There is a huge market for second-hand vehicles in Africa. In Nigeria specifically, the used-car market is currently valued at $1.14 billion, and according to Aissatou Diouf, general manager at CFAO Suzuki, the market in Nigeria sees an average influx of 500,000 cars per year. This thriving market has been influenced in recent years by a declining GDP and devaluation of the naira which has increased exchange rates. It has also been influenced by rising inflation in the past year and the rise of digital technologies and online auto platforms in Nigeria over the past few years. More individuals are finding it cheaper and easier to buy used cars rather than new ones. Growing alongside this second-hand vehicle market is also a booming theft-and-smuggling industry. The Nigerian Customs Authority seized 3,491 illegal second-hand vehicles between the first quarter of 2021 and the first quarter of 2023. Also in March this year, Nigeria’s Economic and Financial Crimes Commission (EFCC) recovered 36 vehicles that were stolen from Canada and found in car lots all over Lagos. What this indicates is that despite the influx of used cars in the country, there aren’t any reliable vehicle verification systems to check the history/authenticity of used car sales. In order to make informed choices, buyers need access to reliable vehicle verification and vehicle evaluation systems and this is where LegitCar steps in with solutions.
Automating vehicle verification
Founded by Vincent Okeke (CEO) and Samuel Ogbujimma (CTO), LegitCar is solving the lack of access to critical vehicle data required for informed vehicle purchase, maintenance, insurance, and resale decisions. The company provides access to critical vehicle data required for vehicle purchase, vehicle insurance decisions, and data for effective law enforcement. With its suite of services, it helps empower car buyers, sellers, insurers, and dealerships to make informed choices. According to the company, about two million used vehicle transactions are done annually in Nigeria, and less than a quarter of those sales are done relying on any available vehicle data, leading to a loss of resources and unsatisfied car buyers. Vehicle insurance businesses and companies need reliable data-driven methods of vehicle verification and evaluation. Vehicle dealerships who buy multiple used vehicles in a month to resell also need to be sure the vehicles have not been reported stolen, and that the vehicle sale transactions have been authorised by the registered owners. LegitCar, which is a portfolio company of the Nigeria Sovereign Investment Authority, (NSIA) was born from this need for transparency and trust in the used vehicle evaluation market.
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LegitCar: the one-stop shop for used car information
What sets LegitCar apart is that unlike other verification services offering piecemeal solutions, LegitCar provides a comprehensive suite of solutions with automation. With its services, vehicle buyers, dealerships, and insurance agents can verify the history of a vehicle and get instantaneous results through user-friendly web applications. With LegitCar users get:
- Stolen vehicles check and ownership verification: With ₦5,000 and a vehicle’s Vehicle Identification Number (VIN), users can confirm if a locally-used vehicle has been reported stolen, verify the vehicle’s registration, and confirm that the registered vehicle owner has authorised the sale. The company has recorded a 100% success rate from verifying over 10,000 vehicle purchases, vehicle financing, and vehicle resale transactions in the last few years.
- Vehicle history report: For foreign-used vehicles, the platform offers Carfax and ClearVin vehicle history reports. Buyers can get information on accident history, mileage, date of shipping, etc. The service costs ₦5,500 for the Carfax Report and ₦5,500 for the ClearVin Report.
- Vehicle registration check: This is for buyers who want vehicles that have not been used or registered locally. It is a service that checks Nigeria’s vehicle registration records to confirm that a vehicle has not been registered in Nigeria. This service costs ₦5,000.
- Vehicle pre-purchase inspection: This is for buyers who need comprehensive information about vehicles to make informed decisions. It is the only service that LegitCar offers that requires physical contact. Before a vehicle is purchased a LegitCar vehicle inspector physically examines the vehicle, scans all the electronic systems of the vehicle with the company’s state-of-the-art OBD II equipment, and generates an initial report. This is followed by analysing the vehicle’s Carfax report and registration data, and then a final report with expert advice is issued to the buyer. This service costs ₦30,000 per vehicle. The company also runs a remote vehicle inspection and evaluation service which costs only ₦5000.
- On the business side of things (business.legitcar.ng), businesses can create an account and through this account they can fund and use their attached e-wallet (pay as you use) and perform vehicle verification checks by themselves using the VIN number of a vehicle directly from their dashboard in seconds. This dashboard is free to set up, can be accessed from any location on-the-go, and it helps businesses make vehicle-decisions faster.
Altogether, LegitCar runs seven services including customs duty verification for ₦10,000 and live vehicle valuation for ₦1,500.
The road ahead
Innovation is at the heart of LegitCar and so they’re finalising an AI-powered remote vehicle inspection service, along with vehicle evaluation APIs for insurance companies. These AI tools will detect fraud, assess vehicle damage, and accurately score a car’s condition without any physical contact. This service is most suitable for vehicle insurance companies and automotive startups (vehicle rentals and leasing companies). It is also available through API, meaning that the automatic damage detection and vehicle scoring can be integrated without any changes to the company’s existing processes.
For individual buyers, a unified local vehicle report is on the horizon. This single report will combine all crucial information; stolen vehicle status, ownership verification, registration history, and real-time market value. This report will be an amalgamation of all LegitCar’s services and will be all accessible with just a VIN and licence plate number.
Looking ahead, LegitCar is also exploring partnerships with financing companies to integrate financing options directly into their platform. It works in a way such that if a user makes a verification request for a 2015 Toyota Corolla Model for example, financing offers for the same vehicle model and specification will immediately be visible in the results displayed
LegitCar is revolutionising the used vehicle market in Nigeria by providing users with all the information they need to make informed decisions. With a focus on innovation and user experience, LegitCar is building a future where buying and selling used cars is a smooth and secure experience. Interested individuals can find out more here and businesses can access the platform here.
