The UAE’s used car market experienced unparalleled growth in 2023, witnessing a surge in demand for used cars, coupled with a simultaneous increase in available inventory. The continuous influx of individuals relocating to the UAE, among other factors, has led to an increased demand for second-hand vehicles.
Factors driving market growth
The used car market in the UAE is witnessing a shift in consumer preferences. The expanded range of choices has fueled the momentum of used car sales in the UAE. Alongside petrol cars, hybrid cars have gained popularity, particularly for used 2021 and 2022 models. Market interest is gradually shifting from conventional to hybrid and electric cars due to increasing fuel prices and a broader transition towards sustainable mobility. Another significant factor contributing to the growth of used car sales is the faster depreciation of new car prices.
Furthermore, strategic policies and regulations that the UAE government implemented have played a crucial role in boosting sales of used cars. Mandatory checks and balances and a comprehensive scrutiny system ensure that motorists maintain their vehicles well. This ensures that used cars are in considerably good condition, making them an appealing and financially viable choice.
Key trends and insights
The dubizzle Annual Market Reports provide a comprehensive overview of used car markets in the UAE. Key trends and insights include the surging demand for Electric Vehicles (EVs). The demand for EVs has witnessed a 33 percent increase, reflecting a growing interest in eco-friendly options. This increased interest in EVs aligns with the UAE’s commitment to green mobility through initiatives like the Dubai Green Mobility Strategy 2030.
Another key trend observed is that of luxury cars incorporating technologies like the Internet of Things (IoT) and artificial intelligence (AI). These upgrades enhance the driving experience with features like autonomous driving, smart safety features, and voice commands, making used luxury cars an attractive option for buyers.
According to the report, SUVs and sedans remain the top choices among both luxury and non-luxury buyers in the pre-owned car market. The Mercedes-Benz S-Class, BMW 5-Series, Lexus LS-Series, Range Rover, and Porsche Cayenne have solidified their positions as the most coveted models within their respective brands.
Luxury used car market trends
The Luxury Pre-owned Cars Annual Market Report UAE 2023 highlights a thriving landscape marked by soaring demand and evolving trends. Hence, German car brands, particularly Mercedes-Benz and BMW, continued to dominate the luxury used car market. Mercedes-Benz’s S-Class, BMW’s 5-Series, and Lexus’ LS-Series maintained their positions as top luxury models, reflecting advanced technology and features. Additionally, Porsche maintained its popularity in the luxury segment, with its Porsche 911 and Panamera.
Besides, SUVs continued to dominate the luxury vehicle segment, with Nissan Patrol, Toyota Land Cruiser, and Land Rover Range Rover leading the way. Lexus with its LX-Series also emerged as a key player in the luxury SUV segment.
Other used luxury models that have emerged as popular choices in the UAE market include the Mercedes E-Class, BMW 7-Series, Land Rover Range Rover, Porsche Cayenne, Audi Q7, and Lamborghini Urus.
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Rising prices
The growth and sustainability of the auto market in the UAE have been notably influenced by the demand-supply dynamics in the used car sector. Trends observed in the used car market throughout 2023 indicate a notable increase in prices across various makes and models compared to the previous year.
This upward trend in prices is due to the heightened popularity and demand for specific car models, alongside the expansion of vehicle line-ups by well-known brands and advancements in technology. The used car market has experienced substantial growth in recent years and continues to be a significant contributor to the UAE’s economy.
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