JEDDAH, 12 October 2007 — Discounts and incentives offered by automobile dealers across Saudi Arabia have resulted in a significant increase in car sales. The response, according to industry circles, has been positive resulting in a 10 to 15 percent increase in automobile sales turnover compared to the previous Ramadan season.
Ramadan offers come in various forms. Free service for a specified period of time (up to three years), no down payment for daily and monthly installment deals and discounts on outright cash purchases. However, no dealer was willing to disclose the figures related to Ramadan sales, except saying that they have been positive and encouraging.
One of the major luxury car dealers is offering an “irresistible” incentive to their buyers. “We are sending our buyers to Bentley’s crew factory in Manchester, England, on a two-day tour of the manufacturing facility. “We want our buyers to see how cars are built by 4,200 employees of the factory,” Sherif Yehia Soliman, car division manager (Bentley), Saudi Arabian Markets Ltd., told Arab News.
“Two of our buyers have already visited the UK factory and a few more are expected to go soon,” he added.
Autostar, a Kingdom-wide dealer in new and used cars, as well as service and parts, said it had come up with “the easiest way to own a car” through its offer of no down payment and no administration fees.
“Daily payments range from SR32 to SR60 on 2007 models of Toyota Yaris, Honda Civic, Toyota Camry and Honda Accord. Additionally we offer the possibility of winning one of two prizes worth SR50,000 each,” a senior executive at the company’s Jeddah office said.
“The offer is valid only on limited models and for a limited period,” he said, adding that easy financing, full warranty and full maintenance are among the other offers available in association with Taajeer Co.
Alesayi Motors is celebrating Ramadan with zero percent deposit on all new Mitsubishi vehicles. “There is no deposit and no processing fees, and our Ramadan offers are available on all new vehicles,” a company executive said.
United Instalment Sales Co. Ltd., a company of Abdul Latif Jameel Group, is making “unprecedented offers” for a limited period. “The offer is valid for expatriate as well, the company stated. “There is no down payment, no guarantor, no cash deposit. Our showrooms are open during Eid holidays except for the first day,” its executive said. Monthly deals offered are from SR775 for Sirion, SR840 for Yaris HB and SR945 for Hilux SC to SR1055 for Corolla or Terios, SR1,550 for Camry, SR1,735 for Fortuner, SR1,855 for Aurion and SR2,035 for Prado.
“This year we are introducing the “gold tag,” a new concept offer to the Saudi market, Georges Baaklini, assistant marketing manager at Balubaid, which distributes Chevrolet and GMC vehicles, said. The gold tag, introduced during Ramadan on Chevrolet cars only, is something that a consumer can utilize for maximum discounts for car purchases throughout the year. Chevrolet cars carry maximum discounts throughout the year. He said Balubaid offers installment plans through Saudi Finance House. “This is a financing company that offers installment programs to Balubaid customers,” he added. Driven by the volume of new car sales, over 270,000 vehicles are imported annually. The growing pre-owned car sector in the Kingdom is termed as the largest market in the Middle East for auto parts, accessories, service and garage equipment. The number of cars imported into the Kingdom is expected to rise in the coming years with the growth of young population.
However, young Saudis who are just entering the labor force are particularly price sensitive and now opt for buying smaller-engined cars than was the case in the past. More than 70 percent of those who purchase automobiles with an engine size of less than 1,600 cc are under 27 years of age, with popular purchases being the four-cylinder models of Toyota (Yaris), Hyundai (Accent), Chevrolet (Aveo) and other market players including Daihatsu and Suzuki.
Al-Rajhi Bank said that its car leasing service, which has been designed to suit all customer needs, can hand the car over to its buyers in no more than 20 minutes. “I took advantage of Al-Rajhi Bank’s car leasing service and they handed over my new Camry within minutes,” Mohammad Abdul Aziz Zahrani, a Saudi businessman said. Some car buyers said they anxiously waited for the holy month of Ramadan to make their purchases because of the “fabulous” offers from various car dealers.
