Al-Futtaim Automotive, the UAE's largest car distributor, has announced it is offering a free redundancy cover to customers amid the impact of job losses in the country.
The deal will be valid on purchases from all their volume brands in an effort to restore confidence to those currently delaying a vehicle purchase due to job security concerns. The group represents Toyota, Honda, Volvo, Chrysler, Jeep, Dodge as well as Automall, Al-Futtaim Automotive's pre-owned car division.
The redundancy cover, a first in the UAE, gives Al-Futtaim customers the reassurance of a payout of 15 percent of the invoice value of the vehicle in the event of them losing their job involuntarily. The customer is free to use this payout as they wish. For example, if the vehicle was purchased on finance, the payout can be used to continue to make their monthly payments while they find new employment.
Len Hunt, group director, Automotive, Al-Futtaim, said: "Whilst our sales have grown during the first quarter of this year, our research has shown that there are a still a significant number of customers who want to take advantage of our current strong offers but are holding off purchasing due to concerns about their job security."
Al-Futtaim Automotive's brands have seen positive sales growth over the last couple of months, helped by the company's partnership with several leading banks that has led to finance underwriting criteria being relaxed considerably since the beginning of the year. Under this partnership, Al-Futtaim Automotive now offers loans to those earning from AED3,000 per month, a return to situation before the change in economic climate.
"We are very positive about the future and we want our customers to share in this sentiment," added Hunt.