48% Of GCC Car Buyers Aim To Purchase A Vehicle In The Next Three Months
YallaMotor, the region’s largest automotive portal, and a subsidiary of Bayt.com, the Middle East’s #1 job site, conducted a survey to gauge car buyer’s purchasing intent and emerging trends in auto sales during the ongoing pandemic. With over 4,120 respondents from across the GCC, this follow-up survey sheds light on several aspects of auto retail – whether buyers are opting for new or used vehicles, factors that impact their decision to purchase a vehicle, and whether they are open to purchasing a vehicle online.
When it comes to purchasing timeframes, a whopping 48% of respondents claim that they are willing to purchase a vehicle within the next three months. This increased appetite can be attributed to a growing confidence in the economy and attractive promotions from dealerships, including price discounts and service contracts among others.
Contrary to popular belief, 50% of those surveyed are interested in purchasing a new vehicle, whereas 30% claim to be on the lookout for a used vehicle, and only 20% see the benefit in purchasing a certified pre-owned vehicle at this point in time.
These results are a stark contrast to earlier findings from a survey conducted at the beginning of the pandemic, when 20% planned to purchase a new car, 70% planned to purchase a used car, and 10% planned to purchase a certified pre-owned model.
Dealers are changing business strategies and investing in new digital sales tools as consumers demand more online and personalized services. Sami Ghazal, Chief Operating Officer at YallaMotor, says: “Although automotive dealers have already begun adapting the way they operate with services such as 360-degree virtual viewings, online purchasing options, and home test drives, our findings aim to assess where the automotive industry stands and help guide it towards its next plan of action.”
Among factors that impact buyers’ decision to purchase a vehicle, 65% of respondents claim reduced prices to be the biggest driving force. On the other hand, 17% claim attractive loan options would positively impact their decision to purchase a vehicle, while 12% claim complimentary services and just 6% claim co-ownership options such as leasing to be their biggest motivator behind a vehicle purchase.
The statistics demonstrate that the auto sector is on an upward growth trajectory when it comes to vehicle leasing in the region as more car buyers become aware of its benefits. Our leasing survey, which was filled in by over 4,000 respondents, revealed that over 48% didn’t know the benefits of leasing a vehicle as opposed to renting or buying.
The pandemic has been an accelerant to online sales for the industry, which has been reluctant to adopt such processes due to concerns disrupting profitable showroom operations. With the surge in online shopping and the added convenience and flexibility, over 50% of respondents claim to be ready to make a down payment for a vehicle online. Conversely, a small percentage (33%) of respondents are comfortable with paying the entire amount online when they purchase a car. A vast majority of buyers still prefers a hybrid system where they pay a deposit online and then physically visit the showroom to complete the purchase.
Another interesting finding related to the aftersales aspect of vehicle ownership, is that while many believe spending on automotive maintenance would reduce given the economic uncertainty brought about by COVID-19, data shows that over 77% of respondents are still spending on maintaining their vehicles regularly. In contrast, just a small percentage of those surveyed (23%) claim to have cut back on unnecessary expenditures such as vehicle maintenance in the GCC.
To download the full report, click here: https://bit.ly/3kGLmMX
