• A rise in prices reduces demand for American used cars



    Difficulties in shipping delays the arrival of vehicles
    A rise in prices reduces demand for American used cars


     The US used cars import has decreased markedly since the beginning of this year, because several factors come on top of higher car prices and difficulties in shipping from the United States, according to investors who spoke for the ' economic '. Said Khamis Park, owner of one of the US auto import: import volume dropped up to 60 percent this year, due to rising prices for used cars in America by about 15 per cent. He said: ' cars in America were prices of up to 50 000, the price is currently about 60 000 '. He also referred to the difficulties faced by traders with American carriers, due to strong demand for steamers shipped cars. He said: ' this has to wait for freight cars over the month, while waiting in the past years, does not exceed 15 days '.
    Also noted difficulties in customs clearance at the port of Jeddah ' the pressure due to the lack of adequate warehousing '; also Park said that price reductions offered by the LFA American cars ' reduced significantly from price difference which outperforms by importers, whether in new or used vehicles '. He continued: ' this led to low demand for imports and the trend to more agents is due to low demand of importers '. Entrepreneurs and car showrooms facing difficulties with manufacturers led to a decrease in the volume of imports have also said Park. He said: ' the new policy in the LFA contracts with manufacturing companies led to the decline of import across institutions and galleries, because export companies but abstentions via local agents '.

    He continued: ' some companies raised prices to protect local agents, and some do not provide spare parts or maintenance of automobiles '. Khaled Alshaikhi said, who is also the owner of one of the institutions of American car imports, a decrease in the demand for import have the capacity by about 50 percent this year. He said: ' we import 50 cars per month, and finally dropped the number to 20 cars ', citing the high price of used American cars, and local agents in new car offers. He also referred to the conditions described as ' complex ' finally put on the import of second-hand cars imported from abroad, in addition to a significant delay in waiting ' extract from the port '.

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