If you are in the United States of America or Canada and looking for a good and harmless business you can start back home in Nigeria, buying and selling of used cars should be on top of your list. There will always be opportunity in car business in Nigeria for many good reasons:-
1. Nigeria is and will always be a big market for cars, both used and new ones. I mean what do you expect in a nation of over one hundred and sixty million people with almost everyone working hard towards owning his/her own car one day. Those who already have are equally working to get additional new ones or change the ones they are currently using. Car business should be a top business in any country like Nigeria who are not manufacturing their own cars.
SEE ALSO: How To Import Cars From USA To Nigeria
Nigerians like cars a lot as most people sees having a car as status symbol, everyone wants to cruise no matter how poor he is. Car is always on top of the list of every family’s purchase priority. It is always a dream come true when one is able to acquire his own car for the first time. Status will change immediately, Family and friends will start respecting you the more, that is why everyone is working towards having one. These factors has made car business a lucrative one.
2. With the ongoing banning of okada in most states of the federation, even those without the means are being forced to find the means of getting their own cars. It is no longer an option but necessity except you want to be left out in the cold.
3. Transporters are becoming more and more greedy in places like Lagos, purposely hiking the transport fares and making public transportation a nightmare. Therefore, having your own car have become more cost effective than taking public transport. And who likes standing on the bus stop all day waiting for buses is stead of getting to where he is going?
4. The profit margin in car business is very good too. I can tell you for free that dealers are making good money in this business though, they always claim of not making enough profit but that is contrary to the truth on ground. Believe me, there is reasonable profit in used cars importation business in Nigeria.
This Is How The Importation Works
1. Let’s say you are buying a 2009 Toyota Camry Hybrid full options, you will get good one with low mileage from places like Maryland for between $5,000 – $8,000.
2. Then you pay the auction fee of $300. Auction fee may be more or less depending on the auctioneers. Find out more about this!
3. When the deal is closed, you have it towed to the closest port – Baltimore is closer to Maryland, you tow it to Baltimore for onward shipment to Nigeria.
4. Shipping cost to Nigeria stands at about $1,200 or less, just around that amount. But find out the exact it costs now as market changes from time to time.
5. Clearing and Courier Bill of Lading to Lagos stands around N250,000
Therefore, the total cost that will land the Toyota Camry 2009 model leather seat to Nigeria are as below:
Buying from the USA and shipment to Nigeria cost = $6,000.
Nigeria Clearing stands at = N250,000.
That will put the final price of the car to $6,000 x N260 = N1,560,000 + N250,000 clearing = N1,810,000.
Market: Search used cars to buy on Yahoo Autos there you will find good number of used cars at perfect prices. You can as well search on eBay Auction and other Car buying and Selling websites.
Selling In Nigeria And Your Profit
I have gone round the market and the final cost of getting such a clean Toyota Camry with leather seat and low mileage (under 50,000 mile) anywhere is Nigeria is N2,000,000. Some sell as high as N2,200,000
Therefore, your profit for the car will be from N190,000 to as much as N400,000 depending on how much you finally sell it.
Toyota Camry is one of the fastest selling cars in Nigeria due to it’s efficient fuel consumption. It moves so much that you can sell the car within weeks of landing it, though it may stay for months sometimes but when you finally sell, you are sure of minimum profit of N200,000.
For Nigerians oversea, this is one of the smartest way of transferring your money back home instead of direct money transfer that may cost you some charges and put you in danger of money laundering in both ends.
Use the money you wants to send back home to buy cars and ship to Nigeria, have a trusted person sell it for you and deposit the money into your bank account! In doing this, you will even see yourself in another line of business completely and another stream of income entirely.
For aspiring dealers in Nigeria, car business is a great business for you. You can start small with one or two cars and gradually expand into having your own car mart.
Note: Prices (buying, shipping, and clearing) are not the same. Sometimes you get it cheaper, sometimes you get it higher. Your final sells depend on how much you get your car.