The car business, Buying and Selling Cars is a good business anyone can do, because cars are one of the fastest moving products for the importation business? Unlike most goods, cars are one of the few products considered evergreen. This is because you don’t have to wait for a certain time before they sell.
Car business works
Neither do you have to worry much about the date it was produced? People still buy good-looking cars that were released 5 to 3 years ago, although this depends on your country. It also has a wide range of audience availability. All of these factors make automobiles the perfect product for mini importation.
So many people think this business is capital-intensive and hard to start up or grow. If you are one of them, keep in mind that many car dealers you consider as Big Shots started by importing just one car. But you don’t need to worry much about all of that.
Here we are going to scroll through and tell you how the car business works.
Let’s read through…
Do a Market survey on Buying and Selling Cars
To begin this business, do enough research to find out the kind of Cars citizens of your country love, buy and use.
This one is easy to do. Just become a traffic warden for a day in the central business districts of your city, with a pen and a notebook, and count the different brands of Cars that would pass in an hour.
After a while, you will discover the most popular and the second brand people prefer.
To verify your findings, carry out a sample survey of different sections of the society made up of Teenagers, Adults, Entrepreneurs, Employed people in Public and Private Enterprises, Traders, Artisans, Farmers, etc. and ask them the brand of Cars they prefer and why, to get a clear choice of the types of Cars you can start importing.
How to Source Cars Cheaply For Importation
As a newbie, you don’t want to go looking for the most expensive and luxurious cars you can find. Rather start small. Not too small, though. You must research the best-selling cars in your country and where you could buy them from.
Here are some of the most trusted sites you could find the best cars:
- Auction Auto Mall
- Auto Trader
What are the Costs You Pay to Import Cars?
As you think about how to start buying and selling Cars in Nigeria, note that the costs you pay to import Cars will decide how profitable the business turns out.
Secondly, the costs for importing Cars differ according to the brand of Car, year of manufacture, model, and engine size.
The costs you will incur from your country of origin to your country for importing Cars include:
- auction fee if you buy through an Auction process abroad
- the shipping cost of Car to your country payable to the foreign country
- clearing and port charges
- custom duty, custom levy, and VAT
- commission payable to Shipping and Clearing agents
- charges you will pay to the Shipping Company at the delivery point
- miscellaneous expenses
Car Import Purchase Decisions
You have done your research on the internet and found the Car you want, downloaded the picture and sent it to your agent, or emailed your choice to the Seller.
You may choose to bid in an auction or buy direct from the Dealers’ Website or through your country-appointed Import Shipping and Clearing Agents.
Your Agent pays the Auction fee to take part in the bidding process, bids, and wins a good brand and model with low mileage, leather or cloth seats, a global positioning system, and other gadgets.
How do you securely pay for the car?
Secure Payment Terms
The next thing to do is to arrange for payment and shipment to your location.
The secure payment options available are wire transfers, credit or debit cards from your bank to the Sellers’ bank, or other payment methods.
Starting buying and selling Cars involves deciding whether to use Ship or Air Freight to transport the Car.
Please note that it is cheaper to ship your car by container through the Sellers’ assistance so that you pay for only one-third of the cost of the container, which could carry two mid-sized Cars and a Sport-utility Vehicle.
Another advantage of using Container to ship your car is that you can safely load the Car with goods you can resell.
Is It Profit Worthy
This business is definitely lucrative and highly profitable for those who have an interest in venturing into it. You only need to be able to manage the cost and taxes. But on the whole, your profit margin per car should range from $250 to $1,000 or more depending on the amount you eventually sell the imported vehicle. Based on this premise, Car importation business is profitable.
Just make sure you clear the Car quickly not to pay demurrage to the Shipping Company.
Sell it early, so you don’t incur extra costs for Ads, display, fueling, and costs for keeping it in a good state before the sale.
To avoid extra costs, get buyers for the Cars before you start the importation process. If you do, you could use the buyers’ money to import the car, pay for import duty and port charges, and then keep the profit for yourself.
How can you get potential customers?
This is where a good marketing strategy comes in handy. Some are
Develop an online presence
Before any individual buys a particular vehicle from a car business, they must have carried out different research on the car of their choice before heading out to purchase the vehicle. This is why your business needs to have enough information about the business online, the kind of products you sell, and reviews from previous customers on relevant online platforms to boost your business’s sales.
Market and promote your business
When running a car business, you must ensure that you employ certain measures to promote your business and attract customers. These are some of the marketing ideas and strategies that you can adopt for your car dealership business.
- Direct Marketing
- Sponsor TV and Radio Programs
- Erect your Billboards in Strategic locations around the city
- Making use of sales agents and sales reps
- Online Marketing
- Referral Marketing
- Ensure that all your employees wear your branded shirts during work hours
- Engage in a roadshow within the community where your used car dealership is located.
- List your used car dealership business in the local directory
- Sponsor relevant community programs.