The Nigerian used car market is positioned for a boom in 2024. It is all going to be influenced specifically by technological advancements.
Already, the market is a dynamic and ever-evolving landscape, currently valued above $1.14 billion according to data from market Research company, Modor intelligence.
Industry experts and car dealers in Nigeria have agreed also studied the trends which are likely to bring the prediction to fruition and advised that staying informed about these trends and leveraging the power of technology will be key for all stakeholders in the vibrant and evolving market.
For the Chief Operating Officer, COO of Cars45, Mr. Maxim Makarchuk, the increasing reliance on technology to the emphasis on vehicle health and condition are the trends that will influence the way buyers and sellers navigate the roads ahead.
He reviewed the key trends that will shape the sector in 2024.
Tech-driven Transparency:
According to Makarchuk, “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. This is a sure indication of users increasing trust and reliance on these online used car buying and selling platforms.
“Meanwhile, the convenience of online transactions continues to impact the used car market. For instance, more buyers are opting for online platforms like Cars45, Carmart, and Jiji to 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 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.
“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.”
Rising interest in Electric Vehicles
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.
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 in a platform like ours, Cars45, where we’ve recorded sale of over 26,000 vehicles, and currently inspect about 1500 cars monthly, pan Nigeria.
Consequently, customers who inspect their cars through Cars45 are able to sell them within 24hrs, through our network of buyers.
