Some imported vehicles at a garage
Some vehicle dealers in Ghana are expressing optimism that the cost of vehicles, especially second-hand imports, could drop in the coming months, if the Ghanaian cedi continues its recent upward trajectory against the US dollar.
This development follows the recent strengthening of the Ghanaian Cedi against the U.S. dollar, which has sparked hope across various sectors for a potential drop in prices.
In the automotive market, where import costs are heavily influenced by exchange rates, the appreciation of the Cedi is being closely watched as a possible turning point for reducing the high cost of vehicles.
In an interview with Citi Business News, some car dealers including the General Secretary of the Second-Hand Car Dealers Association, Clifford Ansu, revealed that the appreciation of the cedi is already triggering conversations among consumers, many of whom are beginning to demand reduced prices on the back of the improved exchange rate.
“When the dollar reduces, every commodity in the market reduces. We have something in economics called consumer behaviour,” he explained.
Ghana’s used car market is heavily influenced by two primary factors; the strength of the cedi and the port-related import duties.
In recent years, a depreciating cedi has increased import costs, pushing vehicle prices beyond the reach of many Ghanaians.
According to Ansu, while current prices remain high because many of the cars were brought in when the cedi was weaker, the outlook is brighter if the local currency can maintain its strength.
“That is the situation we are facing. I think that from now onwards, if the dollar can sustain even at where it is now, everybody will be happy that in a month or two, the prices of cars will come down,” he said.
Meanwhile, Alexander Osei Assibey, another car dealer, called on the government to stabilise the exchange rate benchmark at Ghana’s ports over a longer term to give importers more pricing certainty.
“We want the government to peg the dollar at the ports like six months to a year so that the importer will be sure. We are praying this is not a nine-day wonder. The dollar must remain stable,” he appealed.
FKA/MA