Are Cars Overpriced In Ghana?
Welcome to Cars Boss. Today I am expressing my opinion on the general pricing on cars in Ghana.
Are car prices in Ghana affordable for the average Ghanaian? A question for us all.
I hear a lot of people say cars are overpriced in Ghana. Do you agree?
For me, to some extent I do agree that cars are expensive in Ghana. Why is that so?
In this article I am going to highlight some of the factors that makes car expensive here in Ghana and also tips to getting cars at relatively cheaper prices. You ready for the journey? Let’s begin.
Vehicle these days are pretty expensive, and it’s natural for anyone to wonder why, especially if you’re on a budget.
The price of cars in Ghana tends to fluctuate constantly due to several factors such as exchange rate, economic status, inflation, duties, etc.
Factors that affects car prices.
Huge shipping costs.
If you want to import cars from say the United States, you will need to pay a shipping company to do that for you. Whether you ship it by air or by sea, you end up paying exorbitant prices.
Due to this, car dealers have no option than to increase the price of the car to cover the high shipping cost.
See in the picture below a typical breakdown of the expense made in shipping a car to Ghana.
In the picture above, the cost of the car is 2,913 USD, cost of transportation (Shipping) is 1,800 USD, duty and clearing costs 2,480 USD, etc.
That show the typical cost of shipping a saloon car of this type to Ghana. Shipping cost is more than half of the actual price of the car and that’s quiet high. This will definitely affect the price here in Ghana.
This is also another factor influencing the pricing of cars in Ghana. Import duties are much expensive here in Ghana and everyone seems to wonder why.
Early this year the Vice President of Ghana, Dr. Mahamadu Bawumia announced a 30% reduction on cars imports. Import duties can take up to 50% of the original cost of the car.
In the same picture above, the cost of duty and import is almost the same as the cost of the car.
The constant battle between the Ghanaian Cedis and the United States Dollar will continue to affect the price of vehicles bought in Ghana. When exchange rate increases, more Ghanaian Cedis is needed to buy the dollars.
This basically explain why cars are relatively cheaper in Europe and the United States as compared to Ghana.
Cost on Repairs.
Salvaged cars imported to Ghana will be sold at a higher price due to cost of repairs. Dealers have to repair salvage cars before being marketed.
The long and short of this is, the cost of repair will also be added to the original cost of the car. This will further increase the price.
Many are the factors that affects car pricing in Ghana. Moving forward, I will be updating this post. Kindly visit us for more updates.
How to buy cars at cheap rates in Ghana.
Buying from auction sales.
Buying pre-owned or used cars
Buy locally made vehicles ( Kantanta Cars and Prices )
Buying from trusted car dealers in Ghana.
Compare prices from dealers when buying your car. Check the one that gives you the best offer. You can also talk to our experts for more tips on how to buy or sell cars in Ghana.