Will the 'default' effect the car market?

[root]

Dubai has made it to the headlines again..everywhere in the world except our own local newspapers!
I've got several calls from friends abroad asking whats happening...pretty funny situation.

Anyhow, how will this effect the car new and second-hand market? Will sentiments go bad again, and consumers more careful on spending money?

Also, the DP World payment delay already put many of the local banks on lowered rating, and maybe these will stop lending again, which had just started to trickle...this will effect the market for sure.

Will more jobs be lost?

The good news I guess is that Abu Dhabi is still firing on all engines, and should help keep the UAE economy up and running. At least lets hope so!

[T.N.T]

What 'default'?

[root]

ummm...better try reading some non-UAE news website and you'll know!

http://news.google.com/news/search?aq=f ... ai+default

The entire world stock markets have been rocked, and our local newspapers have not even mentioned it. So much for Gulf News, Khaleej Times and even The national.

[T.N.T]

I'm surprised that nobody knows about it thanks to the silent media.

[root]

I guess the new media laws!

Tomorrow will be an interesting day when UAE markets open! The stock market here is going to take a real beating. Hope no one owned any shares.

[Brembo]

they have not defaulted yet, just asking for an extension to pay back. whether they will be able to do that or not is open to speculation.
IF they do default, we will be going back to the situation 6 months ago (property prices crashing, more people leaving etc etc, car prices more or less the same unfortunately )

[root]

well, lets see what UAE Central bank and Abu Dhabi announce by tomorrow!

Well, if one does not pay on time, its called a default by most people.
The debatable question is whether its a corporate default or state/country default - many say the later given Dubai World is a govt owned company.

Lets hope all the best for all of us living here! We need the economy and business to start picking up.

[root]

The car market already is suffering from a number of factors:

- Expensive Yen is making all the popular Japanese brands beyond reach for many
- Expensive Euro is pushing up the European prices
- Job losses are still going on, and if the fall-out of Dubai World is bad, we will see more job losses, as Dubai World is a big part of our economy...Nakheel, Limitless, all their contractors, all their suppliers, all their bankers, all their consultants and the list goes on...

End of the day, everyone says its a sentiment thing, and although people have money, no one wants to spend. Once the sentiments start becoming positive, we might see a change.

Until then, lets hope that this downturn will make our local car dealers provide better customer service. Or am I just wishing for too much now

[rcvishwakarma]

There will be moratorium on Sale n Purchase of CARS.
Prices of Used Cars has already gone Down and will continue so for next 2 months only...
Major fall expected after the Default day 14 December >>>
No body is going to Purchase a New Car... NOW...

[root]

Well, I don't think the 14 december date has any significance anymore!

I wonder how the banks are reacting towards lending these days.