Buying a Used Car in Dubai? Here's How to Determine the Price
Dubai, the city of luxury and extravagance, is home to some of the world's most sought-after cars and a hub for lavish used cars. However, purchasing a brand-new vehicle can often be an expensive affair. That's where buying a used car comes in as a wise and practical option.
But how do you ensure you're not getting ripped off? Determining the right price for a used car in Dubai can be tricky, considering the numerous factors. However, with the proper knowledge and preparation, you can navigate this process like a pro.
In this blog, we'll guide you through everything you should know to make an informed decision and determine the right price for your dream car in Dubai.
Researching the Car's Market Value
When it comes to buying a preowned car, knowing its market value is essential. However, determining this value is a more than one-size-fits-all kind of deal. Segmentation plays a vital role in this process.
Just like how different shoe sizes fit different feet, cars are segmented based on their vehicle type (hatchback, sedan, SUV, MPV), fuel type (gasoline, diesel, etc.), end-use (institutional or individual), and region (Dubai, Sharjah, rest of UAE). With car trends changing frequently, keeping up with the market can be overwhelming.
But with the proper market knowledge, you can avoid financial risks and get the best deal for your preowned car. So, make sure you learn about segmentation and how it affects the market value of your dream car in Dubai!
Another way to determine the price is the rate at which the car's market value depreciates. You can subtract the car's fair market value from its purchase price to find the depreciation value. Buyers tend to buy used cars if any vehicle is hard to find, increasing the cost.
Demand and supply are crucial for the market price. Fuel prices change the priorities of car models. When fuel prices drop, demand for SUVs increases when fuel prices spike and more fuel-efficient cars are desired.
Read More : HOW TO GET A UAE CAR VALUATION CERTIFICATE
The Process of Calculation
Here is how you can calculate the price of the used car.
- Select The Car Brand
While buying or selling a second-hand car in the UAE, selecting a brand or manufacturer that meets your preferences is crucial. With a diverse range of popular brands available, such as Cadillac, BMW, BYD, Fiat, Ford, and many others, you'll have many options. - Select Model
After choosing the brand, you have to pick the model you are looking for. Each brand has multiple models in them. - Select Year
After you have added the model, the next question that appears is the year which mostly is from 2014 to 2022.
Select Trim
After selecting the year of the model, you have to choose the trim and whether it has GCC specs or not.
After answering the questions, the data you provided goes through a unique algorithm that will quote the car's value and the price a dealer will pay.
Read More : HOW TO SELL YOUR FINANCED CAR IN THE UAE
Essential Factors to Consider While Determining the Value of the Vehicle
You can consider a few things while determining the price of the vehicle. Here are a few.
- The Car's Age
Knowing the car's age is essential as it gives the history of the car and the condition it is in, and what to expect from the vehicle. A car with an average mileage of 10,000 to 15,000 kilometers per year is good, and the car's age should be less than five years. If a used car is up to the above standards, it can last for at least five years. - The Distance It Has Driven
Knowing the distance is crucial because a used car driven fewer kilometers lasts longer before it needs significant repair. A vehicle with a mileage of 130,000 km will last only briefly. Any used car that has driven less than 130,000 is healthy for use. - Car Insurance
Knowing car insurance is necessary as it collects a transparent record of the car's service history. Always go for cars that have insurance. These cars are generally new, so you can get competitive prices. - Maintenance and Condition
Knowing the condition and maintenance of the car is essential as it will determine the quality of the vehicle and if you need to put in any heavy repairs to it. Check the interiors of the car, whether the seats and interior electronics are in proper condition. Check the body for damage like scratches, dents, rusty spots, and color differences. Also, check for mechanical faults and any signs of replaced airbags for better knowledge of the used vehicles. - Ownership Frequency
Ownership frequency refers to the number of times a car has been sold. Typically, having two previous owners is considered acceptable. Vehicles with fewer owners tend to sell faster than those with more previous owners.
Accessing the Condition of the Car
During the first few years of usage, used cars tend to lose a significant portion of their value and may develop problems. Additionally, how well a vehicle is maintained and its overall condition are crucial factors to consider when purchasing a used vehicle. Cars that have minimal damage and require less maintenance are in high demand and can be sold at a premium price. Therefore, car owners tend to keep their vehicles in good shape to maximize their resale value.
- Check the Condition of the Exterior
Inspect the body entirely, taking your sweet time. Check for any scratches, dents, or irregularities. Also, check the car's doors, windows, handles, and trunk. Investigate if the vehicle's paint is redone, looks patchy, or, by chance, has shade differences. Look for rust and the roof for any damage. Another thing is to ask the seller if the car went through any accidents too. - Check the Interior
Check the seat and seat covers to ensure that there are no scratches or missing the brand emblem—any odor, specifically the mushy smell, which indicates water damage. Check if the AC unit and radio are in working condition and are functioning. Check the parking sensors, wipers, and lights. - Check the Tires and Lights
Look closely for the tire threads and if they are not damaged equally, because if not, there is a chance they are replaced. Look for the brand of the tires too. If it's a different brand, the tires are not original. The car's lights are expensive, so check the light panels correctly and any cracks in the glass. Inspect all the lights, including headlamps, tail third brake lamps, and fog lamps.
Read More : Do Tyres Affect Fuel Economy? - Inspect the Suspension
The bounce test can check the suspension. Park the car in an even area, press the front of the vehicle with your body weight, and do the same with the rear end. If you notice the car shaking after the force is released, the suspension is outdated and worn out.
Negotiating the Price
The process of negotiation is an art, and only some are artists. Let us tell you the secret.
- Do Complete Research
Once you have selected your car, do complete research about the prices and dealers, then talk to the experts such as CARS24 to know the value of similar used cars and the details. - Don't Give Too Much Information
When initiating the purchasing process, it's best not to disclose any information to the seller regarding your attachment to the car, sense of urgency, or specific price-related expectations. Keeping these details to yourself can help you maintain a position of negotiation leverage throughout the transaction. - Be Assertive
If the car you desire is in high demand and priced unreasonably, it's wise to offer a lower price initially. Doing so will provide more negotiation room to work towards an ideal price point that's reasonable for both parties. - Try to Get a Discount
In Dubai, you can easily get a discount of 1000-2000 AED. While inspecting the car, you can get a discount even after the exchange if you find any minor damage. You can even ask them to give you a free car wash or repairs for no extra cost.
Documentation
Thorough documentation is needed before buying or selling a used car in the UAE. Here are a few documents you may require while purchasing a used car.
- Inspection certificate
- UAE residency permit
- Emirates ID
- A copy of the passport
- A copy of the car insurance policy
- Previous registration card for the used car.
- Valid driver's license and inspection certificate from a licensed vehicle testing facility.
Read More : The Ultimate Checklist for Buying a Used Car
At a Glance
It is vital to go through the parameters to get the best-used car and value for your money, not getting scammed or getting a damaged car that will cost you more. To know the best price of the vehicle, determining the market value of the used car is primary.
Second, comes the vehicle's condition, which is standard and well-maintained. Other states like insurance, ownership frequency, and documentation help us understand the history of the automobile. Lastly, after understanding everything, negotiation is a big wheel to get you a convenient deal.
To check out the best prices for used cars, visit our website. Your dream car is waiting for you!
FAQs
Why are used cars cheap in Dubai?
The depreciation rates on the new cars are 20% to 30% once they hit the roads. It depreciates 15% to 20% every passing year. On the other hand, the rates are slower on the used cars, the new cars take the overall hit of the depreciation, thus making the cars cheaper for used car users.
Are gasoline prices low in UAE?
Unlike the rest of the world, where the price of fuel is skyrocketing and a big chunk of money is used on fuel, the prices in UAE are cheaper. The reason behind this is that UAE’s majority area is desert and has vast fuel reserves. Making it convenient for used cars to drive without stressing about the price of fuel.
Are insurance rates cheap for used cars?
The insurance costs are high when buying a new car. But the used cars are cheaper to get insured as they use older technology and require much fewer repairs. You can get insurance according to your budget and preferences.
Dubai, the city of luxury and extravagance, is home to some of the world's most sought-after cars and a hub for lavish used cars. However, purchasing a brand-new vehicle can often be an expensive affair. That's where buying a used car comes in as a wise and practical option.
But how do you ensure you're not getting ripped off? Determining the right price for a used car in Dubai can be tricky, considering the numerous factors. However, with the proper knowledge and preparation, you can navigate this process like a pro.
In this blog, we'll guide you through everything you should know to make an informed decision and determine the right price for your dream car in Dubai.
Researching the Car's Market Value
When it comes to buying a preowned car, knowing its market value is essential. However, determining this value is a more than one-size-fits-all kind of deal. Segmentation plays a vital role in this process.
Just like how different shoe sizes fit different feet, cars are segmented based on their vehicle type (hatchback, sedan, SUV, MPV), fuel type (gasoline, diesel, etc.), end-use (institutional or individual), and region (Dubai, Sharjah, rest of UAE). With car trends changing frequently, keeping up with the market can be overwhelming.
But with the proper market knowledge, you can avoid financial risks and get the best deal for your preowned car. So, make sure you learn about segmentation and how it affects the market value of your dream car in Dubai!
Another way to determine the price is the rate at which the car's market value depreciates. You can subtract the car's fair market value from its purchase price to find the depreciation value. Buyers tend to buy used cars if any vehicle is hard to find, increasing the cost.
Demand and supply are crucial for the market price. Fuel prices change the priorities of car models. When fuel prices drop, demand for SUVs increases when fuel prices spike and more fuel-efficient cars are desired.
Read More : HOW TO GET A UAE CAR VALUATION CERTIFICATE
The Process of Calculation
Here is how you can calculate the price of the used car.
- Select The Car Brand
While buying or selling a second-hand car in the UAE, selecting a brand or manufacturer that meets your preferences is crucial. With a diverse range of popular brands available, such as Cadillac, BMW, BYD, Fiat, Ford, and many others, you'll have many options. - Select Model
After choosing the brand, you have to pick the model you are looking for. Each brand has multiple models in them. - Select Year
After you have added the model, the next question that appears is the year which mostly is from 2014 to 2022.
Select Trim
After selecting the year of the model, you have to choose the trim and whether it has GCC specs or not.
After answering the questions, the data you provided goes through a unique algorithm that will quote the car's value and the price a dealer will pay.
Read More : HOW TO SELL YOUR FINANCED CAR IN THE UAE
Essential Factors to Consider While Determining the Value of the Vehicle
You can consider a few things while determining the price of the vehicle. Here are a few.
- The Car's Age
Knowing the car's age is essential as it gives the history of the car and the condition it is in, and what to expect from the vehicle. A car with an average mileage of 10,000 to 15,000 kilometers per year is good, and the car's age should be less than five years. If a used car is up to the above standards, it can last for at least five years. - The Distance It Has Driven
Knowing the distance is crucial because a used car driven fewer kilometers lasts longer before it needs significant repair. A vehicle with a mileage of 130,000 km will last only briefly. Any used car that has driven less than 130,000 is healthy for use. - Car Insurance
Knowing car insurance is necessary as it collects a transparent record of the car's service history. Always go for cars that have insurance. These cars are generally new, so you can get competitive prices. - Maintenance and Condition
Knowing the condition and maintenance of the car is essential as it will determine the quality of the vehicle and if you need to put in any heavy repairs to it. Check the interiors of the car, whether the seats and interior electronics are in proper condition. Check the body for damage like scratches, dents, rusty spots, and color differences. Also, check for mechanical faults and any signs of replaced airbags for better knowledge of the used vehicles. - Ownership Frequency
Ownership frequency refers to the number of times a car has been sold. Typically, having two previous owners is considered acceptable. Vehicles with fewer owners tend to sell faster than those with more previous owners.
Accessing the Condition of the Car
During the first few years of usage, used cars tend to lose a significant portion of their value and may develop problems. Additionally, how well a vehicle is maintained and its overall condition are crucial factors to consider when purchasing a used vehicle. Cars that have minimal damage and require less maintenance are in high demand and can be sold at a premium price. Therefore, car owners tend to keep their vehicles in good shape to maximize their resale value.
- Check the Condition of the Exterior
Inspect the body entirely, taking your sweet time. Check for any scratches, dents, or irregularities. Also, check the car's doors, windows, handles, and trunk. Investigate if the vehicle's paint is redone, looks patchy, or, by chance, has shade differences. Look for rust and the roof for any damage. Another thing is to ask the seller if the car went through any accidents too. - Check the Interior
Check the seat and seat covers to ensure that there are no scratches or missing the brand emblem—any odor, specifically the mushy smell, which indicates water damage. Check if the AC unit and radio are in working condition and are functioning. Check the parking sensors, wipers, and lights. - Check the Tires and Lights
Look closely for the tire threads and if they are not damaged equally, because if not, there is a chance they are replaced. Look for the brand of the tires too. If it's a different brand, the tires are not original. The car's lights are expensive, so check the light panels correctly and any cracks in the glass. Inspect all the lights, including headlamps, tail third brake lamps, and fog lamps.
Read More : Do Tyres Affect Fuel Economy? - Inspect the Suspension
The bounce test can check the suspension. Park the car in an even area, press the front of the vehicle with your body weight, and do the same with the rear end. If you notice the car shaking after the force is released, the suspension is outdated and worn out.
Negotiating the Price
The process of negotiation is an art, and only some are artists. Let us tell you the secret.
- Do Complete Research
Once you have selected your car, do complete research about the prices and dealers, then talk to the experts such as CARS24 to know the value of similar used cars and the details. - Don't Give Too Much Information
When initiating the purchasing process, it's best not to disclose any information to the seller regarding your attachment to the car, sense of urgency, or specific price-related expectations. Keeping these details to yourself can help you maintain a position of negotiation leverage throughout the transaction. - Be Assertive
If the car you desire is in high demand and priced unreasonably, it's wise to offer a lower price initially. Doing so will provide more negotiation room to work towards an ideal price point that's reasonable for both parties. - Try to Get a Discount
In Dubai, you can easily get a discount of 1000-2000 AED. While inspecting the car, you can get a discount even after the exchange if you find any minor damage. You can even ask them to give you a free car wash or repairs for no extra cost.
Documentation
Thorough documentation is needed before buying or selling a used car in the UAE. Here are a few documents you may require while purchasing a used car.
- Inspection certificate
- UAE residency permit
- Emirates ID
- A copy of the passport
- A copy of the car insurance policy
- Previous registration card for the used car.
- Valid driver's license and inspection certificate from a licensed vehicle testing facility.
Read More : The Ultimate Checklist for Buying a Used Car
At a Glance
It is vital to go through the parameters to get the best-used car and value for your money, not getting scammed or getting a damaged car that will cost you more. To know the best price of the vehicle, determining the market value of the used car is primary.
Second, comes the vehicle's condition, which is standard and well-maintained. Other states like insurance, ownership frequency, and documentation help us understand the history of the automobile. Lastly, after understanding everything, negotiation is a big wheel to get you a convenient deal.
To check out the best prices for used cars, visit our website. Your dream car is waiting for you!
FAQs
Why are used cars cheap in Dubai?
The depreciation rates on the new cars are 20% to 30% once they hit the roads. It depreciates 15% to 20% every passing year. On the other hand, the rates are slower on the used cars, the new cars take the overall hit of the depreciation, thus making the cars cheaper for used car users.
Are gasoline prices low in UAE?
Unlike the rest of the world, where the price of fuel is skyrocketing and a big chunk of money is used on fuel, the prices in UAE are cheaper. The reason behind this is that UAE’s majority area is desert and has vast fuel reserves. Making it convenient for used cars to drive without stressing about the price of fuel.
Are insurance rates cheap for used cars?
The insurance costs are high when buying a new car. But the used cars are cheaper to get insured as they use older technology and require much fewer repairs. You can get insurance according to your budget and preferences.
