YallaMotor Survey: Car Buyers' Intentions During the Pandemic

By: Anas Assaf

March 22,2021

3 min read

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Tags:

YallaMotor

car buyers

pandemic survey

automotive market trends

online car purchasing

GCC car market

Introduction

YallaMotor Report

YallaMotor, the largest automotive website in the region and part of Bayt.com, the leading job site in the Middle East, conducted a survey to gauge car buyers' purchasing intentions during the ongoing pandemic. With over 4,120 participants from across the Gulf Cooperation Council (GCC) countries, this survey sheds light on various aspects, including buyers' preferences for new versus used vehicles, factors influencing their purchasing decisions, and their openness to buying cars online.

Survey Results

Purchase Intentions

When discussing the timing of purchases, 48% of respondents indicated they are ready to buy a car within the next three months. This heightened appetite for purchasing can be attributed to increased confidence in the economy and attractive promotions from dealerships, including price reductions and service contracts.

Market Trends

Contrary to popular belief, 50% of survey participants stated they are leaning towards buying a new car, while only 30% reported searching for a used car. The remaining 20% see potential in purchasing a certified pre-owned vehicle. A comparison with last year's survey conducted at the onset of the pandemic reveals a significant shift, where only 20% planned to buy a new car, 70% intended to buy a used one, and 10% intended to purchase a certified pre-owned vehicle.

Expert Comments

Sami Ghazal, Chief Operating Officer at YallaMotor, stated: "While car dealers have already begun effectively adopting services like 360-degree virtual car showcases and online purchasing options, our findings aim to pinpoint the current state of the automotive industry and assist in steering it towards a revitalized and engaging plan."

Factors Influencing Purchase Decisions

Analyzing the factors that influence buyers' decisions to purchase a car, 65% of survey participants cited discounted prices as the primary motivator. In contrast, 17% indicated that attractive loan options would positively affect their purchasing decision, while 12% noted the impact of free services, and only 6% mentioned shared ownership options, such as long-term leasing, as their main incentive for acquiring a vehicle.

This also highlights substantial growth potential in car leasing within the region, as many car buyers remain unaware of its benefits. A leasing survey we conducted, with over 4,000 participants, revealed that more than 48% were unfamiliar with the advantages of long-term vehicle leasing compared to renting or buying.

Online Purchasing Trends

With the significant rise in online shopping and its associated convenience, over 50% of participants expressed their willingness to make a down payment to purchase a car online. However, only a small percentage (33%) feel comfortable paying the full amount and buying a car entirely online. The vast majority of buyers still prefer a hybrid or shared system, opting to pay part of the price online and then visit the dealership in person to complete the purchase.

Spending on Car Maintenance

Another interesting finding relates to the after-sales aspect of car ownership. While many believe that spending on car maintenance would decline due to economic uncertainty caused by the pandemic, the results revealed that over 77% of respondents continue to invest in their vehicles and maintain them regularly. In contrast, only a small percentage of those surveyed (23%) reported reducing non-essential expenditures, such as vehicle maintenance, in the GCC.