20Jul
The cheapest way to buy and import a car from the USA
When it comes to purchasing a vehicle, many Nigerians prefer looking beyond their borders, particularly toward the USA. The broad array of options, competitive prices, and the allure of owning an American-made car are irresistible.
Perhaps, you're considering buying a car from America but don't know how to go about it; maybe the high shipping cost is standing between you and that super-clean SUV with a low mileage you saw on iaai, or you've already done it a million times but don't mind finding out a cheaper way to import cars from abroad, this article offers an in-depth guide on the most affordable ways to buy and import a car from the USA to Nigeria.
We’ll cover everything from finding the right car, navigating the importation process, cutting down shipping costs, to finally getting your car on Nigerian roads.
Related: These Are 9 CNG-Powered Cars You Can Buy Right Now And Save Money On Fuel
Why Shop For Cars From The USA?
Importing a car from any country is a complex process with numerous factors to consider. While the United States can be a favorable country to import a car from in certain situations, it may not necessarily be the best country for everyone.
Here are a few reasons why some people might choose to import a car from the USA:
1. Wide Variety Of Vehicles:
The United States has a diverse and expansive automobile market, offering a vast selection of vehicles.
Whether you're looking for a luxury car, a classic vehicle, or a specific model that may not be available in your own country, the US market can provide you with numerous options to choose from.
2. Competitive Pricing:
Due to the size of the US market and the competition among car dealerships, you may find that prices for certain vehicles are relatively more competitive in the US compared to other countries.
This is particularly true for used cars, where you might discover good deals on pre-owned vehicles.
3. Vehicle Specifications And Options:
American cars often come with different specifications and options compared to cars in other countries.
If you have a preference for specific features or equipment that are more commonly found in US vehicles, importing a car from the USA may be a good option for you.
4. Favorable Exchange Rates:
Depending on the currency exchange rates between your country and the USA, you may find that importing a car from the US offers you cost advantages.
If your currency is stronger than the US dollar, it could potentially lower the overall cost of the imported vehicle.
Choosing The Right Car
1. Online Car Auctions:
One of the cheapest ways to buy a car in the USA is through online car auctions. Websites such as Copart and Auto Auction Mall offer a vast selection of used and salvage vehicles at significantly lower prices.
Remember to set your budget beforehand and stay within it during the bidding process.
2. Dealer Sales And Discounts:
Pay attention to sales events from car dealerships. Dealers often provide discounts during holidays such as Memorial Day, Black Friday, and end-of-year sales.
3. Used Car Websites:
Platforms like Carfax, AutoTrader, and Craigslist offer a vast selection of used cars.
It’s difficult to shop on Craigslist from Nigeria because it’s a peer-to-peer marketplace like Jiji.ng. However, the good news is you can easily buy the car you want on Craigslist with the help of a reliable sourcing agent.
Don't worry; we'll recommend one later in this article. In any case, endeavor to check the car's history report thoroughly.
How To Pay For The Car You Wish To Import From The USA To Nigeria
If you have experience sourcing or attempting to buy a car from the USA while in Nigeria, you'll probably agree with many others like you that the hardest part of the entire process is paying for the vehicle you've identified online.
Making payment was already a complicated process even before the most recent administration launched a tirade of policies that worsened the situation. Now, paying the seller is not as simple as entering your MasterCard details on a payment portal.
For example, auction sites typically require wire transfers as the payment method for international shoppers and they usually have a deadline when you must complete payment for your winning bid. You risk a fine that can run into thousands of dollars while you’re still grappling with Form M at your local bank.
There’s also a big chance that the price tag on the car you wish to buy at a dealership exceeds your dollar card's transaction limit.
There are simply too many payment headaches Nigerian shoppers face that we can’t list all of them here, which is why we happily recommend ShiptoNaija, a ‘boutique’ procurement and shipping agency that can handle everything on your behalf and you don't even have to pay in dollars.
ShiptoNaija (formerly ShoptomyDoor) has vast experience and an impressive track record in shopping and delivering goods from the USA to customers in Nigeria.
In fact, all you have to do is tell them what you want, pay in their local bank accounts in Nigeria, and leave the rest to them, from physical verification of the vehicle in the US to customs clearing in Nigeria. Your business is to go to their office in Lagos and pick up your car.
Shipping Your Car To Nigeria
1. Roll-On/Roll-Off (RoRo) Shipping:
The most affordable shipping method is RoRo, where cars are driven onto the ship and secured in the cargo area. However, your car needs to be in drivable condition to utilize this method.
2. Container Shipping:
Though more expensive, container shipping offers additional protection as your car is stored in a closed container. If you're shipping a high-end model, container shipping might be worth the extra cost.
RoRo And Container Shipping, Which Is Better?
Roll-On/Roll-Off (RoRo) and Container Shipping are two popular methods for transporting cars internationally. Both have their advantages and disadvantages depending on your specific needs and circumstances. Here's a detailed comparison:
Roll-On/Roll-Off (RoRo) Shipping
Pros:
1. Cost-Effective: RoRo is generally the cheaper option because it doesn't require container rental fees. Vehicles are simply driven onto the ship and parked in a designated spot.
2. Simplicity: The process is straightforward — your car is driven onto the ship at the origin port and driven off at the destination.
3. Frequency: RoRo services have frequent sailings, which can mean shorter overall shipping times.
Cons:
1. Limited Protection: Vehicles transported via RoRo are exposed to the elements for the duration of the journey, which could result in damage, especially in rough sea conditions.
2. No Personal Items: You typically can't pack personal items in the car during RoRo transport.
3. Limited Routes: RoRo shipping isn't available for all international routes.
Container Shipping
Pros:
1. Greater Protection: Your car is stored in a closed container, offering protection from weather conditions, salt water, and other potential damage.
2. Personal Items Allowed: You can pack personal belongings in the same container as the vehicle, which can save on shipping other items separately.
3. More Shipping Routes: Container shipping services cover a broader range of ports worldwide.
Cons:
1. More Expensive: Container shipping is generally more expensive than RoRo due to higher handling costs and container rental fees.
2. Longer Wait Times: It might take longer to ship as you may have to wait for a container to get filled, and there's also extra time involved in loading and unloading the container.
3. More Paperwork: Container shipping often involves more paperwork, which can complicate the process.
Ultimately, the best method depends on your budget, the value and condition of your car, how quickly you need it shipped, and personal preference.
Related: The Top 10 Best-Selling Cars In Nigeria And Their Prices
Understanding Custom Duties And Clearing Cars In Nigeria
The Nigerian Customs Service (NCS) charges duties on imported cars based on the car's age, model, and value. The older the car, the cheaper the duty.
However, note that Nigeria has a ban on importing cars that are older than 15 years.
1. Calculate Import Duty:
You can use the Nigerian Customs' import duty calculator to get an estimate of your potential costs.
2. Hire a Clearing Agent:
Consider hiring a professional clearing agent to navigate the customs process. While this adds to your costs, it can save you time and potential setbacks.
3. Pay Your Duty:
Once your car arrives in Nigeria, your agent will help you pay the necessary duties and collect your car.
Top Clearing Agents In Nigeria
Nigeria has literally thousands of registered clearing agents to sift through if you’re just starting your quest for a reliable freight forwarder to help you safely navigate the customs clearing process for your imported vehicle without problems.
If in doubt, you can always fall back to the three agencies listed below, but it doesn’t mean there aren’t very capable clearing agents besides these three. Remember, you don’t even have to deal with the clearing process at all with ShiptoNaija at your service.
1. Valuehandlers International Limited
Valuehandlers International Limited is a renowned freight forwarding and cargo handling company in Nigeria. They specialize in air & sea freight shipping, customs clearing & cargo servicing from and to 80 countries.
Their services are reliable and efficient, and they provide a seamless clearing process that ensures your vehicle is processed swiftly through customs. They also offer professional advice on the import duty and levies payable on your vehicle.
2. Sifax Group
Sifax Group is a multinational corporation with a reputation for excellence in freight handling and clearing. Their services cover everything from cargo tracking, freight forwarding to customs clearing.
They have a robust network of partnerships that help streamline the vehicle importation and clearing process. Sifax Group also offers warehousing services, providing a convenient solution for storing your vehicle upon arrival until the clearing process is concluded.
3. Bowagate Global Limited
Bowagate Global Limited is a leading customs-licensed clearing agent in Nigeria offering comprehensive import and export services.
They have a strong reputation for delivering efficient, reliable, and timely clearing services. Bowagate Global Limited offers end-to-end services from documentation handling, and customs duty consultation, to delivery of cleared goods.
Their customer service is remarkable, offering clients regular updates on the status of their cargo and ensuring a hassle-free clearing process.
Remember to consider factors such as cost, service scope, customer reviews, and professional approach when choosing a clearing agent.
The right agent will not only ensure your vehicle gets cleared efficiently but also provide valuable advice on the import process, helping you navigate the often complex Nigerian customs landscape.
Getting Your Car On The Road
After successfully importing your car, you still have a few steps before you can drive it on Nigerian roads:
1. Vehicle Inspection: The Vehicle Inspection Officers (VIO) will inspect your car to ensure it meets safety standards.
2. Vehicle Registration: You'll need to register your car with the Nigeria Motor Vehicle Administration Agency (MVAA). The agency will issue you a vehicle license, proof of ownership, and number plates.
3. Insurance: Lastly, get a comprehensive car insurance policy. This protects you from financial loss in case of an accident or theft.
How Much Does It Cost To Import A Car From The USA To Nigeria?
According to data on BR Logistics’ website, the average cost of shipping a car from the USA to Nigeria is between $1,147 and $1,650, which translates to roughly ₦903,000 to ₦1.3 million at ₦788/$.
Besides the shipping price, Nigerian customs require a duty fee of 35% (for used cars) of the vehicle’s value and up to 70% for newer cars.
BR Logistics revealed that roro shipping to Nigeria typically costs between $1,397 and $1,692 (₦1.1 million to ₦1.340 million).
Note that the final price may vary slightly, considering peculiar factors like forklift services when warranted and the vehicle’s mobility condition.
Final Word On Importing A Car From The USA To Nigeria Cheaply
The cheapest method to bringing a car into the country without getting on a plane yourself is through using the services of reputable boutique agencies like ShiptoNaija and Heroshe, although ShiptoNaija has been around much longer and offers more stability in terms of pricing and shipping times.
While the process of buying and importing a car from the USA to Nigeria might seem daunting, it can be incredibly cost-effective if done right.
By understanding the import regulations, choosing the right shipping method, and properly timing your purchase, you can drive your dream car on Nigerian roads without breaking the bank.
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