The newest development in the automobile market bearing positive indications is notable car dealers becoming major investors in the business of fairy used cars popularly known as “tokunbo”.
…the latest member of the market being Kia.
The “tokunbo” market was formerly considered a market for organised dealers who could not afford selling brand new vehicles.
Kia announced the launch of its “tokunbo” scheme and called it the “best ever certified used car programme”.
In a statement by Dana Motors limited, representative of Kia Motors in Nigeria, the used car programme would provide the opportunity for people to sell their old Kia cars or swap them for new models.
The programme would offer many people “the platform to get the best valuation for their cars in real time at our used car showroom in Lagos”, Dana Motors marketing manager Jimoh Olawale said in a statement.
“The programme enables you to sell your car or swap it for a new model either by outright purchase or finance scheme.
“We are partnering one of the leading banks to provide a highly competitive EMI and repayment tenure to best fit your budget,” he said.
The participation of new car dealers in the “tokunbo” market is also attributed to the high volume of sales in the niche.
According to Director-General, National Automotive Design and Development Council, Aminu Jalal, while dealers of new vehicles struggle to sell about 20,000 units in a year, “tokunbo” marketers control over 200,000 units annually.
He also said the present economic situation of the country was grievously affecting the profit value of the automotive sector, like other sectors of the economy, where annual sale volume has dropped from 450,000 cars dropping to about 250,000 sectors of the economy because of reduced purchasing power.
The sale of fairly used cars is said to have positively thrived in developed countries as the US, UK France and Germany.