In Egypt, any car, especially a good one, comes at a high premium, so it’s important to do your research before you chose which one to purchase.
There are essential factors prospective car buyers should consider, and in Egypt’s rapidly expanding car market, you’re sure to find one that fits your criteria – but first do your research.
Choosing a car depends on your lifestyle. Drivers who live far away from their workplace, for example, will want to choose a compact car that saves on gas mileage. Residents of New Cairo should opt for a sedan equipped to deal with rougher terrain and higher temperatures.
One of the deciding factors is your budget, and the cost of the actual car is only part of the equation. The affordability of servicing, the cost and availability of spare parts, and annual taxes have to be factored in along with the sticker price.
Some cars, such as the Hyundai Matrix, which retails at around LE 90,000, is affordable, but its spare parts are imported from Turkey and come at a relatively high premium.
The Renault Megane poses a similar problem, with spare parts costing more than other cars in the same category.
The vehicle’s engine capacity is another factor in the long-term cost of owning the car, as taxes are determined by how much power a vehicle packs. For cars over 2,000 cc, such as the Mercedes E-Class, annual taxes are 2.5 percent of the car’s value with 10 percent depreciation over time. For the E-Class, which retails at LE 520,000, this would mean LE 15,000 in taxes during the first year alone.
After determining a budget, buyers should consider where to make their purchase. It’s best to buy from a brand’s local agent in Egypt. BMW’s Egyptian agent, for example, is Bavarian Auto. Local agents for different models can be found on the brand’s global website.
Buying from local agents is preferable to purchasing from a retailer because agents offer guarantees for servicing and provide a more direct link between the manufacturer and the buyer. Also, agents generally offer more competitive prices for the same models.
You should then look into local dealerships and agents that offer a high standard of service and reliability. Sophisticated service centers stock spare parts at reasonable prices and are staffed with reliable mechanics.
Another key point is the car’s resale value. Prospective buyers should look for a car with a high market trade, or resale potential. Cars with low market trade are generally lesser known brands, very expensive brands, and others with inefficient service centers or notorious technical problems.
Regardless of the car, the resale value depreciates 10 percent annually according to Egyptian tax laws, but purchasing the right car can ensure that depreciation doesn’t dip lower than that and that buyers will be readily available when it’s time to sell.
One final word, buyers beware of the car’s outward appearance: beauty won’t last, especially on Cairo’s streets.
To read the other stories in our monthly special focus on Egypt s auto sector, click here:
http://thedailynewsegypt.com/admin/article.aspx?ArticleID=23945
http://thedailynewsegypt.com/admin/article.aspx?ArticleID=23946
http://thedailynewsegypt.com/admin/article.aspx?ArticleID=23947
http://thedailynewsegypt.com/admin/article.aspx?ArticleID=23948
