AutoData Middle East has announced its latest research findings on the UAE’s used car market. The Vehicle Report highlights key market indicators based on user journeys, showcasing the exponential growth and burgeoning demand for used cars in the UAE.
According to a report by Credence Research, the UAE’s used car market, valued at $20.15 billion in 2022, is projected to reach $48.15 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.5% over eight years. AutoData’s Vehicle Report indicates that pre-owned vehicles in the AED 20,000 – AED 30,000 price range are leading the market, followed by those in the AED 50,000 – AED 80,000 and AED 150,000+ brackets.
The report also notes the emergence of a new price bracket for used cars between AED 30,000 to AED 50,000, driven by increased demand for replacement cars following the flooding in April 2024.
Sebastian Fuchs, Managing Director of AutoData Middle East, stated: “We are witnessing a transformative period in UAE’s used car market. At AutoData Middle East, we strive to enhance market transparency and confidence in the sector. Our innovative solutions will support consumers with well-informed decision-making and navigate complex market conditions.”
Based on user journeys from the Vehicle Report, 86% of the activity is from car buyers, with 14% from car sellers. The highest demand is for vehicle models from 2015 and 2021. Additionally, 74% of the demand is for GCC spec vehicles, compared to 26% for non-GCC spec vehicles.
Toyota and Nissan are the most sought-after brands, accounting for 32.8% and 19.2% of demand in 2024, respectively. However, as demand rises, car buyers may face challenges such as missing trimline information, which can lead to inaccurate car evaluations and impact residual values. For instance, a New Toyota Camry Lumiere costs AED 150,000, while a Camry GLE-X is priced at AED 115,700.
AutoData’s Vehicle Report platform is designed to empower customers by providing comprehensive vehicle history, accurate car valuations, detailed damage reports, and recall information based on the Vehicle Identification Number (VIN). This initiative aims to help buyers and sellers make informed decisions with confidence.
As the used car market thrives, vehicle owners are also seeking competitive car insurance premiums. AutoData Middle East recorded over 12 million vehicle insurance queries over the past six months for leading automotive brands, including Mercedes, BMW, Porsche, Lexus, Toyota, and Nissan.
In response to the market need for efficient monitoring of flood damage claims, AutoData is set to launch its pioneering Claim Hub platform, the first of its kind in the UAE. This secure B2B service allows insurance providers to share critical claims data, enhancing operational efficiency, fraud detection, and industry-wide collaboration for improved decision-making. The service is designed to improve claim handling processes, identify fraud patterns, and enhance operational efficiencies, thereby mitigating risks and boosting market integrity.
Sebastian Fuchs commented: “AutoData is leading the charge to safeguard against flood-damaged vehicles re-entering the market. Claim Hub is an initiative that has generated positive interest, and we are certain it will bring added value to industry players and customers. At AutoData, we strive to improve industry confidence and trust in the regional used car markets.”
AutoData Middle East’s latest research and innovative solutions underscore the dynamic growth and evolving trends in the UAE’s used car market. With the launch of platforms like Vehicle Report and Claim Hub, AutoData claims it is enhancing market transparency, supporting well-informed decision-making, and fostering greater confidence in the sector.
As the market continues to expand, it believes these initiatives will play a crucial role in shaping the future of the used car industry in the UAE.
