Why Are Used Cars So Cheap In UAE?

Why Are Used Cars So Cheap In UAE?

Due to a growing population and a movement in customer preference from public to private transportation, the demand for cheap cars for sale in UAE has expanded dramatically in recent years. According to the “UAE Used Car and Auto Classified Market Outlook to 2025” research by Ken Research, the UAE’s used car industry is expected to grow at a positive CAGR of 16.6% in terms of revenue from 2020 to 2025.

It is because buying a used car is one of the most cost effective solutions available to consumers in UAE today. People can not only escape a significant depreciation hit, but they can also purchase their ideal automobile within their budget. Even though the used cars are pre owned, most have regular maintenance and a guarantee, which typically reduces the risk of purchasing a used vehicle.

According to one survey, UAE is one of the cheapest countries to buy used vehicles. Let’s look at some of the main reasons why second hand cars are so inexpensive in UAE.

1. Depreciation At Lower Rate

The value of a brand-new car begins to fall rapidly the moment it leaves the dealership. In fact, the car depreciation rate may reach a startling 20% to 30% as soon as the car enters the road, with an additional 15% to 20% depreciation every year after that. Used car depreciation, on the other hand, is significantly slower, providing a chance for sellers to obtain a fair return. As a result, the first owners of cars suffer the greatest depreciation impact, making secondhand cars a comparatively affordable option for purchasers in UAE.

2. Low Cost Gasoline

The UAE is a large oil producing country with a heavily dependent economy on the oil sector. That is, the government massively subsidizes gasoline prices, keeping them low for consumers. Furthermore, the nation has large deposits of natural gas, which is also employed as a fuel source.

Furthermore, UAE has made significant investments in infrastructure for oil and gas production and transportation, ensuring a continuous supply of fuel to the market. This supply constancy assures that gasoline prices do not change dramatically as a result of scarcity or market volatility.

The cheap cost of fuel in UAE provides considerable benefits for car owners, since it lowers the entire cost of vehicle ownership and makes driving more affordable. This is especially significant in a nation where public transit is limited and driving is frequently the most convenient form of mobility.

However, it is crucial to emphasize that the UAE’s cheap gasoline prices have also contributed to high levels of car usage and traffic congestion, which has a severe impact on the environment and public health. As a result, significant attempts have been made to promote the use of public transit and electric cars as a means of reducing the country’s dependency on fossil fuels and promoting sustainable transportation choices.

3. It Is Simple To Own A Luxury Car

Even though the used cars are pre-owned, most have regular maintenance and a guarantee, which typically reduces the risk of purchasing a used vehicle.

According to one survey, the UAE is one of the cheapest countries to buy used vehicles. Let’s look at some of the main reasons why secondhand automobiles are so inexpensive in UAE.

Many individuals throughout the world like to own a luxury automobile, but not everyone is able to do so. Things are different in UAE, where you may sample a luxury car for a reduced cost. Because used luxury cars are less expensive than new ones, it offers potential buyers greater confidence and allows them to acquire the luxury car of their choosing.

4. Fewer Changes Of Buying A Defective Vehicle

Because of UAE’s stringent road safety regulations, every car owner must keep a thorough record of the vehicle’s history, including maintenance, inspection, accident history, and car renewal. Even if you buy old cars, you may not need to spend extra money on maintenance or paperwork collecting.

You may also examine history by entering the chassis number on the Ministry of Interior’s official website. All of these data and paperwork lessen the likelihood of purchasing a problematic car and help the purchasing process go more smoothly.

5. Cheaper Insurance Rates

In UAE, used cars are often less expensive to insure than new ones. It’s because they employ older technology that requires less maintenance. You may receive insurance based on your budget and multiple factors such as your age, driving record, and car condition.

Finally, making sure you get the best deal is critical so you don’t have to look for auto repair or service shops after the fact. It may appear difficult to choose the perfect used vehicle model, but you can always contact private dealers, shops or auto dealers when you can get the best price.

Contact Carsclub for more information about the UAE’s automotive sector and affordable used cars.


The UAE’s low used vehicle pricing may be linked to a number of reasons, including a competitive new car market, a transitory population, beneficial tax regulations, and a consistent supply of used automobiles owing to the country’s reliance on expat labor. Furthermore, the cheap cost of gasoline in UAE makes owning and operating a car more inexpensive, which contributes to the market’s availability of used cars. While these factors have made it simpler for consumers in UAE to acquire and sell old cars, it is vital to consider the long-term cost of ownership as well as the impact of heavy car usage on the environment and public health.

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