Some car dealers in Ghana are optimistic that vehicle prices could decline in the coming months if the cedi continues to gain strength against the U.S. dollar.
The recent improvements in the local currency, they say, may ease the cost burden for consumers, particularly those looking to buy second-hand vehicles.
Ghana’s automotive market is largely dominated by imported used cars, mostly from Europe and North America. The prices of these vehicles are significantly influenced by the exchange rate and port-related import duties.
For years, a weakening cedi has driven up costs for importers and buyers alike. Currently, retail prices remain high because many vehicles were imported when the cedi was weaker.
However, with the cedi trading stronger in recent weeks, dealers expect future imports to be more affordable, potentially leading to a drop in prices.
Clifford Ansu, a vehicle dealer, explained that while some cars sell within months of arriving in Ghana, others can remain unsold for up to a year. This delay means exchange rate improvements don’t immediately reflect in current prices, but dealers are hopeful the impact will become clearer in the near future.
“If the dollar at the time was GH₵17 and today the dollar is GH₵12, look at the difference. When someone brings in their cars either today, tomorrow or next month and they face this [exchange rate] situation, they will definitely reduce theirs,” he said.
The strengthening cedi could bring relief to many Ghanaian consumers seeking more affordable vehicles, provided the trend continues in the months ahead.
