In Nigeria, consumers are inclined to opt for products that provide optimal value for their money, regardless of the product category – automobiles or mobile phones.
When it comes to the purchase of cars, Nigerian buyers prioritize various factors such as dependability, affordability, fuel efficiency, cost of maintenance, resale value, suitability for families, and the potential to elevate their social status. It is widely held that cars that satisfy at least three to four of these factors are deemed highly desirable and easy to sell in the Nigerian market. In light of this, we present the most rapidly selling cars in Nigeria.
According to Business Day, over the last five years, the volume of vehicle imports into the country has averaged approximately 220 units per day, arriving via multiple entry points including seaports, airports, and land borders. This influx has resulted in the importation of a total of 400,000 vehicles between 2015 and 2020, at an estimated cost of N1.8 trillion, as reported by the Minister of Finance, Budget, and National Planning, Zainab Ahmed. These vehicles exhibit a wide range of conditions and origins, including predominantly salvage used cars, a few brand-new models, and some accident vehicles.
In Africa, Nigeria, and Ethiopia occupy the top positions in terms of importing used cars, with Nigeria being one of the largest importers in the continent.
Profitable Used Cars for a Car Dealership & Used Car Business
Here is a list of profit-generating and profitable used cars we believe car dealers or those looking to start a successful business can purchase to maximize their business profitability in their used car dealership business.
1. Mercedes Benz G-Class
The Mercedes Benz G-Class, colloquially known as the G-Wagon, is a highly sought-after vehicle in Nigeria and a profitable used car for dealers. While some may argue that its design lacks the sleek and curvy aesthetic that defines beauty in automobiles, its high price tag could be interpreted as a representation of its exclusivity and luxury. Typically favored by the country’s elite, the G-Wagon is often seen as a status symbol, showcasing its owner’s affluence. However, the G-Wagon’s performance and luxurious features undoubtedly justify its steep price point, making it a highly desirable option for those seeking high-end vehicles.
The price of a used Mercedes-Benz G-Class varies depending on the model year, mileage, condition, and location. However, on average, a used Mercedes-Benz G-Class can cost between $50,000 to $150,000 or even more, depending on the specific factors mentioned earlier. Also, higher-end trim models cost significantly more than the base model.
2. Toyota Highlander
The Toyota Highlander is a vehicle that seamlessly combines luxury, ruggedness, and affordability, making it a popular choice among Nigerian drivers. Its spacious SUV design is particularly appealing, especially for those seeking a family car or requiring ample cargo space.
Additionally, the Highlander’s reasonable cost makes it an accessible option for a broad range of drivers. While the affluent class may find the cost quite affordable, lower-income earners could also consider purchasing the Highlander through car loans or diligent savings strategies.
Dealers in Nigeria looking for profitable used cars can’t go wrong with the Highlander. Factors such as the year, mileage, condition, and location affect the pricing of the Highlander and can range between $15,000 to $40,000 or more. Depending on the features and trim level it may cost more – higher-end trims and added features cost more. We would also like to point out that prices can fluctuate based on the supply and demand of the specific vehicle in the market.
3. Lexus RX 350
You may already be aware that Lexus is the high-end version of Toyota, and the Lexus RX 350 mini SUV is a prime example of luxury. What sets the RX 350 apart from other vehicles is that it caters not only to the wealthy but also to the middle-class population. This makes it unique from the 8th and 9th-ranked cars, which tend to target a smaller customer base. As a result, the RX 350 has a broader appeal, and it’s not surprising that it is one of the most popular vehicles in the country today.
The cost of a used Lexus RX 350 depends on its age, mileage, and condition. Generally, a used Lexus RX 350 can range from around $13,000 to $35,000. The prices may vary based on the seller, location, and other variables. It’s always best to do some research and compare prices before making a purchase to maximize your profit.
4. Toyota Sienna
The Toyota Sienna minivan is one of the most profitable used cars for dealers and is highly favored in Nigeria due to its numerous beneficial features. Its spaciousness makes it suitable as a luxurious mass transit vehicle, a family vehicle, and a cargo vehicle. It is a popular vehicle due to its spaciousness, versatility, and affordability.
The Sienna is designed to accommodate up to eight passengers comfortably, equipped with a range of safety features such as airbags, traction control, and stability control. The minivan is also known for its fuel efficiency, making it an economical choice for families and businesses. Its versatility is among the reasons it is listed as one of the most purchased cars in Nigeria for 2019. Moreover, its commonality implies that it is affordable for all classes.
Depending on the year, mileage, condition, location, and features, the price of a used Sienna may vary. It can cost anywhere from $10,000 to $30,000, older models with higher mileage and fewer features tend to be on the lower end of the price range, while newer models with low mileage and more advanced features can be on the higher end. Additionally, factors such as the seller (private party vs. dealer) and the market demand can also affect the price. It is important to do research and compare prices before making a purchase to ensure that you are getting a fair price for the vehicle.
5. Toyota Corolla
It is likely, not unexpected for you to learn that Toyota has enjoyed a significant following in Nigeria for quite some time. Among their main flagship models, Toyota Corolla stands out in popularity alongside Camry. Corolla has been a well-received vehicle in the country for as long as one can remember and is among the top profitable used cars for dealerships. It offers a winning combination of high performance, sleek design, and affordability, just like the Camry.
The price of a used Toyota Corolla can vary depending on the year, mileage, condition, and location of the vehicle. On average, a used Toyota Corolla can range from $5,000 to $15,000. It is important to thoroughly research and inspect the vehicle before purchasing it to ensure that it is in good condition and worth the price.
Honorable Mentions
Toyota Camry
The Toyota Camry undoubtedly ranks among the most sought-after car models in Nigeria. Its commonness on Nigerian roads is a testament to its popularity, as it is a rare sight to go a day without spotting one, even on less busy streets. Its affordability, fuel economy, exceptional performance, and low maintenance cost are key factors that make it a top choice for many Nigerians seeking a reliable and cost-effective vehicle.
These attributes, coupled with its durability, have endeared the Toyota Camry to both low and high-income earners in the country, solidifying its place as one of the most purchased vehicles in Nigeria.
On average, you can expect to pay anywhere from $5,000 to $25,000 for a used Toyota Camry. However, prices can go higher or lower than this range based on the year, mileage, location, condition, and features.
Honda Accord
Honda is a renowned automobile brand globally, and it is quite popular. Among the various Honda car models purchased, none is as highly sought-after as the Honda Accord. Although the Honda Accord competes with the Toyota Corolla and Camry for the title of the most popular vehicle, its high maintenance cost is a reason why it falls behind those cars in terms of sales volume.
The estimated price range for a used Honda Accord in good condition is around $5,000 to $24,000. It’s important to note that prices may vary by year, mileage, condition, location, and features of the vehicle.
Further Reading
- How Much Do Used Car Dealers Mark-Up?
- How Much Do Dealerships Pay for Used Cars?
- How Car Dealers Make Money When You Trade In Your Car
- Business Opportunities For Nigerians Through Used Car Auctions
- Used Cars or Salvage Cars: What’s a Better Choice For a Nigerian Buyer?
How Can We Help You Grow Your Used Car Dealership?
As a dealer, Auto Auction Mall can be a valuable resource for dealerships looking to grow their business. We provide dealerships with access to a wide range of vehicles with competitive prices from wholesale auctions. This means that you can find the specific models and makes that your customers are looking for, and expand vehicles in your inventory to meet their needs.
It is easy to buy vehicles online. With a simple bidding process and transparent pricing, you can purchase the vehicles you need without ever leaving your comfort. We also offer assistance and arrangement of vehicle inspections where needed. You can also request a vehicle history report for the vehicles you are interested in.
We provide expert customer support and advice to help you navigate the buying process. With access to a team of experienced professionals, you can get the guidance and support you need to make informed purchasing decisions. Our support extends to shipping, payment, and clearing assistance for buyers who cannot handle these tasks after purchase.
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