Tokunbo vs New vs Locally Used Cars in Nigeria: What You Should Know
Nigerians imported passenger cars worth roughly N1.01 trillion in the first nine months of 2025, with the third quarter alone hitting a record N527 billion, according to the National Bureau of Statistics (NBS). That's the default path most Nigerians take to own a car, since a brand-new one is out of reach for the average household. But "which car should I buy" usually gets answered by habit, not by actually comparing what new, Tokunbo, and locally used cars cost and risk. Here's the breakdown.
What's the Real Difference Between New, Tokunbo, and Locally Used Cars?
New cars are unregistered vehicles sold through official dealers. Tokunbo cars are foreign-used vehicles imported from countries like the US, Canada, and parts of Europe, then cleared through the Nigeria Customs Service (NCS). Locally used cars, sometimes called Nigerian-used, have already been owned and driven within Nigeria.
The word "Tokunbo" comes from Yoruba and roughly translates to "from across the sea," which is why Nigerians reserve the term for foreign imports specifically, not for cars that have only ever been driven locally.
The price ranges above come from current market listings, not government data, so treat them as a general guide rather than a fixed number. Actual prices swing with the model year, mileage, and condition.
What Does Each Option Actually Cost Beyond the Sticker Price?
The purchase price is never the full cost. Each category carries its own hidden layer of expenses that catches first-time buyers off guard.
Tokunbo: you're paying for more than the car itself. Clearing a Tokunbo car through customs adds three charges: import duty, a National Automotive Council (NAC) levy, and Value Added Tax (VAT). Each is calculated on the vehicle's assessed cost, insurance, and freight (CIF) value, and separate shipping and port charges come on top of that. The Nigeria Customs Service revised these rates in mid-2026, and market calculators still don't fully agree on the exact combined percentage. Confirm the current breakdown at customs.gov.ng or with a licensed clearing agent before you set a budget. After clearing, you still need to register the car with your state's motor licensing authority and get plates, roadworthiness certification, and insurance.
Locally used: the sticker price is lower, but budget for mechanical wear. Nigerian road conditions and fuel quality tend to be harder on suspension, bushings, and brakes than the same model would see abroad. Some cars also come with incomplete ownership transfer or expired papers, which costs time and sometimes agent fees to clean up.
New: the hidden cost here is depreciation. New cars lose value fastest in the first two to three years, and that effect is sharper in Nigeria's volatile foreign exchange environment. A dealer maintenance contract can reduce long-term repair risk, but it raises the upfront cost further.
One real-world example shows how fast Tokunbo costs can move: when used vehicle imports fell 83% year-on-year in the first half of 2024, freight and logistics reporting tracked a 2015 Toyota Corolla moving from roughly N1.9 million to around N9.5 million as supply tightened. That swing reflects how exposed Tokunbo pricing is to import policy and exchange rate shifts, and prices can move again just as fast, so treat today's price as a snapshot rather than a fixed number.
How Do You Inspect a Car Before You Pay?
A short checklist protects you better than trusting the seller's word, especially with Tokunbo and locally used cars where history is harder to verify.
- Match the vehicle identification number (VIN) across the dashboard, door jamb, engine bay, and every document, including customs papers for Tokunbo cars.
- Ask for previous owner details, service records, and any accident history the seller has.
- Check current registration, vehicle licence, roadworthiness certificate, and insurance.
- Look at the exterior for mismatched paint, uneven panel gaps, or welding marks, all signs of past accident repair.
- Check the engine bay for leaks, corrosion, or an engine that looks freshly steam-cleaned to hide a problem.
- Test drive for unusual noises, and pay attention to brakes, steering response, and how the car handles bumps.
If you're not mechanically confident, it's worth paying a trusted independent mechanic for a pre-purchase inspection. It's a small cost against the risk of an expensive surprise.
Where Do Nigerians Typically Buy Each Type?
Established car marts in cities like Lagos, Abuja, and Port Harcourt handle most Tokunbo and locally used sales, alongside private owners selling directly through referrals and dealer networks. New cars come from official brand dealerships and authorised distributors in major cities. Whichever route you take, buyers are increasingly favouring sellers who allow an independent inspection before any money changes hands, a shift that tracks directly with how common the scams below have become.
What Red Flags Should You Watch for, Whichever Type You Buy?
Most car-buying losses in Nigeria trace back to a handful of repeatable warning signs.
- The seller refuses an independent inspection or pressures you to pay quickly.
- The VIN on the documents doesn't match the car, or customs papers for a Tokunbo car look altered.
- The price is far below market for the model and year with no clear explanation.
- There's no clear ownership history and the seller won't share previous-owner or service details.
How Do You Pay Safely Once You've Chosen?
You can buy New, used or tokunbo cars on paseero by downloading the app on either playstore or app store. Use paseero escrow.This is where an escrow model (a system where a neutral third party holds your payment until both sides confirm the deal was fulfilled) works in your favour. Paseero applies this to online transactions by holding your payment until you confirm the item. Ready to buy your dream car. Explore available cars here
Frequently Asked Questions
What does Tokunbo mean? A foreign-used vehicle imported into Nigeria, most commonly from the US, Canada, or Europe.
Is Tokunbo cheaper than a new car? Usually yes, though 2026 duty changes are narrowing the gap, so it's worth checking current clearing costs before assuming.
Is locally used cheaper than Tokunbo? Generally yes, but with wider variance in condition and documentation quality.
How do I check if a car's VIN is genuine? Match the VIN across the dashboard, door jamb, engine bay, and all paperwork. A mismatch is a hard stop.
What's the biggest risk when buying a used car in Nigeria? Paying before the car and its documents have been independently verified.
Related Reading
For a full breakdown of common online scams in Nigeria and how to report them, see our companion guide on protecting yourself from online scams in Nigeria.
Sources
- National Bureau of Statistics data, reported in: "Nigeria's Used-car Imports Hit N1.71trn By Q3, 2025", New Telegraph
- National Bureau of Statistics data, reported in: "Nigeria Faces Supply Crunch as Used Vehicle Imports Plummet", ThisDay
- Nigeria Customs Service duty announcement, reported in: "Customs announces lower tariffs on imported vehicles", Premium Times
- Freight and logistics sector reporting on Tokunbo price shifts: "Tokunbo Car Imports Crash by 83%", AMG Logistics