In times past, owning a car was considered a luxury that only a few people could afford. However, in recent times, it has become a wise financial decision to own a car if one can afford it.
This can be largely attributed to the depreciation of the cedi against major trading currencies, high import duties, and levies.
A visit to a car dealership revealed that one of the main challenges that car dealers face is the instability of the cedi.
Speaking to GhanaWeb Business’ Stella Dziedzorm Sogli on this week’s episode of BizTech, the Sales Manager of Z Autos Ghana Limited, Bernice Debiri, said import duties and taxes, coupled with the depreciation of the cedi, account for the high cost of cars.
She explained that buying cars abroad is not a challenge, as the prices do not fluctuate often. Instead, when the cars arrive in the country, the value increases due to the cedi.
“For instance, when someone asks for the price of a car today and returns later to purchase it, the value in dollars remains the same, but its cedi equivalent would have increased astronomically. This poses a challenge to us and affects sales,” she noted.
Bernice urged the Bank of Ghana and government to provide a flat rate for doing business in the country to avoid misunderstandings that arise because of the different rates provided.
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Source: www.ghanaweb.com
