Demand for used vehicles has dropped considerably by about 40% after Ramadan, local Arabic daily Arrayah reported, quoting a number of dealers and traders.The slump in the market has been a key factor in reducing the prices of used vehicles by almost 20% and could even further drop if the slowdown in sales persisted.The reasons for the low demand on used vehicles include high interest rate of bank loans and the various promotion offers on Chinese cars that have entered the market over the past few years.Some of the Chinese brands give warranty up to seven years with in-house finance options, and cheaper prices compared to auto brands from Europe, Asia and the US, in addition to the sophisticated options.Mohanad Jaafar pointed out that the recent slowdown in buying and selling of used vehicles could also be due to the summer holidays as many travel outside the country. SUVs manufactured in the US, Japan or Europe range between QR150,000- QR400,000 and other Gulf visitors to the country, especially Omanis and Kuwaitis, are among the best customers for used vehicles with Kuwaitis preferring luxury European cars and Omanis preferring Japanese SUVs or midsize vans.Ahmed Abdulsalam said some used car showrooms have stopped buying until they get rid of the existing stock due to the current slump and low demand in the local market. Yet, he expected that the market of used vehicles will be better starting from September with the return of many people from holidays.Misbah Elias pointed out that the high interest rates on bank loans have negatively impacted the used car market as most of these vehicles used to be sold through bank loans.Raeed Saeed said there is a steady growth of the sales of many new brands of Chinese cars selling for considerably cheaper prices compared to their Japanese and American counterparts. Some people see these as better option rather than buying used vehicles, especially when dealers offer outstanding deals.
July 07, 2023 | 09:58 PM