5 Easy Steps To Open Car Dealership In Nigeria
It’s a major business to start a vehicle dealership in this region of the world. For information on what is needed to obtain a vehicle dealership license in Nigeria, we have compiled the necessary information.
Nigeria has a sizable vehicle industry. There are several options that one might explore, leaving space for all potential investors. Being a car dealer in this region of the world is a lucrative endeavour because vehicles are the primary mode of transportation in the country as a whole. Consider Lagos, the former capital and a major business hub, where a vast number of vehicles millions of them frequent the highways every day, seriously clogging up traffic. Not to mention other significant cities like Kano, Abuja, Port Harcourt, Awka, etc.
Because of this and the fact that more individuals are now aware that the auto industry is highly lucrative, it appears that not much information has been made readily available on the issue. Here, we will provide you with some advice, criteria, and prerequisites for obtaining a license to operate a vehicle dealership in Nigeria.
Make provisions for funding
We had to start with money-related issues. Without financing, no firm can be started, and none can continue or operate continuously. You should be aware that the initial outlay required to launch a vehicle dealership in Nigeria is substantial.
Make sure you have enough resources, including assets and liquid assets. If you have assets, you have good credit and can easily obtain loans from banks to finance your business. This is essential for the growth of your company and might significantly affect the kind of license you apply for.
Choose the dealership level you wish to enter
The vehicle dealership is divided into two main floors. You have the option of choosing to be a wholesale or retail dealer. Your ability to pay will still determine this choice. Retail car dealers are only permitted to sell directly to people or to the general public, whereas wholesale car dealers are allowed to sell to other wholesale dealers or to retail dealers.
The benefits of purchasing automobiles at a discount straight from the manufacturer are enjoyed by wholesale dealers. On the other hand, retail dealers might not be able to handle enormous numbers of automobiles as well as wholesale dealers and would need to charge the general public more for their products.
Register and submit payment for your auto dealer license
The next stage is to register your firm and make it legitimate if you have decided that you want to become a car dealer, have the appropriate funds, and have an in-depth understanding of the auto sector. States often have different standards and registration procedures, but you must apply for and pay for a “Car Dealership License” in every state. You are now officially recognized as a legitimate automobile dealer.
In some jurisdictions, like Lagos State, the Motor Vehicle Administration Agency (MVAA), which is required by state law, is in charge of granting licenses to auto dealers. If your state has a body in charge of it, you should find out about it. The Federal Road Safety Commission office in your state is the ideal location to start your inquiries regarding this. They are in a better position to give you knowledge on this subject if they are not the ones in control of it.
To prevent harassment and to aid in the problem of automobile thefts and accidents, you may also need to seek police permits and licenses from federal organizations like the Nigerian Customs Services.
Find a good site and start your auto dealership business
Get a piece of land in a nice location, then construct your garage. You must create relationships with your suppliers to purchase your cars. For this, there are existing online auction and bidding platforms. However, if you are franchising for a certain automaker, they can assist you in managing the logistics if you are working with brand-new automobiles. Remember to promote and advertise your company online. Nowadays, commerce is conducted primarily online.
Frequently Asked Questions
The starting capital if you wish to start a car dealership varies if you want to start on a small or big scale. If you wish to start on a small scale (N12,000,000) is the least amount.
You can buy a brand new or second-hand car for your shuttle service at Carmart.ng. We are the largest automotive marketplace where you can buy and sell your car. Our website has a large collection of cars for sale, which would pique your interest. If you want to have more information about our services, you can reach us via our other platforms.
Conclusion
Here, we’ve laid out a step-by-step procedure for obtaining a license. One should be aware that because each state has a distinct body in charge of the procedure, the criteria will change depending on the state. It is advised to stop by any “road safety” office in your state for further information on each state.
