Demand for moderately priced pre-owned vehicles is on the rise in the UAE with the price range between AED20,000 ($5445) and AED30,000 leading the way, followed by AED50,000-AED80,000 and AED150,000+ price brackets.

 

This is according to AutoData Middle East, a subsidiary of World Automotive Group (WAG) and leading automotive data solutions provider in the UAE. Its innovative Vehicle Report highlights key market indicators based on user journeys, showcasing the exponential growth and burgeoning demand for used cars in the UAE.

 

According to the Credence Research industry report, the used car market, valued at $20.15 billion in 2022, is witnessing a compound annual growth rate (CAGR) of 11.5% over eight years, reaching an estimated $48.15 billion in value by 2030. AutoData’s Vehicle Report platform indicates the opening of a fourth price bracket for used cars between AED30,000 and AED50,000, due to the rise in demand for replacement cars following the recent flooding in April 2024. 

 

Transformative period

Sebastian Fuchs, Managing Director of AutoData Middle East stated: “We are witnessing a transformative period in UAE's used car market. At AutoData Middle East, we strive to enhance market transparency and confidence in the sector. Our innovative solutions will support consumers with well-informed decision-making and navigate complex market conditions."

 

According to Vehicle Report user journeys, 86% are car buyers vs 14% car sellers show the highest demand for 2015 and 2021 vehicle models. Furthermore, the research indicated 74% vehicles demand in GCC spec vehicles compared to 26% for non-GCC spec. 

 

Brands such as Toyota and Nissan are the most demanded car with 32.8% and 19.2% in 2024, respectively. As demand rises, car buyers may face challenges in effectively evaluating their next vehicle purchase, such as missing trimline information leading to inaccurate car evaluations that impact residual values. For example, a New Toyota Camry Lumiere costs AED150,000, while a Camry GLE-X costs only AED115,700.  

 

AutoData, through its recent launch of Vehicle Report, empowers customers to make well-informed decisions when buying or selling used cars with confidence. The innovative platform provides users with comprehensive vehicle history, accurate car valuations, detailed damage reports, and recall information, all based on the Vehicle Identification Number (VIN). 

 

Competitive car insurance premiums

As UAE’s used car market thrives, vehicle owners seek competitive car insurance premiums. AutoData Middle East recorded over 12 million vehicle insurance queries over the past six months for leading automotive brands including Mercedes, BMW, Porsche, Lexus, Toyota, Nissan and more. 

 

Addressing the market gap to efficiently monitor claims related to flood damage, AutoData is poised to launch its pioneering Claim Hub platform – the first of its kind in the UAE – underscoring its commitment to building confidence in the region’s used car market. 

 

The secure B2B service offers insurance providers the opportunity to share critical claims data, boosting operational efficiency, fraud detection, and industry-wide collaboration for improved decision-making. Insurance providers can easily access the free service, improving claim handling processes, identifying fraud patterns and augmenting operational efficiencies to mitigate risks and amplify market integrity. The forward-thinking service is already generating industry-wide demand and has secured about 60% market share within the motor insurance sector.

 

“AutoData is leading the charge to safeguard against flood-damaged vehicles re-entering the market. Claim Hub is an initiative that has generated positive interest, and we are certain it will bring added value to industry players and customers. At AutoData, we strive to improve industry confidence and trust in the regional used car markets,” concludes Fuchs.--TradeArabia News Service