JEDDAH: Used cars prices are expected to increase due to high demand following the destruction of thousands of vehicles during the Nov. 25 flash floods.
Some reports put the number of cars destroyed at up to 14,000, while official estimates are approaching 10,000. Most of these vehicles will likely be replaced, turning the local used car market into a seller’s market with a possible tight supply.
Saeed Al-Bassami, deputy chairman of the Car Rental Committee at the JCCI, said customers should expect prices to rise.
“The market is controlled by the supply and demand. We are assuming that the prices could go up by five percent,” said Al-Bassami.
Used car salesman Mutea said that prices have not increased dramatically, but they have risen. “Used cars prices are going up by SR 2,000 to SR3,000 riyals, which is not considered a great amount,” he said.
Mahmoud Abdullah, a 34-year-old father of three, wanted to sell his 2002 German model car for SR4,000 back in November, only one week before the floods. After the floods, the owner received another offer for the vehicle of SR10,000.
