UAE - Car enthusiasts in Dubai have shown the most interest in pre-owned cars in the first half of 2022, says a new study into used car market in the UAE.
From 2021 second half (H2) to 2022 first half (H1), the number of people interested in pre-owned cars has increased by 50-55%. When we look at the millennials in the UAE, more than 55% of them prefer to buy pre-owned cars online. Millennials are most enthusiastic about pre-owned cars, forming 60% of total buyer, said the first “Used car market insights” launched by CARS24, one of the world’s fastest-growing eCommerce platforms for pre-owned cars.
The report provides valuable industry insights with regard to the pre-owned car market in the UAE.
Abhinav Gupta, CEO, Gulf Region, CARS24, while launching the report, said: “There was a big gap with regard to data on the pre-owned car industry in the UAE. With our very first report, we are delighted to bridge that gap and provide much needed insights into the pre-owned car industry. It is also encouraging to know that by 2025, for every new car bought in the UAE, 3 pre-owned cars will be purchased. We at CARS24 can vouch for that because in just over 365 days in the UAE, we’ve added 10,000 plus happy customers. In just over a year, CARS24 has redefined the pre-owned car industry in the UAE with its superior tech capabilities that include unique vehicle appraisal technology, AI-enabled pricing algorithms that give the accurate market price of a vehicle, and a scaled infrastructure that ensures seamless execution”.
The CARS24, "Used Car Market Insights” report highlights the industry trends and also touches upon the global pre-owned car market. Furthermore, the report focuses on the preferred mode of payment, the car buyer’s checklist, gender and feedback from the used car customers, their preferred brand, the type of car the UAE consumers prefer, and several other interesting insights.
“With the increase in population post COVID, the number of car owners in the UAE has increased significantly, with over 34% of the total population. If you narrow it down to the individual emirates, then Dubai, Abu Dhabi, and Sharjah are currently the top 3 cities for pre-owned cars, "added Abhinav.
Globally, the pre-owned cars category is valued at $1.66 trillion in 2022 – and with a CAGR of 6-7% this category is expected to touch $2.67 trillion by 2030. Currently, China has the largest pre-owned car market share with over 10% ($167.4 billion), followed by the United States with 9% ($160.4 billion), the report said.
“In keeping with this growing demand, CARS24 has launched its Mega Refurbishment Lab in the UAE to ensure impeccable quality control, as per international industry standards. Our MRL has the capacity to roll out close to 20,000 cars in a year,” added Abhinav.
This 1 million sq ft Mega Refurbishment Lab in Jebel Ali, with a total contract value in excess of AED40 million, is one of Dubai’s largest leasing deals on record. The company adopts a stringent 150-point check, and each aspect of the car is reviewed with the minutest details at the MRL prior to listing the car on its platform, it said.
“Another interesting fact the report highlights is that males in the UAE constitute 70% of total buyers, whereas female buyers are growing fast with a rate of over 60% in the first half of 2022 compared to the second half of 2021,” concluded Abhinav.
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