Chairperson of the Egyptian Automotive Dealers Association, Osama Aboul Magd, has said that the used car market will face stagnation during the coming period.
There will also be a sharp drop in used car prices, in the wake of the Go Green Exhibition, Egypt’s first technology exhibition for converting and replacing old cars to run on clean energy.
Aboul Magd ruled out the possibility for the initiative to replace all cars, and called for making a list of luxury models that have been in use for 20 years or more to be exempted.
This would also cover vehicles that were not damaged by long-term use, such as those that with a mileage not exceeding 120,000km.
He demanded that loans designated for advance payment for new cars should stand at EGP 120,000, instead of the current EGP 60,000.
Aboul Magd said that the current amount of EGP 60,000 is the main factor that the Go Green Exhibition is limited to cars with an average price of EGP 300,000.
He praised, however, the repayment period of up to 10 years that has been set on loan instalments, with the loan also providing unprecedented interest of 3%.
Mahmoud Hammad, head of the used car sector at the Automotive Dealers Association, praised the government initiative to replace or convert cars, and the attempt to revitalise Egypt’s new car market.
Hammad called on the agents participating in the initiative to increase the production of new cars, due to the intense demand they will witness in the coming period.
He added that the user market includes about 7m cars, of which about one million vehicles that are over 20 years old are to be scrapped. The number of cars that are likely to be scrapped is set to increase on an annual basis.
