International Finance

This Middle East city offers among the lowest rates for used cars

UAE, UK, pre-owned cars, Porsche Cayenne , Carswitch, Nissan X-trail
Mapping the World's Prices report by Deutsche Bank showed Dubai is among the cheapest to buy mid-size cars while Singapore is the most expensive

By comparison to other markets UAE offers used cars at lower prices, according to research by Dubai-based marketplace CarSwitch. Imad Hammad in conversation with Arabian Business said that cars in the emirates lose 20-30% of their value during the first year of purchase. Later, they lose 15-20% each year.

“This is quite high [in relation] to other markets… And it’s driven—in large part—by a transient population with higher disposable income, leading to shorter lifetimes of used cars,” he said. CarSwitch in a different research found that  2011 Porsche Cayenne would sell for AED106,000 in the UK and AED88,000 in the UAE. Likewise, a 2012 Nissan X-trail would sell for AED38,000 in the UK and AED28,500 in the UAE.

The considerable pricing in the UAE allows its people to purchase more luxurious cars than they might have planned for. Jon Richards, the CEO of finance comparison website Yallacompare, said: “Even without some of those advantages, the used car market is incredibly attractive for UAE buyers at the moment, with more supply than there is demand—when it comes to some car models, at least. It’s currently possible to find great deals on what would otherwise be luxury cars, and you won’t even have to haggle that much.”

“As a result of all this, the main reason you’d buy a new car now is simply that you want a new car that’s specked exactly how you want it. But many UAE residents look at the ‘good enough’ cars on the second-hand market that cost a lot less, and simply opt for those.”

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