Used car market facing challenges due tohigh interest rates and entry of Chinese cars

Dealers say sales increased temporarily during Ramadan

NT Bureau

DOHA: A number of showroom owners and resident have said that the used car market faces many challenges and is facing a stagnation due to several reasons, Al Sharq has reported.

They told Al Sharq that one of the most important challenges that the market faces is the high interest rate on bank loans, which is dissuading buyers from purchasing used cars, and another reason is the increase in demand for new Chinese cars that are sold at low prices compared to cars of other models and types.

Buying and selling of used cars witnessed a slight improvement during the month of Ramadan due to the offers of interest rate reductions made by some banks and financing companies during the holy month, they said, according to the report.

 “The car market has been suffering from stagnation in recent years, and there are many factors that led to this stagnation, the most prominent of which is that commercial banks and car financing companies raised interest rates for car purchase, which caused many people to refrain from buying cars,” Saad Ali Al-Ahmad, a car dealer, said.

“The serious competition with Chinese cars also greatly affected the sale of used cars of other types as new Chinese cars have high luxuries and specifications that compete with well-known luxury cars, and their prices in the market are affordable for everyone. I expect that Chinese cars will be a strong competitor to well-known luxury cars in the coming years,” he said.

Saad Ahmed Saeed, owner of Al-Kawthar Car Showroom, said that the used car sales witnessed an increase during Ramadan due to some banks providing incentive offers and purchasing facilities.

“I hope that the banks will continue to support this sector. In general, the car market suffers from some challenges, the most prominent of which is the strong competition from Chinese cars, whose prices are usually low compared to the prices of cars of other models, and many people prefer new Chinese cars that contain all the luxuries,” he added.