Used cars for sale in Dubai

Used cars for sale in Dubai

Dubai’s used car market changing gears

In 2020, Dubai's market of used cars for sale in Dubai was estimated to be worth USD 9,590.41 million; by 2026, it is predicted to be worth roughly $20,630.41 million USD. During the forecast period, the key factors propelling and throttling the growth of the used cars for sale in Dubai are rising customer preference for vehicle ownership, rising disposable income, and an increase in the number of market players offering affordable, high-quality used cars.

Because of the high internet penetration and proliferation of smart devices, used car companies are shifting their selling mode and paradigm towards online platforms. This digital Darwinism is enabling them to reach out to a wider target audience. It is also helping the stakeholders to have a streamlined and expedited procedure. Also, it accelerates the paperwork and procedures and allows for quick eligibility checks of purchasers.

Due to the usage of online platforms and rising investments by market players to maintain their competitiveness, the market of used cars for sale in Dubai is anticipated to grow exponentially during the forecast period. The average time of keeping the vehicle by consumers is decreasing at a rapid rate. This fact is also propelling the market growth.

When a driver buys a used automobile, they can change it for a used car at a lesser cost than when they buy a new one. Due to increased environmental concerns and supportive government policies offering incentives and income tax rebates on the purchase and manufacturing of electric vehicles, the introduction of used electric cars is anticipated to create further profitable potential for market expansion.

Who is behind the wheel?

The boom of the market of used cars for sale in Dubai is anticipated to be supported by the emergence of numerous businesses offering financing options in the form of loans and simple EMIs to boost customers' affordability. But the lack of or limited warranty options for covering damage may limit the expansion of the used automobile industry in Dubai throughout the anticipated term.

The used cars for sale in Dubai are divided into categories based on the type of vehicle, fuel type, intended use, regional distribution, and level of competition. The market is divided into institutional and individual segments depending on the ultimate use. In the projection period 2022–2026, the individual segment is anticipated to have the biggest market share. Due to their high price and brief ownership duration, used cars are becoming more and more popular due to the restricted number of public transportation options and the presence of a sizable non-native population.

In terms of gender and generation, there has been a big, positive movement in DUBAI. Men still account for a staggering 70% of buyers in the used car market. However, H1 2022 also saw a 60% increase in female buyers. More than 55% of industry consumers are millennial, who comprise more than 60% of all consumers. The group has grown by a respectable 40% in recent years. In parallel, Gen-Z used-car buyers increased twice in H1 2022.

Used car financing

Most banks only finance 80% of the car's worth; nevertheless, a 20% down payment is required upfront. Some banks take the down payment, while others require the car owner to make the down payment directly before the bank finances the remaining 80% of the purchase price. AED 20,000 approximately is the minimum car finance amount that some banks request. Additionally, your intended car purchase must have at least AED 25,000 worth to qualify for a loan.

For used cars, the maximum tenure varies depending on the age of the vehicle, with certain banks in Dubai offering repayment terms of up to 60 months. The repayment period, though, can be considerably shorter for older vehicles. For a model that is ten years old, for example, you might have a two-year repayment period.

Dubai’s all-time favourite!

Over 36% of customers who purchased used cars did so for a sum of AED 50,000 to AED 80,000. SUVs are preferred by more than 51% of used-car owners because they are comfortable, inexpensive, and frequently available in the colour white. Nissan and Toyota have been the two most popular brands in 2022 H1.

Key drivers’ torqueing the used car market towards growth

Penetration of Digital Platforms is one of the key drivers behind the market expansion. A potential customer may now easily choose the best place to purchase the desired car at an affordable price, thanks to digital platforms. The online platform has allowed buyers to enquire about their required car over the website in just a few clicks. This website will establish a connection between the buyer and the seller, enabling the seller to generate transactions and determine the buyer's eligibility quickly.

Some businesses have introduced online marketplaces for purchasing and selling pre-owned vehicles. They also offer servicing and warranty options and quick, simple, and paperless lending experiences to their clients. This kind of online platform has provided customers with various options, allowing them to browse through various car models and evaluate various factors like the car's age, price, colour, etc. They can decide whether to buy a car by keeping all of this in mind.

Decreasing average time of same car ownership

Due to people's increasing disposable income, the average time it takes to keep a car has substantially decreased in Dubai. This has made it possible for new car buyers to switch from one car to another in a relatively short amount of time. In Dubai, where the market for pre-owned vehicles increased by 15% in 2021, used car demand has been growing quickly. Since used cars are typically sold after five years, the buyer benefits from well-maintained vehicles in terms of mileage, equipment level, interior electronics, etc., and same-day delivery, funding for up to eight years, 100% paperless & digital complete loan support, among other things.

Because of this, the present generation now has a substantially higher demand for old cars. In Dubai, almost every family owns more than one vehicle; one of these vehicles is used daily, ensuring prompt service, while the second vehicle is less frequently used and maintained, improving the overall quality of vehicles in the used vehicle market because these vehicles are well-kept and furnished with comparatively modern technology.

FAQs

• Is buying a car in Dubai cheap?

  Buying a car in Dubai is affordable (although this is less true for premium cars), thus purchasers may anticipate lower upfront and monthly payment costs.

• Can a foreigner buy a car in Dubai?

  In Dubai, a resident visa is required in order to purchase a vehicle. It is required to go to the police to explain the situation and get permission before making a purchase if you don't have a driver's licence.

• Which is the best car to buy in Dubai?

  The Toyota Land Cruiser, Mitsubishi Attrage, KIA Seltos, Nissan Patrol, and Hyundai Creta are among the most popular car models for September 2022. However, do your research first to find out about the technical details, customer opinions, and driving tests for the most popular used cars for sale in Dubai.