The Declining Accessibility of Cars for Working-Class Nigerians

Working-class Nigerians are experiencing difficulty purchasing cars due to economic hardship, leading to a reliance on the Nigerian-used car market. The market has shifted from new and fairly-used vehicles to primarily Nigerian-used cars, which are often overpriced and of dubious quality. Despite the challenges, some dealers adapt to meet demand, though profit margins are tight. Solutions from the government are necessary to improve accessibility to vehicles.

Recent discussions highlight the plight of working-class Nigerians who find it increasingly difficult to purchase cars. In the 1970s, new vehicles such as the Volkswagen Beetle were accessible, often serving as incentives for fresh graduates. The stark contrast to present conditions illustrates the economic distress many are experiencing now, limiting their ability to buy brand new cars or even fairly-used imports, thus leading to a surge in the market for Nigerian-used vehicles.

Due to economic hardship and a devalued Naira, many car buyers now resort to purchasing Nigerian-used cars, which are marketed primarily through workshops, streets, and mechanic shops. Various outfits like Car45 and Automania provide these used vehicles, though their quality is often questionable. This trend is evident as individuals display available cars using simple signals, such as placing bottled water on the roof to indicate they are for sale.

Surveys indicate that prices for Nigerian-used vehicles are surprisingly high despite their condition. A Toyota RAV4 from 2003 can retail for around N4 million, while newer models sell for significantly more. Dealers in different regions are adapting to the market’s demand for affordable vehicles, despite the fact that profit margins may not be as favorable as those for fairly-used cars.

Auto dealer Nuhu Ismaila noted that he primarily deals in Nigerian-used cars as rising costs for fairly-used imports push him out of business. He explained that buyers nowadays are aware of the subpar conditions often associated with these Nigerian-used vehicles. Emeka Nwokoye echoed that economic hardship has spurred growth in the Nigerian-used car business, although profits remain slim compared to fairly-used options.

The automotive market in Nigeria reflects broader economic challenges faced by the working class. The once common practice of purchasing brand-new vehicles has diminished, leading to a growing reliance on the Nigerian-used car market. While this shift provides opportunities for some, the high prices and often questionable quality of these cars raise serious concerns. A sustainable solution from the government could enhance the situation, making vehicle ownership more attainable for many Nigerians.

Original Source: businessday.ng