Picture for illustration purposes only.
PHOTO BY ARCHIVE
DUBAI – New cars are more expensive in the UAE compared to other Gulf countries, and car prices are likely to be 20 percent more expensive in 2018, a member of the Federal National Council (FNC) said on Tuesday.
“People in the UAE are paying the highest prices for new cars compared to the GCC and many foreign countries,” said Saeed Saleh Al Rumaithi.
Al Rumaithi said that the implementation of value-added tax (VAT) by January would likely push car prices up 20 percent in 2018.
The FNC member proposed a fair value pricing system and profit margin car agencies across the country in an effort to stabilize local prices.
Sultan Bin Saeed Al Mansouri, Minister of Economy, said the proposal to set up a fair value pricing system for car agencies will be considered by the newly set-up car agencies committee.
Al Mansouri noted, however, that market competition is going to make it difficult for car agencies to hike up prices.
“Car agencies in the UAE make no more than 5 per cent profit margin,” he said.
“Competition has sent car prices nosediving since the middle of this year. Prices have decreased by 20 per cent since mid-August and they are expected to decrease further next year,” Al Mansouri said. DAJ/Expat Media
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