-2.1 C
New York City
Tuesday, November 29, 2022
Home NEWS Nigeria Accident Vehicle Importation Soars in Nigeria

Accident Vehicle Importation Soars in Nigeria

FRANK BOYEDE

[dropcap]F[/dropcap]ollowing new FOREX policy recently announced by the Central bank of Nigeria (CBN), more car importers are switching over to importation of accident vehicles, mostly from United States of America (USA).

Motoring World search revealed that between 30th March and 30th June 2016, Accident vehicles importation through the nation’s seaports increased by over 30%, as non-accident ones reduce by over 50%.

This line of business is now more attractive, because dealers get to buy the accident vehicles cheaper in the US and pay lower import duties on them.

A Lagos-based accident vehicle importer, who spoke to Motoring World correspondent in anonymity, said the recent FOREX policy of the federal government has made importation of normal used vehicle more expensive and so unprofitable.

“For an accident vehicle in the US, you could pay less than 20% of what you could have paid for a non-accident used vehicle,” he explained. “And at the point of entry (port) you pay far less duty.”

On how he manages to sell the vehicles, the respondent told Motoring World he has a body repair shop, where the vehicles are taken straight to for repair before being displayed for sale.

“When we finish repairing the vehicles and repaint them,” he pointed out, “they look like new vehicles and so we make more profit. Mind you, most of the accident vehicles we import only have damaged body, but their engines are still virtually new.”

Another  shipper who specializes in importation of America-used brands; Mr  Bernard Chukwueke told  Motoring World International that  under the present economic climate, it is easier to get a repaired accident vehicle sold in Nigeria than non-accident ones.

“Although the price is determined by level of damage,” Chukwueke explained, “it is still by far cheaper at the end of the day compared to buying a non-accident vehicle.”

Another shipper of America-used brands; Mr  Idowu Adesulumi told Auto Port Weekly recently that cost, year of manufactured and degree of damage are the three cardinal things that the dealers look out for.

However, Motoring World findings revealed that many of the accident vehicles imported may look good after passing through body repair shop, they are technically not roadworthy.  Essentially safety standard and features of many of the vehicles would have been compromised. For instance, chassis of many of such vehicles would have become weak after accidents and so destined for scrap yards, where they would have been grinded and recycled.

9-14-06_acura_bMotoring World even gathered that many importers of the accident vehicles actually source them from scrap yards. And they are imported and cleared as scrap, not as vehicles, which is why import duties paid on them are significantly low.

Motoring World correspondent approached a motorist, riding a very neat Honda Pilot but with Airbag indicator light continuously on. When asked if he knew why the light had been on, his answer was: “Well, it has been like that since I bought the car and my mechanic assured me it means nothing. “

But when further questioned, it was revealed that the Honda Pilot is a repaired, imported accident vehicle. A badly damaged vehicle, the car was taken to a workshop somewhere in Ikeja, Lagos, Nigeria, where body work was carried out, after which it came out like new.

The fact remains, if the said Honda Pilot ever gets involved in a road crash, chances of its driver and other occupants surviving are remote, as essential safety features, especially airbags, have been compromised as a result of accident it had in its country of origin.

©Copyright MOTORING WORLD INTERNATIONAL.
All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contact: editor@motoringworldng.com

 

Most Popular

Mikano Motors Debuts Maxus brand in Nigeria, Rolls out T60 Pick up

ROTIMI ASHER Maxus Autos, in an exclusive partnership with Mikano International’s Motors Division, one of the fastest growing auto companies in Nigeria, has launched Maxus...

Kia Gears Up for FIFA World Cup with Simulator Experiences and Prizes

As an official automotive partner of FIFA World Cup 2022™, Kia, has promised to add a touch more excitement to this year’s FIFA World Cup...

Global Automotive Industry to Suffer 2.3 Million Skilled Workers Shortage

ROTIMI ASHER As the global automotive industry is experiencing a chronic skills shortage, with reports that suggest that skills such as motor body repair and...
%d bloggers like this: