🎯 The business: you buy used engines, gearboxes, suspension and body parts from U.S. salvage yards and dismantlers, drain and pack them, and ship containers to parts dealers in Lagos and Accra. Most cars in West Africa arrive used, many of them from the U.S., and the mechanics who keep them running need parts every day. A U.S.-sourced part that runs on test and arrives as described sells; your edge is reliable sourcing and honest grading.
At a glance
| Money to start | ≈ $25,500 for a first full container; about $5,000 if you start with space in a shared container |
| Time to the first sale | About 3 to 5 months |
| Hours a week in year one | 15 to 30, more in loading weeks |
| Skills that matter most | Knowing car parts and which models sell, grading honestly, careful paperwork, judging buyers on WhatsApp |
| A realistic income line | One container a month at this page’s example margin leaves about $5,900 a month before tax |
Is this for you?
It suits someone who knows cars or works with a mechanic, does not mind a warehouse floor, and has a trusted contact in Nigeria or Ghana. Most of these deals start with family or a referral. Buyers in Ladipo market in Lagos or Abossey Okai in Accra know parts better than most sellers, so you will not get by on talk.
Be honest about the competition. Dealers there already import used parts from the U.S., Europe and Asia, and container loads of Japanese and European engines compete on price. You win on parts for the models that sell, tested and graded the same way every time, shipped on the date you promised.
Who pays, and what
Parts dealers and wholesalers in the big markets, workshop owners who buy for their own bays, and transport companies that keep a fleet of one model running. They pay for engines, gearboxes, axles, suspension parts, doors, bumpers, headlamps and electrical parts for the cars common on their roads. Ask your buyer for their top models before you buy a single part.
Most dealers want a full or shared container, a packing list with photos, and a price delivered to their port (CFR Lagos or Tema). A typical first arrangement is a deposit to buy the parts and the balance before you release the bill of lading. Open credit comes much later, if ever.
What it takes to start
| LLC, EIN, business bank account | $300 |
| Storage or a small warehouse bay, three months | $1,500 |
| Engine hoist, pallet jack, drain pans, pallets, shrink wrap | $1,200 |
| First container of parts from yards | $14,000 |
| Packing labor, trucking, ocean freight and documents | $6,600 |
| Catalog photos, a WhatsApp Business line, video calls, samples | $1,000 |
| General liability insurance, first year | $900 |
| All-in | ≈ $25,500 |
Ask for the buyer’s deposit before you spend the $14,000 on parts. With a 50 percent deposit, the money you put in yourself is closer to $18,500. If you start with space in a forwarder’s shared container for a buyer’s order of a few engines, about $5,000 covers the parts, the space and the basics.
Start to finish: the steps
1. Learn what the market drives. Ask two or three dealers or mechanics in Lagos or Accra for the twenty parts they sell most, by make, model, years and engine. That list is your buying guide. Do not buy what is cheap here; buy what moves there.
2. Find two buyers before you buy. Use your own contacts first, then dealer referrals. Visit the shop, or have someone you trust visit. Agree on grades (runs, tested, cosmetic condition), the price for each part on the list, and who clears customs.
3. Line up your sources. Salvage yards, auto recyclers and dismantlers sell pulled parts by the piece and by the pallet; many will hold parts on your list and run an engine for you before you pay. Buying whole salvage cars at auction usually needs a dealer or dismantler license, so start with pulled parts.
4. Set up the business and the space. Form an LLC, get an EIN and a business bank account, and rent a bay where zoning allows auto parts storage. If you later strip whole cars, check your state’s dismantler license and environmental rules first.
5. Agree the terms in writing. A pro forma invoice listing every part, the grade and the price, CFR to the buyer’s port, a 50 percent deposit, and the balance before the bill of lading is released. See Incoterms for what CFR does and does not cover.
6. Prepare every part the same way. Drain oil, coolant and fuel. Pull batteries and airbags unless your forwarder has booked them as dangerous goods. Tag each part with a number, photograph it, and record the test result. The packing list should match the tags one for one.
7. Book with a forwarder who ships to West Africa. Pick one who loads containers for Lagos and Tema every week and knows the paperwork at both ends. They will help with the export filing and tell you what the buyer’s side needs before the box is closed.
8. Get the destination papers done before it sails. For Nigeria, the buyer opens a Form M through their bank, and you need the conformity papers the Standards Organisation of Nigeria (SON) requires. For Ghana, confirm the current Ghana Standards Authority requirements with your buyer’s clearing agent.
9. Release the papers, then follow up. When the balance arrives, release the bill of lading. When the container is opened, ask the buyer for photos and any complaints, fix them fast, and ask for the next order list.
10. Then grow: one container a month for two buyers, then a second country. Some exporters add complete engine and gearbox sets as a premium line, or partner with a yard that sets parts aside for them each week.
Pricing an order
| One used four-cylinder engine, tested, from a yard (example) | $450 |
| Draining, crating, labor | $40 |
| Share of freight and documents (the container holds the equal of 45 engines: $5,400 ÷ 45) | $120 |
| Your landed cost at the buyer’s port | $610 |
| Your CFR price to the dealer | $800 |
| Your margin on this part | $190, about 24 percent of the price |
Price every line on the packing list this way, then check the container total. Your price has to leave the dealer room for duty, clearing, transport and their own margin, so ask what the same part sells for in the market before you quote. More on building a price in Export pricing.
The math
On this page’s example container, the dealer pays $27,500. Parts cost $14,000, packing and trucking $1,200, and freight, documents and certificate $5,400, a total of $20,600. That leaves $6,900 before overhead.
Overhead for a small operation runs about $1,000 a month: $500 for the bay, $75 for insurance, $200 for phone, catalog and software, and $225 for travel and sundries. At one container a month that leaves $6,900 minus $1,000, or $5,900 a month, before tax. A realistic first year is closer to six containers: 6 × $6,900 = $41,400, minus $12,000 of overhead, is $29,400.
Two things eat this margin: a part that arrives dead and has to be refunded, and a container that sits at the port because the papers were wrong. Both are avoidable.
Getting buyers to say yes
Dealers say yes to parts that match the photos. Send a short video of each engine running, a numbered packing list with grades, and a fixed price per line. Offer the first buyer a shared container for a small order so they can see your grading before they commit to a full box.
Where to find them: family and community networks first, referrals from forwarders who ship to Lagos and Tema, and the dealers who post stock on WhatsApp and social media. The U.S. Commercial Service offices in Nigeria and Ghana can check a company for you. More in Finding foreign buyers.
Running it week to week
Each week: walk the yards with the buyers’ lists, test and tag what you buy, update the catalog, and answer dealer questions. In loading weeks, drain and pack, check every tag against the packing list, photograph the loaded container before it is sealed, and send the photos to the buyer. Keep a file per container: invoices from yards, test records, packing list, export filing, freight papers and payment records.
Rules to check
U.S. side: most used car parts need no export license, but you must screen every buyer against the U.S. restricted-party lists and file Electronic Export Information in AESDirect when any one Schedule B line is over $2,500. See Classify and file. Car batteries, airbag modules and engines that still hold fuel are dangerous goods for shipping; drain or remove them unless your forwarder books them properly. Many states require records or a license to buy used catalytic converters; check before you handle them.
Nigeria: the Nigeria Customs Service import prohibition list includes used tyres (apart from large truck tyres for retreading) and used compressors, a heading that can catch car air-conditioning compressors. Check the current list for every part type before you ship. Auto parts are among the goods SON regulates under its SONCAP conformity program; ask an accredited SONCAP agency how your used parts are treated and what certificate each shipment needs. The buyer’s bank handles the Form M.
Ghana: used spare parts are imported in large numbers, but rules on used vehicles are tightening, and the Ghana Standards Authority runs conformity programs for many imports. Confirm current requirements with your buyer’s clearing agent before each shipment.
Some buyers ask you to ship to Cotonou in Benin and move goods overland into Nigeria. Decline if the point is to avoid Nigerian customs; that is smuggling, and the goods can be seized.
What goes wrong
An engine that ran in the yard and arrives seized because it was not drained or was crated badly. Parts for models nobody drives there. A container held at the port because a certificate was missing or a prohibited item was inside. A buyer who stops answering after the parts are bought; the deposit protects you. Fake buyers who ask you to pay "clearing fees" for them. The exporters who last ship for a few dealers they know, grade honestly and photograph everything.
Questions people ask
Can I export used auto parts to Nigeria?
Yes, for most parts, if they meet SON’s conformity rules and are not on the Nigeria Customs import prohibition list. Used tyres and used compressors are on that list. Ask an accredited SONCAP agency about your exact parts before you buy them.
Do I need a license to export used car parts from the U.S.?
Usually no export license. You do need to screen buyers against restricted-party lists, file the EEI when a line is over $2,500, and ship batteries and airbags as dangerous goods. Your state may require a license to buy whole salvage cars or to deal in catalytic converters.
What used auto parts sell best in Nigeria and Ghana?
Engines, gearboxes, suspension and body parts for the models most common on the road there. Ask dealers for their best sellers by model and year; their list should be your buying guide.
How do I get paid safely by an auto parts buyer in West Africa?
Take a deposit before you buy the parts and the balance before you release the bill of lading. Never ship on open terms to a new buyer, and never pay fees on a buyer’s behalf.
How much can you make exporting used auto parts?
At this page’s example numbers, about $6,900 per container before overhead, or about $5,900 a month at one container a month. Bad parts and port delays are what usually shrink it.
Free help
The U.S. Commercial Service in Lagos and Accra checks foreign buyers and runs partner searches; your local U.S. Export Assistance Center connects you. Your state’s STEP grant can help pay for a trade trip. SCORE mentors and Small Business Development Centers help with the plan and the numbers. The Automotive Recyclers Association is the trade group for the yards you will buy from.
Nigeria’s prohibition list and both countries’ conformity rules change often. Points here were checked in November 2026; confirm the rules for every part type with an accredited agency and your forwarder before you ship, and get a fresh freight quote each time.