WHAT MAKES USED CARS SO CHEAP IN UAE
Over the last few years, the demand for used cars has significantly increased in the UAE due to a growing population and a shift in customer preference from public transport to private transportation. According to the “UAE Used Car and Auto Classified Market Outlook to 2025” report by Ken Research, the UAE’s used car market is anticipated to increase at a positive CAGR of 16.6% in terms of revenue from 2020 to 2025.
This is because buying a used car is one of the budget-friendly options for people in the UAE today. Not only can people avoid a huge depreciation hit, but they can buy their dream car within their set budget. Even though the used cars are pre-owned, most go through regular maintenance and have a warranty, which often mitigates the risk of buying a pre-owned vehicle.
An overall study shows that the UAE is one of the cheapest places to buy pre-owned cars. Let’s go through some prominent reasons why used cars are so cheap in the UAE.
1. DEPRECIATION AT A LOWER RATE
The price of a new car starts depreciating the second they are out of the showrooms. It depreciates by 20% to 30% as soon as the vehicle is on the road and decreases by 15% to 20% each year. On the other hand, the depreciation rate for used cars is relatively slow, and one can get a good deal while selling the car. This is why the first car owner takes the biggest depreciation hit compared to the second car owner, making used cars cheap in the UAE.
2. LOW-COST GASOLINE
Fuel is one of the most expensive components for every car user. While the fuel charges in other countries are touching the sky, they are extraordinarily low in the UAE. It is because the UAE is a desert country with vast fuel reserves, which never faces fuel scarcity and makes it cheaper for car users to own and drive used vehicles.
3. OWNING A LUXURY CAR IS EASY
Even though the used cars are pre-owned, most go through regular maintenance and have a warranty, which often mitigates the risk of buying a pre-owned vehicle.
An overall study shows that the UAE is one of the cheapest places to buy pre-owned cars. Let’s go through some prominent reasons why used cars are so cheap in the UAE.
Many people worldwide dream of purchasing a luxury car, but not all can fulfill their dreams. However, things are different in the UAE, where you can taste a luxury car at lower prices. Since the cost of used luxury cars will be lower than the new ones, it gives more confidence to potential buyers and enables them to purchase a luxury car of their choice.
4. FEWER CHANCES OF BUYING A FAULTY VEHICLE
Thanks to the UAE’s strict road safety rules, every car user needs to maintain a good record of the vehicle’s history, including maintenance, inspection, accident history, and car renewal. So even if you buy used cars, you might not spend extra money on maintenance services or document collection.
Also, you can check the history by entering the chassis number on the official website of the Ministry of Interior. All these records and documents reduce the chances of buying faulty vehicles and make the buying process smoother.
Also Read: Most Fuel-Efficient SUVs in UAE
5. LOWER INSURANCE RATES
Used cars are typically cheaper to insure in the UAE than new ones. It is because they use older technology and require less repair cost. You can get the insurance policy according to your budget and based on several factors, such as age, driving record, and condition of your vehicle.
Ultimately, ensuring you get the best deal is crucial, so you don’t need to find car repair or service centers post-purchase. It may seem challenging to pick the right used car model, but you can always approach shops, private dealers, or car dealers when you can get the most excellent price. Before making a deal, you can also conduct a pre-car purchase inspection with CARS24.
For more information on UAE’s automotive market and cheap used cars, reach us at CARS24.
FAQs
Which is the cheapest car in the UAE in 2022?
Some of the cheapest car models in the UAE are the Chevrolet Spark LS, Nissan Sunny, Hyundai Grand I10, Mirage/Mitsubishi Attrage, Suzuki Celerio, Kia Rio, Mitsubishi Lancer EX 2.0, and Chevrolet Aveo.
Which car brands have the best resale values in the UAE?
When it comes to best resale value, Toyota, Honda, Ford, and Hyundai top the list in the UAE as per gathered data. However, Nissan Patrol is the undisputed champion amongst all other brand cars and can retain up to 88% of its value during the first year.
What is the average age of cars in the UAE?
The average age of a car in the UAE should be at most six years, though it lasts ten years in other countries. You can use your vehicle on the road for a maximum of 5.6 years. However, any UAE resident can import a car in the UAE that is less than ten years old.
Check out High-Quality Used Cars in UAE with CARS24!
Over the last few years, the demand for used cars has significantly increased in the UAE due to a growing population and a shift in customer preference from public transport to private transportation. According to the “UAE Used Car and Auto Classified Market Outlook to 2025” report by Ken Research, the UAE’s used car market is anticipated to increase at a positive CAGR of 16.6% in terms of revenue from 2020 to 2025.
This is because buying a used car is one of the budget-friendly options for people in the UAE today. Not only can people avoid a huge depreciation hit, but they can buy their dream car within their set budget. Even though the used cars are pre-owned, most go through regular maintenance and have a warranty, which often mitigates the risk of buying a pre-owned vehicle.
An overall study shows that the UAE is one of the cheapest places to buy pre-owned cars. Let’s go through some prominent reasons why used cars are so cheap in the UAE.
1. DEPRECIATION AT A LOWER RATE
The price of a new car starts depreciating the second they are out of the showrooms. It depreciates by 20% to 30% as soon as the vehicle is on the road and decreases by 15% to 20% each year. On the other hand, the depreciation rate for used cars is relatively slow, and one can get a good deal while selling the car. This is why the first car owner takes the biggest depreciation hit compared to the second car owner, making used cars cheap in the UAE.
2. LOW-COST GASOLINE
Fuel is one of the most expensive components for every car user. While the fuel charges in other countries are touching the sky, they are extraordinarily low in the UAE. It is because the UAE is a desert country with vast fuel reserves, which never faces fuel scarcity and makes it cheaper for car users to own and drive used vehicles.
3. OWNING A LUXURY CAR IS EASY
Even though the used cars are pre-owned, most go through regular maintenance and have a warranty, which often mitigates the risk of buying a pre-owned vehicle.
An overall study shows that the UAE is one of the cheapest places to buy pre-owned cars. Let’s go through some prominent reasons why used cars are so cheap in the UAE.
Many people worldwide dream of purchasing a luxury car, but not all can fulfill their dreams. However, things are different in the UAE, where you can taste a luxury car at lower prices. Since the cost of used luxury cars will be lower than the new ones, it gives more confidence to potential buyers and enables them to purchase a luxury car of their choice.
4. FEWER CHANCES OF BUYING A FAULTY VEHICLE
Thanks to the UAE’s strict road safety rules, every car user needs to maintain a good record of the vehicle’s history, including maintenance, inspection, accident history, and car renewal. So even if you buy used cars, you might not spend extra money on maintenance services or document collection.
Also, you can check the history by entering the chassis number on the official website of the Ministry of Interior. All these records and documents reduce the chances of buying faulty vehicles and make the buying process smoother.
Also Read: Most Fuel-Efficient SUVs in UAE
5. LOWER INSURANCE RATES
Used cars are typically cheaper to insure in the UAE than new ones. It is because they use older technology and require less repair cost. You can get the insurance policy according to your budget and based on several factors, such as age, driving record, and condition of your vehicle.
Ultimately, ensuring you get the best deal is crucial, so you don’t need to find car repair or service centers post-purchase. It may seem challenging to pick the right used car model, but you can always approach shops, private dealers, or car dealers when you can get the most excellent price. Before making a deal, you can also conduct a pre-car purchase inspection with CARS24.
For more information on UAE’s automotive market and cheap used cars, reach us at CARS24.
FAQs
Which is the cheapest car in the UAE in 2022?
Some of the cheapest car models in the UAE are the Chevrolet Spark LS, Nissan Sunny, Hyundai Grand I10, Mirage/Mitsubishi Attrage, Suzuki Celerio, Kia Rio, Mitsubishi Lancer EX 2.0, and Chevrolet Aveo.
Which car brands have the best resale values in the UAE?
When it comes to best resale value, Toyota, Honda, Ford, and Hyundai top the list in the UAE as per gathered data. However, Nissan Patrol is the undisputed champion amongst all other brand cars and can retain up to 88% of its value during the first year.
What is the average age of cars in the UAE?
The average age of a car in the UAE should be at most six years, though it lasts ten years in other countries. You can use your vehicle on the road for a maximum of 5.6 years. However, any UAE resident can import a car in the UAE that is less than ten years old.
Check out High-Quality Used Cars in UAE with CARS24!
