₦airaland Forum

Subsea101:
What has exchange rate got to do with this?? In both scenarios, they buy, ship and clear in same currency... so why the huge markup? Abi car dealers dey exchange their USD at N2,500/USD

Did you see his price in dollar there or naira?

And did he spend dollar or naira to bring it to Nigeria?


There is a difference between personal importer and business importer, one imports to make profit and sustain his business while the other imports for personal use....

Do your maths , A business man collected loan of 40m for three months and interest rate at 5 percent that’s 6m and he is hoping to sell in less than 3 months( buying, shipping and clearing) 2 months are gone , on arrival he put the car up for sale @ 48/50m. If it’s easy to make huge profits, diversify into it and comeback here to give tesimony

The target gain is usually above 50% of actual landing cost. So a car that lands at N10 million will be sold N15million if that is the price range of such cars. But in some cases like Benz , Volvo and BMW you can make over 100% landing cost of car if it was purchased accidented , high mileage or fresh water flooded meaning a 2016 ml350 purchased accidented with a landing cost of N15 million can easily be sold N30million (100% of actual landing cost). Many of the cars don't belong to the dealer but some other persons that may be selling it from drugs businesses, fraud, hire purchase theft , actual car theft and few genuine sellers. In most cases the dealer makes 100% on such cars. So it's largely a good business if your ready

Banjotobisamson:
Do your maths , A business man collected loan of 40m for three months and interest rate at 5 percent that’s 6m and he is hoping to sell in less than 3 months( buying, shipping and clearing) 2 months are gone , on arrival he put the car up for sale @ 48/50m. If it’s easy to make huge profits, diversify into it and comeback here to give tesimony

Nobody is using this your method to do car business. It's driven by crime and greed in most cases.

ALISMILE:
Nigerian auto dealers are making it big

I am a close friend of one of them, dude told me the secrets they make as much as 3million for a 2008 vehicle

I’m planning on going into the biz myself

3m profit on a 2008 car?

is that possible?

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

would you invest 43m in a business just to make 1m profit? Besides, buying a vehicle for private use is completely different from buying to keep in a car stand where it may sit for months before being bought hence, tying down the dealers 43m! It's all business.

Skj13777:
Nobody is using this your method to do car business. It's driven by crime and greed in most cases.

Nah online you dey , you don hear car use 1 year before sold out, you don hear ship catch fire before? You don hear custom increase duty before ? , you don see what I ordered vs what I got? If e don reach your turn endeavor to run your business how it pleases you, for una mind car dealer dey enjoy, sell your papa house make you use am do the business and after 3 months of making sales you buy another house coz e be like you know the business well well

Skj13777:
The target gain is usually above 50% of actual landing cost. So a car that lands at N10 million will be sold N15million if that is the price range of such cars. But in some cases like Benz , Volvo and BMW you can make over 100% landing cost of car if it was purchased accidented , high mileage or fresh water flooded meaning a 2016 ml350 purchased accidented with a landing cost of N15 million can easily be sold N30million (100% of actual landing cost). Many of the cars don't belong to the dealer but some other persons that may be selling it from drugs businesses, fraud, hire purchase theft , actual car theft and few genuine sellers. In most cases the dealer makes 100% on such cars. So it's largely a good business if your ready

You seem to have so much experience

What's the easiest way to go into that business?

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…

Please tell me, where in Nigeria would you see a 2015 Toyota Camry for 15-17m?


The last 2012 Camry I priced at a car stand, I was told 17m last price, I went and the seller never dreamed to call me back.

Serendipity2023:
3m profit on a 2008 car?

is that possible?

Somtimes it’s more than that. I know it’s difficult to believe. But when you hear the breakdown, which they will never disclose to prospective buyers, you will understand.

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

Apart from what you said
Risk factors is included

harmargedon:
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.

Is it not because of how expensive they make it, that’s why it takes time to sell them?

Oya carry your naira go buy car from US or any other country

Brendaniel:
Did you see his price in dollar there or naira?

And did he spend dollar or naira to bring it to Nigeria?


There is a difference between personal importer and business importer, one imports to make profit and sustain his business while the other imports for personal use....

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

They have family too feed at home too

Some of you are heartless.. nobody says you shouldn't make profit. Did you do the mathematics between #55 000 000 and # 43 000 000?

Naso one pseudo dealer wan sell battered corolla 2009 8m

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.

Hmm
How much is Toyota venza full option now that 2011or 2012

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

What is N1M to N44M? That is a very low margin. For a profuct whose cost price is that high, rate of turnover wouldnt be as quick and there are associated cost to holding stocks. If the total cost of importation and staging is N44M, N6M in margin is low but acceptable. I would expect it be priced at least N52.5M.

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

1M Margin untop 50M naira business with all the Risk?? Lol

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

They have family too feed at home too

is that why they have to make as much as #15m on a single car? If you go by that they won't sell again, everyone will have to be buying directly from abroad because that, it's an eye opener

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.

Some are using that as excuse to make 7 to 10m profit per SUV... Dat is outrageous... Its well

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.

You can read but to comprehend?

[quote author=Brendaniel post=136330694]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.

Gibberish and needless analysis
The friend got at the same rate na
Sometimes the question is real and not political
He's talking about dealers adding unnecessary margin not politics
Na waoo

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

They have family too feed at home too

You dey mind am?

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

They have family too feed at home too

The mark up profit is too much, that's the bone of contention. That's why Islam calls for moderate profits while doing businesses. Not everything should be justified and supported in the name of woke or greed

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

I can assure you that the one he imported himself would be far better than the one he priced at the dealer's shop.

atobs4real:
It's business. Since you have solution to your problems why complaining?

Meanwhile, you too have other areas of the economy that you do complain about. Let's keep killing our conscience in the name of greed. Well done

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.

No be the same rate under Tinubu the guy himself used to import and clear himself? Mathematics is hard for some people to understand, but at least, common sense is easy

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.

Do you know that they get 2011-2013 camry for the same price but they put different prices on those three models?