Dubai, UAE: CARS24 commissioned a study in conjunction with YouGov to understand the factors that influenced consumers' pre-owned car purchase decisions in the UAE. According to the survey, 52% of respondents based their decision to purchase a pre-owned vehicle on the number of kilometers recorded on the odometer prior to purchase. Furthermore, according to the study, 50% of respondents considered fuel efficiency as one of their key decision-making parameters, while 48% preferred pre-owned cars as long as it was within their budget.
Abhinav Gupta, CEO, Gulf Region for CARS24, the leading online platform for pre-owned vehicles, stated that “UAE is one of the fastest growing markets when it comes to pre-owned cars. With several nationalities that participated in the survey, majority of them are looking to buy a car that they can rely on for an extended period of time. Consumers today exactly know what they want and they are ready to put their money on cars that meet their own and family’s expectations. Certified cars, quality, style, fuel efficiency among several other key parameters will continue to influence the consumer’s buying decisions and this is a trend that we have been observing in all our key markets”.
On the other hand, the survey also found that 46% of consumers based their buying decisions on the make and model of the vehicle, while only 35% of respondents placed appearance as a key factor before getting behind the wheel.
Another important insight that emerged from the survey was that 30% of the respondents considered the warranty aspect of used cars to be an essential prerequisite. Also, every car bought from CARS24 comes with 7 days return policy and 12 months warranty. Close to 43% of pre-owned car buyers considered the car's driving performance and the brand's reputation before purchasing.
“We have factored in all the key prerequisites that a customer in UAE will consider before owning their pre-owned car. Today, CARS24 has already rolled out close to 1500 plus cars as per the international quality standards from its Mega refurbishment labs in Jebel Ali. We adopt a stringent 150-point check, and each aspect of the car is reviewed with the minutest details prior to listing the car on its platform. This mega refurbishment lab (MRL) in UAE now has the capacity to roll out close to 20000+ cars in a year. This facility at Jebel Ali has 70 bays and 5 high-end Italian paint booths.Consumers can choose from close to 1500+ cars on the company's ecommerce portal based on their budget. These cars range from sedans to SUVs to high end luxury cars,” concluded Abhinav.
Close to 40% of the respondents according to the CARS24-YouGov survey believed that the absence of any structural damages also influenced their buying decision. Moreover, 30% of respondents emphasized the benefits of extended warranties and financing options and 28% based their buying decisions on the number of previous owners.
With a company value of close to US$3.3 billion, CARS24 is revolutionizing the way pre-owned cars are bought in the UAE. Since the launch of its operations in the UAE in May last year, CARS24 has sold close to 7000 plus cars and 100% of these transactions were conducted online.
As per an earlier CARS24-YouGov study, around 55% UAE consumers within the 18-34 age group prefered to buy pre-owned cars online.