VEHICLE PRICE VARIATIONS

VEHICLE PRICE VARIATIONS

Buyers at any point in time are required consider several variables and arrive at a decision before they make a purchase. Such decisions could be based, price, technical features, based on market trends, influenced by a commercial or sometimes sheer preference to mention a few. The decision making process made when buying, is not limited to vehicle sales.

As a vehicle sales advisor, I encounter different sort of people each and every day who want to buy a vehicle. They are people who love vehicles (cars) so they make time to research about them in the papers and online as well. Others too have little or no technical knowledge about vehicles.

For those who know much about it and have the quest to buy one, they often compare prices of various models across manufactures. They also compare them with the cost of same vehicle here in Ghana at the dealerships. Most often there are price variations.

Such customers would ask me, Edmond, I checked the price of this vehicle online and it is equivalent to gh¢ XXX.00 but why is your firm selling it at gh¢ YYY.00?

There are some factors that contribute to the cost of a vehicle. The following are a few

Market / jurisdiction of vehicle usage

For every vehicle a manufacturer assembles or produces and put out there, it is for a specific market or jurisdiction. There is the north and south American market, European (within which there are different specifications), the middle east, Africa and Asian market.

So, for each model there will be little tweaks to meet the needs of each market. A vehicle meant for the African market will have a reinforced suspension system because of our terrain and nature of our roads. Extra reinforcements to the suspension system will cost money. This will add up to the total cost of the vehicle. The fuel system of a vehicle for the African market will be different from others this is because of the quality of fuel we have here. All these cost extra money which adds to total cost.

Version of model

Just as there are classes of a flight which includes first class, economic class and business class, there is the same for a vehicle. For every model of vehicle produced, there is the standard or basic version, executive version and the deluxe or full version. The basic version or standard version as the name goes has the elementary features of the said model.

The deluxe has more features and tech touch than the basic. Therefore, the higher the version, the higher the cost of the vehicle for a same model. So you might drive a same model of a vehicle from the same manufacturer with Mr. X, but his vehicle will cost more than yours because it might be of a higher version.

Import duty and shipping cost

Most of the vehicles we use and buy in Ghana are imported. The cost of shipping, taxes at the ports and other levies are all factored into the final cost buildup of the vehicle. The only way to avoid these charges is to buy made in Ghana vehicles i.e. KANTANKA AUTOMOBILE which also has its own challenges to be discussed at a later date.

Exchanges rates

The Ghanaian cedi

Exchange rates also plays a role in the price of a vehicle especially when you are buying from a dealership (excluding Kantanka Automobiles off course). vehicles sold at the dealerships in Ghana are mostly quoted in US dollars or Euros. So, if you buy a vehicle here in Ghana, you need to pay the dollar or euro equivalent in Ghana cedis. If the local currency weakens, you would have to pay more to match up the dollar or euro equivalent. All which all adds up to the total cost of paying for a vehicle.

Ultimate pricing as a component in deciding to purchase a vehicle is out of the control of buyers as the determinants stated above are manipulated by factors the average buyer exerts little or no influence over. However local manufactures if empowered can produce vehicles which will aid buyers avoid costs components such as Import duty, shipping cost and Exchanges rates when buying. More on locally manufactured vehicles will be published in our subsequent post.

Thank you for your time.

 About the Author

Edmond Nana Cabir Flynt is a vehicle sales advisor based in Takoradi - Ghana. He is also a volunteer, an entrepreneur, and auto show radio presenter.

For further enquiry, consultation, advertisement, product promotion (vehicle related), vehicle and accessory sale, contact him on the following numbers +233(0)209461930 /+233(0)548383591 and email nanaflynt@gmail.com

Editor

Matthew Odoom Ntsiful - He has moonlighted as an editor since his undergraduate days at University of Ghana, where he edited papers for fellow students. He recently made a career decision to become a full time freelance editor and writer. He doubles as a Sales and Marketing consultant with concentration on Digital Marketing.