A new study by Dubizzle Automobiles has examined how different vehicle brands retain their value in the UAE used car market, with Toyota emerging as the highest-ranking brand in the analysis. The findings put greater focus on resale value as an element of vehicle ownership costs, particularly for buyers considering future sale, trade-in or replacement.
According to the study, vehicles from Toyota retained an average of 65% of their value. Lexus and Ram followed with 61% each, while Nissan and Honda recorded 60%. The findings provide an indication of how vehicle values change over time in the UAE market, although actual resale values can vary according to individual vehicle and market conditions.
The analysis covered models from 2021 to 2023 and compared similar vehicles according to brand, model, class and manufacturing year. It also accounted for specification differences between vehicles intended for GCC markets and those developed for other markets. Results were then aggregated at brand level using weighted averages and median prices based on the number of advertisements.
For fleet operators and individual buyers, the study highlights residual value as one of several factors that can influence the overall cost of running and eventually replacing a vehicle. Purchase price, financing, fuel consumption, maintenance and other ownership costs also form part of that calculation.
Toyota leads value retention
Toyota recorded the highest retention rate among the brands covered by the study, at 65%. The analysis showed a progressive reduction in value over the ownership period, with vehicles retaining 87% of their value after the first year, 75% after two years and 65% after three years.
Lexus and Ram each recorded a 61% retention rate, followed by Nissan and Honda at 60%. Mazda, GMC, Jeep and Hyundai each recorded 59%, showing that several established brands retained a substantial proportion of their vehicle values in the UAE used market.
Residual value and ownership
The study notes that vehicle value retention can vary according to several factors, including model, vehicle class, manufacturing year, specifications, condition and market demand. As a result, brand-level figures provide an indication rather than a guarantee of the resale value of an individual vehicle.
For buyers, residual value provides another measure when comparing the longer-term cost of ownership. A vehicle that retains a greater proportion of its original value may provide greater financial flexibility when its owner decides to sell, trade or upgrade.
This consideration also applies to the used market, where buyers have access to a broad range of brands, models and specifications. Future value can therefore form part of the comparison alongside purchase price, vehicle specification and operating and maintenance costs.
Beyond the purchase price
The initial purchase price is only one component of vehicle ownership costs. As a vehicle ages, its residual value can influence the financial position of an owner when it comes time to move into another vehicle.
Commenting on the results of the analysis, Sherif Magdy, Director of Sales at Dubizzle Automobiles, said: “When buying a car, the consumer typically looks at their current needs, but the purchase decision has an impact on the following years of ownership. Knowing how well a car is retaining its value can provide additional perspective when comparing the available options. This analysis aims to provide data that helps buyers understand the long-term value of different cars, along with other factors that go into the purchase decision.”
The study indicates that vehicle valuation extends beyond the price paid at the point of purchase to include the value retained throughout the ownership period. Comparing similar vehicles across model years can therefore give buyers a broader view of potential ownership costs when assessing options in the UAE used car market.
As the UAE used vehicle market continues to expand across brands, models and specifications, value retention represents one data point buyers can consider alongside purchase price, specifications, ownership costs and day-to-day operating expenses.
