Expected market size to reach AED 118 billion by 2027

Agencies: Used car sales in the UAE up by 58% in the first quarter

  • Car dealerships offer facilities packages to encourage customers to buy used cars. Cinematographer: Ahmed Arditi

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Car dealerships have introduced facilities packages for the purchase of used cars that include a warranty for periods of up to two years, a complete car refurbishment, allowing the postponement of installments, additional warranty coverage that extends outside the country, car replacement in certain cases, and a range of after-sales services, insurance and financing solutions.

She confirmed to "Emirates Today" that there is an increase of up to 58% in used car sales, supported by the shortage and delay in the arrival of new cars and the existence of a guarantee on them up to two years, consumers' interest in owning more than one car, the availability of financing options and the increase in the number of digital platforms for buying and selling used cars, noting that the total volume of the used car sales market in the UAE will reach $ 32.07 billion (AED 118 billion) in 2027, with a growth rate of up to 60% over 2021.

Significant increase

Carlos Montenegro, Managing Director of Fleet Strategy at Al-Futtaim Motors, said: "The demand for used cars has increased significantly in the UAE recently, for several reasons, most notably the shortage of new cars and their high costs, as well as the development of certified pre-owned car programs, which offer high-quality used cars, with few kilometers, which contributed to enhancing consumer interest in this option as a suitable alternative."

"There has been a 50 per cent increase in used car sales from Al-Futtaim Motors since 2020 to include brands such as Toyota, Honda and Volvo, supported by affordability, immediate availability of used cars and numerous facilities such as thorough and thorough inspection and replacement offers for consumers who own a car and want to replace it, as part of the deal, competitive financing and insurance offers, as well as maintenance service plans and a comprehensive warranty for a year or a minimum of 20,<> kilometers."

Montenegro noted the desire of consumers to be well informed about the condition of the car they want to buy, noting that «the most prominent concern for consumers when buying a used car in general, is to obtain a car that they can rely on and is able to maintain the highest standards of performance over time, and to verify its history and maintenance and be accompanied by a warranty in the event of any emergency».

Used Cars

Neil Lines, General Manager of Audi at Al Naboodah Automobiles, said: "The market is witnessing a significant growth in demand for used cars due to the shortage of new vehicles during the last period," pointing to an increase in sales of up to 58% during the first quarter of this year, compared to the period

itself from 2022.

He explained that «the total volume of the used car sales market in the UAE, according to specialized reports, will rise to $ 32.07 billion (AED 118 billion) in 2027, compared to $ 20.03 billion (AED 73.5 billion) in 2021, with a growth rate of up to 60%».

He pointed out that the growth in demand encouraged «Audi» to focus more on selling used cars and increasing offers to consumers, explaining that «Audi» currently has more than 50 models in the «Audi Afrode Plus» program specialized in used cars across different prices and various models.

Lines stressed the introduction of a number of facilities and incentives for the purchase of used cars, most notably a warranty approved by the (factory) for at least two years, with an examination of 300 points in the car, a warranty for a minimum of 24 months, and service extending to 24 months or 30,<> kilometers, in addition to renewing spare parts, service history reviews and providing multiple options for financing.

"The most important feature that consumers look for when buying a used car is (peace of mind), which requires that the condition of the car be good and the car's record (including previous service and ownership records) is in good and documented condition to get the best possible value for buying it," he said.

On consumers' fears of buying used cars, Lines explained that they are related to hidden issues that may come with the car and cause problems that recur over time, advising consumers to conduct their own research before buying a used car, including a thorough inspection before buying and asking the seller about the history of the car.

High demand

Bashir Jameel, Director of Sales and Marketing at Al Masaood Automobiles, said that "car companies have expanded during the last period in the sale of used cars, after the high demand for them," noting that "according to specialized research, the used car market in the UAE is expected to grow to reach $ 32.07 billion by 2027, recording a compound annual growth rate of about 11% during the period of sale in 2022 and 2027."

"The growth in the used car market is due to a number of factors, most notably the shortage and delay in the supply of new cars, the high demand for affordable cars, the interest of consumers in the UAE to own more than one car, as well as the availability of financing options and the increase in the number of digital platforms for buying and selling used cars," Jameel explained.

He noted that when buying used cars, consumers are interested in the distance traveled by the car, its condition, the history of accidents or repairs that are carried out, and consumers are interested in the advantages of the car, fuel efficiency and safety ratings, noting that hidden mechanical problems, high maintenance costs and potential safety risks are among the most common concerns in this context.

He pointed out the importance of ensuring the provision of a comprehensive warranty, with comprehensive inspections and maintenance of the car, in addition to providing a full range of after-sales services, pointing out the need to adopt a transparent and appropriate return policy in the event of any problems that require the return of cars.

For his part, the director of marketing and sales at one of the car agencies, Assem Ibrahim, said that «there is an increase of more than 50% in the sales of used cars agencies during the first quarter of this year, compared to the period

itself from 2022, supported by a lack of new car supply, a two-year warranty on used cars, and the possibility of replacement in certain cases, with different financing options."

He noted that used car sales are expected to increase by more than 60% over the next five years, especially if new cars continue to be shortages and high prices.

Certified Pre-Owned Cars

Bashir Jameel, Director of Sales and Marketing at Al Masaood Automobiles, said: "Nissan's Smart Choice programme for certified used cars offers several benefits and facilities, most notably a thorough inspection of more than 167 points, a complete car refurbishment and allowing installment deferrals in agreement with banks. Al Masaood Automobiles has also signed strategic cooperation agreements with several key partners to provide seamless financial solutions, fast and secure payment options, as well as additional warranty coverage covering the GCC and the Mediterranean region, day-to-day roadside support and assistance services for a full year, allowing a one-time car replacement for five days in the event of a major breakdown and the availability of integrated services including pre-handover inspection with a replacement guarantee of up to 15 days."