With coronavirus lockdown and precautionary measures in place across the globe and the world economy in recession, buying a new car is probably not top of the priority list for most people.
However, car dealerships in the UAE are adapting to the physical distancing environment by rolling out virtual showrooms, home delivery test drives and pickup maintenance services. Now, with the start of Ramadan – a time when dealerships offer perks such as price reductions, zero financing and free maintenance – it could be an opportunity to encourage buyers to take advantage of current deals and spur the car market amid challenging times.
“This period of time will actually help consumers make a better decision. The market as well will throw out better offers … so it’s a great opportunity for the consumer to get a better deal,” says Jorge Bialade, the general manager of YallaMotor, a subsidiary of the Middle East jobs site Bayt.com.
A recent report from the car classifieds site found that Covid-19 has had several effects on GCC car buyers' purchasing decisions. Sixty per cent of 1,200 respondents said they would now consider buying a car online rather than visiting a showroom. More than 80 per cent said they would test drive a car at home, as long as the vehicle has been sanitised. Car buyers are also taking more time to make a purchase; 39 per cent said they would now take up to three months to decide, while 65 per cent last year said they only needed a month.
The good news for sellers is that reduced prices is the main factor influencing the decision to buy a car for 74 per cent of those polled. Attractive loan options are important for 11 per cent and complimentary services such as free insurance or a service contract for 10 per cent, the report found.
Although consumers may be hesitant to make big purchasing decisions in this time of uncertainty, Mr Bialade says people should look towards the future.
"The lockdown is not something that's going to last forever," he says. "We will eventually be going to the office, getting groceries, meeting our friends and so on and so forth."
Here is our round-up of the Ramadan car deals on offer:
Audi
The deal: For the first time, customers in certain regions in the Middle East have the option to fully purchase their Audi online. That includes Saudi Arabia and soon the UAE.
On select models, Audi Al Nabooda Automobiles in Dubai, Sharjah and Fujairah is offering: a 0 per cent finance rate for five years; a five-year or 105,000-kilometre service and maintenance package; five years of roadside assistance and three years' warranty and free registration. Note that the Audi A3 service and maintenance packages are valid for four years or 75,000km – whichever comes first.
Ali & Sons Audi in Abu Dhabi and Al Ain is offering five years' unlimited mileage warranty, a free service plan for five years or 75,000 kilometres, one year free registration and 0 per cent finance for up to five years, available on A4, A6 and A8 models only. On select models, customers can pay 10 per cent less upfront. Some models also include two years of smart repair insurance.
Valid until: end of Ramadan
BMW
The deal: AGMC, the official importer of BMW Group brands for Dubai, Sharjah and the Northern Emirates, rolled out special Ramadan packages from April 15. Its Premium Class Package includes a year of complimentary insurance and registration on BMW's range of 2020 models, such as the 220i Coupe, 530i Sedan and all variants of the 7 Series, X4, X6 and M8.
The Business Class Package adds on a 0 per cent finance rate for three years. The First Class Package tops up with a down payment contribution of up to 20 per cent and a service package upgrade for up to six years or 120,000km on BMW 520i, BMW 8 Series Gran Coupe, X5 and X7.
For the first time, for this year's Ramadan offer, AGMC has introduced protection against involuntary loss of employment for two years when financing cars with BMW Albatha Finance. If the customer becomes unemployed within the period of cover, either three months of instalments or up to Dh30,000 will be waived (whichever amount is lower).
AGMC's BMW digital showroom is available at: www.findyourbmw.ae.
Valid until: end of Eid celebrations
Ford and Lincoln
The deal: Al Tayer Motors and Premier Motors have over 300 pre-owned Ford and Lincoln models starting from Dh18,375 to choose from. All Dubai sales showrooms and service centres are closed with the exceptions of Sheikh Zayed Road and Al Barsha, while other emirates' centres are open as usual. Customers can also test drive from their doorstep.
The Ramadan offers include complimentary VAT, no down payment, and extendable service and warranty for up to seven years or 200,000km.
Valid until: end of Ramadan
Infiniti
The deal: Arabian Automobiles, the exclusive dealer for Infiniti, Nissan and Renault, in Dubai, Sharjah and the Northern Emirates is offering free pickup and drop-off, servicing and ozone treatment for cars to ensure "peace of mind". Customers can also schedule video chats with sales representatives to have their questions answered.
For Infiniti cars, customers will have their down payment waived, free insurance and registration for one year, a three-year or 60,000km free service, and five years of unlimited mileage warranty.
Valid until: end of Ramadan
Lotus
The deal: Adamas Motors, which has a Lotus showroom in Dubai and opened its second in Abu Dhabi a year ago, has rolled out its Ramadan 2020 Countdown Promotion. The luxury car starts at Dh359,000. The offer includes: a five-year warranty, a four-year service plan, two years of free registration and one year of free insurance. Financing starts from Dh3,373 a month based on a 50 per cent deposit with a five-year payment plan and 2.59 per cent finance rate.
Valid until: end of Ramadan
Mini
The deal: AGMC has introduced four packages with names of popular Ramadan sweets across the Mini range. The Umm Ali package includes one year of free registration and insurance, as well as four years of 0 per cent finance, on 2020 models.
The Kunafa package does not include insurance, but has the added benefits of a service package for either four years or 80,000km and a repair package for four years or 200,000km.
The Baklava package includes a 0 per cent finance rate for five years and one year of free registration.
Finally, the Luqaimat package includes one year of free insurance and registration, a free service package for either five years or 100,000km, and a free repair package for either five years or 200,000km.
Leasing packages with monthly instalments of Dh1,495 include protection against involuntary loss of employment.
AGMC's Mini digital showroom is available at: www.findyourmini.ae.
Valid until: end of Eid celebrations
Nissan
The deal: Valid on all 2020 models, including the new Patrol, the Ramadan offer includes one year of free insurance and registration and three years of maintenance, cashback and down payment support.
Valid until: end of Ramadan
Peugeot
The deal: Peugeot rolled out its valet service programme on April 12 for customers in Dubai and the Northern Emirates. Rakesh Nair, managing director at French car manufacturer Groupe PSA in the GCC, said Peugeot is focused on "helping customers navigate this different time".
The Ramadan offers include: free servicing for five years or 200,000km; a warranty for five years or 200,000km; free registration; five years of roadside assistance and a Ramadan gift. The offers apply to select models, such as the 308 hatchback, the 3008 and 5008 SUV range, and the 508 fastback sedan.
Valid until: June 7
Renault
The deal: Arabian Automobiles customers in Dubai, Sharjah and the Northern Emirates have a choice of three offers. They can either pick deferred payments until 2021; one year of free insurance and servicing and a five-year extended warranty or 0 per cent interest for four years.
Al Masaood customers in Abu Dhabi can take advantage of the "5 Decades, 5 Reasons to Buy a Renault" Ramadan promotion. The five reasons are: savings of up to Dh50,000; a 50,000km free service package; a five-year or unlimited-mileage warranty; free insurance and free VAT. Other current offers include four months of deferred payments and five years of roadside assistance.
Valid until: end of Ramadan
Toyota
The deal: Al Futtaim, the exclusive distributor of Toyota cars in the UAE, is offering a four-year service contract and free registration for one year. It is also covering the costs of fuel for a full year with Cafu's home-fuelling service. An added bonus is an online Ramadan shopping card worth Dh1,500. In another sign of the times, its three-year insurance policy includes involuntary job loss protection. In the case of job loss, six months of instalments to a maximum of Dh20,000 will be covered.
Valid until: end of May
Volvo
The deal: Trading Enterprises, which sells Volvo cars, as well as Chrysler, Dodge, Ram and Jeep, has a range of offers on its website. Perks include three months of deferred payments, a three-year or unlimited-kilometre warranty, three years of free servicing, free insurance for the first year and a trade-in bonus.
Valid until: June 30
Volkswagen
The deal: Volkswagen has special Ramadan prices and offers available on its e-showrooms in Abu Dhabi and Dubai. For example, the Passat starts from Dh1,450 per month with one year of free insurance and registration, five years of free roadside assistance and warranty, and free servicing for seven years or 105,000 kilometres – whichever comes first.
Valid until: while stocks last
