Denis Opudo
From a recent report released in Nigeria, it showed that more than 70% of the imported vehicles are used ones and later on taken to the market for resale. The second-hand cars in Nigeria are referred to as Tokunbo. The trend has led to an increase in the number of the used car market development that has seen car import increase by 35%. Most of the recent sales have been made by an open-air market where buyer and sellers have to meet physically before striking the deal.
Technology is slowly replacing the open air market as the selling mode. In the past five years technology has provided online marketplaces, supporting inventories of used cars and bring together buyers and sellers. The value chain of the used cars market has been heavily disrupted by technology in Nigeria. The country spends N1.2 trillion on the importation of vehicles.
The current market makes it hard for one to succeed without technology be it the person is dealing with brand new cars or Tokunbo. Technology has replaced the dealer’s shops in that it has made it easier for dealers to display their innovation to people outside the main cities in the country. Initially the dealer shops were only found within the main cities like Lagos, Abuja, Port Harcourt, and Kaduna but currently, the dealers can operate even up to the borders of the neighboring countries.
The technology has assured that both the dealer and the buyer come out satisfied with the business. At the same time, technology has been assured buyers of the quality car since they are in a position to visit different vehicle dealerships in various platform compare then make the right choice.
However, any changes will never miss its challenges the main challenge that comes with the online market is the persistent frauds which are a problem to some dealers. Different from the used foreign cars which have given structures around their distribution, the Nigerian Tukunbo market has remained a chunk. The problem has not only messed up the sellers, but it has also led to mistrust on buyers. Making the right valuation of the cars has been hard since it’s a great challenge of knowing the condition of the car.
