Ramadan is known for being a peaceful and quiet time of year. But it’s all go at car dealers as it’s the perfect time to buy a car. This year, with the holy month falling in the middle of summer, customers will be spoilt for choice.
“Traditionally, during Ramadan, the automobile sector is known for introducing or launching new promotions. It all comes with the spirit of Ramadan, the spirit of giving as known to the local culture,” says Salah Yamout, Director — Sales and Marketing, Arabian Automobiles. He says the company’s showrooms see high traffic in the first ten days of Ramadan as customers shop around to find out what’s on offer.
If you’re in the market for a new car, here’s a handy checklist for what to look for when trawling the dealerships.
How do you save money when buying a car during Ramadan?
While deals vary between garages, a quick scan of Dubai’s dealers revealed most were offering either a discount or a package deal including various extras such as service and maintenance or even roadside assistance and free registration.
Another option is a free upgrade to a higher specification model when you pay for basic or mid range. “Ramadan gives us an opportunity to engage with our customers in a different way,” says Suzan Kazzi, spokesperson for Toyota. “This year [we are] offering an exciting and generous upgrade offer across a wide range of sedan, sport and SUV vehicles. Depending on the model, this allows customers to upgrade the engine, model or specification of their chosen car at no extra cost.”
This could represent significant savings; as an example, a customer choosing a Land Cruiser 4.6L GXR for Dh243,000 will automatically be upgraded to a VXR model with a recommended selling price of Dh287,000.
Are service and maintenance packages worthwhile without a price discount on the car?
This one’s a definite yes, says Briton Alex Scott. “My wife and I generally change our cars once the warranty runs out and I try to time buying new cars with periods when I know I can get a good deal,” he says. “I specifically look for deals where I get a full five years’ service and maintenance included with the car, as well as the regular warranty, so I know I won’t have any costs associated with it for the next few years.”
Can you get interest-free or low-interest loans at this time?
You should be able to get a good deal on auto finance, says Tooran Asif, Head of Personal Banking, Mashreq. “Banks offer attractive pricing and benefits during this period to grab a larger [share] of the increased car sales,” he explains.
“Generally, banks in the UAE offer attractive rates and benefits and offer deferred instalment payments wherein you can take a loan now and start paying instalments from next year, or even have a payment holiday for a month.”
Can you get insurance free?
While free insurance appears to be a perk only a few garages are offering, it’s definitely worth asking if it can be included. With insurance premiums costing anywhere up to 5 per cent of the car’s value — or even more — a year’s free insurance could save you a fair chunk of money.
Are you buying the latest model, or one that will shortly be replaced?
Asif believes car dealers use special offers during Ramadan and summer to shift the last of their current or previous year’s stock. However, some feel this isn’t necessarily a bad thing. “If next year’s model isn’t that different, I don’t see why it matters that I’m buying this year’s car,” Scott says.
Asif says dealers are likely to go all out to offer good deals to tempt customers, so having this year’s model shouldn’t matter. “Deals include discounts on rack rates, free insurance, free registration, free maintenance and other freebies [plus] attractive buy-back offers,” he explains.
If offered, should you take a deal on deferred payment?
You’ll need to work out if taking a deferred payment option will actually cost you more in the long run, as chances are the bank or finance house won’t let you away without accruing interest in the months you’re not actually making any payment towards the loan.
“When I bought a car last year I was offered a few months’ deferment of my first loan instalment, but I could afford it from the day I bought the car, so I didn’t see any reason to pay extra interest when I didn’t need to.” says Kieran Clark, from Australia.
Any other extras to look for?
Some garages include certain options for free on special editions, such as the preselected package of extras Toyota is including with its limited-edition Corolla Platinum model throughout Ramadan. “These include two-tone leather seats, rear parking sensors, Bluetooth connectivity, 3M window tinting and a side mirror garnish, [to] allow customers to enjoy benefits normally only available on larger sedans,” says Kazzi.
