Why Expats Prefer Buying Second-Hand Cars In The UAE

Almost everyone in the UAE needs a car, whether he/she is a resident or an expat. The thing is that expats' buying behavior in the car market is a bit different from that of residents.

Our experience shows that expats prefer pre-owned cars over new models. You might wonder why a person should go for a second-hand car, while they're living in a country with a luxurious lifestyle, well-known for premium cars. 

In this blog post, we will answer this question and discuss whether it's a wise decision to buy second-hand cars in the UAE.

Financial Advantages of Buying Used Cars

Here are the benefits of buying a used car instead of going for a new one:

1. Avoid Steep Depreciation

One of the biggest reasons people might prefer used cars is the declining value of new cars. In the UAE, new cars can lose 20-30% of their value in the first year.

So, if you want to sell it after a year, you'll lose a significant portion of your investment. This is especially critical for expats, as they might need to sell their cars more than residents.

When you buy used cars, you let the big value decline happen before you pay for them. On the other hand, you can enjoy the same car with all the features for a much better price.

The good news is that the depreciation rate is much lower for used cars. You can see an estimation of this in the following table:

As you can see, after five years, the depreciation rate of cars in the UAE slows down. So, when you want to resell the car, you'll not lose masses of money.

2. More Car for Your Money

Imagine you have set a budget for buying a car. With this budget, you can explore a wider range of models, and even think of more luxurious options if you go to the second-hand car market in the UAE.

For example, instead of choosing a small, basic new sedan, you can afford a larger SUV from a luxury brand.

Here are some real samples:

As you can see, with the same budget, you can buy a fully loaded model when buying pre-owned cars.

As expats like to live a luxurious life in Dubai or Abu Dhabi, they usually choose a second-hand luxury car instead of a new car with basic features.

3. Lower Insurance Costs

As you know, insurance premiums are usually dependent on the car's market value. So, the insurance cost of used cars is significantly lower than that of new cars. 

In fact, you have to pay lower insurance costs for a cheaper car. As many expats don't want to bear a high operational cost, they usually go for this option to save money.

Used Cars Are Suitable for an Expat Lifestyle

Apart from financial reasons, expats have some other reasons to choose second-hand cars in the UAE.

Here are some of them:

4. Shorter-Term Stays

People from across the globe come to the UAE to earn money and gain experience in an international environment. But for many reasons, especially the scorching weather, many of them don't want to stay forever. 

As a result, the average stay in the UAE is less than 5 years, which is not good for long-term plans like buying a new car.

In fact, investing in a new car that loses value quickly simply doesn't make sense. Expats can easily buy a good used car and sell it soon when they want to leave the country without worrying about the cost.

5. Comfortable but Affordable Transportation

Dubai has a modern transportation system, but many expats prefer owning a car instead of taking taxis or using other systems.

This is particularly important for families who need more comfort in their daily routines. Of course, a used car is the most cost-effective option for this kind of lifestyle.

A second-hand car helps expats commute, do school runs, and explore the UAE without breaking the bank.

Common Misconceptions About Buying Used

Although second-hand cars are popular among many expats, there are still some expats who think used cars are not good.

Here are the main mistakes they make when choosing between a new car and a used one:

• Used cars are unreliable: The UAE has dusty and hot air conditions that will cause cars to wear out fast. This is correct, but you can still find well-maintained used cars, especially if you go for cars with GCC specs. 
• It's hard to finance a used car: Fortunately, banks and dealerships in the UAE offer loans for pre-owned vehicles. Some of these loans come with flexible terms.
• You can't resell easily: Online platforms like Dubizzle and Shozon help you easily advertise your car and resell it. If you buy used cars from certain brands, like Toyota and Nissan, you can be sure about their resale value.

Conclusion

The second-hand car market in the UAE is so popular, especially among expats. They like to save money while driving a luxurious car from a famous brand. Some expats are worried about the condition of used cars. Thanks to inspections and service history documentation, you can easily find a well-maintained car. Online platforms help you check these documents and also watch the engine running before buying the car. This will bring peace of mind to expats who want to buy an affordable, but modern car for the short term. 

FAQs

Is it good to buy a second-hand car in Dubai?

Yes. Buying used helps you avoid the high value decline of new cars. Also, you can save money on insurance and find a better car for your budget.

What is the best way to buy a second-hand car in the UAE?

Use trusted dealerships, certified pre-owned programs, or reputable online marketplaces, and always check the car's history and condition.

Can a foreigner buy a car in the UAE?

Yes. Expats who have a valid UAE driving license and residence visa can buy and register a car.

How much does a second-hand car cost in Dubai?

It depends on many factors, like brand, type, age, mileage, condition, etc. You can find compact sedans from around AED 25,000-40,000, and mid-size SUVs from AED 60,000-150,000 or more.

Why are used cars cheap in Dubai?

Many residents sell their own cars after just a few years of use and buy new cars. Also, due to the hot weather and dusty air, the value of cars declines in the first years. So, second-hand cars are cheap.

Which is the best used car to buy in the UAE?

Reliable models like Toyota, Nissan, Honda, and Mitsubishi are popular for their durability. They have low maintenance costs, and you can expect a good resale value.

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