How To Start Auto Trade Business In Ghana
Many people have the perception that starting up a business is a difficult task but an auto trade or car business in Ghana could be just the right thing.
Like every other business, research and drawing a business plan is very important. The same applies in the auto trade industry as well.
Also, you need to know the laws, rules, and regulations governing the country and the industry you find yourself in.
Once you’re abreast with the laws, you are good to go.
This is today’s complete guide from Latest Ghana on How To Start Auto Trade Business In Ghana at ease.
One of the key guides to enable you to succeed in the auto industry is research , before you start an auto trade business, you need to research on the things happening in the industry, the latest trends, the pros, and cons, types of cars that selling, etc.
It’s also very important to develop a survey to guide you in your research to know exactly what people want.
Auto trade Business Plan
Once you’re done with your research, drawing a business plan is the next thing to do. It serves as a guideline.
Mostly it includes summing up and calculating your costs compared to how much you may sell a car to see if the business would be viable and yield profit.
Below are possible things to capture when drawing a plan
- Advert and marketing costs
- Repairs that may be needed, refurbishing or upgrading
- Storage costs
- Legal regulations
Car Dealership License
In the auto trade industry, you need to apply and pay for a car dealer’s license. This will certify you as a credible and authentic car dealer in Ghana.
The license it’s gives you many opportunities and advantages in the auto industry as a certified member.
Buy Your Cars
Right after getting your license, you can now buy your cars.
Most times cars at being bought at the auction and bidding sites open to you as a certified dealer.
However, they may be other sources where you can purchase your car personally, through friends and relatives who live outside the country.
After have been given the green light to operate as a credible car dealer or auto trader, the next thing you need to do is to get insurance to cover all cars in your possession.
Find a Plot of Land And Garage
Where will you park the cars when they finally arrive?
Finding land and getting a garage is optional when the cars are only 2 or 3.
However, you need to find land so you can build a garage when you have enough cars to flaunt your cars in the open.
The garage building could be made of steel with a high rise ceiling as in a steel warehouse building.
List the Cars Online
With the emergence of social media, it’s very necessary to list your car online on social media and notable e-commerce websites such as Olx, Checki, and Tonaton to boost the increase of sale of your cars.
You make it very easy for a potential buyer to show interest in your product and make the next approach.
What Are The Rules In Ghana?
A new law in Ghana is offering incentives for investors looking at the country’s automotive sector.
The Ghana Automotive Development Policy offers incentives to both local and foreign car assemblers in the country to help boost investment and create jobs.
The Act has created a new environment for the U.S. and other foreign investors seeking to engage genuinely with the Ghana automotive sector, in a move to make Ghana the regional hub for vehicles, parts, engines, and auto-related equipment manufacturing.
What Are The Incentives?
The Ghana Automotive Development Policy (AGAD) aims to develop a vibrant automotive industry in Ghana by attracting foreign automotive OEMs as well as other stakeholders to invest in the downstream and upstream supply chain.
Some of the unique features of this policy include the establishment of free industrial zones for activities related to the downstream sector, concessional corporate tax holidays ranging between five years and 10 years over a period of 20 years.
They also include exemptions from import duties, domestic levies and excise duties on locally produced vehicles for a period of between five and 10 years, and a labor law framework that provides the necessary labor flexibility for investors.
Ghana is continuing to build on its new role as a gateway to the rest of West Africa.
To meet this opportunity, new motor vehicle registrations are expected to grow 8% per annum over the next five years.
New operating tax rates in Ghana will move the country from being one of the worst-performing markets in Africa to a more attractive proposition.
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