There is a popular saying that your car talks a lot about you. For many, a car is more than just an automobile; it is an accessory that adds to your fashion sense and charisma. It is also essential and practical for easy transport from point A to point B.
As such, everyone wants to have at least one vehicle. The high demand for cars means this is a lucrative business opportunity. Many people have taken advantage of the car dealership.
The car dealership in Nigeria is mainly about buying automobiles from overseas cheaply to resell them for profit in Nigeria.
The initial capital
The truth is that the auto trade is capital intensive, especially in Nigeria given the current exchange rate of the Naira against the dollar. The size of your capital depends on the number of cars you plan to start selling, whether new or used. However, you need a minimum of 3 million Naira as capital to start a profitable car dealership business in the country.
Types of concession
In Nigeria, two types of concessions are available to you. You can be a wholesaler or a retailer – a lot of it depends on your capital base. Wholesalers are those who buy cars in large numbers and sell them to other wholesalers or retailers. Retailers are those who sell cars directly to the public, in most cases the price of cars at this level is usually more expensive.
Without a license, you are not allowed to open your garage as a car dealership in Nigeria. Your car dealership license is your license to sell cars and it makes your business legal. The steps required to obtain your car dealership license vary from state to state; however, in general, you will need to apply for and make payments for the license.
You need a garage to display your cars for sale to potential customers. To get a garage you have to be strategic and get a good piece of land in a suitable location where buyers can easily find it.
Buy your cars
You can get cars at lower prices on international auction sites like Copart.com. If you can, you can buy your cars, especially used cars, from Cotonou or the Republic of Benin at ridiculously low prices.
On a N million vehicle, for example, you can earn N 250,000 or N 300,000 as a profit if you sell to an interested buyer. Likewise, you can get N 1million and more from a vehicle worth N5million among others. So, it’s lucrative. With every car sold, you are sure to make a good profit.
Carmart Nigeria Founder and CEO Ikwu Onyeka says determination, hard work and commitment have been the key to his success as an entrepreneur. He advises new entrepreneurs to âacquire the necessary skills. This allows you to better manage the business. If you can, spend months trying to figure out the business before you get started. It’s good.”