: From breaking news to viral moments. Follow Legit.ng on Instagram!Paul Uche, a car dealer and importer, said sales had dropped considerably this year, with some traders going three to four months without selling a vehicle.Used car prices put ownership further out of reachThe surge in prices has affected older models that many Nigerians traditionally consider more affordable options.Uche said a 2010 Toyota Camry that previously sold for between N2.2 million and N3 million now costs between N9 million and N10 million, depending on the vehicle’s condition.For buyers seeking locally used vehicles, the cost is also significantly higher. A Nigerian-used 2005 Toyota Corolla, which once sold for less than N1 million, now requires at least N4.3 million.These prices mean prospective buyers must save substantially more to purchase vehicles that were within reach for many households just a few years ago.For workers and families trying to manage everyday expenses, the cost of buying a car now competes with other financial priorities, including rent, food and transportation.Import duties and clearance charges add to buyers’ burdenUche attributed the price increases partly to exchange rate movements, customs duties and other expenses associated with importing vehicles.He said clearing a Toyota Corolla previously cost between N200,000 and N350,000 but now requires between N2.5 million and N3.5 million.The higher charges have increased the amount dealers must spend to bring vehicles into the country, contributing to the prices buyers face in the market.Uche urged the government to review the situation, warning that expensive vehicle imports and reduced consumer purchasing power were hurting the automobile business.Rising living expenses weaken demandBeyond the cost of purchasing a vehicle, rising household expenses have reduced the amount many Nigerians can afford to spend on major items.Uche said higher food prices, rent and other basic expenses had made it difficult for prospective buyers to consider purchasing a car.Toyota Corolla, Camry Prices Surge in Nigeria as Car Dealers Reveal Market Challenges Source: UGC“You wouldn’t expect somebody who is struggling to survive to look at buying a car,” he said.The situation has created a difficult cycle for the market: buyers are finding it harder to afford vehicles, while dealers are recording fewer sales and struggling to sustain their businesses.For Nigerian consumers, the figures illustrate how vehicle ownership has become a substantially more expensive goal, even for those willing to settle for older, locally used models.
Source: Legit.ng Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics.
He can be reached via victor.enengedi@corp.legit.ng and +2348063274521. Cindy oshodis Gary owens Heart touching messages Brandy Boy study medicine surgery
