Forty-eight percent of GCC consumers are willing to buy a vehicle in the next three months amid a growing confidence in the economy, according to a new survey.
YallaMotor, the region’s largest automotive portal 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, the survey shed light on 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, 48 percent of respondents claim that they are willing to purchase a vehicle within the next three months.
YallaMotor said this increased appetite can also be attributed to attractive promotions from dealerships, including price discounts and service contracts.
Contrary to popular belief, 50 percent of those surveyed said they are interested in purchasing a new vehicle, whereas 30 percent claim to be on the lookout for a used vehicle, and only 20 percent 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 percent planned to purchase a new car, 70 percent planned to purchase a used car and 10 percent 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, according to Sami Ghazal, chief operating officer at YallaMotor.
He said: “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.”
The survey showed that among factors that impact buyers’ decision to purchase a vehicle, 65 percent of respondents claim reduced prices to be the biggest driving force. On the other hand, 17 percent claim attractive loan options would positively impact their decision to purchase a vehicle, while 12 percent claim complimentary services and just 6 percent claim co-ownership options such as leasing to be their biggest motivator behind a vehicle purchase.
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 percent of respondents claimed to be ready to make a down payment for a vehicle online.
Conversely, 33 percent of respondents said they are comfortable with paying the entire amount online when they purchase a car while 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.
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