Used goods get a thumbs-up
Joseph Alexander, formerly with the vehicle insurance sector, feels it makes sense for some expatriate consumers to go in for used cars because the loss will be minimal when they have to sell them.
“The depreciation rate is higher for vehicles, so the loss will be high on a higher investment.” He said it is easier for consumers to get loans on used cars and verify whether it had any accident before.
Ibrahim al Balushi wanted to buy a high-end luxury car and he found it easily through Olx within his budget. “I didn’t get the colour of my choice, but still it is fine as I could own a big car.” He, however, warned that not all sellers were honest and there may be attempts to hide some facts. “This is the risk we may have to take because even those selling new products may be not that honest.”
Home furniture is another popular product on social media. “The new ones are expensive and people want to change their home décor every three to four years,” said an executive at a furniture showroom. The affordable ones are of very poor quality and may not last even a year, he said.
According to the MarketWeek website, there will always be a strong second-hand market because people are looking at maximising their returns on income. It said the rise in the second-hand market is posing problems for those selling new goods.