UAE Announces Expected Decline in Used Car Prices for 2024

Asma Ahmed - | UAE

As automobile dealers launch enormous discounts and marketing campaigns, industry participants anticipate a sales increase during Ramadan.

Due to increased shipments of new vehicles and the entry of new competitors, especially from China, the price of pre-owned automobiles in the UAE decreased by nearly 15% in the previous year. Demand is anticipated to increase, particularly during Ramadan 2024, when dealers customarily implement significant discounts and promotional campaigns; therefore, prices may decrease further this year before stabilizing, according to experts.

According to AlgoDriven, an automotive digital platform, prices dropped by 14.8% last year, driven by an increase in new car inventories following the impact of the COVID-19 pandemic on production levels. Despite the initial slowdown, the market showed signs of recovery in the second half of 2023, with used cars selling nearly twice as fast as at the beginning of the year, taking an average of 19 days to sell in December.

Abhinav Gupta, CEO of Cars24 in the Gulf Region, noted a 15% increase in inquiries and a 10% growth in units sold, despite the overall stagnancy in the used car market in 2023. Since its establishment in the UAE in 2021, Cars24 has sold over 15,000 units, indicating a strong demand for pre-owned vehicles in the region.

The UAE serves as a significant market for used cars, driven by Dubai's status as a major export and re-export hub for vehicles to Asia and Africa. Additionally, Chinese automakers have been increasing their market share by introducing new models into the local market.

Looking ahead to 2024, Glenn Harwood, co-founder of AlgoDriven, predicts another 15% reduction in used car prices, driven by increased competition and a growing range of options for new cars. However, he believes that the market will remain resilient due to the UAE's favorable macroeconomic conditions and expanding expatriate population.

Cars24 expects a surge in demand for luxury models in the coming months, particularly from millennials and Gen Z buyers. Safety, reliability, and the popularity of SUVs are expected to continue shaping consumer preferences in the used car market.

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Asma Ahmed
Asma Ahmed
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