UAE motorists turn to used car market as new sales hit speed bump

August 7, 2018
A survey finds fewer transactions across the whole motoring sector

We think a lot about our cars in the UAE and have also spent a lot of time weighing up whether it makes more sense to rent, buy, take taxis, or a Careem.

As is the case in any maturing market, the recent years have seen the used-car industry outpace the more sluggish market for new cars.

The trend is outlined in a new report on the secondary car market shared exclusively with The National by SellAnyCar.com, a website which provides services regarding car sales.

The report’s figures, based on a year-on-year comparison of data collected from sellers on why people have sold their cars over the past three years, provides a snapshot of an important part of the economy.

In 2018, close to 15 per cent of consumers sold their cars for financial reasons, a number that grew by 63 per cent from 2016. In the same period, the number of people who were planning to purchase another car after selling dropped by 18 per cent, while the people who mentioned leaving the country as a reason increased by 25 per cent in the same period.

“We see that there have been less transactions in the car market overall,” says Saygin Yalcin, the company’s founder and chief executive.

“We also believe that during the ‘good’ times people had more cars than necessary and are disposing them off currently – a number which has grown by 16 per cent since 2016.”

According to SellAnyCar, the most popular cars on the market are Japanese, which have a market share of 41 per cent, up 25 per cent since 2014. In response to tougher UAE regulations, 91 per cent of the cars on the road now have GCC specs, which has led to a significant drop in chassis problems.

Interestingly, while white cars account for about 20 per cent of all vehicles in other parts of the world, in the GCC they account for almost 35 per cent, followed by black and silver, the research found.

thenational