Why UAE residents are buying more used cars

Why UAE residents are buying more used cars

Demand for used cars in the UAE has moved to the fast lane in 2021, growing up to 15 per cent. Weaker economic sentiment is prompting UAE residents to opt for more affordable vehicles; an increasing number of motorists tend to travel in their vehicles during the pandemic as well. Local automobile industry executives said high digital penetration and strong countermeasures taken by the government to stimulate the economy are also driving high demand, resulting in a lack of availability of cars in the pre-owned segment. "The used car market growth rate is between 10 to 15 per cent. We are witnessing a good demand in the domestic market and export sales channel as well. The issue for the moment is the lack of available cars in the market that makes it difficult to serve the increasing demand," says Axel Dreyer, chief executive officer for Automotive Division at Galadari Automobiles Co. Ltd. He said the UAE government's effective countermeasures to stimulate the economy contributed to a good recovery and connected demand for mobility of existing and new residents in the UAE. "Especially new residents are looking for an economic vehicle that will serve their transportation requirements." Abhinav Gupta, CEO for