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Business News of Monday, 26 October 2015

Source: B&FT

Ghana rated best place to buy used-cars

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Ghana has been rated as the most price-friendly country when it comes to buying a used-car in Africa, despite the high rate of import duties and an unstable currency.

The average price of a used-car in Ghana is US$17,654, making it cheaper than Senegal’s US$18,923, Congo’s US$25,093, Cameroon’s US$29,598 and Rwanda’s US$34,259.

Carmudi, an online vehicle market place with offices in about 20 countries worldwide, analysed about one thousand used-cars listings in order to find out how much consumers are spending on used vehicles globally.

The study looked at used-car models aged 2008 to 2013 to provide insights into price differences across Carmudi countries.

The number of vehicle registrations doubled year on year between 2000 and 2010. During that period, Ghana’s economy grew at an annual rate of six percent. The current growth in car sales in the country stands at a total of 0.6 percent.

With the most competitive car prices in the region and significant economic growth, the study revealed that Ghana is experiencing positive developments in car sales.

The study attributed the boom in used-car sales to the country’s political and economic stability, saying: "Both Senegal and Ghana are rare examples of political and economic stability in an otherwise unstable West Africa. This translates into a positive environment for auto commerce.

"This domestic stability means that in Ghana, despite minor inflation problems, car dealerships will continue to be a major import industry for years to come."

The study also revealed that buyers increase demand as they have extra income or can find lenders for car purchases to locate their dream vehicle. It said auto dealers are able to keep prices low for consumers due to predictable import duties.

Aside from a positive political and economic climate, resulting in competitive car prices, the purchasing experience too can be made better through new methods of online browsing and sales.

"With our website and mobile app, we see ourselves as providing an enhanced purchasing experience for buyers throughout Asia. With us, buyers are able to easily compare prices and find the best deal for them,” Kobina Amoo, the Managing Director of Carmudi Ghana said.