The automobile market in Nigeria is vast, and there is enough room for anyone who wants to venture into the car business to make a profit. Just take a state like Lagos for instance, there are so many cars on the road to the extent that there are frequent traffic hold-ups. Other states like Abuja, Port Harcourt, Ibadan, etc are populated with hundreds of thousands of cars. In fact, some families have more than two cars in their garages.
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Despite the present number of cars owned by Nigerians, more people are still seeking to buy new cars. This shows that there is an opportunity for you to make lots of money if you venture into being a car dealer, i.e someone who sells cars.
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However, in Nigeria, you don’t just become a car dealer automatically, there are certain things you need to do. One of the most important things you need to do and know before becoming a car dealer is to get your car dealership license. A car dealership license makes you a legal and certified car dealer and makes you qualified to sell cars in Nigeria. Securing a car dealership license is not so difficult, yet many people are not aware of the process. This article highlights the things you need to know to secure a car dealership license in Nigeria.
Securing Car Dealership License
- Sufficient Financial Requirement
The first thing you need to know before venturing into the car dealership business is that it is capital-intensive. If you can’t provide proof of sufficient funds to finance your car dealership business, you won’t be given or considered for a car dealership license. In addition, having a form or assets to prove your creditworthiness is an added advantage that will make you secure a license easily. This proves that you can easily apply for loans and be granted.
- Source Of Funding
When applying for a car dealership license, you need to be sure of your source of funding. Are you going to finance your car dealership business from personal savings or loans from banks or borrowing from investors? Your source of funding can affect the kind of dealership license you will be given.
- What Kind Of Dealership Are You Going Into
There are broadly two major kinds of car dealerships. You can either be a wholesale car dealership that is highly capital intensive or be a retail car dealer. Your financial capacity determines which one you can go for, and consequently determines the kind of dealership license you get.
Wholesale car dealers are able to sell cars in bulk either to other wholesalers or to retailers. Retail car details can only sell directly to the public or to Individuals. Wholesale car dealers enjoy some benefits, for instance, they are able to get the cars at discounted prices from the manufacturing company directly.
- Register And Pay For Your Car Dealership License
Once you have satisfied the requirements listed above, you can take the bold step to apply for a license. The requirements to own a license usually varies from state to state, however, you have to register for a ‘car dealership license’ and make the necessary payments.
For instance, in Lagos State, Motor Vehicle Administration Agency MVAA is mandated by State law to issue out licenses to qualified car dealers. If your state doesn’t have such a body, or you are not aware, the best place to make inquiries and get valid information is the Federal Road Safety Commission office in your state.
Furthermore, you should get police permits and licenses from federal agencies such as the Nigerian Customs Services to avoid harassment and safely handle issues of car theft and accidents.
- Get A Good Location And Start Selling Your Cars
Once you get your car dealership license, you are now permitted to start selling cars. Get a good location with enough space and where people can easily locate you to start your car dealership business.
Benefits Of Having A Car Dealership License
- You have access to enjoy wholesale discounts on cars and make high profits.
- Your car dealership business becomes legal, hence you reduce harassment.
- You have access to buy cars from car-auction sites like copart.com.
- You can easily own your personal car at a cheap price.
CONCLUSION
Anyone who has sufficient cash can venture into a car dealership. You can choose to sell new cars or used cars, or be a wholesale car dealer or retail car dealership. However, regardless of any you choose, don’t forget to secure your car dealership license
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