Small Business Loan in Nigeria - How To Get And Qualify For It

 

Let’s get one thing out of the way. Buying auction cars isn't some hidden secret only dealers know about.

Also, it's not something you want to approach blindly.

If you’ve been thinking about getting a foreign-used car(tokunbo) or something custom-cleared at a good price, especially from auctions in the US, Canada, or Europe, then you’re on the right path.

Every day, we see smart Nigerians skipping overpriced local dealers and going straight into one thing, which is called car auctions.

Here's the thing...

Buying a car from an auction is a completely different ball game from walking into a car shop at Berger or Lekki(Lagos).

And yes, it has layers. And if you're not careful, it can also drain your money faster than you think.

So, how exactly do you do it the smart way?

First, let’s look at...

What auction cars even are

When people talk about auction cars in Nigeria, they’re often referring to vehicles bought from international auctions and then shipped into the country.

The idea is simple.

These cars are generally cheaper at the source, sometimes salvaged, sometimes with a clean title, and buyers can often score a great deal compared to what the car would cost locally.

Right?

Plus, these auctions aren’t exclusive to car dealers.

Anyone with access to the right platform and the right middleman can participate.

The real challenge is understanding the ecosystem.

You’re dealing with international auction houses, shipping logistics, Nigerian port clearance, customs documentation, and inspection.

The bad news? If you miss one link in the chain, your dream ride becomes a financial nightmare.

If so...

Now, let me walk you through the process...

Imagine you’ve been eyeing a Lexus RX 350, preferably a 2018 model.

Local sellers are quoting around ₦22 to ₦25 million.

But you find out that you can get the same model, possibly in even better condition, from an auction in the US for around $8,000 to $11,000.

Sounds good, right? But hold on, there’s more to it.

To get started, you need access to a reliable auction site. You go for sites like Copart, IAAI, or Manheim.

These platforms list thousands of vehicles daily, many of which are repossessed, damaged, overstocked, or simply used cars being offloaded at wholesale rates.

First, you’ll need to sign up or, better yet, work with a registered broker who already has access.

Why?

Because most of these platforms require a dealer license or bidding license that everyday users don’t have.

That’s where Nigerian car import agents or middlemen come in; they have that access, and they can navigate the platform on your behalf.

But this is crucial; remember, not every auction is the same. Some cars are labeled clean title, which means there’s no record of accident damage or insurance claims.

Others are salvage titles, which usually means the vehicle has been in a crash, flood, or fire, and the insurance company deemed it too expensive to repair.

Salvage cars are cheaper, but you have to know what you’re doing.

Some of them are repairable with minor work; others are money pits that will haunt your mechanic forever.

If you’re working with a good middleman, they’ll help you inspect the car’s VIN, check the auction listing history, and estimate the total landing cost to Nigeria. 

Plus, you don’t just look at the auction price. You have to add shipping costs, clearing costs, auction fees, agent fees, and repairs.

A car that goes for $9,000 could end up costing you ₦18 million when all is said and done or ₦12 million if you’re lucky and smart about it. 

That's why you should ask for a full landing cost breakdown before you bid. 

Let’s talk about shipping.

Once your car is purchased, it gets transported to the nearest port and loaded into a container..

Container shipping is usually safer, especially for high-value cars.

Shipping typically takes 4 to 8 weeks, depending on the location.

During this period, you should already be prepping your documents for clearing.

This includes your bill of lading, invoice, and sometimes a copy of the auction sale certificate.

As you know, clearing the car through Nigerian Customs is a dance of its own.

You either know someone or pay someone who does. It’s not always straightforward.

The cost depends on the year, make, and model of the car. Newer cars attract higher duties.

For instance, the Lexus RX 350, you may clear it between ₦2.5 to ₦3.5 million depending on the valuation.

If you’re not sure, insist your clearing agent gets you a proper valuation from Customs.

Some shady agents under-declare cars to save money, but that comes with risks, including car seizure and extra fees later.

Once your car is cleared and released, you’re ready to inspect and finalize.

Now, this is where buyers get emotional, and that’s dangerous.

Try to inspect with logic, not excitement.

• Was the car exactly as described?
• Are the airbags intact?
• Any frame damage?
• Is the engine healthy?

If your car has a salvage title, have a good mechanic or auto-electrician inspect it immediately.

You may have saved millions on the initial purchase, but if you spend the next six months fixing transmission issues, you’ve lost in the long run.

Now, let’s address the elephant in the room: Scams.

Unfortunately, the custom auction car space is filled with both saints and sinners.

Some agents will collect money for bidding but never place your bid.

Others will win the bid but inflate your shipping or clearing costs ridiculously.

A few might even buy a damaged car and pretend it was clean. This is why you need to ask for references. 

Also, don’t ignore your gut.

If someone is too eager or too evasive about questions, walk away.

A real car importation deal has structure.

You get a bidding invoice. You get a tracking number when it ships. You get receipts for clearing.

If all you’re getting is WhatsApp voice notes and screenshots, that’s a red flag.

How  Auction vehicles Work 

If you’ve been around the Nigerian auto market lately, there’s a phrase you keep hearing over and over again: Auction cars.

But what does it mean? How do auction cars work in Nigeria? And more importantly, how can you get in on it without making costly mistakes?

Let’s break it down...

Think about the United States, Canada, or parts of Europe.

Every year, millions of cars go to auction.

Some are perfectly good, just overstocked, leased, or repossessed.

Others have been in accidents, flooded, scratched, or written off by insurance companies. The range is massive.

These vehicles are listed on platforms like Copart, IAAI, or Manheim.

Some of them go for incredibly low prices, prices that make your jaw drop if you compare them to what car dealers charge on the streets of Lagos or Abuja.

Here’s the thing.

These auction platforms aren’t exactly open to the public.

You can’t just wake up and start placing bids unless you have a dealer license or an authorized broker account.

That’s why many Nigerians who buy custom auction cars either work with a trusted agent or use third-party services that already have access to these platforms.

Once you identify the car you want, whether a 2017 Toyota Camry, a 2015 Mercedes-Benz C300, or maybe a Honda Accord Sport, you let the agent know.

They confirm the car's details, VIN history, and estimated landing cost, then place a bid.

It sounds simple on the surface, but it is not that easy...

When a bid is placed and won, the car doesn't magically appear in Nigeria.

It has to be transported from wherever it is, usually a salvage yard, auction lot, or dealer location, to the nearest shipping port.

Here’s where custom comes into the name.

Like I said...

When someone says Nigeria custom auction cars, they usually mean a vehicle bought from an international auction that has been shipped into the country and already cleared by custom.

In other words, all the taxes, duties, and logistics have been handled.

So if you’re buying a car from someone and they call it a custom car, they’re likely saying it’s legally in the country with a duty-paid status.

But not all auction cars are created equal.

Some of them were originally salvage cars that were poorly repaired.

Some still have lingering mechanical issues.

Others have clean titles, accident-free cars that were simply undervalued gems in the auction lot.

That’s why history checks are crucial.

Before a car is shipped, before money even exchanges hands, a good agent will provide the VIN report, show you the auction photos, and break down the expected cost from purchase to delivery.

This is the difference between buying a bargain and buying a headache.

And yes, the middlemen matter.

There are solid agents in this space.

These are the ones who give you receipts, give you realistic delivery timelines, and keep you updated from auction to arrival.

Then there are the shady ones.

They overcharge, under-deliver, and sometimes outright ghost their clients. You hear stories all the time.

Someone paid for a 2017 model and got a 2014. Another person paid for a clean title car, only to discover it was involved in a major crash. These stories are real and preventable.
The solution? Ask questions.

• Demand documentation....

If your agent can’t provide an official invoice from the auction house, that’s a red flag.

If there’s no shipping document or Bill of Lading when the car is detailed, that’s another issue.

If they’re not giving you the customs paper with duty paid clearly shown once the car lands, you’re probably dealing with a shortcut that could cost you more in the long run.

One major reason Nigerians prefer custom auction cars over locally used vehicles is value.

Cars bought at auctions often come with better specs.

You’ll find full-option packages, leather interiors, sunroofs, reverse cameras, and adaptive cruise control features that local-used cars often lack because they were either base models or stripped down over years of use.

Also, auction cars come with full histories.

You can check the mileage, accident reports, service records, and more. That level of transparency gives buyers confidence if they know what to look for.

Nigeria custom auction cars have also become big business.

Many small-time car dealers in Nigeria started by importing one or two units at a time, selling to friends or family, and then reinvesting.

The business model is scalable, and it’s built on trust.

If you deliver the car as promised, your name spreads fast. If you mess up, your reputation sinks even faster.

That’s why many dealers now document every step of the journey.

They show the auction listing, share updates during shipping, post videos of the car arriving, and highlight the inspection and delivery process. 

In the long run, it helps them build trust.

How to Know a Good Auction Car for Sale 

Let's say you see pictures of neatly parked vehicles with clean dashboards and smooth leather seats captioned direct tokunbo, custom duty paid.

The prices look friendly. The cars look clean.

But deep down, you’re still wondering: How do you know a good custom auction car when you see one?

The truth is, not all auction cars are created equal.

Some are solid gold. It has a clean title, low mileage, and almost flawless condition.

Others are like a wolf in sheep’s clothing, shiny outside, disaster under the hood.

Unless you know what to look for.

Every good custom auction car has a story, and that story starts with the VIN.

The Vehicle Identification Number is like a fingerprint.

No two cars have the same one, and it tells you everything you need to know about where the car has been, who’s owned it, and what kind of trouble it’s seen.

And whether or not you should buy it.

The smartest buyers check the VIN before they check the paint job.

Because the truth is, even the most accident-damaged car can be panel-beaten to perfection in Nigeria.

But the VIN doesn’t lie.

The next thing you want to pay attention to is history and not just the kind the seller narrates with confidence.

We're talking real, verifiable auction history.

If you're working with an honest dealer or agent, they should be able to show you the auction listing.

This is where you see the car’s original pictures, the damage(if any), the sale price, and whether it was classified as salvage or with a clean title.

These little details are the difference between a good buy and a future headache.

Mileage is another part of the story.

It’s easy to fall in love with the body of a car, especially when it’s been washed, waxed, and parked at the perfect angle.

But what does the odometer say?

That 2018 Toyota Corolla with just 22,000 miles on it sounds too good to be true.

It probably is unless the seller can show you a Carfax or Autocheck report to back it up.

Odometer tampering is real, and it’s one of the easiest ways to trick a buyer into overpaying.

So don’t just rely on surface appearances, but dig into the digital footprint of that car.

Let’s also talk about how the car arrived.

Good Nigeria custom auction cars don’t fall from the sky.

They go through a process: auction purchase, shipping, customs clearance, and delivery.

And each of those stages leaves a paper trail.

These aren’t just papers; they’re proof that the car came in legally, the duties were paid in full, and there are no hidden issues with ownership.

If someone is avoiding your questions about these things, you already know what that means.

Obviously, the condition matters, too.

But here’s the part most people get wrong.

Don’t inspect with your eyes alone.

Sure, the bodywork matters. Scratches, dents, rust these things can be expensive to fix.

But what you want to focus on is what’s under the hood.

• How does the engine sound when it starts? Is there smoke from the exhaust?
• Do the brakes respond?
• Does the steering feel loose or tight?
• Are there strange warning lights flashing on the dashboard?

A test drive tells you a lot about the real condition of the car..

And if you’re not mechanically inclined, bring someone who is.

Pay them if you have to; it’s cheaper than paying for a transmission swap two months later.

Interior condition is also a tell-tale sign.

A good custom auction car hasn’t been overworked or abused.

Look at the seats:

• Are they torn or still firm?
• Is the dashboard clean or covered in duct tape and superglue?
• Are the controls responsive?
• Are the AC vents working?

These might seem like small details, but they tell you how the previous owner treated the car before it went to auction.

A car that’s been respected will show it. One that’s been used like a keke-napep will show that too.

And then there’s the smell.

Yes, really. Open the doors and inhale.

A good car smells like leather, air freshener, or at worst, nothing.

A bad one smells like mold, mildew, burnt oil, or cheap perfume trying to mask something worse.

Smell tells you if the car has been in a flood, if the AC is leaking, or if there’s moisture damage under the carpets.

These things aren’t fixed with a car wash. They signal deeper issues, and your nose often notices them before your eyes do.

Let’s go back to the seller one more time.

The person selling you the car is as important as the car itself.

• Are they transparent or evasive?
• Are they giving you answers or giving you vibes?
• And are they okay with you running a background check on the vehicle, or are they rushing you because others are coming to pay tomorrow?

A good dealer doesn’t pressure. They educate.

They let the car speak for itself. And if they’re truly proud of the car, they’ll be happy to show you everything from the auction listing to the customs receipt.

Plus, good Nigeria custom auction cars also have a certain confidence about them.

When you sit inside and start the engine, you can feel it. The gear shifts smoothly. The tires aren’t worn to the wires.

The suspension doesn’t make that annoying clunking sound. The buttons work.

You’re not fighting with the window to roll it down or praying the wipers don’t get stuck mid-swipe.

These little signs may seem subtle, but they add up to something important: Peace of mind.

You’ll also want to look at the serviceability.

Not every foreign car is built for Nigerian roads.

If you buy something exotic that looks good but breaks down every two weeks because there’s no part in Ladipo or Abuja spare parts market, you’re just punishing yourself.

A good custom auction car is not just about specs, it’s about compatibility.

• Can your local mechanic fix it?
• Can you get affordable parts?
• Can it survive potholes, poor fuel quality, and rainy seasons?

Price is another clue. If the deal sounds too sweet, take a step back.

Not every cheap car is a bad one, but most bad ones are suspiciously cheap.

That's why you should always ask yourself,

• Why is this car this cheap?

Sometimes, there’s a valid reason; maybe the seller is cash-strapped, or it’s an older model.

But more often than not, there’s something you haven’t been told yet.