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The Official Cost Of Buying And Clearing Land Rover Vehicles In Nigeria: Clearing Calculations
Here’s a breakdown of the official cost of buying and clearing a Land Rover vehicle in Nigeria, with insight into essential expenses involved in the process:
Price of Land Rover Vehicles in Nigeria
The cost of a new Land Rover can range significantly depending on the model and specifications. For instance, a Range Rover Velar starts around 45-55 million NGN, while high-end models like the Range Rover Vogue Autobiography may exceed 70 million NGN for a brand-new 2024 model. Imported used or pre-owned Land Rovers from the U.S. or Europe are more affordable, ranging between 25-40 million NGN, depending on their condition and mileage.
Cost of Shipping a Land Rover to Nigeria
Shipping a Land Rover vehicle from the U.S. to Nigeria typically costs between $1,000 and $1,500, depending on the shipping line, distance, and size of the vehicle. For larger SUVs like the Range Rover, shipping may lean towards the higher end. The time for arrival varies, generally taking about 4-6 weeks by sea.
Custom Duty and Clearing Charges
Clearing Land Rover vehicles in Nigeria involves several costs, primarily customs duties and VAT. Here’s a rough breakdown:
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Custom Duty: Nigeria's custom duty rate for imported cars is around 35% of the vehicle’s value.
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Levy: In addition to duty, an additional levy of about 35% applies to cars older than three years. This means a Land Rover valued at 30 million NGN could incur around 10.5 million NGN in duties and an additional 10.5 million NGN as a levy.
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VAT (Value-Added Tax): 7.5% VAT is applied to the car's total assessed value after adding duty and other fees.
For example, clearing a Land Rover with a cost price of 30 million NGN might end up costing around 15-20 million NGN in total customs fees and levies.
Additional Costs in Clearing Process
Apart from the standard customs fees, other charges include administrative fees, port storage charges (if the vehicle is not picked up immediately), and logistics costs for transporting the car from the port to its destination within Nigeria. Handling charges, agent fees, and inspection costs might add around 100,000 to 500,000 NGN.
Factors Impacting the Clearing Costs
Clearing costs can vary based on the age, model, and condition of the Land Rover. Vehicles under three years old often enjoy a lesser duty rate compared to older vehicles. Importation routes (e.g., via Apapa Port or Tin Can Island Port) and current economic factors, such as currency exchange rates, also influence costs.
Understanding these costs is crucial, as a buyer should be prepared to cover both the initial purchase price and the comprehensive clearing expenses in Nigeria.