Used car sellers in the UAE are experiencing higher selling prices and profits as demand for preowned vehicles continues to surge.
The secondhand car market in the UAE is experiencing a remarkable trend as used car selling prices appear to outpace depreciation rates, driven by the continued surge in demand. This development implies that sellers can expect higher returns than anticipated when parting with their vehicles. The heightened demand for preowned automobiles, which primarily targeted luxury and high-end SUV models in 2022, has now extended to mid-range and lower-priced categories in 2023.
According to a fleet operator who recently visited various showrooms in Dubai’s Al Quoz district, secondhand dealers are unwilling to negotiate prices, even for vehicles with significant mileage. The operator recounted his experience searching for Nissan Sunny models, noting that sellers refused to offer any discount on the Dh40,000 price tag, despite the cars having been driven for 100,000 kilometers over three years. For comparison, a brand-new Nissan Sunny model would retail for around Dh60,000.
This trend of inflexible pricing is evident across most popular models in the UAE’s used car market. Dealers can afford to maintain these prices due to the relentless demand that shows no signs of abating. Their primary challenge, however, lies in sourcing enough vehicles to meet the market’s appetite.
The current state of the UAE’s secondhand car market highlights the potential for sellers to reap significant profits by capitalizing on the soaring demand. As the appetite for preowned vehicles in various price categories persists, dealers will likely continue to hold firm on their asking prices, as they strive to satisfy the market’s needs. The phenomenon of used car selling prices outpacing depreciation rates presents a unique opportunity for those looking to sell their vehicles in the UAE, with the potential for substantial returns on their investments.
