Online car purchases might be the new norm, with 6 out of 10 car buyers in the GCC now considering to purchase a car online, according to the latest report by YallaMotor on the ‘COVID-19 Effects on Car Buyers’ Purchasing Decision’.
The report, which surveyed more than 1,200 car buyers across the GCC, highlights the perspective of car buyers in the region towards purchasing a vehicle, and aims to help guide the automotive sector towards their next plan of action amid the pandemic
. Car delivery services are on the rise, the report said. It also revealed that about 82 percent of GCC car buyers are now open to test driving a car at home, as long as vehicles have been sanitised, they have a sales consultant with them, and they can book the vehicle online.
Only 18 percent of the respondents were not willing to test drive a car at home. Also, about 56 percent of the car buyers said they are not willing to go to the showroom now to check the vehicle; which is a stark contrast to the previous survey conducted in 2019, which showed that 50 percent of the car buyers were willing to visit the showroom twice before purchasing a vehicle.
This brings a massive potential to online tools and alternative ways to engage with customers, the report added. While it is a known fact that car buyers are relatively pricesensitive, the COVID-19 situation has made that far more evident.
About 74 percent of the respondents answered that reducing prices will positively impact their decision to purchase a vehicle; 11 percent would prefer to see attractive loan options; 10 percent of the respondents also said they would prefer complementary financial assistance throughout the ownership cycle, such as insurance and servicing; while the remaining 5 percent will consider options with less commitment and monthly payments such as lease and co-ownership. Data from the report also showed a massive appetite for purchasing a used car.
Almost 7 out of 10 of the respondents have the intention of buying a second-hand car, while 2 out of 10 will still go for a new car, and 1 out of 10 respondents will consider a Certified Pre Owned vehicle.
When it comes to the time frame, majority of the car buyers will make their decision to purchase a car within three to six months (40.35%), while 39.19 percent will take up to three months to make their decision.
Previous results from the Car Buying Behaviour report conducted last year showed 64.59 percent of the car buyers stated they would make the decision in less than a month. According to the report, majority of car buyers who were in the market to purchase a vehicle have decided to hold their decision until there is more clarity on how the situation will be in the near future. About 65 percent said that due to COVID-19, their decision to purchase a vehicle has been affected. More resilient car buyers, a specific group of 35 percent, have said that the current situation has not affected their decision to purchase a vehicle.
YallaMotor General Manager Jorge Bialade said: “Uncertainty is the word we have been hearing lately in the automotive industry. For this purpose, we decided to shed some light on where car buyers stand, what they are expecting and how their purchasing cycle has changed. Another statement we heard a lot was ‘let us wait until things get back to normal’. Whatever we used to experience as the “norm” won’t be there anymore."
"The fact we might be able to go back to our offices, take a walk, participate in events, drive cars and walk into showrooms does not mean our purchasing behaviors won’t change. COVID-19 forced us to rethink the way we operate while slowly and almost without noticing it changed our behaviors. Although we are unsure how long this uncertainty will last, we hope that these initial results will help guide the automotive sector towards their next plan of action”.
