Fall in the sale of used vehicles worry many showroom owners
A big drop in sales of used vehicles in the past six months poses a dilemma for many showrooms in Doha, it is learnt.
Gulf Times reports that a manager at a showroom along the Salwa Road said that business had slowed down to 75% in December last year compared to the preceding months.
“During the first and second quarter of the 2015, we sold an average 25 units per day. But last month, the number dropped to five,” he noted.
Despite lowering the prices of their units and giving discounts, the manager lamented that there were not many takers. “The promotions seemed to be unattractive to many buyers.”
He admitted that most of their strategies to entice customers and boost their sales had failed. This was evident with the decreasing number of potential buyers who inquire about used cars at showrooms either during weekdays or weekends.
Some showrooms in the same area, which sell used SUVs and luxury cars, are also feeling the pinch.
Besides the impact of the falling oil prices, a supervisor cited rising competition as one of the reasons for the drop in sales.
“Several new shops have been opened in the recent past and some expatriates who lost their jobs sold their cars at low prices which we cannot match because of some limitations,” he said.
It is learnt that even high-income workers who have been mulling to buy new SUVs this year have opted to continue using their old sedans.
Many companies in Qatar have implemented some austerity measures to cut spending and buying service vehicles this year may not be an option, according to sources.
A source told Gulf Times that these companies preferred to buy new units (mostly pick-ups) than second-hand ones for their operations.
“To save money, now old vehicles are being taken to various service centres for repair and maintenance,” he added.
Besides used car shops, service centres also recorded a huge drop in the number of customers during last month, it is learnt.
From 50 customers a day, a supervisor at a workshop said the number went down to 30 which translated to a 40% drop, he said.
“The opening of new service centres in different areas in Doha has obviously affected all of us,” he added.
While many similar businesses felt that “such challenges and uncertainties” may continue in the coming months, they expressed optimism that the situation would improve from the second quarter onwards.
Politicians.
Brity, I would say both! Anyone care to add to the list :D
Hmm.... Don't know who is worse.. Real Estate Agent or Used Car Salesman ......
If a newcomer to Qatar or those who have been staying hear wants to save money and be more cautious in their spending, why would someone go for a new car, there is lot of decent 2nd hand cars in the market, which can be bought directly from the owners themselves or from those who are leaving. There was a tip provided by Qatarliving few month back on how to buy used cars, its very simple, if the owner of the car has taken car of the car very well, you will know when you test drive it. The showroom guys are rubbish, they lie to their teeth and try to rip you off, some of the cars they are selling has the odometers rolled back and also show you ripped off car reports, all from the car inspection shops they are friends with. So who wants to buy from car showrooms. In my long years, I have never bought a car from agencies, all direct from owners and my SUV from the Dealership. Now these showroom cheats pay their price! Good for them, its Karma!
25 cars per day?? roughly 600+ in a month??????????????????
scary or crazy?
Not only automobile industry, almost all the industries
Has that increase really made that much difference? I know it's all relative. Suppose coming from the UK when I left it was 1.40GBP / 8QR a ltr so it still seems incredibly cheap.
especially now that fuel in Qatar price increase!
Sales dropped in the month of December by 75% that's massive.
That said did anyone see the queues to get to HIA over December? I'm surprised there was actually anyone here!
Ha, ha. Logic a la Qatar.
So, many companies have implemented some austerity measures to cut spending and now prefer to buy new units (mostly pick-ups) than second-hand ones for their operations. ?????