Used Car Market Skyrockets in Egypt Amidst Growing Prices of New Ones

Amid a surge in new car prices primarily caused by inflation and the depreciation of the Egyptian pound, the used car market in Egypt is experiencing significant growth. Consumers, unable to keep up with the escalating prices, are turning to second-hand markets which offer a more affordable option. An Egyptian citizen, Mohammed Ashraf, stated that the current prices of new vehicles, which have almost tripled since 2022, have left him no choice but to go for used cars. He was initially planning on buying a new car but had to reconsider due to this sudden price hike. According to Osama Aboul-Magd, head of the Egyptian Automotive Dealers Association (EADA), the scarcity of new cars in the market, high inflation, and limited access to hard currency necessary for car import have all contributed to the increase in prices. Moreover, dealers are demanding overprices due to the shortage of new cars. This situation has led to a dramatic fall in new car sales in the country. Statistics released by the Automotive Marketing Information Council (AMIC) in Egypt reveal that new car sales plummeted by 69.88% year-on-year in the first half of 2023. Aboul-Magd stated that the impact of global economic shocks and local challenges on the car market in Egypt has led to this drastic fall in sales. Due to the difficult circumstances, the majority of Egyptian consumers opt for used cars over new ones, hence boosting the second-hand vehicle market. A local car dealer, Mostafa Hussien, confirmed that despite the rising costs of used cars, people continue to buy them due to the instability of the new car market. He maintains a steady business, selling his vehicles every week and witnessing hundreds of other cars sold as well.