As an effect of downturn sales of New cars showroom owners start giving lucrative offers which also effects on second hand cars. Used cars are facing sharp decrease in prizes. Deputy Chairman of the Automobiles Committee at the Jeddah Chamber of Commerce and Industry Mukhlid Al-Mutairi.
This sharp downturn of prizes causes huge lost of 13 percent to investors. Recent reports show the downfall of small investors in used car sales, as almost 30 percent of small investors quit their market as result of constantly falling of sales.
Businessman who invested car sale purchase sectors face huge losses due to sharp decrease of both new and used cars sales. Small investors face more harm which causes them to leave market or to decrease the prizes of used cars almost 22 percent.
Owaidah Al-Johani, chairman of the car showrooms committee at JCCI, said that it is estimated that almost 50% car sales were decreased worldwide due to global low oil prices trends and increase in showrooms rent.
Owners of car showrooms said that economic slump in gulf region brought down prices of some new cars by 22 percent for example In jeddah a new car of model 2017 prized at SR180,000 while the prize of same car in 2016 model is SR230,000.
SOURCE: Saudigazette