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Tuesday, 2 December 2014

Why cars will become more expensive in 2015


I have been getting questions from some quarters about the better month to buy a car, the contenders being December and January.
Well my answer for all is December, December  is the better month to get your car even though January used to hold the trophy. What are my reasons for choosing this month, well, your hunch is probably right, I have 2 reasons for choosing this present month and here they are… I call them the double wahala.

-The Implementation of the Second Phase of the Reviewed Import Tariff on Tokunbo  Cars.

Remember the first phase was implemented in June when the import tarrif was increased by 35%. January 2015 would usher another increase by 35% making it a 70% increase altogether. What this simply means in plain simple English is that you would have to pay more than you have been paying for your imported vehicles.

Crashing crude oil prices:

Well we all know what is happening to our precious crude oil in the international market, more countries discovered the black diamond in their grandmother’s  little garden, entered into the market, creating a glut and bam!!! The numbers (crude oil prices) came spiraling down, creating pressure on the Naira and forcing the CBN to devaluate our currency as a result.
Now that $1 officially exchanges for N168, vehicle importers and dealers need more naira to buy forex since it is the only means of legal tender that can be used to buy used tokunbo cars in the United States, which in turn leads to higher vehicle prices. Let’s take for example, a car which used to sell between N2m and N2.2m would now sell between 2.8m and 3m. This price increase would also affect registered vehicles as pre owners would also want to gain maximum profit because they know that you, the buyer has fewer choices and let’s face it, Madam Finance Minister, Okonjo Iweala has warned us to brace up for inflationary trends in the country. Well, that also includes the used car market. So what are you waiting for? Make that decision, stop stalling, go to the dealer you have been discussing with and acquire that piece of metal on wheels that you have been planning to get before it’s too late. Don’t say nobody told you.  Motoring Nigeria wishes you good luck.

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