New era in car buying: buyers in driver's seat

Dubai: With zero per cent interest for the first year, zero per cent down payment and low-interest financing, buying a car in the UAE has never been easier, thanks to new schemes unveiled by dealerships aching to recover from the recent slump.

Back from their post-tsunami woes, Japanese dealerships today are leading the pack with easy-on-the-pocket offers.

For instance, Toyota-Al Futtaim has offered inclusion of the 20 per cent down payment mandated by the UAE Central Bank since May 1 in the monthly instalments.

Until recently, car dealers were in despair due to a slump in demand as few people were able to raise the down payment upfront.

Now, a customer can drive away a Dh100,000 4x4 vehicle by shelling out Dh1,599 in down payment and paying the same amount for the next 24 months. He can either choose to either return the car at the end of two years and drive a new one or pay the rest of the amount at a pre-agreed price. "Yes, that's all (Dh1,599) the down payment a customer needs to give to drive away a RAV4," said Simon Frith, Managing Director,

Al-Futtaim Motors. "We've simply made it possible for our customers to avoid a big cash outlay at the front end of it, yet stay within the Central Bank guidelines."

For a car like Toyota's best-selling Corolla, a buyer simply puts in Dh999 down payment, followed by Dh999 over 24 months under the "Choices" scheme, rolled out in May. Frith hopes this scheme will account for 25 per cent of 2011 sales, while the deposit-solution would give it a further boost.

"I'd like to think this is a new chapter in car financing, but what we've done is to simply respond to what our customers had been telling us," said Frith, adding Al Futtaim is not far short of the pre-tsunami target of 100,000 unit sales in the UAE "even now".

Cash prize

This Ramadan, Toyota is giving a cash prize of Dh1 million to a lucky car buyer, in addition to an Apple product with every unit.

Not to be outdone, other dealerships have announced aggressive Ramadan discounts and promotions to boost sagging sales.

Arabian Automobiles are offering Infiniti cars at zero interest for the first year and zero instalment for the first six months, though that's subject to bank approval.

Auto loans from Al Nabooda start from 1.99 per cent interest for Audis and 3.39 per cent for Volkswagens, while Al Habtoor, UAE's Mitsubishi dealership, offers a 3.5 per cent interest on new car purchases.

Local car dealers feared the 20 per cent deposit mandated by the Central Bank could dampen demand, but it turned out this fear was premature.

"There's no doubt that when it was announced, our sales were reduced. And we've had post-tsunami issues in Japan," said Frith.

Other dealers said that since customers didn't really understand what was going on, many decided not to buy until they are fully conversant with the new rules.

Nissan's "Freedom" offer now allows buyers here to make a 10 per cent deposit in cash or credit card, and the other 10 per cent in six post-dated cheques interest-free. "Our sales were stalled briefly after the new rules, but since then, we're back to normal," said a Nissan salesman. "The rest of 2011 is a recovery period, barring any natural calamities."

Source: Gulf News Xpress

Peso breaks into 41-to-$1 territory

MANILA, Philippines - The peso climbed yesterday to its strongest level in 39 months, breaching the P41 to $1 level, as investors cheered the announcement by US President Barack Obama about the end of the debt deadlock that could have triggered a default and a downgrade of the triple A credit rating of the US.

The peso gained 21.5 centavos to P41.925 yesterday from Friday's closing of P42.140.

The local currency hit an intra-day high of P41.90 as volume was heavy at $899.3 million from $844.87 million last Friday.

This was the highest level for the peso since closing at P41.87 on April 21, 2008.

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said in an interview that the foreign exchange market would remain volatile not only because of developments in the US but in Europe as well.

"The peso has breached the 42-to-the-dollar level. It's trading at P41.925 so it has even appreciated given the problems not only in the US but also in Europe," Tetangco stressed.

He pointed out that the exchange rate is being affected by positive sentiments with respect to the Philippines, together with the other emerging markets, of continued economic growth that is faster than the advanced economies.

"In terms of the foreign exchange market, I think that what's going to happen is there could be some volatility in the exchange rate. No one really knows how this problem is going to affect financial markets around the world," he added.

The BSP chief also cited the general weakness of the US dollar leading to strong foreign capital inflows into emerging markets including the Philippines.

"Our interest rate is still higher than interest rate in advanced economies and general dollar weakness. So I think if one looks at the data we'll see that foreign inflows, capital inflows, have continued even with this problem in the US and in Europe," Tetangco said.

Leaders of the clashing Democrats and Republicans in the US chose to end debates that could have pushed the US Congress to a debt default. The agreement that would cut about $1 trillion in spending over the next 10 years must be ratified by both the Senate and the House of Representatives.

Tetangco added that the performance of the equities market would depend on what's happening in the real sector profits.

"Again there may be some volatility but we don't foresee a collapse or significant drop in either the equities or the foreign exchange market." he said.

The Philippine Stock Exchange index (PSEi) closed at a new record level of 4,550.53 yesterday, up 46.90 points or 1.04 percent.

Year-to-date, the PSEi has gained 8.32 percent or 349.39 points.

Source: Philstar

Etisalat waives annual renewal fees for prepaid mobile service

Move expected to challenge rival du's dominance in client acquisition

Dubai: For the first time since its formation 35 years ago, UAE mobile phone service provider etisalat will no longer demand annual service renewal fees from its subscribers.

Etisalat yesterday texted many of its 7.76 million mobile subscribers informing them that the waiving of the annual Wasel fee is a "special gift from etisalat on the occasion of Ramadan".

Effective August 1, mobile users with Wasel prepaid cards will enjoy what Etisalat calls "free lifetime validity."

The move eliminates the Dh50 yearly renewal fee for current Wasel phone card holders. New subscribers will still pay the Dh75 initiation fee.

 

Hasan Sandila, telecommunications analyst with IDC Middle East, Turkey and Africa, said the move will help etisalat remain competitive.

Strategic step

"This is surely a good news for etisalat's prepaid subscribers in the UAE as they do not have to pay the annual subscription charge anymore. In short, this announcement could be a strategic step to counter du's dominance in prepaid subscriber acquisition over the last couple of years," Sandila told Gulf News.

"Etisalat obviously becomes more attractive to consumers than it was before this announcement was made, because du still demands the annual renewal fee of Dh55.

"However, the key selling proposition of du's prepaid SIM cards is per second billing and hence consumers will weigh the costs and benefits based on their usage and then choose an operator rather than just considering the renewal costs," Sandila said.

The new strategy could bolster subscriber numbers as du witnesses a climb in new mobile customers .

Around 272,000 customers joined du in the first quarter of 2011 and revenues jumped by 29 per cent year-on-year to Dh2 billion from Dh1.5 billion in the first quarter of 2010.

"This step can indirectly be considered as a decline in etisalat's mobile tariffs, and could result in more prepaid subscribers for etisalat by virtue of inverse proportion," said Sandila. "This waiver of annual fees also provides etisalat with an opportunity to market their prepaid offerings in combination with their strong network coverage to further strengthen their market presence."

Strategic move

In a statement issued yesterday, Matthew Willsher, chief marketing officer at etisalat, said the latest move by the company will save customers money. "The free lifetime validity benefit helps customers maintain their Wasel connections for life, and saves them recurring costs."

New Wasel cards come with pre-installed lifetime validity.

Source: Gulf News

Ramadan alert: Top 5 scams to watch out for

If you haven't been a victim of a parking lot scam yet - count yourself lucky. Parking lots have become the favourite haunt of scamsters looking to con the gullible. XPRESS picks out the top five rip-offs you may come across during Ramadan and provides tips on how to spot and avoid them

1) CUT ABOVE THE REST

As you turn on the ignition, a bedraggled looking man taps on your car window. As you roll down, he thrusts his arm in your face, showing an infected open wound. The man tells you he got injured at his work place and asks for help. To make his story even more believable he pulls out a doctor's prescription. But you don't want to see it. You're already cringing in horror and want to throw up. You want him to go away so you quickly dig into your pocket and hand him some money.

GOING ON SINCE:

Around four-five years with some variations. Instead of the burnt/ bandaged arm ruse, some con artists cash in on your emotions by pulling open their shirt to reveal an IV bag taped to their abdomen with needles et al.

AREA OF OPERATION:

Sandy parking lots in Dubai and Sharjah. Cases have been reported from Ajman and Abu Dhabi too.

TOP TIP:

Unless you don't care where your money is going, don't hand it over. Offer to take the man to a doctor or hospital for treatment or pretend to call the police and see how fast your 'sick' patient takes to his heels.

2) SUIT YOURSELF, SIR

A well-dressed European asks you for directions. He claims he's an Italian designer who's in town for a garment exhibition and has some Armani or Gucci designer suits left over. They cost a fortune, but he offers to sell them at Dh200 apiece, sometimes even less as he's in a hurry to fly back. He'll even show you a passport, plane ticket (probably fakes) to prove his identity. The suits are cheap counterfeits, of course. But then, if you're buying out of a trunk of a car you can't expect anything better, can you?

GOING ON SINCE:

For at least six years with some variations.

AREA OF OPERATION:

Mostly around Bur Dubai and Deira.

TOP TIP:

Trust your instincts. If the price is too good to be true, it probably isn't.

3) THE LONGRIDERS

A car with an Oman registration flags you down. Before you can say 'MUSCAT', the driver points at his co-passengers – invariably a woman and a child – and tells you his sob story. It goes like this: His car has broken down and he has spent whatever money he had to get it fixed. Now he's left with no money for petrol and, in some cases, baby formula food. So, could you lend him Dh50? A stranded family in distress. You'd have to have a heart of stone to refuse to help. Your overwhelming urge to do a good deed in Ramadan gets the better of you and you fork out the money, not realising that you've been duped. On a good day, the 'stranded' couple make a cool Dh500.

GOING ON SINCE:

For as long as one can remember.

AREA OF OPERATION:

All over the UAE .

TOP TIP:

Beware the pull on your heart strings. It's your purse-strings that are being reached for.

4) THE VOLUNTARY CAR MECHANICS

Your car is not starting or you have a flat tyre. As you struggle with the ignition/jack, a man appears out of the blue. He says he's a mechanic and offers to fix the car – of course for a certain fee. For all you know, it may be he who tampered with your car in the first place so he could offer to fix it and charge you later.

GOING ON SINCE:

Two-three years

AREA OF OPERATION:

Parking lots near commercial establishments

TOP TIP:

It's too much of a coincidence that a 'mechanic' happens to be around when your car breaks down. Contact a mechanic or seek the help of someone you can trust.

5) ON A WING AND A PRAYER

You're about to step into your car when a man approaches you and offers his greetings. As you jog your memory trying to remember if you've met the smiling stranger before, he engages you in conversation by telling you 'astoundingly accurate' things about your past life. It's things you want to hear: "You're self-made" and how "you defied odds to be what you are."

Sprinkled in the conversation will be generic information and references to common things like "your recurring headaches/stomach cramps" or the "scheming colleague at work." Towards the end of the reading, the man will tell you he's a psychic fakir who has noticed a dark energy around you. He can rid you of it if you cough up some money to feed the pigeons at the pilgrimage centre where he's going later this year.

GOING ON SINCE:

Early 2010 with some variations.

AREA OF OPERATION:

Rolla, Al Yarmouk in Sharjah

TOP TIP:

Since the con artist doesn't ask for money up front, you don't mind entertaining him. That's your first step to being duped. It's hard to refuse them money when you are with your wife who is concerned for you having heard the man's prophecy. The best way out is not to entertain him at all.

Source: Gulfnews Xpress

Ramadan etiquette for non-Muslims

Since Ramadan is a time of piety and high religious consciousness, it would be considerate for non-Muslims to adapt their lifestyle during the month as well.

Here are a few tips to follow during Ramadan: 

• Eating and drinking in public is banned across the UAE during Ramadan, and strict penalties are levied on those who break the rule. Most eateries are closed during the day for the month, but some restaurants do offer delivery services.
   
  
• Avoid eating or drinking in front of colleagues who are observing sawn or fasting in office.
   
  
• Do not get into arguments with those who are fasting; be patient and show consideration for the long hours of fasting.
   
  
• Dress and behave modestly, avoiding animated behaviour that could cause offence.
   
  
• Try to understand Ramadan better by involving yourself in the spirit of the month. Saying 'Ramadan Kareem' to Muslims and attending a fast-breaking feast, or iftar, would be appreciated by most Muslims.
   
  
• Do not play live music as it is banned through the month.
   
  
• Shopping malls and supermarkets are expected to be open late at night.
   
  
• Since cultural consciousness is also high during the month, Ramadan can be a good time to connect with the local and Muslim cultural scene by attending the various events, as well as trying local and regional cuisine that is popular during the month of fasting.
   
  
• Arabic speaking non-Muslims wishing to learn more about the region and its people will notice that Arabic television channels change their programming to a new schedule dedicated for Ramadan, when some of the most popular celebrities in the Arab world feature in some of the most-watched soap operas, historic series, as well as religious, cultural and musical shows.
  
  

Source: Gulf News 

All you need to know about Ramadan

Here is all you need to know about Ramadan, the ninth month of the Islamic calendar.

What is Ramadan?

The ninth month of the Islamic calendar, Ramadan, is one of the most important periods in the Muslim year. It is a time of spiritual awakening, self-evaluation and remembrance of Allah, which Muslims observe through fasting and prayer. Ramadan teaches Muslims self-discipline, humility and giving. Charity is a significant part of Ramadan and Muslims are expected to help the needy.

For more than a billion Muslims around the world, it is a time for devotion to God and self-restraint, when communal nightly prayers are conducted and the basic teachings of Islam are emphasised and Ummah (Islamic nation) consciousness is heightened.

When does Ramadan fall?

Article continues below

Ramadan falls 11 days earlier each year on the Gregorian calendar and the duration of the fast changes depending on which season the month falls in.

The start of Ramadan, as that of all Islamic months, is based on the sighting of the new moon, the hilal, which is why the crescent is often used as an unofficial symbol of the month. The moon sighting is also the reason that the start of Ramadan differs from one country to another, but many opt to follow Saudi Arabian sightings to be able to mark the days together.

Who is required to fast?

As one of the five pillars of Islam, fasting during Ramadan, which is considered one of the highest forms of worship, is obligatory for those Muslims past the age of puberty who are mentally and physically fit and not travelling, as long as it does not cause them physical or mental harm.

Those who cannot fast during Ramadan, owing to health or other reasons, may fast in other months, or feed the poor.

What exactly is required?

During a Ramadan fast, Muslims abstain from food, drink and sexual activity from dawn till dusk. A fast consists of a true and verbal intention that must be recited, as well as a package of dos and don'ts which are specifically emphasised during the month.

Fasting, or sawm (literally refrain), did not become obligatory until 624 AD. It is an opportunity to cleanse the body and mind and promote the principle of sincerity by keeping the individual away from arrogance.

Among the greatest benefits is the lesson in self-restraint and discipline that could be carried forward to other aspects of a person's life, such as work and education.

A typical day of fasting begins with waking up before dawn to have a meal called the suhoor before the start of the fasting day. At sunset, Muslims usually break their fast upon the call for Maghreb (sunset) prayers with another meal called iftar. Prayers are conducted five times through the day, as they are on all days, and an extra set of prayers called Taraweeh is conducted after Isha or night prayers.

Work hours in the private sector are shortened by two hours for Muslims and non-Muslims.

Click this link for Ramadan terms guide

 

Source:

Gulf News

Guide to Ramadan Terms

Ramadan terms

Ramadan:     

The ninth month of the Islamic (lunar) calendar.

Sawm:     

The Arabic word for fast.

Iftar:     

Ending of the fast immediately after sunset. Iftar takes place at the Maghrib Adhan (call to prayer) traditionally the fast is ended with dates and water and is a time when friends and family come together

Suhoor:     

The pre-fast meal before dawn and Fajr (morning call to prayer).

Taraweeh:     

Special congregational prayers conducted after Isha (night prayer)

Qiyam-ul-Layl:

Prayers during the last ten days of Ramadan, which

Eid Al Fitr:     

Three-day celebrations marking the end of Ramadan. It takes place on the 1st of Shawal, the 10th month of the Islamic calendar.

Fidya:     

Compensation for missing a fast, for those unable to, or wrongly practising it. Fidya usually takes the form of donating money, foodstuffs, or sacrificing an animal.

Zakat Al Fitr:

Muslims give away a certain percentage of the total value of all that they own annually and distribute it to charity and the needy. The contribution given at the end of Ramadan.

Eid Mubarak:

Greeting meaning "Have a happy and blessed Eid" expressed at the end of Ramadan.