The value of used cars in the United Arab Emirates has increased in 2019 in comparison to previous years, according to online car buyers and sellers’ market site Dubicars.com.
Comparable used vehicles cost between 4% and 10% more in 2019 than was the case last year, as demonstrated by the website’s recent research.
Dubicars.com CEO Craig Stevens says that there has never been a better time in the UAE for drivers to choose a used vehicle as they may be able to afford a higher-quality car than they believed was possible.
The information is likely to empower car buyers in the UAE, enabling them to better decisions, and it will also please the nation’s car dealers, which have experienced problems with the sales of new cars in recent years, Stevens claims.
Dubicars.com has collaborated with tech solutions provider AlgoDriven, which offers the automotive industry accurate data in real time, to analyse the 3m monthly searches experienced by its website, as well as thousands of actual transactions.
The average age of motor vehicles on the roads of Dubai is eight years, according to RTA data on active registered light vehicles.
People are retaining their cars for a longer period of time and choosing to have them maintained and repaired rather than trading them in for a new car, according to Stevens.
The demand for used cars has increased, raising their price, as a result of a lower supply of new vehicles in addition to a 50% fall in the number of sales of new cars over the last few years.
The increase in the price of used cars has not stopped them from selling faster, with vehicles being sold by dealers 7.5 times more quickly than was the case last year, Dubicars.com data suggests.
Business has also surged for the company, with website traffic increasing by as much as 70% and an increase of 80% in leads.
New cars will experience a drop in value of between 15% and 30% within a year, Stevens estimates.
Dubicars.com research also suggests that the depreciation rate of used vehicles is actually decreasing, a trend that has not previously been witnessed within the UAE market.
The data also reveals that the buying decisions that people are making are being based on the price of monthly payments and finding a deal suiting their budget rather than a car’s total ticket price.
The automotive industry in the UAE could be massively impacted by the new information if it is managed in the right way, says Stevens.
Stevens says that the changes are great for the industry by bringing stability in new car demand, and giving dealers the chance to begin strengthening and controlling the pricing of used cars.
He adds that it is also good for consumers as they will lose less money when selling used cars.
Anyone driving a used or new car in the UAE needs to have car insurance.
Basic car insurance is a legal requirement in the UAE and offers financial protection from the consequences of motor accidents.