UAE’s interest in used cars is growing, study shows

Car enthusiasts in Dubai are showing the greatest interest in used cars in the first half of 2022, according to a new study on the UAE used car market.

From the second half of 2021 (H2) to the first half of 2022 (H1), the number of people interested in used cars increased by 50-55%. When we looked at millennials in the UAE, over 55% preferred to buy a used car online. The first “Used Car Market Insights” released by CARS24, one of the world’s fastest-growing used car e-commerce platforms, stated that millennials are the most enthusiastic about used cars, accounting for 60% of total buyers.

The report provides valuable industry insights on the UAE used car market.

In launching the report, Abhinav Gupta, CEO of CARS24 Gulf, said: “There is a large data gap in the used car industry in the UAE. With our first report, we are delighted to be able to bridge this gap and provide the used car industry with Much needed insight. Encouragingly, by 2025, for every new car purchased in the UAE, 3 used cars will be purchased. We at CARS24 can guarantee this as we have added over 10,000 in just over 365 days in the UAE satisfied customers. In just over a year, CARS24 has redefined the used car industry in the UAE with its exceptional technical capabilities, including unique vehicle appraisal technology, artificial intelligence pricing algorithms that provide accurate market prices, and scale infrastructure to ensure seamless execution.”

The CARS24 “Used Car Market Insights” report highlights industry trends and touches on the global used car market. Additionally, the report focuses on preferred payment methods, car buyer lists, gender and used car feedback customers, their preferred brands, the types of cars that UAE consumers prefer, and some other interesting insights.

“With the post-COVID population, the UAE has seen a significant increase in the number of car owners, making up more than 34% of the total population. If you narrow it down to individual emirates, Dubai, Abu Dhabi and Sharjah are currently the top three used car sales city,” Abhinav added.

Globally, the used car category is worth $1.66 trillion in 2022, growing at a CAGR of 6-7%, and the category is expected to reach $2.67 trillion by 2030. Currently, China has the largest used car market share, surpassing the reported 10% ($167.4 billion), followed by the United States with 9% ($160.4 billion).

“To meet this growing demand, CARS24 has launched a large refurbishment laboratory in the UAE to ensure impeccable quality control in accordance with international industry standards. Our MRL has the capacity to launch nearly 20,000 vehicles in a year,” Abhinav added.

This massive 1 million sq ft refurbished laboratory in Jebel Ali, with a total contract value of over AED 40 million, is one of the largest leasing transactions ever in Dubai. The company says it employs a rigorous 150-point inspection and reviews every aspect of the car at the MRL before listing the car on its platform.

“Another interesting fact highlighted by the report is that men in the UAE make up 70% of total buyers, while female buyers are growing rapidly, with a growth rate of over 60% in the first half of 2022 compared to the second half of 2021,” Abhinav concludes. –arab trade news agency