High incomes, status, a transient population and a desire to avoid growing maintenance costs are just some of the reasons drivers in the UAE change their car more often than those in the rest of the world.
How often are vehicles traded in?
Surveys and research suggest UAE motorists trade their vehicles in somewhere between every three and five years, and that rate may be increasing. Typically, used cars on sale in the UK are an average age of seven years old while in the US that figure rises to 10 years old.
In other parts of the world, that age of previously owned motors is even higher. Drivers in Australia hang on to their cars for around 11 years, while in African countries like Congo it can be 17 years.
UAE motorists tend to trade their cars in before the manufacturer’s warranty expires which tends to be around five years from new. While cars are becoming ever more reliable, the costs of maintenance continue to rise and in the harsher climate of the emirate, cars can need more frequent attention.
Demand for new cars
The purchasing power of motorists in the UAE continues to drive demand for new cars, but with depreciation accelerating in the first 18 months of a vehicle’s life, most drivers will get the value out of their purchase. Selling before the manufacturer warranty expires maximizes the return from a used vehicle.
There’s also a buoyant market for slightly older-than-new cars in the UAE, with many exported to other Gulf countries as well as North Africa, Iran and Iraq. That demand continues to maintain prices for used vehicles.
Regular car servicing and maintenance likely to increase
There’s still a trend for new cars and status vehicles in the UAE of course, but with today’s cars being built with higher levels of quality and longer life spans, the average age of motors is likely to increase. Regular car servicing and maintenance will become increasingly important for maintaining a vehicle’s value.