African Used Car Market

African Used Car Market is growing up quickly. So a lot of investment comes and be helped to build up more sales companies.
In Lagos, Nigeria’s largest city, if you see three or five cars parked on the street with a bottle of water on the roof, this is not a taxi driver resting and chatting, but a primitive small car trading market. , The real “no middleman makes the difference”-the car owner uses a bottle of water to indicate that the car is on sale, and the buyer can directly pay and pick up the car if it is optimistic.
(E-mail us at info@bestplusgroup.com to Get a Quote)
Due to low Internet penetration, insufficient online transaction infrastructure and lack of trust, this simple and crude offline transaction method is still very popular in African countries. In fact, at the same time, there is no shortage of online car trading platforms in Africa. Cheki, Naijauto and Carnotautomart all provide information on used car transactions. In addition, there are also some local classified information platforms such as OLX, Jiji and Jumia Deals. Mainly used car transactions.
Take Cheki as an example. It started in Kenya in 2010 and its current business covers 7 countries including Kenya, Nigeria, Tanzania, Ghana, Uganda, Zambia, and Zimbabwe. On the Cheki Kenya used car transaction page, you can see that the total number of cars on sale is about 11,000, of which more than half are concentrated in the capital Nairobi, and more than one third are concentrated in Mombasa (the main port in East Africa, the second largest in Kenya) Cities), while the number of second-hand cars sold online in other cities is only about one-tenth of the total. The number of second-hand cars sold by Cheki Nigeria is similar to Kenya; Uganda has about 20,000, which is the country with the largest number of second-hand cars on Cheki; Ghana has about 5,000; Tanzania, Zambia, and Zimbabwe only have no more than 10.
At present, in addition to cars, the second-hand cars sold on online platforms in Africa also include motorcycles, agricultural vehicles, trucks, and minibuses to a large extent. Whether from the perspective of vehicle category or vehicle value, it covers a wide range, including mid-to-high-end Land Rover, BMW and other brands, as well as a large number of transports priced within 1 million Kenyan shillings (about 68,000 yuan) Cars, and motorcycles around 100,000 shillings.
(E-mail us at info@bestplusgroup.com to Get a Quote)
In Kenya, Nigeria and Ghana, Japanese cars, especially Toyota and Nissan, are the most popular brands. Especially in Kenya, almost all cars on sale are Japanese brands. Nigerian buyers also have a certain acceptance of brands such as Audi. It can be seen from the Cheki website that there are special imported second-hand car purchase portals on the pages of Kenya, Tanzania, Uganda and other countries (not on the pages of Nigeria and Ghana).
Take Kenya as an example. Almost all imported vehicles on sale are from Japan. The vehicle age is less than 7 years and the mileage generally does not exceed 100,000 kilometers. For example, there is a 2014 Beetle second-hand car imported from Japan. The price shown on the Cheki website is 175,000 Kenyan shillings (approximately 12,000 yuan). Even with the addition of about 25% import duties and other handling fees, the price is also low It’s amazing. Of course, it should be noted that the information on the website may not be completely true.
Like domestic used car trading platforms, Cheki also provides loan-to-car service, but it is currently only implemented in Kenya, Nigeria and Ghana. Comparing the three countries, the loan policies are quite different. Kenya’s loan policies are obviously looser than the other two countries. From the perspective of loan procedures, Kenya and Ghana are similar to those in the country. Car buyers need to provide income certificates, bank statements, vehicle valuation reports and other materials. Different banks have different requirements for down payment ratios. But in Nigeria, the car loan is provided by Cheki Finance in cooperation with local financial institutions. The total amount that can be applied for is relatively low. According to the website, the amount is only 100,000 naira (less than 2,000 yuan), and the interest rate is relatively high. The monthly interest rate is approximately 16%.
(E-mail us at info@bestplusgroup.com to Get a Quote)
In addition to online transactions, billboards for car sales can also be seen everywhere on the streets of African cities, and car manufacturers continue to extend car warranty periods and reduce new car sales prices. This indicates that the African car sales market will be more active and formal. In South Africa, which has the most developed economy in Africa, Algeria, Egypt, Morocco in North Africa, and Ethiopia in East Africa, the growth rate of new car sales is increasing.
In the African car market, second-hand cars are more popular than new ones. It shows that in 2017, new car sales in Africa totaled less than 1.2 million, accounting for only about 1.2% of global sales; and second-hand car sales were at least twice as much as new car sales. Take Nigeria as an example. A report by PWC (PricewaterhouseCoopers) shows that the ratio of sales of new and used cars in Nigeria is 1:3. In 2017, sales of new cars in South Africa, Morocco and Egypt accounted for 76% of the total in Africa. , The market concentration is very high.
In addition, the African car market is heavily dependent on imports. At present, the automobile sales market in Africa is dominated by imported second-hand cars from Europe and the Middle East. The African Development Bank published data in 2017 that sub-Saharan Africa had a US$16.3 billion auto trade deficit. The degree of development of the automobile market in different regions of Africa is different, and each has its own characteristics. It is mainly divided into three categories: mainstream automobile consumer market, potential automobile consumer market and non-auto consumer market. The automobile consumption in mainstream automobile consumer markets has been relatively mature, including South Africa, Morocco and Egypt. The annual sales of new cars in these markets are more than 200,000 and maintain steady growth. They also have assembly plants and supporting supplies for various car brands in the local area, and the concept of car consumption is relatively mature. The non-automotive consumer market refers to countries with backward economic development and poor infrastructure construction. Automobiles are still an absolute luxury. Usually, the annual sales of new cars is less than 20,000, which mainly covers most countries in Central Africa and West Africa. The potential automobile consumer market is the area most worthy of investors’ attention, and is the future growth point. The current annual sales volume is more than 50,000 vehicles, and the growth rate is relatively fast, represented by countries such as Algeria and Ethiopia. In this type of market, low- and mid-range models are more popular.
In some automotive-related fields, there are currently no companies worth watching in Africa, and the market is still in an “uncivilized” state. For example, in the field of auto repair and maintenance, the auto repair market in most African countries is relatively fragmented, with many small and medium-sized repair shops as the main part, and there are few trustworthy chain brands. The repair quality and parts prices are still troubled. Most users. In the parking lot scene, almost all parking lots have not been informatized, parking, charging, etc. are all reliant on manual labor. In some parking lots, the toll booths are not even at the entrance and exit, and the owner needs to walk to pay.
(E-mail us at info@bestplusgroup.com to Get a Quote)

Unique
We can do what you can not do
Knowledge
We know about your product
Efficiency
We work fast and efficiently
Easy Communication
You can contact us at any time 24/24 – 365/365
Professional
A job well done is the most important thing for us

Website: www.bestplusgroup.com
Email: info@bestplusgroup.com