UAE Used Car Market By Vehicle (Small Cars, Mid Car, Luxury Cars), By Fuel (Petrol/Gasoline, Diesel, Others), By End Use (Institutional, Individual), By Region (Dubai, Abu Dhabi, Sharjah, Rest of UAE), Competition, Forecast & Opportunities, 2016 – 2026

UAE used car market was valued at USD9,590.41 million in the year 2020 and it is expected to grow in the forecast period with a CAGR of 13.99% to reach USD20,630.41 million in 2026. This impressive CAGR is due to the increasing average age of vehicles, growing penetration through digital platforms and rising demand from shared mobility companies which are the main factors that are driving the growth of the market.

Used cars mostly lose their value during the first few years of ownership and are less likely to have any problem as the owner maintains the car's overall condition. It is said that the best age to buy a car is around the 5-year mark, so the condition of the vehicle depends on mileage, equipment quality, dent & paint, interior electronics, tire condition. The cars which are less damaged and need less maintenance are sold at a more decent price. In UAE, if a person needs to sell his car, then the car will undergo a Secure Diagnostic Access (SDA) test, which means that the dealer will inspect the car throughout and then only it will get sold. 

Increasing Penetration Through Digital Platforms Driving Market Growth

Digital platforms have made it easy to know the right place where a potential buyer can get a car of its own choice at an affordable price. The online platform has given the opportunity to the buyers to simply enquire about their required car over the website in just a few clicks. This site will connect the buyer to the dealer where the dealer can check the buyer’s eligibility and generate transactions with minimum hustle. Some of the companies like Copart Inc, Dubizzle Motors LLC, Al-Futtaim Groups, etc., have launched digital platforms for buying and selling used cars as well as provide servicing and warranty facilities along with easy, instant and paperless loan experience to their customer. This type of online platform has given multiple options to the buyers, which allows them to browse through multiple car models in which they can compare different parameters like age of the car, price, color, etc. and by keeping all this in mind they can take the decision to purchase a car.

Decreasing Average Time Period of Same Car Ownership

In UAE, the average time period to keep a car has been reduced significantly due to individuals' rising disposable income, which has allowed new car buyers to shift from one car to another in a relatively small period of time. The demand for used cars in UAE has moved at a fast pace in 2021, where pre-owned vehicles have grown up to 15%. The used cars are sold at an average time period of 5 years, due to which the used car buyer gets a well-maintained car in terms of mileage, equipment level, interior electronics, etc. and used car buyers gets benefits like same-day delivery, funding for up to eight years, 100% paperless & digital complete support of loan, etc. Due to this, the demand for used car among the current generation has increased significantly. In UAE, mostly every family has more than one car in which one of the cars is used on a daily basis, so they also get the service on time and on the other hand the second car is less used and maintained which has the overall quality of available cars in the used car segment as these cars are well maintained and equipped with relatively latest technologies.  

Rise in Used Car Market Due to Impact of COVID-19

The used car market has shown positive growth over the year as COVID-19 has increased used car sales as people avoid mass transportation and are more concentrated on isolation. For starting few weeks of COVID-19, the used car market had faced many challenges, but the period of uncertainty and existential crisis gave way to a boom in the buying and selling of used cars as the lockdown was imposed. Many auto manufacturing companies had to stop the manufacturing of the new cars, so with the lack of new cars from auto plants, the used car sales boomed in the market. The demand for the car was high among the users and the buyers were looking for vehicles having a reasonable price, so used cars came up as a suitable option in the market. 

Rising Demand from Shared Mobility Companies

One of the main reasons driving the demand for used cars is shared mobility companies that offer second-hand cars at the best price. Shared mobility services like ride-hailing, ride-sharing, car sharing, car rental, etc., are becoming increasingly popular among the UAE citizen as well as the tourist population because of the inherent convenience it provides. In order to meet the user’s demand, the fleet owners need to develop a comprehensive fleet of cars for shared mobility purposes. So, most of these fleet owners opt for second-hand cars instead of purchasing new cars as they are comparatively low priced. The growth of shared mobility services in the UAE is projected to significantly propel the market demand in the forecast period.

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Market Segmentation

UAE used car market is segmented on the basis of the Vehicle type, Fuel type, End use and region. Further classification of the vehicle is vehicle type (small cars, Mid cars, Luxury cars), Fuel type (Petrol/ Gasoline, Diesel, others), End use (Institutional, Individual) and by region (Dubai, Abu Dhabi, Sharjah and the rest of UAE).   

Company Profiles

CarSwitch DMCC, Abdul Latif Jameel IPR Company Limited, SellAnyCar.Com, YallaMotor.com, Al-Futtaim Group, Global Cars Trading FZ LLC, Dubicars International FZ-LLC, Copart Inc., Dubizzle Motors LLC., Sun City Motors LLC are among the major market players that lead the market growth of the UAE used car market.  

Report Scope:

In this report, UAE used car market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• UAE Used Car Market, By Vehicle Type:
• Mid Cars
• Luxury Cars
• Small Cars
• UAE Used Car Market, By Fuel Type:
• Petrol/Gasoline
• Diesel
• Others
• UAE Used Car Market, By End Use:
• Individual
• Institutional
• UAE Used Car Market, By Region:
• Dubai
• Sharjah
• Abu Dhabi
• Other

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in UAE used car market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Profit Margin Analysis

• Profit margin analysis in case of direct and indirect sales channel.

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