JEDDAH: The head of the Car Showroom Group in Jeddah has said that the new bar on cash purchases of vehicles has almost completely halted sales over the past few days. Uwaidha Al-Kashi said the Ministry of Interior ban, which came into effect on Saturday, had effectively blocked sales of cars worth SR5 million. “Daily sales of cars through the 700 outlets at the showroom trading site in south Jeddah usually amount to over five million riyals,” Al-Kashi said. “I met with showroom owners and they said that sales had now almost entirely stopped.” He said that sales of cars rely heavily on cash purchases and that the decision to bar cash transactions took showrooms by surprise. “There are two main problems with the ruling. The first is that banks are not open during showroom trading hours (4.30 P.M. to 10 P.M.),” he said. “There is also a general lack of trust in checks, and a lot of elderly people or people from villages around the Jeddah region don't have bank accounts.” Al-Kashi said that the Showroom Group has written to all Saudi banks asking them to open branches in the afternoon and evening at the showroom trading estate. “Alinma Bank is the only one that has responded, and they requested that the office be given a location on the estate's busiest street near the main square,” he said. “We are still waiting for the authorities to approve the branch and then it will be opened.” A source at the Jeddah Traffic Department said that the Ministry of Interior ban on cash sales would help regulate the car market financially. “The department has asked showrooms to inform us of any negatives in the move and the best solutions,” he said.
