Government initiatives to support taxi drivers, concentration of banks on consumer financing, increased supply of fuel efficient and affordable cars have contributed to the growth of car finance market in Egypt.
Egyptian financial services system is less developed in comparison to other countries. Awareness of the availability of financing options among the local inhabitants is minimal.New Car Sales in Egypt,Used Car Sales in Egypt,Car Loan Brand New Market,Cairo Average Loan Rate,Passenger and Commercial Vehicles Sales in Egypt,Auto Loans Terms and Conditions in Egypt Financial inclusion is not practiced within the country. Financing market is dominated by the state-owned banks that held a share of nearly 3/4th of the market in 2016 as against the private banks. They lag in efficiency as well as in terms of financial intermediation in comparison with the private banks that concentrates only in urban areas, due to which dealership financing has a significant importance in car financing in Egypt.
The business of car rental between individuals and for business purpose is emerging and becoming increasingly popular in the country. While the car rental market of the country is still fragmented, the new internet based players like Uber and Careem are gaining popularity. These companies offer a high quality service, with cars usually being more modern and drivers more presentable compared with regular taxis, even though prices are typically the same or even lower. Owing to this the demand for car rental options from both retail and business clients are increasing. It is expected to increase the demand for commercial cars in the country thereby raising the demand for car finance. In Cairo, car is regarded as a key to comfortable urban mobility. Since purchasing a car in Egypt is expensive, people have regularly turned to Egypt’s rental car market.
Buying and selling of cars online is gradually gaining importance in the country. People have started turning to online shopping for cars. Online players such as Egypt carshop, Hatla2ee and others provide the convenience of comparing the prices of different models to the customers. More customers are searching for a suitable car and a suitable financing product online instead of physically visiting the dealer.
The report titled “Egypt Car Finance Market Outlook to 2021 – Stringent Regulations to Introduce Innovative Measures to Determine Credit Worthiness” by Ken Research suggested a positive CAGR in terms of credit disbursed in car finance market in the next 5 years till 2021. During the forecast period 2016-2021, the car finance market in Egypt is expected to display a decent growth at a CAGR of 3.8%. The rise in the price of new cars is expected to raise the price for used cars but at a comparatively lesser rate.New Car Sales in Egypt,Used Car Sales in Egypt,Car Loan Brand New Market,Cairo Average Loan Rate,Passenger and Commercial Vehicles Sales in Egypt,Auto Loans Terms and Conditions in Egypt . The demand for used cars is expected to augment amid the price hikes as the customers are expected to make the purchase as soon as possible expecting a further rise in the price.
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