Cost of vehicles projected to reduce as Cedi gains against US dollar

Some car dealers are hopeful that vehicle prices may drop soon. This could happen if the Cedi continues to strengthen against the U.S. dollar. They believe this will ease costs for consumers, especially those buying second-hand cars.

Ghana’s automotive market mainly consists of imported used cars from Europe and North America. Prices for these vehicles depend heavily on two factors: the exchange rate and port-related import duties. For years, a weakening Cedi has raised costs for both importers and buyers.

Dealers say current retail prices are high because cars were imported at unfavorable rates. However, with recent gains in the Cedi, they expect future imports to be cheaper. This could lead to lower prices for consumers.

Dealers report growing pressure from customers wanting price reductions due to the Cedi's appreciation. “When the dollar reduces, every commodity in the market reduces,” said Clifford Ansu, General Secretary of the Second Hand Car Dealers Association. He noted that consumers compare prices across different markets and demand fairness.

Ansu explained that some vehicles sell quickly while others may sit unsold for up to a year. This makes it hard to adjust prices immediately based on exchange rate changes. However, they hope price impacts will become clearer in the coming months.

He pointed out that if the dollar was GHȼ17 before and is now GHȼ12, new imports should reflect this change in pricing soon. Meanwhile, industry stakeholders want a review of import duty regulations. They believe this would create better pricing conditions for car buyers nationwide.

“We want the government to peg the dollar at ports for six months or a year,” said dealer Alexander Osei Assibey. He emphasized that stability is crucial and hopes this trend continues beyond just a short period.