Youth Entrepreneurship

Menu
  • Welcome
  • Dayo Profile
  • Contact Dayo
  • JOIN OUR FORUM
  • Testimonials
  • Shop
  • Our Business Plans
  • OUR PRODUCTS
    • Coaching
    • Entrepreneurship book for Africa Students
    • MLM E-BOOK: How to Recruit and Get to the Top Fast in Any Network Marketing Business
    • Set Up Money Making Blog for Just N50,000

80 Things You Will Learn from 72IG Affiliate Marketing School, Digital Marketing Skill Development and Expertnaire Affiliate Implementation Programme. (Cost N65,000)

CLICK HERE

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

DayoHub

Costs and requirements for starting a car retail business in Nigeria 

If you’ve always dreamed of owning your own business and you have a passion for automobiles, then starting your own car retail business might just be a perfect business venture for you to launch. Considering consumers are always in need of quality new and used cars, owning a car retail shop offers an impressive job outlook and plenty of career growth. In order to help you settle into the business, here are the costs and requirements for starting up your very own car retail business.

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

Requirements for starting a car retail business in Nigeria

 

New or used?

Before you begin lining up cars on the lot, you have to decide whether you want to deal primarily in used or new car sales. The new or used route will set the framework for the rest of your dealership endeavors. If you choose to start a new car dealership, it’s important to keep in mind that the initial investment is substantially higher than a used car dealership. This means you’ll likely need an investor or financial backing from a bank.

Starting a used car dealership, on the other hand, doesn’t require such a large initial investment, but the earning potential is lower. The profit margin for most used cars is around N300k – N500k, and price fluctuations are common.

 

Create a business plan

Once you decide between selling new or used cars, you’ll need to formulate a suitable business plan for your future dealership. This is especially the case if you need to acquire financing. A solid dealership should begin with the vehicles themselves; are you going to sell one brand or multiples? If selling both new and used cars is a possibility, it’s also important to include this in the business plan.

Other business plan stipulations include determining business equipment costs, researching manufacturer car costs versus used car prices, calculating employee salaries, lease and sales agreement costs, and planning your advertising budget. All of these factors will help you create a business plan that’s anchored in reality.

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

Licensing and insurance

There are a number of hurdles you have to jump before you can begin selling cars, and one of them is obtaining your dealer’s license. If you want a full-fledged dealership, then you need a dealer’s license that permits you to sell an unlimited number of vehicles a year. A dealer’s license is also necessary if you want your sales activities to fall within the Consumer Rights and Safety laws. All car dealerships require comprehensive insurance coverage whether they deal with used cars, new cars, or both. Typical car dealership insurance coverage includes general liability, lot coverage, and comprehensive plans that cover everything from property damage to inventory loss.

 

Choose the Right Location

There are a couple factors that come into play when choosing a location for your car dealership. For starters, you’ll want to make sure the location you choose can support your business. The larger the population, the more sales you’ll make. Then there’s the location’s visibility to take into consideration. If your lot is on an obscure road or set back from the roadside, you’ll likely draw fewer customers.

A corner lot at a major intersection is ideal, but a roadside location on a high-traffic road is also a smart dealership location. There’s also the competition to keep in mind. Dealerships that are right next to one another appeal to shoppers because it gives them the opportunity to walk away and quickly find another lot and another deal. This could be a good or bad thing for your business depending on which end of this scenario you’re on.

 

Pay For A Car Dealership License

To become a car dealer in Nigeria, you will need to apply for and pay the ‘Car Dealership License’ fee. It certifies you as an authenticated car dealer which comes with numerous advantages. With that, you can become a certain company’s franchise, i.e. selling only their car models. There are bidding sites that accept only certified dealers to their site, where you will come across overwhelming deals. Lastly, you avoid being prosecuted by the law.

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

COSTS AND REQUIREMENTS FOR STARTING A CAR RETAIL BUSINESS IN NIGERIA

Hire staff

If you want to run a big place you might need to hire extra hands, as much help as a man may need for labours such as driving the cars in and out of the garage and parking them, cleaning the cars, and help with sales. On occasions even repairs of the vehicles. Although if the place is small two of you might be okay for the whole job. When hiring, consider someone with experience with cars as this will serve well. Hire outgoing people experienced in handling many types of customers.

 

Vehicle acquisition

To make it big in this business you will need to visit some well recognized wholesale dealer auctions to buy used vehicles at lower rate than retail-rate prices.

 

Consult a professional/expert

 As a beginner, you are expected to consult some experts in auto dealership field for more insights, these experts can review secrets than will be very useful to the business

 

Employ auto mobile repairer

 It is a well known fact that most cars sold as second-hand or damaged vehicles bought from either insurance companies or custom auctions at giveaway prices. After purchasing the vehicles the smart dealers then refurbishes them and present them as used vehicles for resale. So when you employ these auto mobile repairs, they will help you recondition damaged cars for resale.

 

Costs of starting a car retail business in Nigeria

This business really depends on your capital. You can start with as little as 1-2 cars to as many as 30-50 cars. Even when it is a franchise, the size of the business may vary depending on the deal that was made with the company. This is a general list for prices of the essential things you must get to start your car retail business in Nigeria.

 

 A N1.2 million Naira saloon car could be bought at around N650,000.

An N10 million Naira SUV car could be bought at around N6-7million Naira.

Where you could walk away with N500,000 to N3,000,000 in profits.

 

Dealer’s license fee: This varies from state to state. For Lagos State is N100,000

Land rent: N200,000 could be less or more depending on location.

Garage construction: For a steel garage; N500,000

Salary: Per person; N25,000

 

Hope you enjoy this article?

Share your thoughts in the comment session.

Contact us today for your business consultancy and business advisory services. We can help you fine-tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write a business plan and help with fundraising strategies and Grant applications. We can help you start, grow, and expand your business.

We help institutions and organizations write concepts, implement Business plans, and train on business Plan writing in Nigeria.

We can help you write a detailed, bankable and comprehensive business plan for your business idea.

Call any of our business plan consultants on 08105636015, 08076359735 and 08113205312.

Or send a WhatsApp message or email us either at dayohub@gmail.com or info@dayoadetiloye.com.

Enter your name and email and Download our FREE eBook, get the weekly newsletter, Update on Grants, Business Opportunities & Premium Services from DayoAdetiloye.com... Joining is FREE!
Your information will *never* be shared or sold to a 3rd party.
  • Author
  • Recent Posts
DayoHub
DayoHub
Dayo Adetiloye
(B.Agric, MBA)
08105636015, 08076359735

Serial Entrepreneur - International Business Planning Consultant - Speaker - Trainer - Author - Blogger - Network Marketing professional.

- 2018 SME Business Trainer and Coaching Advisor at GIZ for SME Loop.
- 2018 YALI RLC Online Cohort 9
- 2017 Fellow, Inspire Africa Train-the-Trainer Entrepreneurship programme sponsored by US Consulate Lagos and the Dickey Center, U.S.A.
- 2016 Fellow, Tony Elumelu Foundation Entrepreneurship Programme
- 2015 Top 50 Innovative Entrepreneurs, BET5 by Diamond Bank and EDC, PAU.

He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU). Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence.

- He is a Certified Trainer in Design Thinking by the U.S Consulate, Lagos and the inspire Africa Entrepreneurship Institute.
DayoHub
Latest posts by DayoHub (see all)
  • Katumu Adasi: How to survive in Nigeria without a job - February 11, 2021
  • Top 5 business and services with the highest demands in Nigeria - January 4, 2021
  • How to Become a Millionaire doing Rice Farming in Nigeria - January 4, 2021

Share this:

  • Tweet
  • WhatsApp

Related

Prev Article
Next Article

Leave a Reply Cancel Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search this Blog

MLM Instant Recruiting Formula

Grant Winning Blueprint

How to Turn Yourself into a Live Breathing Cash Machine

Ecommerce Business

Follow me on Facebook

Follow me on Facebook

Follow me on Twitter

My Tweets

Youth Entrepreneurship

…Raising Millionaire Young Entrepreneurs
  • About
  • Dayo Speaks
  • Disclaimer
  • JOIN OUR FORUM
  • Shop
  • Privacy Policy
  • Sitemap
  • Advertise With us

About Us

Dayoadetiloye.com is a property of Dayo Adetiloye Business Hub committed to connecting entrepreneurs with resources.

We are one stop Business Resource Center where we help you discover, Develop and Fulfil your business potentials.

On this platform, we help you develop business plans and strategies, connect you with funding opportunities and share with your business opportunities.

Facebook Community: https://www.facebook.com/groups/156197005130352/

Twitter: www.twitter.com/dayoadetiloye

Email: Dayohub@gmail.com

Popular Posts

  • 50 SMALL SCALE BUSINESS IDEAS IN NIGERIA AND STRATEGIES TO START IT
    50 SMALL SCALE BUSINESS IDEAS IN NIGERIA AND STRATEGIES TO START IT
  • Peter Obi's Biography, Net Worth, and Rise to Popularity
    Peter Obi's Biography, Net Worth, and Rise to Popularity
  • 25 BUSINESS IDEAS FOR UNIVERSITY STUDENTS IN NIGERIA
    25 BUSINESS IDEAS FOR UNIVERSITY STUDENTS IN NIGERIA

Popular Category

  • Affiliate (36)
  • Articles (723)
  • Business Grant (342)
  • Business Opportunities (422)
  • Business Plan (682)
  • Competition (46)
  • CV Writing & Career Guide (61)
  • Dayo Initiative (13)
  • Entrepreneur of the Week (19)
  • Executive Summaries (148)
  • Expertnaire Affiliate Marketing (5)
  • Finance (15)
  • How To (133)
  • Job Vacancy (18)
  • Latest Post (1,681)
  • LOAN (23)
  • MLM Coaching (11)
  • Network Marketing (176)
  • NEWS (21)
  • Norland Nigeria (70)
  • Ofada Rice (6)
  • Online Marketing (50)
  • Product Sales (9)
  • Recharge and Get Paid (11)
  • Scholarship (7)
  • Scholarships (11)
  • Sponsored Post (223)
  • Trainings / Events (151)
Copyright © 2023 Youth Entrepreneurship
Dayo Adetiloye Business Hub

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh
Enter your name and email and Download our FREE eBook, get the weekly newsletter, Update on Grants, Business Opportunities & Premium Services from DayoAdetiloye.com... Joining is FREE!
Your information will *never* be shared or sold to a 3rd party.
 

Loading Comments...