(MENAFN - Arab News) Saudi youth are irked by the rising prices of automobiles in the Kingdom.
The used car market was an attractive option for customers who couldn't afford new cars but now local car agencies are selling used cars for as high as SR40,000, according to experts.
A steady increase in the price of vehicles in the local market has forced several Saudi youth to go in for the 4-year installment scheme to own a new car.
However, most Saudi and expat consumers undergo a money crisis owing to the rising cost of living and are often unable to complete the installment plan for their new cars within the stipulated time period.
Experts in the local automobile market point out that a customer needs to spend at least SR60,000 for a new car.
There are several factors which have attributed to the rising costs of vehicles. They include a surge in the cost of highly advanced technologies in cars, the cost of accessories and extra fittings for luxury services.
"The prices of new models are unreasonably high especially because most customers only earn about SR6,000 per month. Therefore the used car market was very popular among customers due to the low prices.
"Our customers can also check the used cars for safety and maintenance," said Salah Al-Shaalan, supervisor of an exhibition for used cars.
Some customers think that a used car may be cheaper than a new one but they don't realize that a used car needs more maintenance.
"I bought a used Japanese car for SR30,000 but there are many problems with it. I need to take it to the workshop every month. I have already spent more than SR10,000 to fix it," Tareq Ismaeel, a Sudanese resident working in the private sector told Arab News.
Waleed Mosa, a Saudi employee working in the private sector, told Arab News that the monthly installment for his car consumes a major chunk of his salary. But he thinks it is a safer bet than a used car which would require more money to be maintained. "After all, one needs a car in the Kingdom," he added.
Faisal Abu Shousha, head of the National Committee for Automobile Agents at the Council of Saudi Chambers of Commerce and Industry, said earlier: "Fluctuations in the value of major currencies play a major role in determining the prices of vehicles."
A rise in the value of the yen or the euro, for example, would affect the prices of vehicles manufactured in Japan and the European Union.