Updated November 2026: this post has been refreshed with current information for readers in Nigeria. It is general information, not professional financial advice.
In 2015 we shared an advert for the then brand-new 2016 Kia Sportage SUV from a Lagos dealer, praising its sporty styling, nimble handling and value. That model year is now a used car, but SUVs remain among the most popular vehicles in Nigeria thanks to their ground clearance and space. Whether you are buying new or used, this guide explains how to buy a car wisely.
New, foreign-used or Nigerian-used?
- Brand new: full warranty, latest features and known history, but the highest price and depreciation.
- Foreign-used ('tokunbo'): imported used cars, often in better condition than locally used ones, but check history and import papers carefully.
- Nigerian-used: usually cheapest, but condition varies widely and needs thorough inspection.
Set your total budget
Include more than the purchase price: registration and papers, insurance, a mechanic inspection, servicing, fuel and spare parts. SUVs can be more expensive to fuel and maintain than smaller cars. Check spare parts availability and prices for the model you want.
Inspect before you buy
- Take a trusted mechanic or use a reputable inspection service.
- Check the engine, gearbox, suspension, brakes, air conditioning and electricals.
- Look for signs of accident damage, flooding or rust.
- Test drive on different road types.
- Run a diagnostic scan for error codes.
- Check that the VIN on the car matches the documents.
Check the papers
- Proof of ownership and vehicle licence.
- Customs duty papers for imported vehicles, verifiable with the Nigeria Customs Service.
- Roadworthiness certificate and plate number registration.
- Valid insurance.
- A signed sales agreement and receipt.
Verify documents with the relevant state motor licensing authority where possible to avoid stolen or duplicate-registered cars.
Financing a car
Banks and some dealers offer car loans and lease options. Compare interest rates, required deposits, insurance requirements and total repayment. Borrow only what you can comfortably repay, and avoid high-interest loan apps for car purchases.
Insurance
Third-party motor insurance is a legal minimum in Nigeria. Comprehensive insurance also covers damage to your own car and theft, and is often required for financed vehicles. Compare quotes and check that the insurer is licensed by NAICOM.
Avoiding car scams
- Be wary of prices far below market rates.
- Do not pay deposits for cars you have not seen or verified.
- Meet sellers at safe locations and verify their identity.
- Use traceable payment methods and get receipts.
After you buy
Service the car promptly, change fluids and filters, check tyres and keep records. Follow FRSC safety requirements, including seat belts and basic safety equipment.
Frequently asked questions
Is a tokunbo car better than a Nigerian-used car?
Often, but not always. Condition and history matter most; always inspect.
Can I get a car loan in Nigeria?
Yes, many banks and some dealers offer car financing. Compare total costs.
What papers do I need when buying a used car in Nigeria?
Typically proof of ownership, vehicle licence, customs papers for imports, roadworthiness and insurance.