Automotive Policy: Panic Buying Pushes Vehicle Prices Up 40%

Panic buying in anticipation of government automotive policy have driven up the prices of vehicle by an average of 41 percent between April and May this year.
For instance, the Yaris is now N4.8 million, up from N3.4 million in May. 
Bismarck Rewane, chief executive officer of Financial Derivatives said, the new duty on cars that is likely to push up general prices, inflation could undermine the vision of the new CBN Governor.
Dealers are responding to the fact that cars have to be shipped before March 31, 2014.
A report by Financial Derivatives Company Limited said, the price of Corolla (1.8 GIL CTV Leather seat) which stood at N4.9 million in April  rose to N6.9 million by the end of May, indicating a 41 percent rise over the period, while the price of Avensis (Fabric seat and alloy rim) which stood at N6.1 million as at April rose to N8.9 million in May, about 46 percent increase during the period.
Ironically, the price of the vehicle for the rich or those consider corrupt only went up marginally as a result of low demand.
The price of Prado 7.5 -S AT TX with leather seat and uses petrol was sold at N11.95 million in April, but jumped to N13.1 million by the end of May, while Corolla (1.8 GiL CVT with leather seat sold at N1.9 million in April but went up to N2.9 million in May.
The price of Kia Sportage rose from N3.8 million to N4.3 million during the period, while the price of Hyundai (Sante Fe) went up from N2.9 million to N3.5 million during the period under review.
The price of Honda CRV rose from N5.3 million to N5.8 million.

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