Steps on How to Start a Car Dealing Business in Nigeria

Filed in Articles by on May 4, 2022

– Car Dealing Business in Nigeria –

How to Start Car Dealing Business in Nigeria: Have you ever thought about starting up a car dealing business in Nigeria but do not know the procedures? Let’s get started!

With implementing the auto policy in 2013, this encouraged productions of car in our country, Nigeria. Car business has become a competitive and extremely lucrative deal anyone could venture into.

Though expensive but once you are into it, you would be the cash controller and won’t remember the stress and sleepless nights you had trying to make inventories and get your license.

How to Start this Lucrative Business

1). Before you set up a lot, you should know how much naira will be enough to start up the business at the beginning stage.

2). Get a lot where you will keep the cars and make sure the place is safe.

3). Get to know the brand of cars that are patronized in that area or location you have chosen.

The neighborhood, if it’s a rich neighborhood that could afford Range rover and classic cars or middle-class neighborhood that could only afford tokunbo and Peugeot cars.

4). Get yourself a car dealer’s license. This permits you to buy and sell used or imported cars. The license can be gotten through the websites of your state or hometown’s motor vehicle department.

5). They will expect you to attend your state’s car dealer’s education program to receive an orientation on car issues and related crimes.

Additional Information

Exams will be held which you are to pass, from there, investigation of the lot or space you will be using for brokering will be carried out to ascertain the safety if you will have to use the place on a temporary business deal or permanent.

Now you’ve gotten your license, the next step is to display your cars for sale

6). Visit other auto dealers to get cars from them at a cheaper rate.

7). You could open a website to advertise your products for customers and get to know other automobile companies you could partner with.

8). Get an auto repairer, since you are dealing with cars, you should expect damages that would need repairs.

9). As a JJC or novice (I beg your pardon) in the business, it will be advisable to get a professional consultant who you can buy ideas from to manage the lot effectively.

10). You should know the prices of all the cars available in your lot as many dream killers will always surface demanding cars at a rate cheaper than the rate you bought it.

How to Import Cars from Overseas

If you would love to import cars from overseas, then these are the steps to follow to do as desired.

1. You could auction for cars online by visiting some business websites like www.ebay.com or www.amazon.ng.

2. Choose from the pictures shown below for full inventory and prices then click to demand the car of your choice that you can purchase.

3. They will ship the cars to you after payment.

Or if you would prefer to travel abroad to purchase the car then they must put certain things in place.

4. Locate a company where you can buy the cars at a negotiable rate. Say, if you are purchasing a Toyota hybrid of any year, you could get it at Maryland.

5. If you are traveling there, then you need to have all your papers and license with you for verification.

More Details

6. Go for the fast selling cars and not the ones that will soon become a load to the lot.

7. Pay for the auction price as negotiated which means you must have a concise knowledge of the brand of cars you will be purchasing.

8. You must receive receipts for every purchase that is carried out for reference.

9. The shipping will take place so the cars will be brought down to Nigeria.

10. Clearing and courier of cargo will be done so the vehicles can be shipped down to Nigeria.

Once in Nigeria, the business begins fully, no dull moment. This is where you keep records of your day-to-day sales and expenses. Cost of maintenance and repairs.

When you’ve put the business in proper shape, do not toil with your work but take it seriously if you really want to succeed.

With all these steps, I’m sure you won’t have issues starting up an auto dealing business to encourage continuity of flow of money and fast tracked our economy the more.

FAQs on Car Dealing Business in Nigeria

Below are the frequently asked questions on Car Dealing Business in Nigeria

1. Is car selling business profitable in Nigeria?

The profit margin for most used cars is around N300k – N500k


2. How much it will cost to start a car business?

The total cost of opening a car dealership is generally considered as being upward of $100,000 to as much as $200,000


3. What makes a successful car dealer?

Car salespeople rely on communication, negotiating, and people skills


4. What is a car dealer called?

Auto breaker


5. Is used car business profitable?

Yes, it is.


6. Can I drive without plate number?

Driving Without a License Plate Can Get You in Trouble


7. What is a pencil in car sales?

A worksheet showing the selling price of a vehicle


8. What is monthly payments on a car called?

A car loan is paid back to the lender in monthly installments called loan payments


What’s your take on car dealing business in Nigeria? We believe this article was helpful, if yes, don’t hesitate to share this information with your friends on Facebook, Twitter, and WhatsApp.

CSN Team.

Comments (1)

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  1. Sally says:

    Thanks to the writer and publisher of this.

Hey Hi

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