L
LequteMan
Guest
For Nigerians, things are getting tougher.
The recent fall in the value of the naira has resulted into drop in the sale of used vehicles following a hike in their prices, Punch reports.
At the Berger Automobile Market in Lagos, one of the biggest used cars marts in Africa, activities are currently at their lowest ebb, with the naira’s falling value making the importation of used car nearly impossible, while the prices of the few available ones have skyrocketed.
As a result, car dealers at the market are turning to other things to eke out a living.
The President, Berger Car Dealers Association, Mr. Metche Nnadiekwe, lamented that dealers at the auto mart were being forced to sell their vehicles at a loss in order to avoid tying down capital.
“Importation of vehicles is no longer profitable. It does not matter whether you are importing from Europe or through the Seme border. The current exchange rate has caused the naira to crash against every major currency.
“You spend so much money importing a vehicle into the country only to pay an additional 35 per cent duty. Who is going to buy the vehicle? As it is, we are unable to increase the prices of our vehicles. Things are so bad that when clients come to buy, they price the cars below the cost price and we are forced to sell at a loss.”
He added that no car dealer was currently importing vehicles as they had yet to exhaust old stocks due to poor patronage.
“We implore the Federal Government to do something about the situation. Go round the market, there are empty lots all over. Already, some of us are divesting our stock in order to raise capital for other businesses. If things continue like this till June, we will have a crisis,” he said.
The recent fall in the value of the naira has resulted into drop in the sale of used vehicles following a hike in their prices, Punch reports.
At the Berger Automobile Market in Lagos, one of the biggest used cars marts in Africa, activities are currently at their lowest ebb, with the naira’s falling value making the importation of used car nearly impossible, while the prices of the few available ones have skyrocketed.
As a result, car dealers at the market are turning to other things to eke out a living.
The President, Berger Car Dealers Association, Mr. Metche Nnadiekwe, lamented that dealers at the auto mart were being forced to sell their vehicles at a loss in order to avoid tying down capital.
“Importation of vehicles is no longer profitable. It does not matter whether you are importing from Europe or through the Seme border. The current exchange rate has caused the naira to crash against every major currency.
“You spend so much money importing a vehicle into the country only to pay an additional 35 per cent duty. Who is going to buy the vehicle? As it is, we are unable to increase the prices of our vehicles. Things are so bad that when clients come to buy, they price the cars below the cost price and we are forced to sell at a loss.”
He added that no car dealer was currently importing vehicles as they had yet to exhaust old stocks due to poor patronage.
“We implore the Federal Government to do something about the situation. Go round the market, there are empty lots all over. Already, some of us are divesting our stock in order to raise capital for other businesses. If things continue like this till June, we will have a crisis,” he said.
