With the rising cost of new cars and the availability of quality foreign used options, many Nigerians face this question. We break it down honestly.
With the naira losing significant value against the dollar in recent years, the cost of buying a brand new car in Nigeria has become a serious conversation. A car that cost N8 million in 2020 may now be priced at N25 million or more. Against this backdrop, the tokunbo market has become more attractive than ever. But which option is actually right for you?
What Does Tokunbo Mean?
"Tokunbo" is a Yoruba name that loosely translates to "from overseas" or "returned from abroad." In Nigerian automotive slang, it refers to any foreign used car imported into the country. The vast majority come from the United States, with smaller numbers from Canada, Europe, and the Gulf states.
The tokunbo market has been part of Nigerian car culture for decades. At its best, it gives Nigerians access to vehicles they could never afford brand new. At its worst, it allows damaged, poorly maintained, or illegally obtained vehicles into the country. The key is knowing how to separate the good from the bad.
The Real Cost Comparison
When people say "brand new," they usually mean a locally assembled or freshly imported new vehicle purchased from an authorised dealer. These come with manufacturer warranties (typically 3 years or 100,000km), zero mileage, and the peace of mind of being the first owner.
However, the true cost of a brand new car in Nigeria today includes: the sticker price, registration fees, insurance, and the fact that new cars depreciate fastest in their first three years.
A tokunbo car has already absorbed that initial depreciation hit. A 2020 Toyota Camry XLE that sold new in the US for around $28,000 might arrive in Nigeria cleared and ready for N18 to N22 million, depending on the current exchange rate and clearing costs. The same car brand new from a Toyota dealer in Lagos could cost N30 million or more.
Custom duties and clearing costs typically add 20 to 30 percent to the cost of a car's US value when importing into Nigeria. Always factor this in when comparing prices.
When Buying New Makes Sense
Buy brand new if: you want a manufacturer warranty and authorised service support; you are buying for a business that needs to minimise downtime and maintenance surprises; you plan to keep the car for 10 or more years; or you have access to competitive dealer financing.
New cars also make sense when you are buying a model that is genuinely affordable new in the Nigerian market, such as certain Kia, Hyundai, or Toyota models that have local assembly or strong distributor networks.
When Tokunbo Wins
Tokunbo wins when your budget simply cannot stretch to new. It also wins when you want a premium car (think BMW, Mercedes, Lexus) at a fraction of the new car price. A 2018 Lexus RX350 with 50,000km on the clock can give you nearly identical luxury to a brand new one, for significantly less money.
Tokunbo also wins if you are buying through a reputable dealer who can show you full vehicle history reports (Carfax or AutoCheck), proper Nigerian customs documentation, and offers some form of after-sale support.
How to Confirm a Tokunbo Was Properly Cleared
A legitimately cleared tokunbo car will have: a Customs Duty Assessment notice, a Clean Report of Inspection (CRI), and a Bill of Entry from the Nigerian Customs Service. Some dealers also provide the original Bill of Lading. If a seller cannot produce these or gives excuses, the car may have been cleared through unofficial channels. This can cause serious legal problems for the buyer down the line.
A Practical Recommendation by Budget
Under N15 million: the tokunbo market is your best bet. Focus on well-maintained Toyota and Honda models from 2016 to 2019.
N15 million to N25 million: you have real options in tokunbo luxury and midsize sedans. This is where BMWs, Mercedes C-Class, and quality SUVs live.
N25 million and above: you can start looking at newer tokunbo models or entry-level brand new options. At this range, buying from a reputable dealer with documented history is critical.
Whatever your budget, patience and research will always serve you better than rushing into a purchase.
