With fewer new car models available, buyers are looking to buy used cars instead of lying on waiting lists and there has been a huge increase in demand for car rentals.
Muscat: The unavailability of new car models at local car dealerships in the Sultanate of Oman has had a ripple effect in the form of a huge increase in car rental and used car business.
Global car sales and production figures have been hit hard due to the shortage of semiconductor chips.
With fewer new car models available, buyers are looking to buy used cars instead of lying on waiting lists and there has been a huge increase in demand for car rentals.
Also, with ever-longer waiting lists for new car models across the majority of brands, car owners are being forced to keep their older vehicles for longer periods of time.
The delay in the arrival of new models forced an Omani sales manager, Musallam Al Abri, working in a retail company, to search for cars on the second-hand market.
He said: “We just can’t get our hands on new models, so we’re looking for cars that have recently sold on the used market.”
The non-availability of new car models has also led to a surge in the used car market, with people selling cars at bargain prices.
Redha Dawood, who works as a salesman at a second-hand car store in Oman, said: “People who bought cars two years ago make money if they sell now. This is the right time to sell. »
Another used-car showroom executive said “shortages have forced a shift in dealer buying habits.”
“Major dealerships don’t have anything to sell, so they’re venturing into older car markets,” he said.
“It’s getting very competitive and used cars are expensive. We’re buying back the same cars we sold a year ago for the same price.
Car leasing companies have also recognized a shortage of cars available to them as most car rental contracts have been renewed.
One of the leasing company’s executives said: ‘We are running out of cars to lease to new customers. Previously, we had stock available to meet new customers. Today, most of our customers have renewed their rental offers. We certainly do better business due to the scarcity of new cars. »
Automotive experts said the production issues are sure to persist over the next few months and into 2023.
