Used cars retained values in the UAE are rising for the first time while sales are accelerating, according to new research.
Craig Stevens, CEO at Dubicars.com, said the research shows there has never been a better time for UAE drivers to opt for a used car.
He said the retained value for used vehicles has increased versus previous years, with a comparable car costing 4-10 percent more this year compared to 2018.
Collaborating with AlgoDriven, Dubicars has analysed the three million searches its website receives monthly plus thousands of transactions.
It showed that despite costing more, used cars are selling faster. Dealers are selling vehicles 7.5 days faster than in 2018 and privately owned cars are selling in 17.8 days, down by 6.4 days.
Stevens estimated a new car will experience a drop in value of between 15-30 percent within the first year, adding that the research shows the depreciation rate for used cars is slowing down, a trend the UAE automotive market has not previously seen.
He said he is optimistic about the used car market in the next 12-24 months and does not expect used cars will depreciate as fast as they have in the past.
RTA data on registered active light vehicles reports the average age of a car on Dubai roads is eight years.
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