Dubai
There are ample reasons to envy a luxury car dealer in the UAE. Chances are whatever be the state of the broader automotive market, the premium car dealerships will still be meeting targets and even exceeding them ... without breaking into a sweat.
Based on such parameters, Arno Husselmann is doing singularly well. In recent years, Abu Dhabi Motors, has been rated the top dealership for Rolls-Royce worldwide and has gone about setting exacting benchmarks for the luxury carmaker’s hugely ambitious bespoke programme. In fact, Abu Dhabi Motors has been named Rolls’ bespoke ‘dealer of the year’ for five consecutive years. If that were not enough, Abu Dhabi Motors been selling quite a few Beemers too.
So, isn’t there any such thing as the occasional speed bump for luxury dealers in the UAE? “It’s a market where severe fluctuations are relatively short-lived,” said Husselmann, general manager at ADM. Typically, “The wealthy change their spending habits when there is a severe political upheaval that affect the stability of their country or when the stock market is offering extraordinary opportunities to realise steep gains or crashes occur causing a wait-and-see reaction.
“This lasts, by experience, for a short while and once the trend stabilises spending habits return to normal. The luxury market usually has fewer fluctuations since people with money normally have a source of funds even in difficult times. We have noticed — over many decades — that it is our entry-level models which are affected most in economic downturns.
“There are a number of substantial government investment projects underway bringing funds into the market and employment has risen sharply which is very visible. [It’s reflect] in our sales performances since there are more people moving in the market with money to spend.”
The one thing Husselmann won’t be doing is “dump stock with silly offers every month of the year, thereby creating a resale value problem”.
“Price stability is an important factor in protecting a car’s resale value ... it is important to remember every time a seasonal offer is made the trade recognises these measures and the car’s values are downgraded accordingly,” said Husselmann. “A BMW is worth the same money 365 days of the year.”
And there are other considerations that need to be factored in — “The new car price and used car values have a direct relation. If the new car price drops for whatever reason, so too will the used car value. Customers only discover these issues when wanting to trade in or sell their old car.
“We are proud when we see the Abu Dhabi Motors’ stainless steel plate on a BMW, MINI and Rolls-Royce on the road. It tells you immediately this car is a high option vehicle, not purchased on some resale value-destroying incentive.”
For this year, the dealership expects to raise BMW sales in Abu Dhabi and Al Ain by 40 per cent compared with the “global trend currently at 30 per cent”.
“Many more are noticing the revised X3, which is a top-seller globally for BMW; our sales growth with the X3 this year has been exemplary,” said Husselmann. “The 6 series is the prettiest in it’s class and is gaining momentum and the 5 series is maintaining it’s position the most sought-after premium car in the middle-executive class.”
Certainly, there is enough going on in the UAE’s luxury car space.
