How To Become A Successful Car Dealer in Nigeria (2023)
To become a successful car dealer in Nigeria, there are steps to take and techniques to know. This is because the car dealership profession is highly lucrative and profitable. Everyone uses cars in Nigeria and because of the population of various car owners in the country, its only good that one becomes a car dealer to sell new or used cars to people who are in demand of these vehicles.
There are various ways to start-up this car business venture. If you are abroad or within the country, you can do it so far you have the capital and team to carry out whatever process is involved in the car dealership business. In this post we provide the steps to take to become a successful car dealer in Nigeria this 2023.
HOW TO BECOME A SUCCESSFUL CAR DEALER IN NIGERIA (2023)
The following are steps on how to become a car dealer in Nigeria.
STEP 1: HAVE A BUSINESS PLAN
It is very important to have a car dealership business plan if you must be successful in this venture. It is this plan that would help you know how to run the business. Things like the capital needed to start the car business, how many cars to import or buy, should you sell new or used cars, how to advertise the business to get clients? Cost of land to have a garage, etc. This should all be answered in this step.
The aim of having a business plan is to ensure that you have all aspect and map of how the business will be run. With this, you would know how to set your priorities and budget for your car dealership business.
STEP 2: CAPITAL TO FINANCE BUSINESS
Car dealership business is really capital intensive to start, that’s why you must be capable to raise the necessary funds needed to start it. Of course, within your business plan, you should have a plan on how you can raise capital. Just be aware that owning or establishing a car dealership business in Nigeria is huge and capital intensive. If you can’t raise enough money, I suggest you either take a loan or find investors willing to invest in the business. With enough capital, you can get a valid license, and by-pass any stage in order to become a successful car dealer in Nigeria.
STEP 3: CHOOSE THE RIGHT TYPE OF DEALERSHIP
Choosing the right type of car dealerships depends on the level of financial capacity and backing you have. Its either you become a wholesaler or a retailer in this car business. For example, wholesalers are the ones who have top level license to sell to other wholesalers and even retailers. On the other hand, retailers can sell directly to the public. Wholesalers are the ones who import cars in large quantities. They have links with car manufacturing companies where they buy these cars at discounted prices. Retailers are mostly found everywhere and their vehicle prices are mostly expensive.
STEP 4: PURCHASE THE CAR DEALERSHIP LICENSE
Just as other business ventures, you need to have a license to officially become a car dealer in Nigeria. To get this license, you have to apply, pay the fee before you become an authenticated car dealer. This car dealership license fee comes a lot of advantages that will really give your business a boost. The benefits of having a car dealership license include having the franchise from a car manufacturing company to sell their vehicles and being able to register on bidding sites that only accepts certified dealers. To apply, visit any of the Federal Road Safety offices near you to begin the process of registration for a car dealership license.
STEP 5: PURCHASE THE VEHICLES
The step after being certified is to purchase the vehicles itself. To buy these cars, you can either buy them through bidding sites that offer international auctions. One trusted website that allows certified dealers carry out these purchases is Copart.com. According to our findings, cars seem little less expensive from international auctions when compared to bidding sites. If you want also, you can buy your vehicles from Cotonou or Benin republic, using the legal route via Lagos to enable you to bring cars into the country. Some dealers have franchise for a car brand and this makes it possible for the company to carry out the shipping logistics for you.
STEP 6: GET A GARAGE TO DISPLAY YOUR CARS
A garage is a space or a place where cars are stored for display to the public or interested buyers. This validates your claim as an authentic car dealer in the country. To guarantee security at the showroom or garage, ensure you put CCTV cameras and other facilities that would enable you avoid theft.
STEP 7: MARKETING YOUR CARS VIA ADVERTISING
There are various top car selling websites where you can market/advertise your cars online. What you should do is to list the cars as classified ads. The essence of selling on these popular sites where to buy and sell vehicles in Nigeria is because they have a high reach and target audience where customers can make their purchases. To have a high patronage while marketing your cars, ensure you add your location as buyers prefer buying from dealers who show their locations, so as to estimate the delivery charge. Also add your contact information, picture of the vehicle you want to sell and a honest description of the car.
One thing about these websites is that you might be allowed to post free adverts, but its better you take the paid advert option as it will allow your car to be listed and get promoted on the car selling website.
If you take these steps judiciously, your chances of being a successful car dealer in Nigeria is sure.