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Cars45 targets $45bn used car market

An automotive trading platform, Cars45 said it will expand operations to 10 African countries by 2021 to seize the huge used car market in Africa.…

An automotive trading platform, Cars45 said it will expand operations to 10 African countries by 2021 to seize the huge used car market in Africa.

The used car market, according to Chief Executive Officer (COO) of the company, Ganguly Soumobroto is estimated at over $45 billion.

While briefing newsmen on the activities of the year, he said the used car segment constitutes about 95 per cent of car dealerships in Africa while five per cent is just for new cars.

He said in Nigeria alone where it has its footprint in about 11 states, Cars45 sells 750,000 cars annually.

He explained that with the recent takeover of the company in 2019 by the OLX Group, Cars45 is now a more structured organisation belonging to a much larger group.

Currently, Cars45 is in Nigeria, Ghana and Nairobi, Kenya. But the CEO said, “By 2021, we want to be present in 10 African countries. We have become a very strong brand, built a good network of dealers. We currently have 50 franchise partners across Nigeria and we are also reducing youth unemployment directly and indirectly.”

He advised banks to create a credit database of eligible consumers to simplify auto financing and address issues bothering on recollection and repossession of the vehicles when there is default.

“It is very difficult to finance a car which would break down after six months,” he said about the current situation.

Head of Marketing of the platform, Shola Adekoya said, “Cars45 is leveraging technology to achieve a whole lot of things. Cars45 helps you to look at the entire ecosystem.”