The Nigerian used car market is a dynamic and ever-evolving landscape, currently valued at USD 1.14 billion, according to Modor intelligence.
The market is influenced by a myriad of factors, ranging from economic conditions to technological advancements.
It’s important for buyers, sellers, and key players to anticipate the trends that will shape the industry in the coming year as we set our sights on 2024.
Tech-driven Transparency:
Advancements in technology are fostering transparency in the used car market, providing buyers with a wealth of information. Online platforms and apps are enabling consumers to access detailed vehicle histories, reducing the risk of fraudulent transactions. Based on McKinsey’s findings, over 95% of searches for used cars commence online, as customers delve into vehicle details while making a purchase decision. This is a sure indication of users increasing trust and reliance on these online used car buying and selling platforms.
Shift Towards Online Transactions:
The convenience of online transactions continues to impact the used car market. More buyers are opting for online platforms like Cars45, Carmart, and Jiji to browse, negotiate, and finalise deals. The global push for contactless transactions further accelerates this. Also, the rising internet penetration rate in Nigeria which was up to 55.4% in January 2023, and urbanisation, are fostering an efficient ecosystem. This enables vehicle owners to connect with buyers across regions, streamlining online sales without physical visits.
Increasing Demand for Used Sedan Cars:
Consumers currently favour sedan vehicles over SUVs and MPVs due to their more affordable pricing. As of June 2023, top-selling used sedan models included the Toyota Corolla, Toyota Camry, and Honda Accord. Japanese, South Korean, and European sedan cars were particularly popular among Nigerian consumers. According to Mordor Intelligence, the rising price of petrol in Nigeria is a key factor influencing the higher demand for used sedans.
This is because these cars give better mileage than SUVs and MPVs, making them a popular choice.
Rise of Electric Vehicles (EVs):
With the global shift towards sustainability, Nigeria is not immune to the rising interest in electric vehicles. The Director of the National Automotive Design and Development Council (NADDC), stated in a publication that by 2025, 30% of passenger cars driven in the country will be electric-powered. While the adoption of EVs in the new car market is still in its early stages, the global used car market is expected to witness a surge in the availability of pre-owned electric vehicles in 2024.
Emphasis on Vehicle Health and Condition:
Buyers are becoming more discerning. They emphasise the importance of well-maintained vehicles when considering a purchase. On the other hand, sellers who invest in proper maintenance and provide detailed service records will likely have a competitive edge. This is evident on platforms like Cars45 where they’re recorded to have sold over 26,000 cars and currently inspect 1500+ cars monthly across Nigeria. Consequently, customers who inspect their cars through them are able to sell within 24hrs through the platform’s network of buyers.
As we approach 2024, the Nigerian used car market is surely positioned for a boom. From the increasing reliance on technology to the emphasis on vehicle health and condition, these trends will influence the way buyers and sellers navigate the roads ahead. Staying informed about these trends and leveraging the power of technology will be key for all stakeholders in this vibrant and evolving market.
ThisDay
