Over the past year or so, demand for used cars throughout the UAE has risen by more than 15%, with a weaker economy and the pandemic thought to be some of the main factors behind the increase. Additionally, high digital penetration and strong government countermeasures to stimulate the economy, may also be responsible for increasing demand for used cars.
However, this increased demand has resulted in a shortage of available used cars on the market, and so if you spot a company selling used cars and they have something that suits you – experts within the automotive sales industry, advise you to buy while you can!
A stagnant UAE market that’s now ahead of the curve
Estimated to be pretty stagnant at between 700,000 to 800,000 for several years consecutively, the used car market was nothing to write home about, until the market made a miraculous recovery. That, coupled with the way in which the government managed the lockdown, now sees the UAE forging ahead of other markets, with predictions for it to cross the one million mark in the coming years.
What are the main factors influencing demand?
Experts believe that there are a combination of several factors driving demand for used cars in the UAE today, namely a weaker economic sentiment focused upon job losses, reduced salaries, lack of bonuses and increments, and a renewed respect for pre-owned cars that was lacking prior to the pandemic. There is also a trend that has seen more and more UAE residents who used to frequent cabs, now owning their own cars, which has added to the demand for used vehicles. This is believed to be due in part to COVID-19 health and safety considerations.
What types of used cars are favored currently?
The highest demand currently is for smaller cars, and when it comes to sport utility vehicles or SUVs, there is always a long waiting list, in fact, demand for these has soared to levels higher than they were before the pandemic.
For a more affordable option, sedans remain a popular choice, and around 40% of the used car market in the UAE remains under the Dh 50,000 mark, with the Dh 50,000 to Dh 100,000 sector having grown by as much as 30%.
The majority of used car customers throughout the UAE are seeking vehicles that have a reliable history and warranty, enabling them to continue using the car for years to come without too much fear of parts breaking or other repairs being needed. This has seen most customers using only reputed agencies, online sellers and dealers, and exhibiting more caution than they might have done in the past.
For anyone on a budget (and let’s face it, most of us are!) still wanting to own their own reliable car, buying a pre-owned car gives you the chance to have all the joys of your own transport, without the significant investment of a new model.
For more details, visit https://firstchoicecars.com/
