Nigeria has a growing market for second-hand cars, with an estimated 500,000 vehicles sold annually against 13,000 for brand-new cars in Nigeria, as reported by Punchng, and price ranges from N1M – N50M due to the affordability and reliability of these second-hand cars.
When buying a used car, consider the resale value, as vehicles tend to depreciate over time this can be a significant factor in the overall cost of ownership, as cars tend to depreciate over time. Some car brands hold more value in retention than others, especially in Nigeria.
Several factors influence a car’s second-hand value in Nigeria, including well-documented service history, lower mileage, age (with exceptions for well-maintained vintage cars), demand for popular models/brands, and the overall condition including exterior, interior, and mechanical components.
Here are eight car brands with good second-hand value in Nigeria
Toyota
Toyota tops the list as one of the most popular car brands in Nigeria and the brand with the highest resale value. Toyota vehicles are known for their dependability, durability, and fuel efficiency, making them popular among new and used car buyers . Popular Toyota vehicles in Nigeria include the Corolla, Camry, and Highlander.
Toyota Corolla and Toyota Camry are popular choices for Uber riders, young professionals, bankers, entrepreneurs, retirees, and students. The Toyota Matrix is popular among ladies, whereas the Toyota Sienna is popular among people with impairments.
Honda
Honda is another Japanese car brand with second-hand solid value in Nigeria. Honda cars are known for their quality, comfort, performance, and longevity, making them a good investment in the Nigerian market. Some of Nigeria’s most popular Honda models include the Accord, Civic, and CR-V.
Honda cars are popular with the middle class, with the Honda Accord being a favourite choice among Uber drivers, bankers, entrepreneurs, retirees, and men. On the other hand, the Honda Civic is favoured by women, young professionals, and students, while the Honda Odyssey is favoured mostly by persons with impairments.
Lexus
Lexus is Toyota’s luxury car brand, and it is gaining ground in Nigeria’s used car market. Lexus cars are noted for their luxury, plush interiors, modern technology performance, dependability, and smooth rides. The RX, LX, and ES are among the most popular Lexus models in Nigeria, appealing to consumers looking for reasonably priced luxury.
Lexus cars are popular among both middle-class and upper-class people. The Lexus ES is preferred by bankers, retirees, and corporate women, while men prefer the Lexus RX.
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Mercedes-Benz
Mercedes-Benz is a German luxury car brand that is also popular in Nigeria that retains its value well in Nigeria. Mercedes-Benz cars are a status symbol, and these vehicles are often associated with class and prestige and are known for their luxury, performance, and safety. Some of Nigeria’s most popular Mercedes-Benz models include the C-Class, E-Class, and G-Wagon.
Mercedes-Benz cars are popular with the upper class, with the Mercedes-Benz C-Class being popular among bankers, women, and retirees. Meanwhile, men opt for the Mercedes-Benz E-Class.
BMW
BMW is a renowned German brand known for its emphasis on performance, luxury, handling and innovation. It offers a diverse lineup of vehicles, including 3 Series, 5 Series, X3 and X5. BMWs generally maintain decent resale value, but ownership may incur higher maintenance costs.
BMW cars are a sign of luxury for the upper class, with males preferring the BMW 5 Series and women and retirees preferring the BMW 3 Series.
Hyundai
Hyundai is a South Korean car brand that has recently become increasingly popular in Nigeria. Models like the Hyundai Elantra, Hyundai Tucson and Sante Fe are well-known for their affordability, low maintenance costs, and modern features.Hyundai’s robust warranty offerings also add to the brand’s popularity.
Hyundai cars appeal to middle-class and upper-class buyers, making the Hyundai Elantra a popular choice among Uber drivers, young professionals, and students. On the other hand, the Hyundai Tucson is mostly popular among business owners.
Kia
KIA is another South Korean car brand that is popular in Nigeria. KIA cars are known for their affordability, reliability, design and user-friendly technology. Some of Nigeria’s most popular KIA models include the Rio, Sportage, and Sorento, and they are gaining popularity among Nigerian buyers who want value for their money.
Kia cars are well-liked by the middle and upper classes. Uber passengers and young professionals favour the Kia Rio, while entrepreneurs prefer the Kia Sportage. People with impairments are the most interested in the Kia Carnival.
Ford
Ford is an American car brand that has a long history in Nigeria. Ford cars are known for building rugged and dependable SUVs and for their affordability, durability, and performance. Some of Nigeria’s most popular Ford models include the F-150, Ranger, Edge and Explorer. These vehicles are well-suited to Nigeria’s diverse terrains and road conditions.
Ford cars are popular among the middle and upper classes, with students preferring the Ford Fiesta and entrepreneurs preferring the Ford Escape.
Ford cars are a status symbol among the upper class, with the Ford Fiesta being a popular option for students and the Ford Escape being favoured by entrepreneurs.
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Toyota and Honda have Nigeria’s most comprehensive spare parts and service centre networks. Lexus, Mercedes-Benz, and BMW have limited networks but are still available in major cities. Hyundai, Kia, and Ford have growing networks.
Ladipo Market in Lagos specializes in Toyota and Honda spare parts, while Computer Village in Lagos primarily deals in electronics but also offers spare parts for various car brands, including Lexus, Mercedes-Benz, and BMW. Wuse Market in Abuja is renowned for its Volkswagen, Peugeot, and Hyundai spare parts, while Kantin Kwari Market in Kano is a hub for Toyota and Honda spare parts. Lastly, Dugbe Market in Ibadan is well-known for its focus on Toyota and Honda spare parts.
When buying a car in Nigeria, it’s essential to consider the brand’s second-hand value to make an intelligent investment. Carefully inspect and test drive a used car, get a pre-purchase inspection, negotiate the price, and get everything in writing, being wary of cars with missing paperwork or sold by private sellers.
By choosing one of these brands and paying attention to the factors that influence resale value, you can make a well-informed decision that meets your transportation needs and holds its value over time.
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