Saudi Arabia Used Car Market to Grow with a CAGR of 9.8% through 2030

Saudi Arabia's used car market is expanding rapidly, driven by economic diversification, rising middle-class demand, digital platform adoption, and increasing preference for cost-effective mobility solutions across urban and semi-urban regions.

According to TechSci Research report, “Saudi Arabia Used Car Market – By Region, Competition Forecast & Opportunities, 2030F”, Saudi Arabia Used Car Market was valued at USD 6.83 Billion in 2024 and is expected to reach USD 11.98 Billion by 2030 with a CAGR of 9.8% during the forecast period. The Saudi Arabia used car market is undergoing a significant transformation, influenced by a convergence of economic, regulatory, and consumer behavior shifts. A growing inclination toward value-for-money alternatives, combined with changing ownership preferences, is pushing more Saudi consumers and expatriates to explore used vehicles over new ones. As the Kingdom diversifies its economy under Vision 2030, population mobility across cities is rising, particularly among mid-income professionals, which is fueling intra-city and inter-city vehicle demand. This demographic movement is being matched by the expansion of structured dealerships and online marketplaces, offering greater transparency and easier access to pre-owned vehicles. Further, insurance and service providers are increasingly tailoring offerings specifically for the used vehicle segment, enhancing buyer confidence and making ownership less cumbersome.

However, despite these favorable shifts, the market is not without its hurdles. A lack of unified vehicle history databases continues to raise concerns about odometer fraud, accident concealment, and overall transparency in private sales. While digital platforms promise trust and convenience, many still lack rigorous quality assurance mechanisms or certified inspection standards. Additionally, fragmented dealer regulations across regions can hinder cross-city transactions and affect price parity. The secondary market also grapples with inefficient logistics in remote regions, delaying access to buyers and impacting resale timelines.

Nevertheless, the sector’s transition from informal peer-to-peer sales to a more organized ecosystem is steadily reshaping consumer trust and investor interest. As financial institutions cautiously expand used car financing and residual value insurance products, the market is gradually positioning itself as a more mature, credible alternative to the new car segment. In this evolving landscape, companies that combine data-driven transparency, flexible financing, and multi-channel retail presence are likely to emerge as long-term leaders in Saudi Arabia’s rapidly modernizing used car market.

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The Saudi Arabia Used Car market is segmented into vehicle type, fuel type, end use and region.

Based vehicle type,  the fastest-growing segment is Small Cars purchased by women and first-time drivers, largely driven by demographic shifts, economic participation of women, and digitization of car sales platforms. Since 2018, there has been a surge in ownership among female drivers, especially in cities like Riyadh and Jeddah, where car ownership is closely tied to independence and convenience. These customers prefer compact, fuel-efficient vehicles that are easy to drive and maintain. Online platforms and female-targeted promotions have further accelerated this trend, making it one of the most dynamic sub-segments in the market.

Based on region, the Eastern region, led by cities like Dammam, Al Khobar, and Dhahran, is the fastest-growing region in the Saudi used car market. This growth is fueled by rapid industrialization, a high concentration of expatriates, and the presence of major oil and gas companies, which bring a steady influx of corporate buyers and middle-income consumers. Used vehicle demand is increasing both from individual buyers and fleet operators who support the logistics and industrial sectors. Additionally, the proximity to Bahrain and access to King Fahd Causeway facilitates cross-border resale opportunities, increasing the attractiveness of this market for dealers. The region also benefits from a modern road network, rising digital literacy, and expanding online car buying platforms. There is growing interest in fuel-efficient sedans and small SUVs, with used hybrid vehicles slowly gaining traction. The Eastern region’s young population and dynamic economy make it a hotspot for organized used car retail growth, earning it the position of fastest growing region.

Major companies operating in Saudi Arabia Used Car market are:

• Abdul Latif Jameel Motors
• Al‑Futtaim Automotive
• Al‑Tayer Motors
• Al‑Nabooda Automobiles
• Arabian Auto Agency
• Aljomaih Automotive
• Syarah Ltd
• CarSwitch
• SaudiSale
• YallaMotor

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“In recent years,. As environmental awareness increases globally, a parallel shift is taking root in the Saudi Arabian used car market, with a growing emphasis on sustainability, fuel efficiency, and emissions consciousness. Although electric vehicle (EV) adoption in the used segment remains minimal due to high upfront costs and lack of infrastructure, there is a notable uptick in demand for fuel-efficient internal combustion engine (ICE) vehicles such as hybrid models and small-capacity petrol engines. Consumers, particularly younger buyers and urban residents, are becoming more attuned to the long-term savings associated with lower fuel consumption, which is further amplified by the Kingdom’s rising fuel prices and subsidy cuts in recent years. The government’s commitment to its Saudi Green Initiative (SGI), which aims to cut carbon emissions and promote sustainable transport, is also subtly influencing buyer behavior. As a result, used cars with better mileage, lower emissions, and smaller engine displacements are gaining popularity in cities like Riyadh, Jeddah, and Dammam” Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Used Car Market, By Vehicle Type (Small Cars, Mid-Size Cars, Luxury Cars), By Fuel Type (Petrol, Diesel, CNG), By End Use (Institutional, Individual), By Region, Competition, Forecast & Opportunities,2020-2030F”, has evaluated the future growth potential of Saudi Arabia Used Car market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Used Car market.

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