Car importation business is yet another lucrative business that my Igbo brothers in the USA have utilized into making themselves millionaires. The concept of this business is very simple, you order used cars in the US and have it shipped down here in Nigeria. As simple as that.
The car market in Nigeria is a big one because everyone sees it as a thing of pride to own a car. Once someone has a car, his status is perceived to being that of wealth despite contrary being the case most times.
When I was doing my research on this business, I discovered that why people are yet to start this car importation business is merely out of lack of information and fear of technicalities. Nigeria has a population of over 200 million and they rely heavily on car for transport to be made possible. In fact, the demand for personal or private cars is on the increases because of the banning of motorcycles in some parts of Nigeria.
I made some contacts with some car dealers, those who are hardcore players in this car importation business and guess what, they tried discouraging me, telling me how unprofitable this car business is. As an experienced entrepreneur, I knew that was exactly the opposite. I furthered my research and trust me, this business is what brings in thousands when a single order hit. This business is like the oil business.
Enough of the long talk, let’s go into how you can start car importation business.
STARTING A CAR IMPORTATION BUSINESS IN NIGERIA
1. CONDUCT YOUR RESEARCH
Before you delve into car importation business, the first step is usually to make your research, to know more about the industry before deciding whether to go in or pull out. You research will entails knowing about the exchange rate, the brand of car that’s most sought out for and the particular source to import them.
2. GET A LICENSE
Make sure you get a license from the appropriate authorities. They give you the power to either import or export cars. Starting a car importation business without the necessary permit is dangerous, it might land you in jail in extreme cases.
Before you start shipping cars of all kinds, make sure you have the parking space available. Also make sure that the roads are accessible and free from potholes to avoid car break down. Your location to a large extent determines how successful you’ll be in this car importation business. Please get it right.
4. FIRST HAND EXPERIENCE
As you’re starting out, you have absolutely no knowledge or experience about car importation business. For that reason, I always advise my readers to hook up with other experienced auto dealers close to them. If you can get someone who is ready to selflessly guide you in this business, you won’t be needing this article.
HERE ARE THE STEPS TO CAR IMPORTATION BUSINESS
1. SOURCE FOR AUTOMOBILE
This is the stage where you haunt for the type of cars you will love to order. I prefer using Yahoo Autos to look for used cars that I can order. You can also use eBay if you like. These online sites will help unveil the car of your choice, including the VIN standing. Once you’ve gotten the car you want, then the next step is contacting the seller.
2. CONTACT SELLER
This could be an individual or a company. Whatever the case may be, contact them and make them an offer. Remember, do this after you’re satisfied with the car that you want to order. From the site, the cost of the car is usually written boldly. Most of them can be open for negotiation while some aren’t.
3. MAKING PAYMENT
The payment can be made through bank transfer or other numerous means. Once payment have been made, the shipment of the car will be handled by the seller or company in charge. They will do the shipping and also send you the Bill of Landing. You’ll need the Bill of Landing during your car clearance at the port.
4. CLEARING OF YOUR CAR
Make sure that you clear your car before it reaches Lagos to avoid undue stress at the port. What am I saying? Pay your clearing agent beforehand, including details such as the Bill of Landing. The purpose of doing this is to have him clear you before the car lands. The moment your car reaches Lagos; it will be handed over to you without any hurdle.
PROFIT POTENTIALS IN CAR IMPORTATION BUSINESS
From my findings, the fastest selling car in Nigeria is Toyota Camry and you can get it for as low as N1,800,000 as of now. You can sell at the rate of N2,200,000 and make over N400,000 gain. You might not sell the car right away; it can take weeks or months depending on your marketing strategy. But the truth is, once sold, your bank account will definitely feel the impact.
HOW TO SELL OFF YOUR CARS QUICKLY
Selling off your cars isn’t magic. Most auto dealers have compiled some lame eBooks on car importation business that adds nothing to the reader. If you can read and do research with your mobile phone, you don’t need any eBook to start this business.
One of the ways to sell off your cars quickly is through online sites like Jiji, OLX, Jumia etc. you can also run some Facebook ads to reach more potential clients. I repeat, it’s not magic. Do it right and you’ll get it right.
NOTE: Make sure you have a standby mechanic. No matter how careful or experienced you are in this car importation business, there will always be damages which will require the attention of a good mechanic.
Car importation business is a business that requires huge sum of money to start, but your first sell is like hitting gold in a goldmine. With a thorough research and some auto dealers as mentors, you’ll be able to make yourself a millionaire within a year. If you have any question, please use the comment box.