Auto dealers woo customers with attractive offers, rebate

JEDDAH – Economic depression followed by a 25 percent fall in sales (compared to the previous year) have forced automobile agents and installment companies to provide unprecedented attractive offers and discounts to woo customers. The new offers, according to Al-Madina Arabic daily, included 50 percent reduction in monthly installment for several months, extension of maintenance to five years with guarantee and postponement of the first installment payment. These offers and discounts (five to 15 percent) are given to overcome economic depression, said a businessman engaged in car sales. He said the depression has brought down sales by 25 percent this year compared to 2015. Alireza, CEO of Haji Husein Alireza, said there are many reasons for the fall in sales, including the government’s decision to cut allowances of government employees. Meanwhile, car financing companies said they were working hard to achieve their business targets. “We try to obtain the largest possible finance to help individuals to purchase cars,” one executive said. Companies are competing with one another in making attractive offers. Ramzi Wajdi, marketing manager of a car financing company said: “Our companies have reached agreement with automobile agencies to finance purchase of cars by individuals,” he told Al-Madina Arabic daily. “In order to overcome the present economic depression and increase sales we have adopted a number of programs,” he said. The move is significant as auto agencies would receive 2017 models of various types of cars by the first quarter of next year. “The new offers include cutting of monthly installments by half for several months, extension of maintenance to five years with guarantee and postponement of the first installment,” Wajdi said. “The main reason for these attractive offers is economic depression, reduction in purchasing capability of Saudis and global decline in car prices,” he explained.