Nigeria’s used car market will likely see an increase in demand for used sedan cars in 2024, according to a report released by Cars45 powered by Jiji.
Giving an outlook for Nigeria’s car market in the coming year, Maxim Makarchuk, COO of Cars45 said in the report that consumers now favour sedan vehicles over SUVs and MPVs due to their more affordable pricing.
As of June 2023, top-selling used sedan models include the Toyota Corolla, Toyota Camry, and Honda Accord while Japanese, South Korean, and European sedan cars were popular among Nigerian consumers.
According to Mordor Intelligence, the rising price of petrol in Nigeria is a key factor that influences the higher demand for used sedans.
This is because Sedan cars give better mileage than SUVs and MPVs, making them a popular choice.
The Nigerian used car market is a dynamic and ever-evolving landscape, currently valued at $1.14 billion according to Modor intelligence.
It is influenced by a myriad of factors, ranging from economic conditions to technological advancements. Buyers, sellers, and key players need to anticipate the trends that will shape the industry in the coming year 2024.
Read also: Rising importation costs: Are locally-used cars really the solution?
In addition to the rise in demand for sedan cars, other factors are expected to drive the used car market in the New Year.
First, 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 percent of searches for used cars commence online, as customers delve into vehicle details while making a purchase decision.
Makarchuks said this is a sure indication of users’ increasing trust and reliance on online used car buying and selling platforms.
According to him, the convenience of online transactions has continued 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 percent 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,” he said.
He further predicted that there would also be a rise in 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), said in a publication that by 2025, 30 percent 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,” Makarchuks said.
He further forecasted that buyers would emphasise 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,” he said.
According to him, these attributes are 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 can sell within 24 hours through the platform’s network of buyers,” he added.
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.
Therefore, Makarchuks advised car players to always stay informed about these trends and to leverage the power of technology to navigate Nigeria’s vibrant and evolving used car market.
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