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Marina Andas
In general, car prices rose in the world and in Lebanon for several reasons, the first of which was the rise in the prices of metals that manufacture cars, secondly the impact of the Russian-Ukrainian war on this vital sector, and thirdly the beginning of the impact of the adoption of cars that run on electricity on the decline in the production of cars that run on gasoline and diesel.
Writer Valérie Collet explained to the French newspaper “Figaro” that the spread of the “Covid-19” virus prompted the authorities to restructure and close factories, and thus affected component manufacturers and the sites of manufacturers, who settled there to benefit from the largest car market in the world.
Emile Frey France Group, the leading automobile distributor in France, noted that the average price of new vehicles from 27 brands has risen by 15%, with a 13% increase for used vehicles, in less than 3 years.
The writer quoted Stephane Caldero, Managing Director of the Emile Frey France Group, as saying: Every 3 months we witness price increases of up to a few hundred euros, and manufacturers also pass on the cost increases of raw materials to car prices.
The author noted that within two years, the price of some types of cars increased by 12.4%, stressing that this trend will continue, as instead of sacrificing profit margins, manufacturers will pass on the cost increases to their customers.
How did the prices of new cars increase so dramatically in Lebanon?
The “contagion” of global high prices has spread to all countries that import cars from abroad, specifically to Lebanon.
Speaking to Al-Diyar, a Beirut showroom owner confirmed that new cars’ prices are rising for several reasons. Firstly, as a result of the war between Russia and Ukraine and consequently the high prices that occurred in the mother manufacturing country, secondly as a result of the rise in customs and thus the rise in the value of the dollar in exchange for the collapse of the national currency in Lebanon, and thirdly as a result of the rise in the cost and value of automobile equipment and its dollarisation, including tires, Vettes, motors, air conditioners, and others.
He says: All the cars that we import from abroad are new (i.e. from the main company) and their price is not less than 20, 30 and 40 thousand dollars, which is a price that the Lebanese citizen cannot understand, especially for those who receive their salary in dollars.
The banking crisis affected the selling process
Another points out that the main problem that exhibitions face is customer satisfaction. How will we satisfy the customer as long as the situation gets worse with the banks?
The dilemma is that the time for loans is over, and the Lebanese citizen can no longer pay the car in installments with the bank, by paying monthly installments.
As for the clients that the exhibition relies on, they are wealthy businessmen, most of whom are owners of companies abroad.
He pointed out that their first and last competitor are used cars.
Car prices continue to rise insanely in Lebanese markets despite the large supply and lack of demand. During the past few years, a significant number of citizens have resorted to buying used cars as a means of saving and saving money.
Prices of used cars range from $2,500 to approximately $6,000 if they are older than 2010, and also depending on the type of car.
As for 6-cylinder cars, their value decreased as a result of the lack of demand for them, due to the gasoline crisis. In contrast, the prices of used 4-cylinder cars have increased – relatively speaking – because their expenses are much lower than larger cars.
It seems that the trend of smuggling cars from Syria to Lebanon has returned to the forefront in a deliberate manner this time, specifically after the closure of the doors of Al-Nafia.
In any case, showrooms and owners of imported cars are complaining about the decline in sales activity, and there are those who are thinking of converting their showrooms into profitable car rental offices these days.
2023-09-17 21:00:18
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