Your spending on a car doesn’t end with buying it from an automobile dealership. The real cost of owning a car in Nigeria today includes a whole lot more—potentially several times the purchase price, over the course of several years.
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Whether you drive a brand-new ride or a fairly used “tokunbo,” it’s important that you understand the annual cost of owning a car. Understanding that you should measure your car expenses per month will change the way you view your vehicle. And it will help you become more financially prudent.
The Rising Cost of Owning a Car in Nigeria
Over the past few years, the cost of owning a car has skyrocketed due to inflation, higher fuel prices, and the fluctuating exchange rate that affects the importation of spare parts. Many Nigerians now find that maintaining their car often costs more than they initially spent to buy it.
Let’s break down what it really costs to keep a car running smoothly in Nigeria.
The Hidden List of Car Expenses
Here’s a realistic list of car expenses Nigerian car owners deal with every month or year:
- Fuel
With petrol prices swinging between ₦800 and ₦1,000 per litre, fuel takes the biggest chunk of your monthly car budget.
Estimated cost: ₦60,000–₦150,000 per month (depending on your car type and distance covered).
- Maintenance and Servicing
Routine maintenance is non-negotiable if you want to avoid breakdowns. This includes oil changes, filters, plugs, brake pads, and occasional tyre replacements.
Estimated cost: ₦10,000–₦30,000 per service (usually every 2–3 months).
- Repairs and Spare Parts
Unplanned repairs (suspension issues, AC faults, or battery replacement) can quickly drain your wallet. Imported parts are becoming more expensive due to foreign exchange rates.
Estimated cost: ₦50,000 – ₦200,000 annually, depending on the car’s condition.
- Insurance
Many Nigerians skip this, but it’s crucial. Even third-party insurance protects you legally and financially in case of accidents.
Estimated cost: ₦15,000–₦25,000 per year for third-party; ₦80,000 – ₦250,000 or more for comprehensive.
- Vehicle Registration and Renewal
After purchase, you must register your vehicle and renew your papers annually. This includes roadworthiness, vehicle license, and sometimes emissions checks.
Estimated cost: ₦30,000–₦50,000 annually.
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- Parking and Tolls
If you live or work in major cities like Lagos or Abuja, you’ll pay for parking, estate levies, and toll gates regularly.
Estimated cost: ₦5,000–₦15,000 per month.
- Car Wash and Cleaning
Keeping your car clean isn’t merely about making it look good. It also helps preserve the vehicle’s paint and bodywork.
Estimated cost: ₦3,000–₦6,000 per wash (or ₦10,000–₦20,000 monthly if frequent).
- Depreciation
This is the silent cost most people forget. Every year, your car loses value due to wear and tear. That loss of value is called depreciation.
Estimated depreciation: 10–20% of the car’s value annually.
The Annual Cost of Owning a Car in Nigeria
If you add up all of the above, the annual cost of owning a car can easily range between ₦1.5 million and ₦3.5 million, depending on your car type, fuel consumption, and maintenance habits. For used cars or luxury vehicles, that number can be even higher.
To manage these costs, smart car owners track their car expenses per month and budget for both predictable and surprise payments.
Purchase Low-Maintenance Vehicles Through Connect Nigeria Cars
It’s safer to buy your vehicle from a reliable source. Buying a car from a reputable source reduces the chances that you’ll end up with one that has numerous costly problems.
If you’re wondering what sources to buy from, consider using the Connect Nigeria Cars site. It lists hundreds of cars for sale. You should discover just what you’re looking for on it, and find trustworthy sellers.
To find out more about Connect Nigeria Cars, you can visit the site HERE.
Practical Tips to Reduce Car Expenses
There’s more you can do to shrink your vehicle expenses:
- Carry out preventative maintenance. It will save you more than emergency repairs.
- Use trusted mechanics; poor repairs often lead to bigger problems.
- Share rides with friends or colleagues to save on fuel.
- Plan your trips and avoid unnecessary driving. Do everything you need to do within a given period in one outing.
- Keep a log of your car expenses per month to know where your money goes.
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Final Words
The freedom of driving your own car in Nigeria comes at a steep and rising price. If you understand the real cost of owning a car, you’ll do better at avoiding financial stress.
So before you buy your next car, look beyond the purchase price. Review the full list of car expenses and calculate your annual cost of owning a car realistically. When you have a full picture of things, you’ll be able to tell whether or not your dream ride fits your budget.
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