Buying your first car is a huge milestone, but in Nigeria, one of the biggest decisions you’ll face is whether to buy a brand-new vehicle or a Tokunbo (used) car.
Both options have their own set of benefits and drawbacks, and making the right choice can significantly impact your driving experience and finances.
Let’s break down the essential factors that first-time buyers in Nigeria need to consider when deciding between new and used cars.
What Are Tokunbo Cars?
• Defining “Tokunbo” and Its Role in Nigeria’s Car Market
The term “Tokunbo” refers to pre-owned or second-hand vehicles, primarily imported into Nigeria from overseas markets.
In Nigerian culture, “Tokunbo” has become synonymous with reliable and affordable alternatives to new vehicles, making these cars a staple in the Nigerian car market.
• Origins of Tokunbo Cars: Imported Second-Hand Vehicles
Most Tokunbo cars originate from regions like the U.S., Europe, and Asia, where cars are often replaced more frequently, leaving quality used vehicles ready for resale.
After rigorous inspections and repairs, these vehicles are shipped to Nigeria, offering buyers an option that balances quality with a lower price point.
• Why Tokunbo Cars Are Popular Among Nigerian Car Buyers
The appeal of Tokunbo cars is largely due to their affordability compared to new vehicles, making them an ideal choice for first-time buyers.
Additionally, Tokunbo cars often come with available spare parts and an established maintenance history, which can simplify ownership for new buyers.
For readers looking for a cost-effective vehicle, Tokunbo cars present a practical, budget-friendly option that doesn’t compromise on quality.
For further insights into choosing the right type of car, see our guide on Affordable and Reliable Cars for First-Time Buyers in Nigeria (2025), and discover more about New vs. Tokunbo Cars to help you make the right choice.
Pros and Cons of Buying a New Car
• Pros of Buying a New Car:
No Previous Ownership
A new car comes with no prior owners, ensuring it’s in pristine condition with no hidden maintenance issues, making it ideal for buyers who want peace of mind regarding their vehicle’s history.
Warranty Coverage from the Manufacturer
Most new cars come with manufacturer warranties covering repairs and maintenance for the first few years, which can significantly reduce ownership costs early on.
Latest Technology and Features
New cars are equipped with up-to-date safety features, infotainment systems, and fuel efficiency improvements that might not be available in older models. These innovations often provide a more enjoyable and convenient driving experience.
Better Financing Deals and Incentives
Dealerships and manufacturers often offer attractive financing deals, such as lower interest rates or flexible payment options, specifically for new cars, which can make purchasing more affordable.
Low Maintenance Costs in the First Few Years
With a new car, maintenance costs are minimal for the first few years due to the fresh condition of parts and the availability of warranty coverage. For first-time buyers, this can mean a lower overall cost of ownership initially.
• Cons of Buying a New Car:
Higher Upfront Costs
New cars typically have a higher initial purchase price compared to pre-owned options, which might not be ideal for first-time buyers on a tight budget.
Rapid Depreciation
New cars experience significant depreciation, especially within the first few years. This means a new car loses value quickly, which could be a disadvantage for buyers considering resale in the near future.
Limited Availability of Spare Parts in Certain Regions
Some newer car models might have limited spare parts available, especially in specific areas of Nigeria. This could lead to delays and higher costs for repairs if the parts need to be imported.
For more information, explore our section on Key Considerations for First-Time Car Buyers to help balance the pros and cons based on your budget and needs.
Pros and Cons of Buying a Tokunbo (Used) Car
• Pros of Buying a Tokunbo Car:
More Affordable Than New Cars
Tokunbo cars, or imported used vehicles, are often significantly cheaper than new ones, making them a more budget-friendly option for first-time buyers.
Slower Depreciation Rate
Since Tokunbo cars have already gone through the steepest part of their depreciation curve, they hold their value longer, which can be an advantage if you plan to resell in the future.
Availability of Spare Parts
Many Tokunbo cars are popular models with a strong market presence, meaning parts are easier to find, and repairs can be done without the long wait times sometimes associated with new models.
Larger Selection of Models at Different Price Points
The used car market offers a wide variety of models across various price ranges, giving buyers more options to find a car that matches their budget and preferences.
• Cons of Buying a Tokunbo Car:
No Warranty
Tokunbo cars typically do not come with a warranty, which means buyers bear the full responsibility for repairs and maintenance. For first-time buyers, this might mean higher initial risk if unexpected issues arise.
Unknown History
A used car might have an uncertain past, including accidents or hidden repairs. Without a detailed service history, it’s hard to be certain about the car’s condition.
Potentially Higher Maintenance Costs
Older cars may require more frequent repairs and maintenance, and costs can add up over time. Ensuring regular check-ups and budgeting for repairs is essential for Tokunbo buyers.
Risk of Odometer Tampering and Hidden Damages
Some used cars may have been tampered with to hide their actual mileage or damage history. This makes a thorough inspection crucial to avoid purchasing a car with concealed issues.
For more insights, check out our guide on Key Considerations for First-Time Car Buyers, where we cover the factors to look out for when buying a Tokunbo or used car in Nigeria.
Cost Comparison: New vs Tokunbo
• Typical Cost Range for New Cars in Nigeria
The cost of a new car in Nigeria varies based on factors like brand, model, features, and current import tariffs. Typically, entry-level models from popular brands such as Toyota, Honda, and Kia may start around ₦8 million to ₦15 million. Luxury or high-end models, on the other hand, can exceed ₦30 million.
Do you want to know more budget-friendly cars, you definitely want to check the section on “Budget-Friendly Car Options for Nigerian Buyers” to help you understand affordable choices among new models.
• Price Range of Tokunbo Cars in Nigeria
Tokunbo (or imported used) cars tend to be significantly cheaper than new models. A Tokunbo Toyota Corolla, for instance, could range between ₦2 million to ₦5 million, while a higher-end used vehicle might go for ₦7 million to ₦12 million.
These prices make Tokunbo cars an attractive option for budget-conscious buyers, especially first-timers looking to maximize value without the steep price of a brand-new car.
“What to Look for When Buying a Tokunbo Car” is here to guide you on purchasing tips specific to used cars.
• Total Cost of Ownership Over 3 to 5 Years
When comparing the cost of ownership, several factors come into play beyond the purchase price, including:
- Depreciation: New cars lose value quickly, depreciating by up to 20-30% within the first year. Tokunbo cars, having already experienced depreciation, tend to lose value more slowly, which can mean a better resale value over time.
- Maintenance and Repairs: Tokunbo cars might require more frequent repairs, especially if they’ve seen extensive use or have underlying issues. New cars, conversely, come with a warranty covering repairs for the initial few years, which can lower maintenance costs during that period.
- Insurance Costs: Insurance premiums for new cars are generally higher due to the higher replacement value. Used cars are typically cheaper to insure, but this cost difference should be weighed against potential repair expenses.
Considering these aspects, Tokunbo cars often offer a lower total cost of ownership, though each buyer’s choice will depend on budget, maintenance capacity, and long-term goals.
For further guidance, check out our breakdown of Maintenance Costs for New vs. Used Cars in Nigeria.
Which Option Offers Better Long-Term Value?
• Duration of Car Ownership
When evaluating long-term value, how long a buyer intends to keep the car is essential.
For instance, if a buyer plans to keep the car for only a few years, a Tokunbo car may offer better value, as it has already depreciated significantly and might retain more of its value when resold.
For those aiming to keep a car for a longer time (5 years or more), a new car may be a sound investment due to lower maintenance and repair costs in the first few years.
• Long-Term Maintenance Costs
Over time, maintenance costs play a substantial role in determining a vehicle’s overall value.
Tokunbo cars may come with higher maintenance expenses, especially if they lack a warranty or have pre-existing wear and tear.
New cars, however, often come with warranty protection and require fewer repairs initially. As such, while new cars may require a more substantial upfront investment, their predictable maintenance costs could make them more economical for those planning for the long haul.
• Resale Value in Nigeria
Resale value is another factor influencing long-term value. New cars experience steep depreciation, particularly in the first few years.
Tokunbo cars, having already depreciated, generally retain a higher percentage of their value in subsequent years. This makes them appealing to buyers focused on value retention.
Cars from popular brands with a reputation for durability, like Toyota and Honda, often have favorable resale values in Nigeria, which can benefit owners when it’s time to upgrade.
Factors to Consider When Choosing Between New or Tokunbo
• Budget: Short-Term and Long-Term Costs
A primary factor when deciding between a new or Tokunbo (used) car is your budget. New cars have higher upfront costs but might lead to lower maintenance expenses and better financing options.
Tokunbo cars, on the other hand, are often more affordable initially, but they may incur higher maintenance costs over time due to previous wear and tear. Setting a clear budget that includes both upfront and long-term costs is essential for first-time buyers.
Interested in detailed cost breakdowns for each option? Check out the section on Cost Comparison: New vs Tokunbo.
• Purpose: Defining Your Car’s Main Role
Identifying the primary purpose of the vehicle can help guide your choice. For instance, if the car will be used for daily commutes or city driving, a compact, fuel-efficient car may suit your needs, whether new or used.
However, for frequent long-distance travel or family trips, reliability and durability become crucial, which may tilt the decision in favor of a new car.
For other practical needs when choosing a car, check the section on “Key Considerations for First-Time Car Buyers in Nigeria”
• Availability: Access to Desired Models in Nigeria
Availability of preferred models, both new and Tokunbo, plays a role in making a choice. Some car brands or models are easier to find as Tokunbo cars in Nigeria, while others are available only as new.
Availability also impacts access to spare parts and authorized repair services, both critical for ongoing maintenance.
Check the section on “Where to Buy Your First Car in Nigeria” to provide options for locating new and used cars across Nigeria.
• Risk Tolerance: Assessing Your Comfort with Used Vehicles
Buying a Tokunbo car comes with potential risks, such as undisclosed damage, odometer fraud, or hidden maintenance needs. If you’re willing to navigate these uncertainties, a Tokunbo car could be a budget-friendly option.
However, those who prefer the assurance of a manufacturer’s warranty, known history, and minimal prior usage may find a new car to be worth the investment.
Need practical advice on handling risks associated with used cars, you should check out the section on “Tips for First-Time Car Buyers in Nigeria”.
• Personal Preference: New vs. Pre-Owned
Some buyers have a strong preference for the experience that comes with a new car—like the new-car smell and latest features.
Others prioritize functionality and are comfortable with a well-maintained used car that meets their needs without the new-car premium.
Personal preference can often be a deciding factor, especially if both options are within budget.
Conclusion
Choosing between a new or Tokunbo car as a first-time buyer in Nigeria can be a tough decision. While a new car offers peace of mind and reliability, a Tokunbo car gives you more affordability and options.
In the end, the best choice depends on your personal circumstances, budget, and how long you plan to keep the vehicle.
Weigh the pros and cons carefully and choose the option that offers the best balance of value, reliability, and satisfaction for your needs.
First-time buyers, do you prefer new or used cars and why.