Prices of used cars plummet owing to low demands

The prices of used cars in the local market have fallen by over 20% due to a huge fall in demand, caused by an exodus of expatriate families coupled with a long summer vacation, say industry sources.

The low demand has caused the prices of both premium and mid-segment cars to hit a record low. There are more people offering their cars for sale but very few takers, say the traders.

“We used to sell five or six cars in a month even during the summer holidays. But this summer seems to be different. We could sell just two vehicles last month,” a trader at the Industrial area told The Peninsula.

“With falling demand, the prices of used cars also declined significantly. We sold an Urvan 2010 model for QR20,000 after so much struggle last month. In a normal market, its price should not be less than QR30,000. We sold the same model van for QR35,000 in February,” said the trader. “The latest models of medium-range four-wheelers like Prado that should be sold for QR60,000 to QR80,000 are available at more than QR20,000 less,” he added.

“Prices of big four-wheelers with full options like Land Cruiser GXR 2010-11 model have declined from QR150,000 to QR110,000,” said another trader.

“I’m showcasing about six models, including Camry, Corolla and a Nissan pick-up, at QR2,000 to QR4,000 less compared to three months ago”, said a part-time trader.

“I’m demanding QR12,000 for a Camry-2004 model, QR14,000 for Corolla 2005-model and for Nissan-Pickup QR22,000. However, their actual prices are not less than QR16,000, QR17,000 and QR24,000 respectively,” said the trader.

“There’re very few customers and we’re seeing mostly traders and those bringing their own cars for sale. Look at the street, it used to be packed on a Friday evening but there’s smooth traffic flow,” a trader said, pointing to the 6pm traffic at Street Number 10 in the Industrial Area. It is a hub for trading of used cars.

“We used to buy used cars directly from owners who want to change their cars to go for latest models. But nowadays we get customers who lost their jobs and are leaving the country for good. We’re also getting company vehicles and from individuals who rent their vehicles like pick-up and vans to companies but are unable to get the contracts renewed,” said the trader.

A trader at the second hand market on Salwa Road also said his sales have been hit hard.

“The prices have fallen by at least 25%. Before summer, we used to sell 15 to 20 cars daily but now we sell not more than five. Many customers are shocked to see that the prices have fallen so much and some even delay the sale,” said a trader.

Some customers, however, said the prices have not fallen steeply. “I wanted to buy a small car like Tiida and the price is QR2,000 to QR3,000 less than it used to be,” he said.

On alleged fraudulent practices at the second hand market in Industrial Area, a trader said, “Although most traders are freelancers and workers-turned traders, the vehicle inspection centres have played a key role in protecting customers’ rights. The centres are accountable because they certify the cars and issue fitness documents.”

Some traders have cautioned against certain lobbies in the market who try to fool customers.

“For example, a group of traders would approach a person who comes to the market for the first time to sell his vehicle. They will try to create a fake price fall to devaluate the vehicle. Another trick they play is to convince the customer that there is no need to go for technical inspection as it is a waste of money and the car is as good as gold,” said a trader.

Courtesy: thepeninsulaqatar.com