Despite both countries relying on imported vehicles, cars in Dubai are significantly cheaper. Why is that the case?
If you say it’s our wicked government, well you are not far from the truth. The Nigerian government imposes a 35% import duty on used cars and an additional 35% levy, effectively doubling the cost of imported vehicles. This is done to encourage local car manufacturing…which local manufacturing, please?
ALSO READ: Nigeria’s presidential cars and their shocking prices
Brands like Innoson Motors have made efforts, but the reliance on imports means Nigerians must pay more for vehicles due to high demand and low supply. The result? A higher financial burden on consumers.
Apart from customs duties, car buyers in Nigeria have to pay additional fees, including:
Value Added Tax (VAT)
National Automotive Council Levy
Clearing and port charges
These additional costs drive car prices even higher. To avoid them, some dealers resort to smuggling through neighbouring countries like Benin Republic. But if you’re risking your safety, freedom, and money to smuggle a car, you can bet the smuggler is adding a hefty premium. This fuels price distortions and makes the car market unpredictable.
In contrast, one of the biggest reasons cars are cheaper in Dubai is its low import duties. The UAE imposes only a 5% import duty on vehicles, making them more affordable. In Nigeria, our import duties and taxes can reach up to 70% of a car’s value!
Also, Dubai has a booming used car market, with thousands of expats frequently selling their vehicles before leaving the country. As a result, used cars flood the market, driving prices down due to high supply.
The UAE has several free trade zones that allow businesses to import and export vehicles with minimal restrictions. This encourages bulk vehicle imports and competitive pricing. We won’t fail to add that the UAE’s currency, the Dirham (AED), is relatively stable. Nigeria, on the other hand, faces constant currency fluctuations, making car prices unpredictable.
Let’s do a deep dive into the price of some specific cars.
1. Toyota Prado
The Toyota Land Cruiser Prado is a rugged yet refined full-size SUV, featuring a smooth-shifting automatic transmission and advanced safety technologies like multiple airbags, stability control, and active safety systems. In Nigeria, it costs a staggering $120,000 (₦185 million), while in Dubai, the same vehicle is priced at just $70,000 (₦108 million).
ALSO READ: 10 cars you can get under ₦3m in Nigeria today
2. LC 300
The Toyota Land Cruiser 300 (LC 300) is a powerful and luxurious full-size SUV featuring a 10-speed automatic transmission for seamless performance and improved fuel efficiency. It boasts premium leather seats, a 12.3-inch touchscreen, Apple CarPlay, Android Auto, and the Toyota Safety Sense suite for advanced driver assistance. In Nigeria, it costs $186,000 (₦287 million), while in Dubai, the same model is priced at $86,000 (₦133 million).
3. Toyota Hilux
The Toyota Hilux is a rugged and versatile pickup truck designed for durability and off-road performance. It features a 2.8L turbo-diesel engine, 6-speed automatic or manual transmission, and a robust 4WD system for handling tough terrains. In Nigeria, the Toyota Hilux costs $80,000 (₦123 million), while in Dubai, it is priced at $35,000 (₦54 million).
4. LC 79 (Double Cabin)
The Toyota Land Cruiser 79 Double Cabin is a rugged 4×4 pickup truck built for extreme durability and off-road performance. It is powered by either a 4.5L V8 turbo-diesel engine or a 4.2L inline-6 diesel engine, paired with a 5-speed manual transmission for maximum control. In Nigeria, the LC 79 Double Cabin costs $110,000 (₦170 million), while in Dubai, it is priced at $45,000 (₦70 million).
5. Mercedes G 63
The Mercedes-AMG G 63 is a high-performance luxury SUV powered by a 4.0L V8 biturbo engine, producing 577 horsepower and 850 Nm of torque. It boasts an AMG 9-speed automatic transmission, Nappa leather interior, a 12.3-inch digital display, and advanced safety features like adaptive cruise control. In Nigeria, the G 63 costs $530,000 (₦819 million), while in Dubai, it’s priced at $305,000 (₦471 million).
If you are thinking of buying a car directly from Dubai to save costs, while the price advantage is tempting, don’t forget to factor in shipping fees, customs duties, levies in Nigeria, and the risk of online car scams.
ALSO READ: Here are 10 cars you can buy with ₦2 Million in Nigeria today
