Business News of Thursday, 2 August 2012

Source: myjoyonline

Auto auctions firm makes inroads in Ghanaian market

Leading salvage auto auction company, Insurance Auto Auctions (IAA), is making inroads in the Ghanaian automobile industry, barely a year after venturing into the market.

The US company specializes in selling lightly damaged and repairable vehicles to buyers all over the world through competitive bidding.

Through the internet, prospective buyers in Ghana participate in the live auction process and bid in real time for the thousands of vehicles auctioned across the US and Canada.

The company ventured the Ghanaian market last year with the hope of creating jobs and adding value to the transport and automobile industry.

“Last year we sold over 100 cars and this year even to the middle of the year, we’ve done more than 100 now”, stated Kofi Anokye Boateng, Chief Executive Officer of Anoboat Company Limited, an IAA Authorized Representative in Ghana.

According to Mr. Boateng, there is an increase in patronage due to the transparency in the sales of cars from the US and the quality support services provided by the local accredited agent.

“We just charge a premium of the service that we provide and you are just like a car dealer buying the car direct from US, shipping it to Ghana, clearing it from the port and then fixing it to resell, so the profit of the car dealer goes directly to your pocket”, he noted.

IAA officials have been holding presentations for Ghanaian automobile companies and individuals interested in making money from importing cars from the US.

Vice President, IAA Global Buyer Marketing, Dan Oscarson, told Luv Biz Report importing, repairing and selling repairable vehicles in the local market provides opportunities to make significant profits due to low labor cost.

He says individuals and dealers in automobile can buy high quality cars for an exceptional price through auctions sales in the US.

“The cost of labour in the US is extremely high and as a result we don’t repair many of the cars that have damaged; they just go to auction where they’re sold as salvage but those cars can mechanically be repaired very easily and soundly and safely and they’re being brought into markets like this where people can repair them and drive them for many years to come”, said Dan.

Insurance companies, rental fleet, leasing companies and other vehicle owners in the United States prefer selling their vehicles as salvage to repairing them because it is more cost effective – it often costs more to repair damaged vehicles than liquidate them.

The partnership between IAA and Anoboat is creating jobs in the auto-repair and auto-parts sectors of the automobile industry.