Cars are the most widely used form of transport in the world. Nigeria has an incredible population of car owners. Hundreds of thousands of cars are bought every day. You see where this is headed. Car Dealership in Nigeria means buying automobiles from overseas at a cheap rate to sell at a profit in Nigeria.
The buying sources vary, the most common being auction/bidding sites. In the dealership venture both used and new cars are sought after, you just have to weigh the demand for each specific car before buying them to resell. Continue reading to find the steps on how to start a car dealership business in Nigeria.
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1. Find A Location
Do well and find a location that will suit the car business. This includes a vast area of land where interested buyers will easily see it. In other words, display the cars well in such a way that passers-by will have access to it.
2. Name Your Business
Take your time to device a catchy Business name. It is signage for your enterprise. And very importantly, make sure you register the name with the corporate affairs commission (CAC) so as to avoid using a name already in use by another company.
3. Pay For A Car Dealership License
To become a car dealer in Nigeria, need to apply for and pay the ‘Car Dealership License’ fee. It certifies you as an authenticated car dealer which comes with numerous advantages. With that, you can become a certain company’s franchise, i.e. selling only their car models.
There are bidding sites that accept only certified dealers to their site, where you will come across overwhelming deals. Lastly, you avoid being prosecuted by the law. The process of registration and other information pertaining to the license can be found in the road safety offices in your respective regions.
4. Look For Reliable Import, Shipping And Clearing Agents
Not every car dealer you meet is a genuine one. Some are mere middlemen who are desperate to profit from your ignorance. Several procedures are involved in sourcing for and buying cars online, or shipping from the USA to Nigeria and clearing your vehicle when it gets to Lagos.
5. Buy And Sell
Check through inventories of an online auto auction site like Copart, Manheim, eBay Autos, AutoTrader, Yahoo Autos and IAAI. You can then forward the link of your desired vehicle to a reliable shipping and clearing agent to help you handle the importation and clearing from the customs.