Kippreport’s top insights from the Digital Media ForumMarch 29, 2015 11:16
Toyota to offer low down payment deal, hopes to sell 7K units for Ramadan
Toyota, under the management of Al Futtaim Motors, has announced this Sunday that it will be offering a 'Unique Down Payment Solution' across all Toyota models, which it says is still under the Central Bank's guidelines.
July 31, 2011 12:34 by Precious de Leon
The payment solution sees a Corolla buyer, for example, pay as low as 999AED as down payment and a 999AED monthly payment for the next 24 months. The monthly payment and minimum down payment price range depends on the car model. The Central Bank has recently placed a regulation that required car buyers to pay a 20 percent down payment for any car purchase. Al Futtaim Motors MD Simon Frith says the 20 percent down payment has just been ‘disseminated’ across the 24-month payment scheme.
“The down payment solution is a financing option Al Futtaim wanted to do for customers to avoid customers having to use credit cards and personal loans just to secure the 20 percent down payment,” Al Futtaim Motors’ Manager – Sales Planning & Distribution Andrew Squires told Kipp. The National posted an article today about debt levels soaring due to exactly this behaviour.
Due to launch tomorrow, August 1, it is unclear how the new payment solution will be rolled out across the rest of the Toyota models.
Al Futtaim Motors is launching a Ramadan promotion for Toyota that will see one car buyer win one million Dirhams in cash during this Holy Month. During the month, all Toyota car buyers will also receive either an Apple iPod or Apple iPad for every car purchase–depending on the vehicle’s value.
Toyota currently enjoys 38+ percent market share in the UAE. The company is projecting sales of around 7000 units, this figure, Frith says, will bring the company’s market share up to 40 percent in the UAE.
Due to the tsunami earlier this year, the factories in Japan have not been to full capacity. It is at 95 percent production as of July and Toyota expects 100 percent capacity by November.