UAE: Used car prices soar up to 20% due to shortage of new vehicles

UAE: Used car prices soar up to 20% due to shortage of new vehicles

70% are sold through auto loans

Published: Tue 28 Jun 2022, 2:52 PM

The used car prices have soared by 20 per cent in the UAE in 2022 and this is likely to increase further due to the shortage of new cars, exponential growth in population and the need for personal mobility during the post-pandemic period.

Automobile industry executives noted that as a result of a shortage of cars, many car owners, therefore, keep their cars for a slightly extended period than what has been historically observed.

They also ruled out any major impact of high oil prices and an increase in the interest rates on the pre-owned vehicle sales in the country with 70 per cent of the cars being sold through auto loans.

“The UAE’s pre-owned car market, post-pandemic, has witnessed an exponential growth in demand, aided by Expo 2020 which has led to a huge influx of tourists and massive job creation. Furthermore, due to the impact of the pandemic, the need for personal mobility has triggered the growth in both first-time and second car buyers. The used car market has also remained buoyant as a result of the global chip shortage,” said Abhinav Gupta, CEO of Gulf Region at Cars24.

Despite an