Are you an African residing in the Diaspora and seeking out a business to start back at home to fetch you huge cash? Then sending cars to your house would not be a bad idea.

This business is not limited to Africans living in the Diaspora; anyone seeking out a legit company in Nigeria can also leverage this information to start making money now.

If you come from any third-world country, one thing that is common to them is the inability to manufacture; the technology level is low to the extent that they depend on other leading foreign nations for technological advancement, at least for now.

When writing this content, here in Nigeria, we have over three own Nigerian brands currently manufacturing cars here in Nigeria.

However, the population is far too big to be reached, so most low-income earners would still go for fairly used cars auctioned and shipped from top world countries like the US, Japan and China.

At least for the time being, you can still tap into this business opportunity and cash out in a large amount. One primary reason I recommend this business is the huge profit margin that comes with it.

If you have been abroad for a long time and seek ways to reach out here to your family and friends, you can start exporting pretty used cars from anywhere you are in the world to your home country here in Africa.

If you seek out other businesses to explore, I wrote a comprehensive guide for various companies to study as an African in the Diaspora, one of which is export trade.

Why You Should Start Importing Cars To Sell.

Developing nations in Africa, most especially Nigeria, will always be a big market for cars, both used and new ones. With a vast market of over 200 million people working hard to evade transportation costs and own their vehicles.

Those who already have are equally working on getting additional new ones or changing the ones they are currently using. Car business should be a top business in any country like Nigeria that has not developed sufficient capacity to manufacture their cars.

1. The Demand For Cars In Africa And Other Developing Nations In Africa Is High.

Over 400 million people in developing nations in Africa have to make it a top priority in their lives to own a car but do not have sufficient funds to buy a new car.

These people are ready to buy a second-handed car to ease the stress of hiking and inconvenient means of transportation currently in this part of the world.

Presently, transportation in populated cities like Lagos has become a sudden nightmare, as public transporters are becoming greedy and purposely hiking the transport fares and making public transportation a nightmare.

2. Lack of capacity.

Come to think of it, Nigeria is vastly populated with minimal capacity for production, which makes it heavily reliant on the importation of various products from all parts of the world.

Developing nations like Nigeria rely solely on importation. This makes its economy weak in production, so it needs support from developed countries like the US, China, Germany and many others.

3. It Is Not a Capital Intensive Business.

Starting a car import business does not require as much capital as it may seem, maybe to those who don’t already know how it works.

Let me break it down by giving you this quick scenario. First, buying a fairly used car from the United States will cost not less than $5000 for just one car; this also comes with an auction fee of less than $200, alongside a shipping fee to Nigeria or any nation of your choice standing at $1200 and finally clearing bill of less than $1200 at your desired landing marine port.

The estimated total of the above-listed expense is just $7600; now, selling this car depends on you; if it is a brand like Toyota Corolla 2009, the selling cost would not be less than $10,000.

You have made over 50% in profit; what a lucrative business. For Nigerians overseas, this is one of the most innovative ways of transferring your money back home instead of direct money transfer that may cost you some charges and put you in danger of money laundering on both ends.

Use the money you want to send back home to buy cars and ship to Nigeria, have a trusted person sell it for you and deposit the funds into your bank account! In doing this, you will even see yourself in another line of business entirely and another income stream.

For aspiring dealers in Nigeria, You can start small with one or two cars and gradually expand into having your car market.

How To Start a Car Importation Business.

Just like starting any business, you have to make sure you plan thoroughly to avoid making mistakes that would eventually lead to your bankruptcy.

But unfortunately, the juicy benefits to be enjoyed as an auto importer in Nigeria or other parts of developing nations in Africa make aspiring car dealers ignore the process of planning.

The success of every business venture in the world is solely dependent on crucial planning processes. In this section, I am going to be breaking critical procedures to help you paddle the boat of

1. Settle Your Financials.

Stating a car import business is not a business that you go in with a blank idea on how to invest; you should understand the tariffs and fees that come up with a car import business.

As stated in the post above, buying an already auctioned car in the US comes at a relatively low price, but that is not all; various other tariffs add up to become the final cost of that vehicle when it arrives at the port of a developing nation in Africa such as Nigeria and other African countries.

These fees and Tariffs should be added to your initial capital when you decide to start a car import business.

You need to multiply those fees by the total amount of cars you intend to start selling. Let’s assume you intend to test the waters with just one car; from the previous illustration I gave earlier, that should be around &8,000 USD covering the total cost of buying the vehicle at auction price, shipping and clearance.

The cost implication of importing more than one car varies based on the initial cost of such a car at auction price.

2. Select The Kind Of Car Your Desire To Import.

Understand the kind of cars that are patronized in your community. And one way to do this is to inspect your neighbourhood or the desired audience you intend to sell these cars to.

For example, if you intend to sell cars to the rich, shipping top car brands like Range Rover, G-wagon, Rolls-Royce, and many other American specs will not be wrong.

Let’s now assume all you intend to do is target low or middle-income earners; then, you can decide to ship in cars like Toyota, Honda, Lexus and many others. These cars would be easily affordable for low and middle-income earners.

Another factor that you may also consider when choosing the desired brand is how such a brand is used in your location. For example, bringing in cars like General Motors, Lincoln Navigator, and Tesla will not do so well in places like Lagos, Nigeria.

For example, when you come to a location like Lagos, Nigeria, most of the cars brand you see is essentially Toyota, Honda, and recently Lexus joined the list. Ford is famous too.

Just make sure you make use of these yardsticks to make informed decisions.

3. Get Incorporated.

The next step is to become incorporated in the country where you desire to operate this business. Incorporating builds a business that is legally separate from its owners.

As a result, corporations can do many things that people can do, including acquiring property, signing contracts, having bank accounts, and filing lawsuits.

But if your business is small, you may wonder whether a corporation is required. The most obvious reason to incorporate a business is to limit your liability for business obligations. This can be a good idea if you have lots of outside contracts.

Let’s say you encounter a deep mess; your business would face the direct heat and would not affect your personal life. Incorporating a business is easy, and some of the details you need to provide include.

1. Business Name.

2. Business Address.

3. Name of Decision Makers.

When it comes to Nigeria, the method is straightforward, and entrepreneurs or investors can set up their businesses or their brands in Nigeria effortlessly.

If you decide to set up a business here in Nigeria, The Corporate Affairs Commission (CAC) was established by the Companies and Allied Matters Act, which was enacted in 1990 to regulate the formation and management of companies in Nigeria. The CAC has been bestowed with the responsibility of registering companies in Nigeria.

4. Choose Your Desired Auction Partner.

It is time to get your hands dirty and begin shipping in those cars you dream of. The following practical steps are to identify a legit platform that auctions cars in any desired country of your choice.

The United States has become one of the most significant car auction countries globally; various cars are auctioned in the United States more than in any part of the world.

If you plan to ship from other European countries like the UK, Sweden, or Spain, you should try out the United States. Of course, if you have a friend or family living in the united states, you can decide to skip this crucial part, but it is best to understand how the whole car process works from the backend.

Most of the pretty used cars brought into developing nations like Nigeria are auctioned from developed countries like the US, Canada, and Europe. Auto auctions are a method of selling vehicles based on an auction system.

There are various reasons why Cars are being auctioned all over the world the, some of which include;

1. Some cars have stayed too long at the dealer’s lot, so they are auctioned off as an alternative option to recoup some of the money invested

2. The original owners cannot meet up with their payments, so they’re repossessed and auctioned off by financial institutions to recover their money.

3. Some cars get to the auction house because they are being traded for a new one. In this case, private car owners exchange their old cars to get another car in return.

4. Some cars have suffered damage from weather conditions or accidents. After paying off the owners, the insurance companies want to recoup some of what they paid. Due to the damage history, these cars can only be sold at specialised auctions.

The damages could include scratches, dents, or malfunctions resulting from thickened car fluids caused by winter.

The majority of the cars auctioned from developed nations to developing nations like Nigeria are pretty used. Usually, land in terrible shape is left for repair to be done by anyone responsible. However, buying cars at auction is cheap, and this is all you need to get started as a car dealer.

5. Understand clearing Duties In Your Country.

6. Set Up a Garage To House Your Cars.

I wrote a comprehensive guide on how you can start a car importation business in Nigeria from the USA and make money, check out the link to the article below to get started….


https://tchelete.com/how-to-start-a-car-importation-business-and-make-money/