There are signs that the country may face a shortage of foreign-used automobiles, sometimes known as tokunbo autos, as sellers grumble about import difficulties.
According to The Punch, auto dealers in Lagos on Monday attributed the most recent development to the high exchange rate, which had an impact on the duty rate among other things.
The state secretary of the Lagos State Motor Dealers Association, Olaniran Adelana, stated that it was challenging to sell the older vehicles as they were unsure of receiving new ones.
“We are finding it more difficult to buy cars the way we used to—from Europe—due to the exchange rate between dollars. Additionally, it is difficult for us to sell outdated stocks due to the frequent depreciation of the naira,’’ he explained.
Adelana stated that the present difficulties had caused several traders to go out of business and that the naira’s recent increase versus the dollar was negligible.
Restocking was a significant problem, according to another Chimex Motors auto salesman at Berger Car Mart, Mr. Chinonso Amaraiwu, even though car sales had progressively increased.
“Sales of cars are gradually increasing, but replacing the ones that are sold is currently the biggest obstacle. Due to the numerous difficulties associated with importing vehicles, such as the tariff required on imported vehicles among other issues, cars are no longer entering the country as they once did.
“Many importers are being discouraged from entering the automobile import market by the duty. People would soon find it extremely difficult to purchase automobiles, particularly tokunbo vehicles, as they are no longer arriving in the same manner as they did previously,” he claimed.
The high cost of importing tokunbo automobiles is linked to the exchange rate, according to a different car dealer in Lagos State’s Amuwo-Odofin Area, Chibueze. “For example, you could sell your car for its current price of, say, N6 million, and then discover that you can’t purchase the same car for that amount when you wish to bring it in.”
