Qatar's Used Car Market has Crashed

Qatar's Used Car Market has Crashed

Equin0x
By Equin0x

After 40 years of business, the local used car industry has finally gone to the wood, due to no support from the authorities.

The large scale sale of used cars from "Airport Taxi, Rent A Car Companies" Karwa Taxi and private companies have virtually flooded the market. There are hundreds of used cars now available for sale in the market and the buyers are only 10%, which is why the local used car market has come to a dead end, because none is able to make any profit out of it.

The local law that forced the rental companies to sell off their three yearly used cars, has all made that happen.

Before that law the Qatar's Used Car market was popular for brisk cash business as it was frequented by Saudi investors and local buyers in large numbers, and the supply/demand rule was working fairly well, then.

By Molten Metal• 13 Jul 2016 10:49
Molten Metal

Equi, Your point is fully valid, this industry needs to be supported, Africa is huge market , Asian countries' Govts should reduce their tariffs ...... once politicians would understand economics & trade and commerce the thing would start improving ............ but it's a dream to have a sensible politician today ..........

By Equin0x• 12 Jul 2016 21:50
Equin0x

Today Barwa Real Estate Co has awarded a contract of Qar. 1 billion to build 1st phase of "Motor City" for catering to the used cars business. That shall take one year, and it is just one step in the right direction, but that is not enough. This market has generated lots of revenues to the traffic department and it needed a number of more steps to grow.

Qatar's used car market was considered to be one of the most lucrative markets in the gulf, until recently.

The govt. could have put up the regulations to safeguard the rights of customers as well as the sellers.

Some bad examples should not override this high potential market for the benefit of buyers, sellers and the traffic department.

By britexpat• 12 Jul 2016 21:38
britexpat

Please explain to me WHY the government should act to help an industry which has always fleeced its customers

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