More than half of car buyers in Dubai think they pay too much

DUBAI // More than half of new car buyers in the emirate say they paid too much for their vehicle, according to a survey by Dubai’s Department of Economic Development.

Many consumers also wanted more clarity on warranty and service policies, with a quarter of those questioned unhappy with the quality of service provided by car agencies.

The study found that 51 per cent of buyers felt the price tag for the vehicle they bought was unreasonable.

“Consumer behaviour in the cars sector has changed considerably during the last four years,” said Omar Bushahab, chief executive of Commercial Compliance and Consumer Protection at DED.

“A significant number of buyers are from the middle-income group and they are looking for high quality and cutting-edge technology along with competitive prices.

“Some of the car agencies are addressing these demands appropriately and the rating shows they are the ones that get the best outcomes.”

The survey received responses from 890 customers after obtaining services from the 10 leading car dealerships.

“The cars sector has a vast customer interface, given the high number of car owners in Dubai and the sector saw 20 per cent growth in 2013, as consumers across various segments had more to choose from in terms of models, pricing and special offers,” said Mr Bushahab.

“At the same time, consumers are also watching what they get for the price they pay.”

The results found that 41.3 per cent of consumers said there was a lack of clarity in policies on warranty and services.

The quality of car agencies in Dubai was also highlighted, with 23.7 per cent saying they were dissatisfied.

The DED is advising dealerships to re-evaluate prices, offer incentives and improve the quality of after-sales service as the best way to end complaints and encourage customer loyalty.

The figures reveal that 84 per cent of car buyers go back to the dealer for after-sales service.

Transparency in billing is also important, with 78 per cent reporting it is the key aspect for them and 74.9 per cent rating the service quality as good.

The DED survey was part of wider research into consumer and retailer opinions across six major industrial sectors.

It is part of the first-ever Consumer Friendliness Rating analysis to evaluate the main drivers of consumer behaviour.

The study seeks to understand the level of compliance to the Consumer Code of Rights stated in the Federal Law No 24 of 2006.

Companies that won outstanding customer approvals will be honoured in a ceremony hosted by DED.