₦airaland Forum

buygala:
Car dealers, just like other businesses, are not in business for charity but to make a profit

Do you know how many of their cars are lost at sea during importation, how many are seized by customs, how many are lost to accidents before sale, how many end up being lemons that end up as scrap, or even their vehicles which are stolen?...

That's even minus the cars which are seized by law enforcement because ana alleged criminal purchased it from them and they end up having to refund the money paid and also lose the vehicle just to stay out of prison...or should we talk about the ones EFCC will wake up one morning and raid their car lots and seize vehicles on allegations that they were stolen from the abroad?

In the end, all these business losses have to be incorporated into the sale price of the good vehicles so that they can keep being in business ...or where were you expecting all these losses to be recouped from?

So it's the buyers fault that his cars were lost in shipping and seized by customes?

Itzlinda:
1m profit from cost price of 40m? Something that can stay 5 months in the stand without being sold?

Are you mad?

Dont mind him.
After bidding the car it will spend like 2months before it reach Nigeria, later it will spend another 3 months or God's know when to sell the car.
All in all nearly 6 months, whoever invest 40something millions most gain profit of nothing less than 15%

ceejay80s:
So it's the buyers fault that his cars were lost in shipping and seized by customes?

No , it's the dealer's fault


Simply import your own car if you can't deal...

Businesses everywhere incorporate coverage for losses into sale of their items

Like i said, if e no do you, import am yourslef

Firebox123:
will car dealer not gain or make their money again

They have family too feed at home too

Many talk because its cheap. they forget that these dealers tend to have these cars up for sale for months, sometimes years before they get buyers.

It's even crazy with nairaland.com care dealers.
They will be quoting care prices as if, they are ✂️ cutting yards.

Does that mean they should make a whooping 12-17m on one suv
That's a whole lot of greed

Firebox123:
will car dealer not gain or make their money again

They have family too feed at home too

Brendaniel:
Sometimes i don't blame the dealers, think about this:

Average dollar rates under presidents since 1999

OBJ - 100$ = 1,100 naira

GEJ - 100$ = 2,100 naira

BAT - 100$ = 150,000 naira

Now do the maths untop of this car with the value in dollar and the profit he has to make to sustain himself and his family and also keep the business afloat, so if he was making say 500$ per vehicle before, he should cut it down and become poorer and scatter his business because some people chose to support nonsense leaders into office, He should blame Tinubu first before blaming the dealers.

I think the dollar exchange rates you quoted under OBJ and GEJ were incorrect, under OBJ, $100 was N11,000 and not N1,100 and under GEJ, it $100 was N21,000 and not N2,100 as you quoted

Thats because they may just sell only one SUV in a year...

Chilipepper:
A Nigerian man has shared an eye-opening experience about just how much local auto dealers mark up car prices.

According to him, his friend recently bought an SUV that usually goes for ₦55–₦60 million in the Nigerian market. But instead of paying that, he decided to handle everything himself — buying abroad, shipping, and clearing the car.

When it finally landed at his doorstep, the total cost was about ₦43 million.

He couldn’t help but ask:

“Dear Nigerian auto dealers, why is the mark up that huge? I’m genuinely curious.”

Most auto dealers, not all, are into money laundering and not actually interested in selling their cars so the price is a subtle but clear disincentive

Abdulhakeem7:
I think the dollar exchange rates you quoted under OBJ and GEJ were incorrect, under OBJ, $100 was N11,000 and not N1,100 and under GEJ, it $100 was N21,000 and not N2,100 as you quoted

true, error in calculation, will correct it, thanks for observing it...

Do ur maths 15% of 43m is how much
When you get the figure, reason with IQ next time
You bring in a car for 43m max including landing and clearing, if u make 4m as profit on the car max 5m,isnt it ok. We are just too greedy in this country. The same thing goes for other importers too and so called people bringing in food produce from the north

Coolgent:
Dont mind him.
After bidding the car it will spend like 2months before it reach Nigeria, later it will spend another 3 months or God's know when to sell the car.
All in all nearly 6 months, whoever invest 40something millions most gain profit of nothing less than 15%

You should be the one to keep quiet anything u dont know u ask Nd u learn
Lets me answer your question YES it is Tinubu do u know how much they're clearing container n Apapa 2023 Vs now go and ask do u know how much to pay for iPhone from DHL Nd rest...if u plan on impregnating your wife 4x ..Tinubu indirectly tells you to impregnated her 2ce...go Nd ask about school fees Nd pampers... since u guys like defending without common sense

bcomputer101:
Will you please keep quiet?
So, na Tinubu subsidy removal cause increase of the price of SUV?

I hope you won't blame Tinubu for inability to impregnate your wife?

A friend just imported Toyota Camry 2015 model..
Total landing cost and clearing cost was 9.83m….
And the same car is been sold in Nigeria market between 15m to 17m…

Satazaa:
making money to feed their families shouldn't make them exploitative and cheating, is 1M profit margin not enough?

Una go just come online to dey disgrace Una ancestors

Dealers still have other costs he would incur ooo

And how I go do business of 40m and my gain na 1m??

Dats nuts ooo

Because the might sell only one in a year

It is the exchange rate and custom paid and also high inflation rate caused by subsidy removal

heybeebugatty:
A friend just imported Toyota Camry 2015 model..
Total landing cost and clearing cost was 9.83m….
And the same car is been sold in Nigeria market between 15m to 17m…

Do you know how he went about the clearing?

Dronedude:
Exactly the point I made to one of this car dealers the other day. I vowed to buy and ship my next car my self. They mark up as much as 15m to 20m sometimes. 2016 carry you will get at landing for 9m they will sell for 20 to 22m.

Thank you.

The best part now is to ship yourself.

I have taken away my hands from these car dealers.

When you spent 43m to invest, how much do you think the profit should be?

Satazaa:
making money to feed their families shouldn't make them exploitative and cheating, is 1M profit margin not enough?

Did they both pay the same price for the car? Did they both buy it from the same area? Did they both pay the same to have the car transported to around the same area in Nigeria? A car may be bought in Texas...similar one in New York ... both at the same price ...but the cars are shipped from New York. Immediately around $1200 is added to the cost of shipping the car from Texas to New York.... (N1.8 million). There may be added expenses such as taxes and fees. Both cars get to Nigeria ...similar expenses for delivery to location. The dealer has overhead expenses that the other guy doesn't have....as in having the car "garaged' in his lot .. employing people to wash the cars... don't forget the water is not free .... how long will the car be in the lot before sold? ..how much water will be used for washing it until sold? ... how much soap? ... he has to also pay salesmen to sell it ... an office to maintain...etc....while Mr Didit Myself has no such expenses...nor is depending on income from the car to maintain him and family. I'm not saying some of the dealers are not ridiculous with their mark ups ...but to think that selling the car for N1M more than you paid for yours shows not much thinking was out into that statement.

fineboynl:
The car might not be the same standard. State tax and rent. Something it can take more then a year in there car stand. The risk is too high

if have someome with good knowledge about car can get you a grade A or B car abroad.....
nut no matter what dealers would make money but i doubt if someone would add 20 million on a 40milion naira car

Satazaa:
making money to feed their families shouldn't make them exploitative and cheating, is 1M profit margin not enough?

Custom duty ?
Do you know how much it cost to clear a 40ft container at apapa wolf Okay let me tell you it over 70million Naira

Brendaniel:
Sometimes i don't blame the dealers, think about this:

Average dollar rates under presidents since 1999

OBJ - 100$ = 11,000 naira

GEJ - 100$ = 21,000 naira

BAT - 100$ = 150,000 naira

This is scary ... Bad leadership no good oooo..

buygala:
Car dealers, just like other businesses, are not in business for charity but to make a profit...Car sales have a lot of downs that have to be taken into consideration when calculating mark-ups for car sales..

Do you know how many of their cars are lost at sea during importation, how many are seized by customs, how many are lost to accidents before sale, how many end up being lemons that end up as scrap, or even their vehicles which are stolen?...

That's even minus the cars which are seized by law enforcement because ana alleged criminal purchased it from them and they end up having to refund the money paid and also lose the vehicle just to stay out of prison...or should we talk about the ones EFCC will wake up one morning and raid their car lots and seize vehicles on allegations that they were stolen from the abroad?

In the end, all these business losses have to be incorporated into the sale price of the good vehicles so that they can keep being in business ...or where were you expecting all these losses to be recouped from?

So i should pay for all this instead of market value.

Brendaniel:
Sometimes i don't blame the dealers, think about this:

Average dollar rates under presidents since 1999

OBJ - 100$ = 11,000 naira

GEJ - 100$ = 21,000 naira

BAT - 100$ = 150,000 naira

Now do the maths untop of this car with the value in dollar and the profit he has to make to sustain himself and his family and also keep the business afloat, so if he was making say 500$ per vehicle before, he should cut it down and become poorer and scatter his business because some people chose to support nonsense leaders into office, He should blame Tinubu first before blaming the dealers.

And you think this is the solution to the problem caused by some people who support nonsense leaders. Well we cant have thesame choice and we cant have thesame preference at all time, nonsense leaders will always come to power

davillian:
if have someome with good knowledge about car can get you a grade A or B car abroad.....
nut no matter what dealers would make money but i doubt if someone would add 20 million on a 40milion naira car

Instead blame Tinubu

Proudlyngwa:
So i should pay for all this instead of market value.

Yes

Abi who should pay for it?

AutoTechDoyz:
Do you know how he went about the clearing?

There are a lot of cleaning agents that can help you out.. we have some on nairaland if you carefully search, and also in Lagos.

They will give you two options for custom duty ( full or compromise duty).

kingbee90:
Tinubu's subsidy removal, custom tarrif increase and high cost of living caused by his policies has really made the cost of everything to go up.
Before 2023 elections, those SUVs were N15-17M.

It's not the fault of car dealers.

Did you understand the write up at all?

postigar:
Do ur maths 15% of 43m is how much
When you get the figure, reason with IQ next time
You bring in a car for 43m max including landing and clearing, if u make 4m as profit on the car max 5m,isnt it ok. We are just too greedy in this country. The same thing goes for other importers too and so called people bringing in food produce from the north

this is not what you should consider. If you invest 45m in fixed deposit for 10% per annum, you'll get 4.5m without risk.

A car dealer invests same amount in a car that takes 2-3months to land, bears all risks and costs of clearing. You don't expect him to get same margin of profit as someone who invested in fixed deposit without risk. 10-15% margin of profit is not too much. Mind you, the higher the risk, the higher the returns.

Brendaniel:
Sometimes i don't blame the dealers, think about this:

Average dollar rates under presidents since 1999

OBJ - 100$ = 11,000 naira

GEJ - 100$ = 21,000 naira

BAT - 100$ = 150,000 naira

Now do the maths untop of this car with the value in dollar and the profit he has to make to sustain himself and his family and also keep the business afloat, so if he was making say 500$ per vehicle before, he should cut it down and become poorer and scatter his business because some people chose to support nonsense leaders into office, He should blame Tinubu first before blaming the dealers.

na were you be so after gej na bat

Brendaniel:
Sometimes i don't blame the dealers, think about this:

Average dollar rates under presidents since 1999

OBJ - 100$ = 11,000 naira

GEJ - 100$ = 21,000 naira

BAT - 100$ = 150,000 naira

Now do the maths untop of this car with the value in dollar and the profit he has to make to sustain himself and his family and also keep the business afloat, so if he was making say 500$ per vehicle before, he should cut it down and become poorer and scatter his business because some people chose to support nonsense leaders into office, He should blame Tinubu first before blaming the dealers.

The man is telling you the very high profit margin charged by auto dealers after his friend imported himself, factoring total cost both purchase price abroad and clearance at present rate and you there computing when Tinubu is in government and when he wasn't.

That's why una dey fail exams anyhow.