Navigating the UAE’s used car market with Alba Cars

Used car sales in the UAE are set to surge past the one million mark by 2025, according to research by Frost & Sullivan.

A total of 832,500 used cars were sold in the UAE in 2019, meaning that for every new car, about 3.5 pre-owned cars were purchased. And that ratio is expected to reach 2.9:1 in favour of used cars by 2025.

In 2020, amid economic volatility and weak consumer sentiment due to the Covid-19 pandemic, new vehicle sales declined by an estimated 20-25 per cent. However, the demand for used cars is expected to remain resilient since prices are 30-35 per cent lower, on average, than that of their newer counterparts.

According to Frost & Sullivan, consumers are being drawn to used cars not only because of their greater affordability but also the ease with which transactions can now be executed thanks to the digital transformation of the used car industry.

New business models, increasingly flexible approaches by both independent and franchised dealers and innovative platforms and services are all redefining how used cars are being bought and sold across the UAE.

The used cars market is now booming and is anticipated to experience double-digit growth rate over the next five years. From the market size of $14.2bn in 2020, it is expected to reach $18.2bn by 2025.

“Given similar or often higher profitability of used car sales compared to new cars, we see growing interest from authorised dealers looking for new ways to offset volatile sales of new cars. Automotive brands are stepping up efforts to introduce certified pre-owned used cars programmes to appeal to customers looking for “just-like-new” cars in the market,” the Frost & Sullivan report stated.

One of the companies that has established itself in the UAE’s used cars market is Alba Cars. The premium used car dealership is a one-stop destination to buy and sell luxury used car brands. Alba Cars won a regional award for ‘Best Used Car Dealership’ last year and was also recognised as Dubbizle’s ‘Showroom of the Month’.

Every single one of Alba Cars’ vehicles goes through numerous inspections, ensuring both safety and longevity. There’s also a two-year warranty provided as standard, along with a zero per cent down-payment option and trade-ins. Monthly promotional packages include free service, free window tinting, free Salik, free home delivery and 50 per cent off service contracts. For sellers, Alba Cars provides same-day cash offers and can settle bank loans.

You can view Alba Cars’ full range of premium used cars on its website. The showroom is open from 10am-10pm every day (including Fridays) and can be found at showrooms 17, 18 and 20 at Al Asayel Street, Al Quoz Ind 1 in Dubai. To book a test drive call: 04 261 8715.