Used car market hits low gear in the city

Caution and global economic meltdown keeping sellers and buyers away from the used car market

Not as many used cars are exchanging hands in the popular auction market in the Industrial Area these days, compared to last year.

The open area market, past the intersection of Street 10 and Al Manajer Street going towards Al Attiyah Market, becomes abuzz every weekend, with hundreds of prospective sellers bringing their vehicles to sell directly to buyers for quick cash.

“We have not been seeing the same number of cars coming here as we used to last year. Back then, my monthly profit used to hit as much as QR10,000, but it has since dipped to QR4,000 on average,” a used car agent said.

“What we understand happening is that residents are holding on to their vehicles for now and waiting for the global financial slowdown to fizzle out,” the agent, in business since 1995 when the auctioning of vehicles at Street 10 started, added.

The agents, through a system of commercial registrations and company affiliations, prowl the periphery when activity is at its peak and while they could be seen providing free consultation to the sellers on their vehicles’ true value, they make money by further reselling the vehicle.

Although the global financial meltdown took the world by storm, Qatar has been relatively safe from its fallout.

“For most expatriates though, who show up at the market the fact that banks have tightened their lending rules and the tight economic situation back home, selling their cars for an upgrade has not been an option this year,” an owner of a 2007-Nissan Sunny on sale, said.

“I am selling my vehicle because I need hard cash. I will use public transport after my car is sold,” he said.

The 2007-Nissan Sunny, according to him, would get him as much as QR27,000. Of all the vehicles, from entry level sedans to high-end SUVs, the ones manufactured in Japan, bag the highest return.

The resale value of a US or a European vehicle is low, market associates explained. Vehicles at the market are usually available for as little as QR2,500 and upwards.

Another seller of a Suzuki Vitara SUV said he brought his vehicle to the market because the family would like to buy a different brand after having used it since 2002.

“We thought if we would sell this one for what the estimators said approximately QR22,000, we will chip in some extra and go for a newer one from the same market,” he said. “But we are not going to the regular used car showrooms or thinking of getting a car loan from a bank. These are uncertain times,” he added.