30% of used cars dealers in Qatar are under the risk of closing down

By, 2016-10-24

A lot of the daily reports and monthly sales figures for used cars showrooms in Qatar indicating to raise red flags concerning the used car business in Qatar at the moment.

According to a survey conducted by Q Motor, approximately 30% of the used cars dealers are under the risk of closing down since the beginning of this year. This is due to the recession in the used car market, which caused directly by the economic situation in the region and the drop in the gwoth of domestic markets.

Other factors have also led to lower sales figures for used cars dealers in Qatar, such as the clear reduction in new car prices. Some new prices have dropped over 15% from the last year prices. In addition, new cars dealers have given very generous offers for the public, such as; drive now and pay next year, or buy a car and pay instalments with 0% interest rate.

It is expected that approximately 40% of the used cars dealers will close down by the end of 2017 if they do not make any changes in their business strategy.

Some of the main mistakes which used cars dealers have fallen into are:

1. Depending 100% on the domestic market, which means selling cars from Qatar to Qatar. With the existence of a number of online and off-line portals for selling cars, many end users have stopped displaying their cars at showrooms, hence the need of the middle man (the showroom) is over.

2. Working with the same business model since 2006. Many businesses have started to invest in technology since 2006 upon the online revolution in Qatar. Many of the car dealers who are now suffering from the lack of sales did make the basi investoment in technology, such as building a website for their business, nor they have spent any effort in building customer database.

3. Lack of management and delaying launching new services

4. Not spending on advertising and marketing.

The above reasons are some of the reasons why used cars dealers in Qatar are now suffering from the lack of sales.

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