A new car or a tokunbo (used) car?

Living in Nigeria, tokunbo cars are quite the norm. Chances are that a friend or relative is using one. Buying a tokunbo car could be cheaper and easier, whereas buying a new car could be more expensive and a much longer process. There are pros and cons to both options and ultimately, it’s your decision which way you want to go.

Before making your choice, here is a quick comparison of Tokunbo vs new cars:

Tokunbo Cars

When buying a car, you always have to be prepared for the value to drop, as the car gets older. Buying a tokunbo car is the cheaper way to go. As it’s been used by someone beforehand, the value of the car drops and instantly becomes more affordable. Not only are tokunbo cars cheaper, but you also have a wider range to choose from, as your money will stretch a lot further.

After owning a car for a year, it’s bound to depreciate in value, but it’s slightly different for used cars. Tokunbo cars don’t tend to lose much value after a year of ownership. In some cases, you may not lose any value and could make all your money back. On the other hand, if you were to buy a new car, it will lose its value almost as soon as you drive away from the dealership.

The downside to purchasing a tokunbo car is the uncertainty of its history. It’s said that buying a tokunbo car is a risk as problems are bound to pop up and will cause a dent in your pocket. Also, it has become very common for people to fiddle around with the mileage of the cars, as it will keep the value of the car higher. If you’re buying a tokunbo car, it is essential that you thoroughly check through all the documents and ensure that the car is as advertised.

New Cars

Buying a brand new car can be an exciting experience, with the brand new car smell and the showroom shine on the paintwork. The feeling of being the first person to drive the car is unforgettable. Dealerships have amazing deals nowadays that make getting a new car less expensive.

Buying a new car means you have the option to make the car exactly how you want. Tokunbo cars are on what you see is what you get basis, but with new cars, you can personalize it to your exact specifications. Starting from what wheels and engine size you want, to the colour of stitching you want on your seats.

The newest cars are usually more economical than older cars. Manufacturers are constantly working on how to make their cars better, safer, and more economical. So chances are that the newest car will get you further and will cost you less to run.

Buying a new car will guarantee you a smooth reliable car. You can have peace of mind that you will get the standard warranty that comes for at least three years of ownership. In some cases, you may even have up to seven years warranty and have that extra peace of mind. If anything goes wrong with the car, you can take it straight back to the manufacturer and have it fixed.

Buying a new car might sound very appealing but with sometimes up to 25% drop in value after a year, it may not be worth it. Not only will you make a guaranteed loss on the price of the car, but you also have to think about the interest that you will pay on top of the original price of the car. That’s a lot of money to lose.

Whether you choose a new or tokunbo car, always make sure you have adequate motor insurance to protect it as well as yourself. When you do make your choice of car, ensure you buy car insurance.