There are measures to take and skills to learn in order to become a successful auto dealer in Nigeria. This is due to the fact that working in a car dealership is quite lucrative. Because of the large number of automobile owners in Nigeria, it is only logical to become a car dealer and sell new or used automobiles to individuals who are in need of these vehicles.
This auto company may be started in a variety of ways. If you have the funds and staff to carry out whatever procedure is needed in the auto dealership business, you may accomplish it whether you are overseas or within the country. In this post, we’ll walk you through the stages to become a successful auto dealer in Nigeria in 2021.
HOW TO BECOME A SUCCESSFUL CAR DEALER IN NIGERIA
STEP 1: FORMALIZE YOUR BUSINESS PLAN
If you want to be successful in this industry, you must have a car dealership business plan. This strategy will assist you in understanding how to operate your company. Things include how much money you’ll need to start a vehicle business, how many vehicles you’ll import or buy, whether you should sell new or used vehicles, and how you’ll publicize your business to attract customers. The cost of land for a garage, for example. This step should address all of your questions.
The purpose of a business plan is to guarantee that you have covered all bases and have a clear picture of how the company will operate. You’ll be able to determine your priorities and budget for your auto dealership business after reading this.
STEP 2: RAISING CAPITAL TO FUND YOUR BUSINESS
Starting a car dealership business requires a significant amount of cash, therefore you must be able to raise the necessary finances. Of course, you should include a strategy for raising funds in your company plan. Just keep in mind that owning or starting a vehicle dealership in Nigeria is a significant and capital-intensive company. If you can’t raise enough money, I recommend taking out a loan or finding investors ready to invest in your company. You may receive a legitimate license and skip any stage in the process to become a successful auto dealer in Nigeria if you have enough money.
STEP 3: SELECT THE APPROPRIATE KIND OF DEALERSHIP
The sort of automobile dealership you choose is determined by your financial ability and backing. In the auto industry, you may either become a wholesaler or a retailer. Wholesalers, for example, are the only ones with the authority to sell to other wholesalers and even retailers.
Retailers, on the other hand, can sell to the general public. Wholesalers are the ones who import big numbers of automobiles. They have connections with auto manufacturers and are able to purchase these vehicles at a reduced price. Retailers may be located almost anywhere, and their car costs are often high.
STEP 4: GET YOUR AUTO DEALERSHIP LICENSE
To legally become a vehicle dealer in Nigeria, you’ll need a license, just like any other business. To obtain this license, you must first apply and pay a fee before becoming an authorized auto dealer. This auto dealership licensing cost comes with a slew of benefits that can help you grow your business.
The advantages of having a car dealership license include being able to register on auction platforms that only allow authorized dealers and obtaining a franchise from a car manufacturer to sell their automobiles. To apply for a vehicle dealership license, go to any Federal Road Safety Office near you and fill out an application.
STEP 5: BUY THE AUTOMOBILES
Following certification, the next step is to purchase the car. You may either acquire these automobiles through international auctions or through bidding services that provide international auctions.
Copart.com is a reputable platform that permits licensed dealers to make these deals. When compared to bidding sites, automobiles from overseas auctions appear to be a bit less expensive. If you like, you may even buy your automobiles in Cotonou or Benin Republic, taking the legal path through Lagos to enter the nation. Some dealers have a franchise for a certain automobile manufacturer, which allows them to handle the shipping procedures for you.
STEP 6: SEARCH FOR A GARAGE IN WHICH TO DISPLAY YOUR CARS.
A garage is a facility or location where automobiles are kept to be displayed to the public or potential purchasers. This proves that you are a legitimate auto dealer in the nation. To ensure security at the showroom or garage, make sure there are CCTV cameras and other security features in place.
STEP 7: ADVERTISING TO MARKET YOUR CARS
You may market/advertise your automobiles online on a variety of leading auto selling websites. You should put the autos up for sale as classified advertising. The appeal of selling on these famous sites in Nigeria for buying and selling autos is that they have a large reach and target audience from whom customers can make purchases.
When selling your autos, make sure to include your location, since consumers like to buy from dealers that indicate their locations so that they can estimate delivery costs. Include your contact information, a photo of the vehicle you’re selling, and a truthful description of the vehicle.
One thing to keep in mind regarding these websites is that though you may be able to post free advertisements, it is preferable to pay for an advertisement since it will allow your automobile to be displayed and promoted on the vehicle selling website.
If you follow these procedures carefully, you will have a good chance of becoming a successful auto dealer in Nigeria.