Used cars market turns into a buyer’s market as citizens scramble to fund IPO
The prices of used cars are now 20 to 25 per cent lower due to an increasing number of Qatari citizens offering their vehicles for sale to obtain cash for the state-sponsored initial public offering (IPO) of shares from Mesaieed Petrochemical Holding Company (MPHC).
According to a news report, many dealers have said that citizens are choosing to replace their expensive cars with lower-priced ones to fund their subscriptions of the IPO. The IPO, which opens for subscription for the Qatari community is apparently the trigger for this buying and selling behavior. The report also mentioned that dealers are facing higher purchases than sales.
The report also quotes many used cars dealers as saying that the market has turned into a buyer’s market due to this change in sales and purchase behaviour.
However, Salesperson Robin Salazar of Oasis Used Cars presented a contrasting view to JustHere. “Both sales and purchases at our dealership has dropped by 30% this month. During December, most people are on vacation and at companies, the higher management is on vacation, so approvals on car loans are delayed. This is usually a slow season for us. About 80% of our customers are individuals and the remaining are companies and our most popular sellers are the Mitsubishi Pajero, Nissan Xterra and Chevrolet Cruze; people usually prefer Japanese cars,” he added.
Even though prices of used cars have plummeted, purchasing them though is not a decision to be made lightly; interested buyers must remain vigilant, especially in the wake of the many scams that take place.
“As people look to purchase used cars, there are some things that they should absolutely look for” Alaa Sulieman, General Manager of AutoMart Gulf told JustHere. “They should check the condition of the car, its price, mileage, its warranty, resale value and maintenance,” he added.