(MENAFN- Gulf Times) Operators of showrooms selling used vehicles say they have been suffering a drop in sales due to a variety of reasons, local Arabic daily Al Watan has reported.
The reasons mentioned by them include the growing preference among people to sell and buy used cars through direct interactions on social media, stringent regulations on displaying vehicles as well as more general factors preventing certain people from making big purchases, according to the report.
Rida Jalal, an expatriate director of a car showroom, said free advertisements on the Internet, particularly social media, have made it easier for individuals to sell their cars directly.
They do not have to worry about factors such as rent and staff salary, which showrooms have to deal with, Jalal pointed out.
Besides, many used vehicle showrooms are unable to display - in large numbers - vehicles outside their premises due to some stringent regulations, limiting the options for customers, it was observed.
An Arab expatriate said he and many of his friends preferred buying new vehicles because payment would be done through instalments and the car would be under warranty.
On the other hand, used vehicles were often purchased cash with practically no warranty, he explained.
\Mohamed al-Muhannadi, an owner of a used car showroom, stressed a more general factor behind the drop in sales - that of some expatriates being worried about unstable economic conditions in their home countries.
Further, he pointed out that acquaintances in some neighbouring countries had told him that a similar situation prevailed there as well. He, however, hoped that the market would improve. "It is normal to have ups and downs," he said.
\Khalid, a manager of a showroom, also sounded pessimistic about the sales scenario and expected it to continue due to unstable circumstances in the home countries of many expatriates, the report adds.
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