US-Based Firm in Nigeria To Crash Second-Hand Car Prices

A United States-based auto auction firm, Insurance Auto Auction, has said that it is in Nigeria to redefine the lucrative second-hand car business, better known as tokunboh.
The Vice-President of the firm, Mr. Dan Oscarson, told journalists on Thursday in Lagos that the firm would provide buyers the opportunity to import vehicles at exceptional prices.
According to Oscarson, buyers can also import dent cars and repair them when necessary in Nigeria, where the cost of labour and repair is low.
Oscarson said that from the firm's evaluation of the second-hand car market in Nigeria, cars were overpriced as some dealers made over 50 per cent of the cost price as profit.
"With growing demand for affordable transportation around the world, the opportunity to profit from buying and repairing damaged vehicles has become relevant," he said.
He said that the firm provided live and live-online auctions that would enable buyers get exceptional returns in their choice. He added, "American standards specification (American spec) cars are very desirable in West African markets because of their special features. Our company sells salvage vehicles via live and live-online auction at over 155 locations across the United States.

"Low prices for this type of vehicles make them attractive to buyers who want to repair and use or resell in the local market. It is an opportunity to buy and save a lot of money."
Oscarson said the company was in the country to sensitise the general public on the abundant opportunities in the initiative.
According to him, Nigerians that visit the IAA website have increased by over 100 per cent with over 50 per cent purchase.
He said that the initiative would eliminate the situation where most Nigerians were defrauded in an effort to procure cars through friends abroad.

Buyers can access our website and collaborate with the company through licensed dealers to fast-track shipment and payment logistics. We were here in 2009 and the volume of quality cars and traffic showed positive indices of growth. We have discovered that purchase of salvage cars is more efficient when compared to overage cars. It's a good offer to people that cannot really afford a new car.
"The company has the most salvage auction facilities in North American selling well over 1.3 million salvage vehicles annually. With more than 26 years experience, from local to global level, we offer an experience advantage that demonstrates the ability to prepare and sell your inventory quickly for great value," he added.
He said that the initiative would lead to wealth creation, employment generation and technology transfer for artisans due to maintenance of the vehicles.