Area_boy: I just wonder why new model cars are ridiculously expensive on Nairaland (and I'm guessing most of Nigeria).

I'm not a car dealer so I wouldn't know all the intricate details of making a profit and the overheads involved.

Example, I saw a brand new Camry LE for 6.1 million Naira. While the MSRP is at $22,500 (roughly 3.6 million Naira). lets be generous and say shipping and clearance is 1 million naira. That's about 1.5m left, all that is profit? or am I missing some hidden charge?

The same is evident for most new models! or are we selling it along with the hype of owning a "special" car?

femmy2010:

Custom clearance for a 2012 Camry is not less than N1.450m and could go as high as N1.7m.
Factor that before reaching your final conclusion.

aaidel: Ok but why will the clearing be that expensive isn't it supposed to be a percentage of the cost of the car if so why is it almost 50%?

Fhemmmy:

I think that is a good questions that could be directed to the Nigerian govt and their customs dept.
But i am sure it is probably because they are trying to encourage people to be buying from the Nigerian registered and accredited Toyota dealers, that are selling below standard in safety rides to the people.

Fhemmmy:

I think that is a good questions that could be directed to the Nigerian govt and their customs dept.
But i am sure it is probably because they are trying to encourage people to be buying from the Nigerian registered and accredited Toyota dealers, that are selling below standard in safety rides to the people.

Area_boy:

When you say below safety standard, do you mean Toyota will knowingly sell a car that isnt up to international standards in Nigeria? All in the name of profit? I strongly doubt that!

Maybe you mean lower luxury options? Cos then we all know Americans are the luxury crazy ones. European models still cant compare with the Americans in that sense.

So maybe the question could be, is the extra luxury option really that much worth it?

Area_boy:

When you say below safety standard, do you mean Toyota will knowingly sell a car that isnt up to international standards in Nigeria? All in the name of profit? I strongly doubt that!

Maybe you mean lower luxury options? Cos then we all know Americans are the luxury crazy ones. European models still cant compare with the Americans in that sense.

So maybe the question could be, is the extra luxury option really that much worth it?

Area_boy:

When you say below safety standard, do you mean Toyota will knowingly sell a car that isnt up to international standards in Nigeria? All in the name of profit? I strongly doubt that!

Maybe you mean lower luxury options? Cos then we all know Americans are the luxury crazy ones. European models still cant compare with the Americans in that sense.

So maybe the question could be, is the extra luxury option really that much worth it?

Area_boy: ^^

That's really interesting to know! But somehow I cant help but feel it is just economic reasons wrapped around the disguise of safety and environment

aaidel: Hmmmm but sometimes you get cars from private dealers that are cheaper than the toyota accredited dealers and besides it seems a if u want to discourage people buying second hand accident cars then duty should be cheaper on new cars to make them more affordable

Area_boy:

When you say below safety standard, do you mean Toyota will knowingly sell a car that isnt up to international standards in Nigeria? All in the name of profit? I strongly doubt that!

Maybe you mean lower luxury options? Cos then we all know Americans are the luxury crazy ones. European models still cant compare with the Americans in that sense.

So maybe the question could be, is the extra luxury option really that much worth it?

saxywale:

If I may comment, phemmy is actually correct. Most countries have a standard organization agency that ensures quality stuff is produced or imported into its country. Unfortunately, in a country like naija..anything goes. Have u ever wondered why a fairly used Nokia from Europe last longer than that produced for east Asia/African markets. Yes these big companies produce different product for different markets. You would have noticed that naija used corolla(bank type) are always much cheaper than naija used American corolla. The bank type turns rickety in a very short time unlike the American version.....and It's not even about luxury, a 2003 corolla ce(basic) trim still commands an higher price than a 2007 bank type on the naija used car market

tampa1871:

I bet you, in America and Canada, Keke NAPEP would never be road worthy. I live in America and have seen cars made for Europe. Compare their engines and you will notice that American specs are more powerful, durable and safer because if not, the consumers will not buy them. PEUGEOT and FIAT could not compete in North American markets yet people are dying for them in Nigeria. NO STANDARD BETTER THAN AMERICAN in automobiles.

Area_boy:
Yea, makes sense. But from Fhemmy's contribution, it seems the govt is trying to help local car dealership grow. If everyone can afford an American car, then local dealers will suffer (like everything else in Nigeria, we hate local and love foreign). A country like Malaysia imposes a 300% tax on foreign cars (as at 2006) in order to help Proton and the rest sell well. So I can understand FG's stance on imposing such high tax (which never occurred to me until Fhemmy cleared it up). This begs another question, why then will the local Toyota accredited dealers sell at double the MSRP in America?
Logistics? or tax? or both? or simply due to lack of regulation?

Area_boy: Having said that, I still disagree with Fhemmy on the issue of sub-standard cars. The cars a pretty much the same bar accessories**. The chassis, composites and body work is standard from Toyota. Every other addition is merely an accessory as is evident with Hiace, Hilux and some other brands.

Area_boy: I can understand the Canadians when the decide to get the highest quality in terms of driving aid and accessories. If you've seen the Canadian winter, you'll understand why they need such standards.

Area_boy:
It all comes down to buying a 2-3year old low mileage car with a perfect history rather than hustling for a brand new. Cos it makes no sense for me to buy a 2012 Camry for over 6million, when I can get a 2010 Lexus gs350(with Mark Levinson audio) for less that price. No brainer

Area_boy:

** It is important to note however that I'm not certain about the braking system as standard since this is factored into the overall safety rating of the car. Conversely, I remember when Toyota had recalls for their camry and corolla brands due to brake issues, My friend with his brand new corolla had the same braking problem and had to take it for an upgrade. His Toyota was bought from the Nigerian dealer, so it is fair to reach two conclusions
1) The standard crucial safety features are universal, or 2) Nigerian Dealers offer Higher safety at higher prices

Area_boy:
In the case of Dagrin (pardon my spelling), he had a Nissan Altima or Maxima and that must have been American spec, so still doesn't explain the difference in substandard and above standard cars.

jeezybuck: Please keep it coming, There is so much to learn here. Thumbs up to every contributor.

datola: I think it's the two front airbags that are more important even in American vehicles. Others are most times optional except may be in the latest cars. I've not come across any 2007 Toyota Corolla American spec with more that two airbags. .