If you are interested to become a car dealer and you are wondering what it takes to become one, you have come to the right place where we have provided all the information you need to know on How to Become a Successful Car Dealer in Nigeria.
A car dealership in Nigeria is lucrative because of the high demand for cars in the country. If you have the zeal and passion for this career, it is important that before you begin, make sure you meet all requirements.
How to Become a Successful Car Dealer in Nigeria
As earlier mentioned, the demand for cars in Nigeria is high because it is the major means of transportation in the country. This makes car dealerships a profitable trade that propelled many persons to venture into the business.
How to Become a Successful Car Dealer in Nigeria is the right question to ask at the beginning of your journey to becoming a car dealer and we have stepped in to provide you with answers.
1. Have a Business Plan
Planning is the bedrock of every endeavor likewise in the car dealership business. Having a plan will help you and the venture to be successful.
There are many things you need to consider including finance, location, number of cars to start with, do you want to start with used or new cars, business advert strategy, and other necessary processes. Do not live any stone unturned but consider all possibilities and outcomes.
2. Source for Capital
The truth is, that a car dealership is capital-intensive, so you need to consider how you will get the capital to start the business. There are various means to raise capital and should be clearly stated during your business plan writing.
You can get a loan to start with but not advisable. You can get a grant, money from friends and family, or you can raise capital that is if you have an existing job where you make monthly earnings.
3. Choose the Right Type of Dealership
You also need to consider the type of dealership you want to go into. Remember, a car dealership is capital-intensive.
Most Nigerian car dealers often deal in used cars of quality grade because it is more affordable than dealing with new cars which are very expensive.
Also, do you want to go into a luxury car dealership that is even more pricey than common cars?
Also, you need to consider whether you will be selling as a retailer or wholesaler. Retailers sell directly to the public while wholesalers import cars in large quantities directly from the manufacturers.
4. Car Dealership License
Getting your car dealership license is an important aspect of How to Become a Successful Car Dealer in Nigeria. every other process will be a waste if you don’t obtain a car dealership license.
The essence of having this license is to certify you as a legal and authorized car dealer in Nigeria and it comes with numerous advantages, importantly you avoid being prosecuted by law.
Also, car dealership license differs from state to state in Nigeria, so you will have to make your findings in your state of residence to get the appropriate car dealership license price applicable.
5. Get Insurance
Another important aspect you shouldn’t shy away from as you consider How to Become a Successful Car Dealer in Nigeria is to get insurance.
This is very important because you are going into a capital-intensive business with high risk as well. Insurance cover includes general liability, and lot coverage, among other plans.
Also, getting insurance will keep you in business and running even when you encounter any fatal challenge that is detrimental to your car dealership business.
6. Choose Your Location
Location is strategic in this business and that is why you should make it a priority. The location where your car showroom, garage, or car sales park will be located should be strategic so that it can be easily accessible to your clients and passerby.
Importantly, never choose a place that is hidden for this kind of business except if your brand is established, trusted, and well-known.
7. Make use of Social Media Marketing
The internet has taken business advertising to a whole new level. It is one of the platforms business owners are using to boost their business.
You can also take advantage of the numerous social media platform, especially the one that your targeted customers frequent the most. The greatest advantage of using the internet to advertise your business aside from other conventional methods is that you have the advantage of reaching a larger audience.
8. Buy Your Cars
Having put all of the above considerations into place. It is time for you to buy your cars. You can buy from wholesalers within the country or you can import directly from manufacturers if you have the financial strength. You can start with a few cars and then grow steadily over time.
Another source to buy your cars is through car auctions, and through bidding sites open to you as a certified dealer.
9. Hire a Staff
If your car dealership has grown to a reasonable extent, you can consider hiring staff. On the other hand, you can hire staff on the go if the business is large or if you need experts to handle the business for you. But the fact remains, at a point in time, you will need an extra hand in the business.
Read Also: How To Start Haulage Business In Nigeria
We have concluded our discussion on How to Become a Successful Car Dealer in Nigeria and have provided you with nine steps that you can follow to establish a successful car dealer business in Nigeria. ensure you adhere to the steps outlined here to the latter.