The Federal Government of Nigeria eased the lockdown on Lagos, Abuja, and Ogun state on May 4th, allowing businesses to partially resume activities in the country. Of course, such activities put food on the tables of Nigerian citizens including car dealers. However, folks immediately started raising an alarm due to the general increase of Tokunbo/used car prices.
There are three reasons why this alarm might not be a false alarm for car buyers.
Three reasons why car prices will increase as lockdown eases
1. The price of the dollar is up there
I made a prediction on how the Coronavirus would affect car prices after it wraps up. It was around the period customs increased the rate of the dollar. This increase has made car dealers realize that for them to be able to ship in more cars and still keep their profit margin, the prices of their present stock must also go up.
We hope the exchange rate drops soon
This has started playing out and a couple of hundreds of thousands are being added to prices of car sales in Nigeria.
See how Lagos reacted to the resumption of activities this week in this video :
How Lagos reacted to the resumption of activities partially
2. There is no better time to own a car
This is one of the perfect moments to own a car in Nigeria. The Covid-19 cases are on the rise and spreading across new states from day to day while normal activities have partially resumed.
It's the best safety precaution to keep social distancing while in transit by just driving a car with a functioning air conditioning system to and from work.
Everyone needs a car with AC this period for proper social distancing
Car sellers have seen this rise in demand for low-cost cars so it's a good time to make back all the money the pandemic locked out from their wallet.
3. Companies can't afford brand new cars for staff
A lot of companies buy brand new cars for their staff as a benefit of holding some positions in their organizations. This won't happen this period because most companies are not making enough revenue due to the pandemic.
This just increases the demand for cars from people that would normally not go after buying dealership cars. Even car manufacturers know this and have reduced their rate of car production all over the world just to meet the reduced demand for brand new cars.
Cars to buy this period
If you also feel the need to buy a car, it's best to take advantage of the reduced fuel pump prices and buy a car with a 4 cylinder drive train for low-cost daily maintenance. Now is not the best time to go for dream cars because the world at large is experiencing an economic recession. You also don't want to buy one of those cars with a very bad resale value around this period.
Not a good time for convertibles
There is a probability people will get pay cuts because companies are not running at full potential this period. Workdays in Lagos are now officially 3 days in a week and there is a new public transportation arrangement that just slows down everyone's movement.
Lagos conductor taking no chances. Can you spot it?
You need a car that fits perfectly into this Coronavirus pandemic situation in Nigeria so I was kind enough to prepare a table of cars that you can buy below ₦2,000,000 which allows you to save your remaining money to tackle this pandemic. There is hope all around the world as different treatments, vaccines, and antibodies to fight the virus are in development.
Low-cost maintenance cars you can buy this period
Take a look at the table below for cheap cars to buy:
|7 economical sedans below ₦2,000,000|
|1||Toyota Camry Big Daddy|
|4||Honda Accord Evil Spirit|
|3 economical SUVs below ₦2,000,000|
Traffic is on the rise in Lagos due to activities
Remember, make sure the air conditioner is working for full social distancing measure, and also, traffic will increase greatly so you need to sit comfortably chilled.