How to Start a Car Dealership Business in Nigeria

The automobile industry is huge with lots of serious competition. An average dealer might have a minimum of 10 cars for sale. There are also smaller operators with fewer than 5 vehicles.
The business requires huge cash involvement, competitive prices and good marketing strategy. Apart from company incorporation, insurance cover the investor should apply for a dealership license.
cars
Things to Consider
There is no specific auto dealership license in Nigeria. The industry has unions, associations and groups. An auto dealer requires sufficient startup to lunch the enterprise.
Government regulations on the trade depend on company incorporation for doing business. However individual states have different licensing provisions. Doing business requirements involve proof of corporate existence, state license and tax.
1. Funding
The business requires huge funding because of the price of vehicles.  Operating a limited liability company including good credit is important.
Credit worthiness provides a good platform for loans. Dealers need loans to purchase vehicles abroad, import and clear on arrival. To fund the enterprise you could try target savings, partnership or find a core investor. Other ways are through bank loans or angel investors.
  • target savings
  • partnership
  • find a core investor
  • bank loans
  • angel investors
2. Connect with Suppliers
The simple fact is that 90% of vehicles on Nigerian rods are imported.  Dealer needs to establish contact with vehicle manufacturers, individuals, auction houses. Some vehicles imported into the country are accidental, sold by individuals or auctioned. There are also large, medium range supplies of vehicles abroad.
3. Licensing Requirements.
The licensing requirement for auto dealers is rather sketchy. This is because majority of dealers are private individuals not corporations. Some agencies that handle automobile related services are the Motor Vehicle administration agency and Road Safety Commission.
The auto dealer needs proper clearance papers for each vehicle imported into the country. This is to avoid police or customs issues when registering the vehicle. This provides the legal framework for vehicle entered the country legally.
4. Lagos State Motor Vehicle Administration Agency
 The address of the Lagos State Motor Vehicle administration agency is Plot 8, Lateef Jakande Road agidingbi, Lagos Nigeria. They have a vehicle registration portal that has cost of vehicle registration, number of vehicles in Lagos.
They offer service on vehicle registration, dealer registration and dealer license. Other functions are learner’s permit, change of engine certificate, change of ownership certificate and driving license.
  • vehicle registration
  • dealer registration
  • dealer license
  • learner’s permit
  • change of engine certificate
  • change of ownership certificate
  • driving license
Learn the Trade
Before venturing into vehicle dealership you need to learn the trade. You could learn from experienced professionals in the industry or hire a consultant. Others are work experience, become an apprentice or online courses.
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The automobile industry is huge with lots of serious competition. An average dealer might have a minimum of 10 cars for sale. There are also smaller operators with fewer than 5 vehicles.
Hand car wash business 
car dealership business ideas

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