Everybody can't afford brand new vehicles, but those hoping to buy a used one or tokunbo should know what they are going into.

My recent experience came from visiting a Nigerian shipping company with a friend of mine in one eastern US city. My friend had purchased a used 2005 Honda Pilot for $14k, serviced the vehicle and restored it to industry standards at a local Honda dealership for another $1650. Now he wants to ship the SUV to his father. He was charged $2k to share a space in a 40ft container that will accomodate 2 other SUVs, and he plans to raise another $3-4k for clearing. As the vehicle rolls out of a container in Lagos, my friend would have spent more than $20k on this vehicle. At an exchange rate of 170, that vehicle would be 3.4 million naira upon rolling out.

Ironically, my friend had told his cousin about his plan to surprise his father with a 2005 Honda Pilot, his cousin told him that the vehicle sells for 1.9 million in Lagos, but that the title says 'salvage'

During our trip, my friend brought the issue up to the shipper friend, and then came the revelation. The shipper took us to one side of his company where he had about 50 or so junk cars. The type of junk cars banks and insurance companies write off, after a vehicle had been totalled after an accident. He said, "if you register as a dealer, you could buy some of these cars for $50" He continued, "after you survey the damage, you simply buy the visible replacement parts(which are cheap in the US), and ship the junk cars with their parts to a Nigerian mechanics in Lagos, or the east where labor rates are rock bottom. So, one could buy a junk Honda Pilot for $50-100 dollar(banks and insurance companies really want to get rid of these cars at the auction), buy $1000-1500 spare parts, ship it for $2000, clear it as parts or junk for about $2-3, then "pay a Nigerian mechanic about #50,000--- and he would almost rebuild the whole car" The shipper continued to boast that's how you make money, sell the finished vehicle to Nigerians- who don't know how a good Honda Pilot drives like in the first place.

The problem is that there is nothing wrong with this form of business, because it's done in other developing countries, but I really worry about naija people who buy salvaged 2008 Lexus 470 for 2.1 million naira thinking that the check-engine lights don't go off. While the shippers, and mechanics may make every honest effort to fix every damage they could see, there're always the unseen, and unappreciated damages that made the banks sell the vehicle as a junk in the first place.

Buyers beware.

naijaking1:


He said, "if you register as a dealer, you could buy some of these cars for $50" He continued, "after you survey the damage, you simply buy the visible replacement parts(which are cheap in the US), and ship the junk cars with their parts to a Nigerian mechanics in Lagos, or the east where labor rates are rock bottom. So, one could buy a junk Honda Pilot for $50-100 dollar(banks and insurance companies really want to get rid of these cars at the auction), buy $1000-1500 spare parts, ship it for $2000, clear it as parts or junk for about $2-3, then "pay a Nigerian mechanic about #50,000--- and he would almost rebuild the whole car" The shipper continued to boast that's how you make money, sell the finished vehicle to Nigerians- who don't know how a good Honda Pilot drives like in the first place.

The problem is that there is nothing wrong with this form of business, because it's done in other developing countries, but I really worry about naija people who buy salvaged 2008 Lexus 470 for 2.1 million naira thinking that the check-engine lights don't go off. While the shippers, and mechanics may make every honest effort to fix every damage they could see, there're always the unseen, and unappreciated damages that made the banks sell the vehicle as a junk in the first place.

Buyers beware.

As much as the premise of the narration is true. However, the part i found plausible is paying $50 for a wrecked/totalled Honda pilot. 2005 for that matter! I know ppl who sell scrap metal and buy cars for scrap.

As a dealer myself, (i attend both accidented and clean car auctions) i can tell u for a fact that there's no way u can get any late model accidented car for $50. Even if its a Kia Rio. If its very tru, why dont u just find a Honda Pilot thats damaged in the front for $50-$100 and find another one thats hit in the back for $50 and use it for replacement? Why do u want to buy replacement part for $1500? 

Thats according to you. I am not trying to hairsplit what u said. However, i will hate to lend to the impression that accidented cars costs next to nothing here. Especially late model cars!

Its what is been made to believe in Nigeria, hence pple fall for 419 deals cos the prices thats they should have been suspicious of initially are not checked out. They fall prey.

A lot of cars in Nigeria are Salvaged cos ppl want something for nothing. However like the saying goes "You get what u pay for"

When I first came to the US, Suntrust bank used to give those vehicles away for free, zip, nada, zilch
They had no car storing department, and moreover, insurance had paid for the vehicles anyway. Someone I knew personally used to do janitorial work for the bank, then one day he found out that their regular 'disposal man' was late, then this man would pick the vehicles and take them to be crush, rolled into a small metallic ball, and sent back to iron smelter. Then he started keeping some of them himself, selling some to junk yards, etc

They started selling the junk cars thanks to increased demands--- Russians, East Europeans, South Americans, Carribeans, and now Nigerians/Afrcians.
Now auctioning junk cars has become a business by itself. If you haven't bought a junk car at a give away price, maybe you're located in some major metropolis, or your source is overwhelmed by demand. Try some other remote part of America, you might be lucky.

One area I agree with you is: some people want something for nothing. People get what they pay for, the only problem is how many of those people actually know what they're paying for?

This is another example of what I mean: https://www.nairaland.com/nigeria/topic-248732.0.html

A $50 wrecked/totalled 2005 pilot is a rare/ almost impossible finding. What are you paying for, the tires?

Okejazz:

A $50 wrecked/totalled 2005 pilot is a rare/ almost impossible finding. What are you paying for, the tires?

If your connection to the bank is good anything is possible. The banks/insurance companies don't keep these vehicles especially when they have been paid for. Note what I said above, these vehicles used to be given away, or cleared.

naijaking1:

If your connection to the bank is good anything is possible. The banks/insurance companies don't keep these vehicles especially when they have been paid for. Note what I said above, these vehicles used to be given away, or cleared.

I am unsure where u are getting your info from. Here's how salvage vehicle thing works:

Any car(s) thats fully insured after getting into an accident will be towed to a body shop. An adjuster from the insurance comapny will work with the body shop to determine if the car is "viable" to be repaired.

If yes. Car is repaired. If not, the value of the car will be paid off to the owner (finance co/Bank). The car at that point belongs to the insurance company cos its paid for.

Vehicle is then sent to the auction for sale.

My question to you then will be: As a business wouldnt it make sense on the part of the insurance company to get as much for the damaged car as possible? Granted they already lost on the car cos they cant get as much as they already paid/settled on the car.

Why would the be making a "backroom" or "side-side" deal with someone only to pay $50 for it? Also the potential for abuse by the employee. They can give it to relatives etc cos u can easily sell the parts on the street for higher prices.

Mind you, other expenses that will be incured are:

Towing the car to bodyshop

Sending their employees out for estimate(adjustment) on how much it will cost to repair the car to see if its worth it to repair.

Car rental for the owner of the damaged car pending any determination on car (i got $20/day for 30 days in my case years ago)

The body shop might possibly charge storage fees if the vehicle was not eventually repaired there. (Some dont, but most do)

All these done for a measly $50-$100? 

@Promise72
We all speak from our own experiences! Yes, "totalled" vehicles are sold, auctioned, discarded/given away to junk yards next to nothing. There's no question that the prices vary, but the essence of my write up remains the same: people buy junk cars next to nothing, buy replacement parts, and ship them to be fixed and sold in naija.
You made a point about banks trying to recoup their looses from a damaged car, have you ever thought about what happens to the junk cars not sold at auction?
Banks pay junk yards to get rid of them

ok

Please do cars that banks auction out to their employees and the public are also of these categories.

His story does ring some bells. I am in the UK, and it is a common knowledge that salvages go for very cheap money. Just Google Salvage car and see.

ehen, this is quite revealing,

@ Poster:

thanx man,,,

Your welcome
Always better to be informed.

How can you suspect a car to be salvaged? If the price is too good to be true, maybe it's not.
American 2007 Honda Pilot Ex-L for 2.5 million naira
The vehicle cost about $32,000, ie 5.44 million naira before shipping and clearing. So, don't think you can ever be that lucky.

One should be careful while purchasing the vehicles specially when its not new one most of the fraud cases are there too. hence always beware in such dealing.
______________
Public Adjusters

Salvaged cars are more of a 50-50 thing, but one must "shine your eye well" when dealing with such.

of course they are much cheaper than the regular ones, but if you are very smart and know what to look for, you will definitely get one that needs just very minor repairs and with very low mileage. it is just the same as when someone has an accident with his car in nigeria and you decide to repair it. won't you still use it after repairs?

the last car i used before i left nigeria was salvaged, and it served me very well for two years before i gave it to my younger brother. when looking to buy a salvaged car, here are a couple of things you should watch out for -

1. make sure it is not a head-on collision as this might affect the radiator and AC Condenser.
2. Even if it is head on, make sure the Air-bags have not been deployed. this is a no-go area when dealing with salvage vehicles.
3. make sure the car is not a flood vehicle. u might be lucky in this case, but more often than not electrical issues occur in flood vehicles.
4. always look out for cars with minor damages (bumper, not-too serious looking rear-ending, things that can easily be replaced).
5. ALWAYS make sure the car RUNS and DRIVES. it is usually stated there on the vehicle on the auction websites.
6. Make sure all the wheels are intact i.e no form of upper arm, suspension, etc damage. this refers to no. 5 above.
7. atimes thesecars can have frame damage. this can be seen by the doors not aligning properly, having to bang the doors etc before closing.

Salvaged vehicles are usually a game of luck, but if you know what to look for and what to avoid, you can get a very good one. all you will just need to do is buy replacement parts, ship them to nigeria or wherever you are, and get a very good mechanic and panel-beater to work on the car. before you know it, it is as good as new and you can then sell the car at a good price, or use it yourself.

Chima Arinze Automated Services Ltd
Phone: 0803 501 8807
Copart auction registered bidder in Lagos. I can help you buy an ship used cars from any where in the world.
Accident or brand new.
please feel free to contact me.