The market for new cars in Ghana has slackened as a result of the current economic downturn. However, the Circa 20,000 used car market online is recording enormous growth.
In the first half of this year alone, sales of second-hand cars online grew by 15 per cent compared to the same period last year. That car market now attracts a younger customer base as first-time car buyers now move to online market places such as Tonaton.com in search of better bargains.
�The average age of the second-hand car buyer is now low, with people as young as 25 to 29 years opting for those cars in cities like Accra, Tema, Kumasi and Takoradi,� the Marketing Manager of Tonaton.com, Mr Kwabena Opoku-Boakye, said.
Part of the reason for that younger demographic has to do with the growth in online as a medium for buying and selling of second-hand cars.
�The younger generation tends to spend more time online and the emergence of credible online trading platforms has eased the pressure on people who previously had to rely on family and friends or drive long distances looking for their first car to buy. People have also found an easier way of trading off their old cars in order to buy new ones,� he added.
The rush of younger customers to buy also explains why the used car market is experiencing such levels of patronage in the face of the general economic downturn in Ghana. As more people go online in search of better bargains, the volume of business has also increased for individuals and garages that put up their cars for sale online.
The Managing Director of De-Georgia Motors at Tesano in Accra, Mr George Dwomoh, said: �About 60 per cent of the customers who visit my garage to buy cars now come through Tonaton.com. And majority of these people are youngsters who are looking forward to owning their first car.�
The Managing Director of K&K Motors, Michael Toku, said: "We have witnessed about 10 per cent decline in the sale of new cars but the used car business has been phenomenal this year."
K&K Motors has sold 80 used vehicles in the first half of 2014 alone.
"Typically, the trend is that used car brands like Toyota and Nissan from the US and Korean cars like Kia and Hyundai are the most patronised by first-time car buyers who are mostly young corporate executives,� he adds.
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