Thinking of Importing a Used Car from the US? Here’s How to Do It Right

Importing a Tokunbo car (a fairly used car) from the United States to Nigeria is a common and cheap way of having reliable foreign cars. Most vehicles in the Nigerian market, which are tagged "Tokunbo," come from the U.S., where the used car market is well structured and buyers have a lot to choose from. 

However, importing a car is not a one-off affair. From selecting the vehicle to clearing it at the Nigerian port, this article provides a step-by-step process for importing a Tokunbo car from the USA to Nigeria.

A Tokunbo car is an imported used car originally owned elsewhere, such as in America, Canada, Germany, or Britain. They are more dependable and better kept than domestic used cars and are thus so popular.

Before beginning the importing process, select the precise make and model of the car you desire to own. Consider the following:

• Fuel efficiency

• Spare parts’ ease of availability in Nigeria

• Longevity on Nigerian roads

• Resale value

• Mechanical reliability

Some popular Tokunbo models include the Toyota Camry, Honda Accord, Toyota Corolla, Lexus RX, and Mercedes-Benz C-Class.

There are two common ways to buy a used vehicle from the U.S.:

Online Auctions

Sites like Copart and IAAI allow for bidding on used cars. Registration is required, and sometimes a broker is used, as these sites may require a dealer's license.

Car Dealerships

Alternatively, you can use legitimate U.S.-based used car dealerships such as CarMax or Cars.com. These sites provide detailed listings, history reports, and secure payment systems.

Always check the Vehicle Identification Number (VIN) to verify history, accident report, and vehicle condition.

Others find it more convenient to do business with seasoned auto agents or dealers who have been importing cars for a while. The agents help:

• Vehicle inspection

• Bidding or purchase

• Arranging shipping

• Clearing at the Nigerian port

Look for agents with a proven track record of successful importations. Request references or reviews before committing.

Purchasing a vehicle from the USA and importing it into Nigeria comes with different costs. Make sure you account for:

• The cost of acquiring the car

• Dealer commission or auction charges

• The cost of shipping (typically between $1,000 and $2,000 based on port and size of vehicle)

• Nigerian clearance fees

• Duty and charges from customs (usually billed as a percentage related to the year and the value of the vehicle)

• Agent commission

• Port fees and handling charges

It's best to include a buffer in your budget for any unexpected expenses.

After the car has been bought, shipping follows. There are two principal shipping options:

Roll-On/Roll-Off (RoRo)

This is the cheapest option. The automobile is driven on board and driven off at the destination port. It's inexpensive, but it does not protect against sea exposure.

Container Shipping

The car is loaded into a container for protection, especially for newly acquired or luxury cars. However, at a higher cost. Major U.S. ports of shipment to Nigeria include:

• Houston, Texas

• New York/New Jersey

• Baltimore, Maryland

• Nigerian port destinations usually are:

• Tin Can Island Port (Lagos)

• Apapa Port (Lagos)

Shipping takes 4 to 8 weeks. Many shipping firms have tracking facilities so you can follow the movement of your car. Once the ship reaches the port, you or your clearing agent will be notified for pickup and clearance.

Clearing Tokunbo in Nigeria involves interacting with the Nigeria Customs Service (NCS). The key steps are:

• Producing the Bill of Lading (proof of shipment)

• Vehicle Inspection Report (VIR)

• Pre-Arrival Assessment Report (PAAR)

• Payment of applicable customs duties, fees, VAT, and port charges

• Release of the vehicle for collection

• You should use a licensed clearing agent to avoid hassle and delay.

After clearing your vehicle, you will have to register it with the Federal Road Safety Corps (FRSC) and collect the following:

• Number plates

• Vehicle licence

• Proof of ownership

• Roadworthiness certificate

Go to your state's Vehicle Licensing Office to finalise the process.

After your Tokunbo vehicle arrives home, have it thoroughly checked and serviced. Check the following:

• Oil and fluid levels

• Brake system

• Tyres and alignment

• Electricals and batteries

• Ensure the vehicle is in good condition before using it regularly.

Tips for a Smooth Importation Process

• Always check the VIN before purchase

• Use professional dealers and agents

• Make photocopies of all documents

• Be aware of Nigeria's importation rules (cars older than 15 years are banned)

• Be up-to-date on foreign currency exchange rates to better budget

Purchasing a Tokunbo car in the United States and shipping it to Nigeria can be lucrative if handled properly. You get high-quality vehicles at affordable prices. However, the process is not straightforward and involves many steps that must be taken carefully, from choosing the correct vehicle to shipping, clearing, and registration. 

Following this step-by-step guide and seeking expert advice will ensure you avoid costly mistakes and enjoy the benefits of owning a foreign-used car that meets your needs.