Many cars’ agencies in the United Arab Emirates announced for a reduction in cars’ sales in the domestic market by 20% at some of these agencies. This ration is the result for the instructions of the new system of personal loans issued by the Central Bank which related to the down-payment required for purchasing a new car in the local market where this new decision requires the customer to pay a 20% down-payment in order to buy the car. These agencies and showrooms mentioned that this ratio is unreasonable ratio and they have noticed an increase in demand for buying the used cars compared to the new ones.
These agencies and showrooms demanded the Central Bank to re- examine this decision in order to balance the market again, and they mentioned that reducing this ratio to be between 5% and 10% will be very suitable for many people in order to contribute to the market’s prosperity. These days, many people are heading forward to purchase a used car instead of a new car because the prices are very high and most people cannot afford these prices.
In turn, many consumers said that their desire in buying new cars has decreased very much due to these new instructions issued by the Central Bank that force people to pay 20% of the car’s price as a down-payment which contributed to change many people’s opinions about this option. At the time someone said that the consumer is heading forward to use its credit card to provide the down-payment and according to someone else, the buyer can request some help from his friends by establishing a monthly financial cooperative to secure a down-payment. Khalil Mohammed Folazi, the chief of the directors’ board in the Central Bank mentioned that there are no pressures on the Central Bank from the traders and owners of automobile dealerships in the country to force it to modify the material contained in the new system of personal loans.
Sultan bin Nasser Al Suwaidi who is the governor of the Central Bank , , said during a meeting at the chamber of commerce and industry (DCCI) which included businessmen and traders in the United Arab Emirates that the 20% ratio is currently under study and he pointed out that there are 153 thousand cars’ loans currently in the state.
