Prices of used family cars in the Saudi market witnessed an increase of 10 percent during the last three weeks due to Umrah season and approach of the new school year and Haj season, local media said quoting experts.
The growing demand for family cars is clearly noticeable during these days every year, which prompts used car showrooms to keep such cars until the approach of these seasons, the experts said.
Prices of used family cars have so far increased by 10 percent but predicted to go up to 20 percent within the coming two months, notably for cars whose capacity is more than 9 passengers, car dealers told Asharq Al-Awsat daily.
Mohamed Al-Mutairi, a car dealer, said turnout for family cars is higher than demand for small cars as it is a seasonal demand and it is no surprise that prices jumped by 10 percent in light of improved demand levels.
Saudis prefer family cars manufactured in the United States and Japan, with South Korean cars coming in the third place, he said predicting that prices will witness more increase in the coming few weeks with the approach of school and Haj seasons.
Small-scale Haj and Umrah operator firms always seek for family cars that could take more than 12 passengers and rush for this type of cars as early as possible, Al-Mutairi said.
Eisa Salim, another car dealer in Riyadh, said prices of family cars would witness more increase during the upcoming period that might touch 20 percent compared to the prices that prevailed in the beginning of the current year.
Used car showrooms have begun accumulating family cars ahead of the upcoming new school year and Haj season to have them sold at higher prices, he was quoted as saying.
Earlier, the Ministry of Commerce and Industry has invited US automakers to increase their agents in Saudi market, an invitation which, according to analysts, could extend to Japanese, South Korean and German automakers. The call is aimed at improving the level of services provided by the auto agents in the Saudi market.
In a related development, Deputy Sales Manager at Suzuki Saudi Arabia Mahir Al-Nabawi predicted that car sales in the local market would increase to SR94 billion ($25 billion) in the current year due to the Kingdom's strong economy, increase of per capita income of the GDP and strong purchasing power.
Prices of used family cars rise 10%
