How to Price Tokunbo Cars for the Nigerian Market
Pricing a Tokunbo car correctly is the difference between a fast, profitable sale and a vehicle that sits on your lot for months. Here is a simple framework Nigerian dealers can use.
1. Know your true landing cost
Your cost is not just the purchase price. Add up every naira it took to get the car ready to sell:
- Purchase price (or auction price + fees)
- Shipping and clearing
- Customs duty and the C-number paperwork
- Transport from the port to your lot
- Repairs, detailing, and any parts
This total is your landing cost — never price below it.
2. Check the live market
Search what the same make, model, year, and condition are selling for today on the platforms your buyers use. Look at asking prices, then assume real selling prices are 5–10% lower after negotiation.
3. Set your margin with room to negotiate
Most Nigerian buyers expect to bargain. Build a cushion of 7–12% above your target take-home price so you can "come down" and still hit your margin.
4. Adjust for condition and demand
- Tokunbo in clean condition commands a premium over Nigerian Used.
- Fast-moving models (e.g. popular Toyota and Lexus units) can carry tighter margins because they sell quickly.
- Slow-moving stock should be priced to move — every extra month is cost.
5. Review and reprice regularly
If a car hasn't had a serious enquiry in 3–4 weeks, the market is telling you the price is too high. Reprice rather than wait.
Tracking landing cost, days in stock, and margin for every vehicle by hand is hard. That's exactly what DealerBoss automates — so you always know which cars are making you money and which are tying it up.