Car dealers predict that the strengthening of the Cedi against the U.S. dollar could lead to a drop in vehicle prices in the coming months. This will ease the cost burden for consumers, especially those purchasing second-hand vehicles.
According to some car dealers interviewed by Citinews, the importation of cars during unfavorable exchange rates continues to result in high retail pricing for consumers. Dealers anticipate a price decline, though, as future imports will become more affordable due to the cedi’s recent gains.
“The consumer behavior will tell us and determine how far we should go. What is happening now, everybody in the system is aware that the dollar is coming down, so when people are even asking, they say now that the dollar is coming dow,n why don’t you guys also reduce the prices of your car for us to get one.
“That is the situation we are facing. I think that from now onwards, if the dollar is able to sustain even at where it is now, everybody will be happy that in a month or two, the prices of cars will come down,” General Secretary of Second-hand Car Dealers Association, Clifford Ansu, told Citi Business News in an interview.
The sale of vehicles in Ghana varies greatly, with some being sold within a month or two, while others may sit in garages for up to a year. This makes it difficult to immediately reflect exchange rate movements in current prices.
However, Clifford Ansu believes that the impact will become more evident in the months ahead. He believes that when someone brings in their cars today, tomorrow, or next month, they will likely reduce theirs.
Industry stakeholders are advocating for a review of the current import duty regime, arguing that a strong currency and such a move could create a more favorable pricing environment for car buyers.
The over-the-roof prices of cars in the country are a result of two main factors: the dollar rate and the import duties at the port. However, consumers remain optimistic that the appreciating cedi will lead to major price slashes in the coming months.
