AutomobileBusiness & Investment

How to start selling fairly used cars in Nigeria

In this post, I will show you how to start selling fairly used cars in Nigeria. Cars are the most widely used means of transportation in the world. Thousands of cars are bought every day. Nigeria has an incredible population of car owners.

Major cities like Lagos and Abuja crawl with cars and car buyers. Car dealership in Nigeria means buying an automobile from overseas at a cheap rate to sell at a profit in Nigeria.

A large proportion of cars used in Nigeria today are fairly used cars. Fairly used cars are not bad cars as many seem to opinionated on. However, these are cars which have been used elsewhere but which are still motor-able and functional.

How to start selling fairly used cars in Nigeria

These may be imported to and sold in Nigeria to users who might have interest in them. To state the fact, after all, almost all Nigerian cars are fairly used cars imported from Cotonou, USA, Europe and other parts of the world. 

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Profitability Of Fairly Used Cars Business In Nigeria

Like every other business, selling fairly used cars is lucrative and a big business in Nigeria. There are local dealers in these cars all over the country, especially in states like Kaduna, Lagos, Kano etc. where you can buy fairly used cars from at a cheap rate and resell them at a high rate. This makes your capital yield a very reasonable profit.

Hence, since there will always be the need for people to move from place to place, as well as goods and services, there will alway be a market for fairly used cars in Nigeria.

Market Structure/Demand Analysis/Competition & Opportunity

Besides owning a home, buying a car is a good investment. It provides absolute convenience and independence in terms of moving around. Saves time and lessens stress.

Therefore mechanics are most certainly needed in case of any faulty cars. Identifying and relating to the potential buyers demands is very necessary. Know the type and brand of cars needed by the society around you.

See: Top 5 Cars in Nigeria You Should Not Buy and Why.

Basic requirements For Starting A Fairly Used Cars Business In Nigeria

1. A Good Feasibility Study:

A feasibility study will help you to know the demand level for cars in a given area, followed by the kinds of car models mostly used in such area as well as other things.

2. A Proper, Strategic Location:

Where you display your cars for sighting is very important. Try to get a space large enough to accommodate many cars, and at the same time, within public view, especially for passers-by to see.

3. A Good Business Name, Registered:

Your business name is a signage for your enterprise. As such, choose such a one that is appealing enough and best suits your business – fairly used car business. after this, proceed to the Corporate Affairs Commission of Nigeria, CAC, to get it registered with government.

4. A dealer’s License:

You need a dealer’s license to operate this business in Nigeria. Try to find out what the requirements are for car dealers in your state of residence or operation

How To Start Fairly Used Cars Business In Nigeria

1. Knowledge  / training required to start selling fairly used cars in Nigeria

Having the proper knowledge and orientation guides in the entire process of starting the business. Get yourself attached with a dealer in order to gain more first-hand knowledge. Also reading articles can widen your knowledge in starting the business.

2. Certification and Licensing to start selling fairly used cars in Nigeria

Every state in Nigeria has its own licensing body. Being a car dealer in Nigeria requires certain measures before you are given license to be a dealer. These requirements include, having a startup cost, the state requirements and knowledge in the regulatory framework.

3. Finance needed to start selling fairly used cars in Nigeria

Your finance determines the type of cars you will deal on. Pick cars that suit your budget because it is not advisable to run into debt all because you want to start a new business. Personal contributions can help start the business.

4. Tools / Equipment needed to start selling fairly used cars in Nigeria

Cars like Toyota Camry worth N830,000 and Volkswagen Golf 4 worth N250,000 can be used to start up this business. A spacious open and secured garage for displaying your cars will be needed. You can buy a small piece of land if you have the money or lease/rent as the case may be.

Read More: 7 Places to Buy Cheap Cars in Nigeria for Car Selling Business or Personal Use

5. Best Location to start selling fairly used cars in Nigeria

Look for an appropriate space for displaying your cars. Locations close to mechanic workshops, spare parts dealers, electricians etc. can promote the sales of your cars.

6. Technology needed to start selling fairly used cars in Nigeria

A car dealer should provide a car washer to wash the cars after importing them so as to enhance quality service. The cars should be fixed at their stands to enable buyers have a good view of the car.

7. Startup

Targeting your audience is the first step in starting a business. Know what brand of car your customers admire, the position your car closer to them. You need to establish a strong connection with your supplier.

Management Structure for fairly used cars Business in Nigeria

Staffing:

Make sure you employ the services of honest and responsible workers. One or two persons are okay for a start.

Advisors:

A car dealer should seek advice from suppliers, dealers and experts in the business.

Marketing Strategies for fairly used cars selling business in Nigeria

Advertising Strategy

Adverts can be done online with trusted sites. The most effective advert is the word of mouth so always advertise your business wherever you go. Radio and TV adverts is of high advantage too. Also inform mechanics, electricians, spare parts dealers, panel beaters and others in car related businesses as they may know people in need of cars.

Sustainability Tips

Selling quality cars and delivering excellent services will most certainly make your customers to stick with you. Treat your customers well and ensure you deliver on your promises. Also maintain an affordable rate so as to sell off your goods on time. Fix faulty parts of the vehicle, keep your car neat and attractive. Always remember that used cars become faulty if they are packed for a long period of time at a particular place.

Summary

The practice of selling off used cars is becoming increasingly rampant in Nigeria. So, it is not unusual to see many persons delving into the car business as it is a moving market in the country.

Cars will always be needed for transportation or movement of human and non-human materials and services or both. Here, we have discussed the basic and proper guidelines for staring Fairly Used Cars Business In Nigeria. We hope it will help the would be investor in taking good decisions as per Fairly Used Cars Business In Nigeria.

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Ekemini Ekpo

Ekemini Ekpo is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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