Increased Demand for Used Cars Amidst New Car Price Hikes
The Egyptian used car market has gained popularity recently, as new car prices have risen sharply since Q1 2022. Despite these trends, the used car market has witnessed a significant 30% price surge.
Drivers for the Shift to Used Cars
According to Ahmed El Hawary, a used car dealer, over 40 car models in the Egyptian market have experienced substantial price increases, along with an upsurge in the “overprice” phenomenon. These factors have steered Egyptians towards buying used cars instead of new ones.
The Impact of Supply and Demand on Prices
El Hawary highlighted the role of supply-demand dynamics in the price shifts seen in the used car market. Lack of supply and consumer tendencies to raise their car prices, bolstered by the new car shortage, have contributed to the upward trend.
Used Car Price Range and Popular Picks
Used car dealer Samir Ghazali noted that prices in the car market range from 10,000 to 950,000 Egyptian pounds. The price range that receives the most demand lies between 200,000 and 600,000 pounds, including models like the Hyundai Elantra and Kia Cerato. SUVs, such as Hyundai Tucson and Kia Sportage, are currently the most sought-after and sold car category.
Demand for Korean and Chinese Cars
Mohamed Noureddine, a dealer in the used car market, reported that Korean and Chinese cars are currently in high demand. Customers typically seek cars that have not exceeded 40,000 kilometers and are in excellent condition. This trend reflects the scarcity of new cars.
#Used Car Price Inflation
Noureddine also indicated a 30% surge in used car prices, while new cars continue to see significant weekly price hikes. The most sold cars are in the price bracket of 250,000 to 500,000 pounds, including Kia, Nissan Sunny, Chevrolet Optra, Toyota, MG, Hyundai, and Fiat.
Entrance Fee System in the New Used Car Market
The new used car market has seen a significant number of people wanting to sell their cars in the past few weeks. The market enforces a 1,500-pound fine if an entry fee card is lost, which must be taken into account by those intending to sell their cars in the market.
