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Cheap Used Cars in UAE

Used cars in Dubai
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If you are a car lover and can’t buy your dream ride in your home country, move to the United Arab Emirates. You can easily find a top-quality cheap used car in UAE in a very low budget. This has been made possible due to the high competition among auto manufacturers, non-existent import duties, and easy car financing schemes in UAE.

Factors responsible for the availability of Cheap used cars in UAE are:

There can be tens of other reasons but the most significant factors are given below.

Hassle-free car financing schemes:

Easy Car financing

Contrary to world practice, nonproductive loans such as auto loans can be easily secured in Dubai. The banks are always looking for clients no matter where the money is going to be utilized. Auto financing is very easy and anybody withdrawing a reasonable monthly salary can easily secure a car loan. This is what makes cars extremely affordable and accessible to all. It is interesting to note that the number of defaulters is also in the thousands. All those who default, get their cars confiscated by banks and the same cars are again made available for resale at throw-away prices through bank auctions. Eventually, the prices fall to rock bottom making used cars extremely cheaper in Dubai.

Rapid depreciation/ Devaluation of Cars:

Depriciation

A car is considered an asset in countries like Pakistan where the value of the vehicle appreciates over time. However, the situation is different in Dubai. A car loses about 20 to 30 percent of its original value in the first year of its purchase. And over the next couple of years, the value comes down to zero regardless of the model and price of the car. Consequently, when such a car is brought to the market for resale, it does not get even half of its original price. Such vehicles are sold out at throw-away prices in the auctions; those looking for second-hand cars get to buy luxury cars at a very low price. This is why used cars are extremely cheap in Dubai.

Cheaper fuel in UAE:

Cheap Fuel

Another reason for cheap used cars in Dubai is the affordable oil prices. Although the surging energy prices all over the world also have an impact on gas prices in UAE as well, the current prices are still not that high as compared with the rest of the world. A full tank of gas does not put as much burden on your pocket as it usually does in other parts of the world. This makes cars feasible options for daily commuters. Instead of squandering thousands on expensive public transport, people tend to buy their own cars. Also, Car rental services are available with just a click. One can easily rent a luxury ride in less than a hundred Dirhams a day. Therefore, getting a car in UAE is not a big deal.

Negligible import duties on cars

Low import duties

A Car imported into Pakistan is twice the price of the same car imported into the UAE. The taxes are exorbitantly high in nations like Pakistan and India whereas the situation is totally opposite in Dubai and the other six states of the United Arab Emirates. The Government does not discourage imports; instead, it facilitates trade to and from UAE. To support car imports, the government charges an extremely nominal amount in import duties and as a result, all the car makers of the world view Dubai as a lucrative market and prefer launching their new models in UAE. The minimum tax slabs provide a level playing field for all auto companies. The non-tariff barriers are also non-existent. It is for this very reason that one gets to buy cheap cars in Dubai and all across UAE.

High competition among auto-manufacturers

High Competition

The competition among auto manufacturers is extremely high in Dubai and other UAE states. All the German, French, Japanese and American brands are officially present in UAE.  One gets to see luxury vehicles of all types – hatchbacks to coupes, sedans to SUVs, sports cars to normal family rides – on the wide, carpeted roads of Dubai. The excessive competition has eventually led to the increased supply of cars far surpassing the demand. This gap between demand and supply makes used cars extremely cheap in Dubai. Ultimately, it is the common man who gets to buy luxury cars in a very low budget.

High maintenance costs compel people to sell their cars

High maintenance cost

Dubai gets sunlight throughout the year. The Hot climate has its impact on cars as well. Due to the scorching heat, Tyres wear out earlier than their expiry date. One has to spend extra bucks on tyre changes every year. Similarly, the hot summers cause break-pads and break oils to burn out too soon. One has to spend extra money to keep the brakes working. Likewise, the ACs too stop working when the mercury goes above 45 degrees during the day. Not only does heat reduce the average working life of a vehicle but also increases maintenance costs by manifold. Disheartened by the massive cost, the low-wage earners are forced to sell their cars to save their hard-earned money. Consequently, these cars are later made available to other buyers are cheap rates.

People leave Dubai and abandon cars after a temporary/short stay:

Abandoned cars

Just like other Arab nations of the Gulf region, Dubai does not grant permanent citizenship to immigrants even after decades of stay. It is for this very reason that majority of the expats quit UAE for better destinations leaving their cars behind. The abandoned cars are mostly bank leased and often found short of installments. The banks confiscate such vehicles and later put them up for auctions to recover their funds. This trend has been prevailing for decades and has played a significant role in bringing down car prices. As a result, everybody gets the opportunity to buy cheap used cars in Dubai and other Emirati states.

To conclude the silky thread of discussion on the topic of Cheap used cars in Dubai, it is imperative to mention that the situation may not remain the same in years to come. The global economic recession post-covid-19 has badly impacted the auto sector in UAE. With the gas price on the rise amidst the ongoing Ukraine-Russian conflict, the car market may see some bad days.

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