Hot Wheels

W ith prices skyrocketing since the November 2016 pound flotation and subsequent slashing of fuel subsidies, scooters and motorbikes are becoming an attractive alternative to buying a car. Automotive companies too are feeling the pinch and also looking for a way out, particularly with expectations that sales will drop after the Egyptian Central Bank raised interest rates by 200 basis points in July. In the past months companies have launched a number of discount campaigns and begun to push their used car segment options, offering customers good quality vehicles at affordable prices.

Last month, GB Auto CEO Raouf Ghabbour told Reuters that “consumer demand for two and three-wheel vehicles, such as bikes, tuk-tuks, tricycles and motorbikes, has rebounded in June and July to pre-float levels, while demand for cars has edged up to 70% of what it was before the float.” According to Reuters, GB Auto “reported a loss of LE 150.9 million in the second quarter of the 2017 calendar year.”

Today, many middle-income Egyptians are either carpooling, limiting their trips to cut back on fuel costs or are considering buying cheaper models. Mechanical engineer Hashem El Alfy, 38, had plans on buying a new Nissan car at the beginning of 2017, but then decided to postpone the step because of the price hikes. El Alfy is now forced to look at lower-category alternatives, such as Korean or Chinese models. “The thing is, we are talking about double or triple the price compared to the past couple of months, the car that used to cost LE 100,000 last November today costs not less than LE 170,000,” he adds. Other people are looking at used cars or purchasing new ones through bank loans, which many banks offer with a period up to five years, financing up to 100% of the car’s value.

Companies such as Chevrolet and Brilliance have launched discount campaigns with the aim of attracting more customers after sales fell drastically in the first quarter of 2017 (42-48%). Today, the most affordable cars in Egypt start at LE 140,000 (Suzuki Alto) followed by the Hyundai Verna (LE 150,000), Geely Emgrand 7 (LE 156,00), Fiat Panda (LE 170,000) and Renault Logan (LE 180,000).

Buyers, focused on buying a car that is suitable for their budget, often tend to forget about its safety features, cautions celebrity TV presenter Tamer Bashir. The racer is currently working on a new road safety campaign with the government targeting youth, and explains that “because of the price hikes Egypt is facing today people are actually more likely to take care of their cars than before. If you have an accident you know that it will cost you an arm and a leg to fix the damage and, most probably, you will not be able to buy a new car.” Bashir stresses that no matter how much a car is termed “safe” and has gone through European or American safety tests, it is all about the driver’s behavior and how he takes care of his car and himself. “Basic tips include sitting correctly, wearing seatbelts, stowing any bags in the car’s trunk, making sure kids are sitting in a proper child seat in the backseat,” he says.

One of the first features people should look for when buying a car is the category of the safety tests conducted on the car. “Chinese safety tests equal one star compared to European or American tests. Generally speaking, all cars nowadays include ABS and airbags, but one should look at the whole safety package. Also, I am totally against people locking their car’s airbags—they are there for the passenger’s protection,” Bashir adds.

The pre-loved market
Another option for Alfy would be buying the same model he had his eyes upon, but pre-owned. According to Sherif El Masry, a car enthusiast and electrical engineer who has worked with Volkswagen Germany, the used market car in Egypt is expanding. “Ghabour for instance has recently launched Fabrika Corporate, Egypt’s first pre-owned car network, where people can sell or buy used cars “ensuring a fair assessment and price with a 1 year warranty.”

El Masry explains that seeking car companies who sell used cars is “better than looking for a pre-owned car by yourself because the companies usually provide a full report on the car’s condition.” Moreover, most people nowadays usually seek car companies or specialized people to assess any used car before taking the decision to buy it. However if someone is interested in buying a pre-owned car he or she should pay attention to some aspects.” he adds.

Pre-owned cars can be tricky, however, because you can’t tell what’s under that hood with a simple inspection. El Masry advises buyers to thoroughly check the motor’s condition for any damage, leaks or rust and make sure that the engine’s fluid is pink or red in color. He adds that checking all the belts and hoses as well as the car’s chassis and traction control system are key when buying a pre-owned car.

Motorbikes: A trendy and affordable alternative?
Sadly, Egypt has one of the highest records of car accidents in the world, principally due to reckless motorist behavior. That culture of unsafe driving is costing the country dearly—to the tune of LE 30.2 billion this past year, with that number projected to rise to LE 105 billion by 2030, according to a WHO Global Status Report on Road Safety in Egypt. One alternative that is not only cheaper, but also guzzles less fuel is scooters and motorbikes.

Scooter prices today range between LE 15,000 to LE 70,000, making them an affordable and practical alternative to cars. “Because of their cheaper cost and lower fuel consumption, people have the option to buy more safety-tested, high-category brands,” says Mohamed El Sayed, a biker and member of Alexandria’s Scooters Riding Club. He stresses that even though some might look at motorbikes as impractical or “only for fun,” particularly those who prefer more comfortable surroundings, especially given Egypt’s weather conditions, bikes do save time and are a joy to ride. “Even if the weather is terribly hot, you will have the plus of passing through all of the cars stuck in traffic and losing time and money,” he says.

El Sayed has depended on his scooter to get him through the coastal city’s long traffic jams. “Bikes are fun and also a good investment,” he explains. El Sayed’s initial interest in riding was mainly for fun and pleasure, but after the fuel price hikes and traffic congestion, his bike became the number one option to travel through Alexandria’s corniche and the congested back streets. “Driving my car was not even an option, particularly during the construction of new projects on the Corniche in Sidi Gaber. The corniche was a road to hell and my bike was the most convenient way to travel through the inescapable traffic,” El Sayed adds.

Whizzing through traffic isn’t the only perk of being on a bike; as both a driver and a rider, El Sayed knows how economic his SYM scooter is compared to his Toyota car. “My scooter usually costs me [in fuel] only a quarter of what my car costs,” he explains.

“Roughly speaking, you are comparing four cylinders in cars to one cylinder in bikes or scooters. The average car is usually 1,200-1,500cc, a scooter ranges between 200cc and 400cc. One liter of gas in a scooter makes around 35 kilometers while seven liters of gas in a car makes about 20-25 kilometers.” That means that a scooter saves up to 80% in fuel every month. In terms of maintenance, El Sayed explains that things like changing oil, for instance, cost far more in a car because it is bigger in size. “If you are parked in a garage, it costs you an average of LE 500 to LE 600 a month; a scooter will cost you LE 150 a month,” El Sayed adds.

But one common concern when it comes to scooters and bikes is safety. Tarek El Kady, a car and scooter enthusiast and former member of the Cairo Bikers Club (CBC) believes the key to safety on bikes is making sure you are a good rider before you hit the road and that your bike is in good shape and regularly maintained.

El Sayed stresses that on Egyptian streets, one must be extra cautious of anything that might unexpectedly turn things around. “Particularly if you are riding a scooter or a motorbike, [it’s not like driving because you] are still inside your car and it is more of a shield, but on a motorbike, it’s just you and the air.”

General safety tips include sticking to the bike’s maintenance schedule, staying alert and keeping an adequate space between the bike and other vehicles (double the space between cars). Following defensive driving skills, El Sayed explains the golden rule of staying safe while riding is to always remain visible. “The rider must always be visible to other vehicles around him, particularly at night,” El Sayed explains. “Egyptian streets are full of bumps and other weird stuff, when cars slow down to take a bump, some bikers automatically follow the path of the car in front of them which is totally wrong because the bike will not react in the same way the car reacted with the bump. The best way to deal with street bumps is to always stay on one of the sides of the car in front of you, to avoid any clashes.”