Wednesday,20 February, 2019
Current issue | Issue 1357, (17 - 23 August 2017)
Wednesday,20 February, 2019
Issue 1357, (17 - 23 August 2017)

Ahram Weekly

Before you buy

Buying a new car in Egypt? You might be interested in the following, writes Mohamed Abdel-Razek

Before you buy
Before you buy

Abroad, getting yourself a ride is maybe equal to deciding what to eat for dinner.

In the US and Europe, traffic and registration laws are stable as well as the financial status of the automotive market. This, despite the approach of France and UK towards electric and hybrid cars which will decrease the demand on buying new and second hand internal combustion cars and make the idea of investing in them a bad one. But other than that, you know your needs. The cars are there for you to buy or rent.

In Egypt, though, it’s much more complicated. After the sharp fluctuations in the currency market and the jump in car prices, one common question from potential customers is whether the price reflects the real value of the car. There is also a follow up question: what about the return on investment? Nobody can predict the market’s future perfectly. Like when the majority of customers believe that when prices jump they never go back down; that’s simply not true.

The only real fact is the status of the customer who wants to own a car today. It’s up to him or to decide for what purpose they need a car and for how long, and that’s after setting a budget. Usually a new car will save more money as it will require minimal service in the first three years compared to a second hand car even if it is well maintained. Services are due even before the car is parked.

Do you have the patience to drive on bumpy roads and stay for hours in traffic jams and 10 to 20 minutes searching for a spot to park? If yes, then you should keep on reading. Financially, it might not be a good idea to invest in a car today, especially new ones. Remember, financially, thinking of different ways that can provide you with a car on demand as well as keeping your investment untouched is actually very obvious and easy. With interest rates over 20 per cent, you could put your car money in the bank and with the interest you can get a car from any car rental office which usually gives huge discounts on monthly and yearly rental programmes. This will provide you with a car 24/7. The only thing you will pay for is fuel; everything else from services to registration and insurance is prepaid and included in the rental fees. In the worst case scenario the value of the money in the bank will decrease, but if you actually own the car the same will happen with its value, even before adding the money spent on registration and maintenance.

If you just need a car during weekends, then you may try scheduling taxi rides to pick you up to and from work, and calculate your expenses. You may like to rent a car only on weekends.

The only possible convincing reason to buy a car today is that you want it, no matter the calculations. If you must regret something, it should be the time wasted reading this article.

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