Auto dealers decry hike in price of second-hand vehicles

Some auto dealers have decried the new price hike on imported second-hand vehicles popularly called “tokunbo”.

The dealers blamed the new price hike on the implementation of the new automotive policy being introduced by the Federal Government.

The policy is aimed at encouraging the use of new vehicles and discouraging importation of second-hand vehicles.

Managing Director of Royal Motors, Mr Yemi Savage, said the proposed hike in import tariff from10 per cent to 35 per cent would have adverse effects on auto business.

”We have beginning to experience the ripple effects. The prices of cars have risen to ridiculous amounts from dealers in Cotonou. It is becoming difficult to add our own commission to the price of the vehicles to make them affordable to our customers. I wonder what the experience will be by the time the policy is fully implemented,” he said.

Chief Executive Officer, Nigerian Express Motors, Mr Chucks Egbunike, expressed concern that the implementation of the policy might lead to increased smuggling of used vehicles.

Egbunike appealed to the Federal Government to create enabling environment for assembling and manufacturing vehicles in the country.

”Formulating a policy is not enough; government should give us affordable alternatives to “tokunbo vehicles”,” he said.

President Goodluck Jonathan has assured that the implementation of the policy would not inflict pains on the people.

Jonathan gave the assurance when he received a delegation of the Road Transport Employers Association of Nigeria (RTEAN) at the Presidential Villa, Abuja, last weekend.

He said that the policy would help to revive the local automobile sector.

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