The benefits of buying cars through used car auctions are many. Some of which include affordability, and access to hundreds of thousands of cars via an online inventory. Also, the ability to buy from the comfort of your home or office. But that’s not all. Other insightful benefits that unwind from the access to used cars inventory are business opportunities for Nigerians.
Nigerians have always turned to buy second-hand cars. This is mainly because of the high costs of the new vehicles and the economic situation. The indigenously manufactured brand new cars are still not fully trusted. Also, the cost of importing brand new cars is almost equivalent to the actual cost of the car. According to a report by Deloitte, only about 10% of Nigerians buy brand new cars. In a section of that same report titled; Navigating the African Automobile sector, Deloitte confirmed the rise of the importation of second-hand cars stating that;
…in the absence of affordable finance solutions, secondhand vehicles remain the more attractive option for private vehicle buyers. According to a representative of a leading automotive company, second-hand passenger vehicles accounted for 80% of sales in 2014. The share of tokunbos in the commercial vehicle market is even larger, reaching up to 90% of the market according to a leading commercial vehicle manufacturer.
Source: Deloitte Africa Automotive Insights, 2015.
With this level of car importation in Nigeria, employment opportunities started evolving and others which existed before started expanding. Some of the business opportunities for Nigerians as a result of used car online auctions include:
This is one of the obvious money making opportunities that Auto Auction Mall affords Nigerians. With the ability to buy cars for a fraction of their retail prices, it becomes easier to bring the cars to Nigeria and resell them at a profit. The profit is even higher when you sell cars in inner cities like Abuja and Benin that are far from the coast or ports in Lagos. The opportunity to make a profit of up to 500k or more on every sale is real and this profit may rise depending on the market demand of the car.
Car dealers may not make a sale every day but Nigerians have a taste for luxury including automobiles. The car dealership in Nigeria has also expanded to shipping and car maintenance as well. Some states in Nigeria like Lagos, Benin, Kaduna have primary dealers that sell cars at retail costs.
Spare Parts Dealership
The spare parts dealership is a section of car dealership practiced as an independent sector in the Nigerian automotive industry. The business entails the sales and replacement of vehicle components at both retail and wholesale levels. As a result of the increasing rate of automobile purchase in Nigeria and the general road conditions, the need for spare parts rose and birthed the spare part dealership business.
The beauty of this business is that you can buy damaged or salvaged cars from Auto Auction Mall, ship them into Nigeria, strip it for parts and resell at very profitable prices. It might be a dirty Job but a trip to Ladipo will show you how seriously this venture is taken and how much profit you stand to make from it. SO long as there are cars and the rate of purchase keeps increasing, Nigerians and people, in general, will always need spare parts.
Uber and Taxify
Uber and Taxify are electronic transport companies that aid transportation in cities like Lagos and Abuja. For these companies to function, they need suitable cars. The cars used for these transportation services are mostly cars bought from auto auctions as you would agree that it is rare to find serial Uber or Taxify drivers going to buy brand new cars to use for this service. The access to cheap cars online has given lots of citizens the opportunity to register with the company and make some money for themselves.
Agent or Broker
A car broker is a person who acts as the in-between connecting the seller Auto Auction Mall, and the buyer to find the right car, and negotiate the cost with the seller on behalf of the buyer. They stand in the buyer’s stead to ensure a smooth transaction and receive a commission for their job. You too can become a dealer or a broker and earn commissions on every referral who completes a purchase. You can also buy cars with great deals at www.autoauctionmall.com.
The economic situation in Nigeria may not be at its best now, but with a little capital, you can start to earn passive income for yourself with the direct access that Auto Auction Mall gives you to dealer-only and private car auctions in the U.S.