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.
Attribute
|
Details
|
Market size value in 2020
|
USD9,590.41 Million
|
Revenue Forecast in 2026
|
USD20,630.41 Million
|
Growth Rate
|
13.99%
|
Base Year
|
2020
|
Historical Years
|
2016 – 2026
|
Estimated Year
|
2021
|
Forecast Period
|
2022 – 2026
|
Quantitative Units
|
Revenue in USD Million, Volume in Units, and CAGR for 2016-2020
and 2021-2026
|
Report Coverage
|
Revenue forecast, volume forecast, company share, competitive
landscape, growth factors, and trends
|
Segments Covered
|
·
Vehicle Type
·
Fuel Type
·
End Use
·
Region
|
Regional Scope
|
Dubai; Sharjah; Abu Dhabi; others
|
Key Companies Profiled
|
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
|
Customization Scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
Delivery Format
|
PDF and Excel through Email (We can also provide the editable
version of the report in PPT/pdf format on special request)
|
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:
- 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.
In case you don’t find what you are
looking for, please get in touch with our custom research team at sales@techsciresearch.com
In case you don’t find what you are looking for, please get in touch with our custom research team at sales@techsciresearch.com