Owning a car has become a necessity for many residents in the UAE today. Approximately 35 percent of Dubai residents own a vehicle, and there is a growing demand for used or preowned vehicles due to their affordability and high quality, thanks to the strict regulatory standards set by the UAE government.
The used car market in the UAE accounts for about a quarter of the overall GCC market, with nearly 500,000 transactions occurring each year. This number is expected to double in the next five years. There are several reasons for this growth, including economic prudence, the efficiency brought by increased digitization of the used car market, and a better understanding of vehicle depreciation.
Furthermore, the wide variety of used cars available in the market caters to the diverse consumer base in the UAE. There is a second-hand car to suit every preference and need. The popularity of Certified Pre-Owned vehicles is also on the rise, as they provide customers with proper records of the vehicle’s history and condition, allowing them to purchase quality vehicles at lower price points.
The used car market is experiencing rapid growth, but it is still plagued by informality and a lack of transparency. It is crucial to conduct thorough research to ensure you are getting the best possible deal and to avoid potential issues in the future. By investing time in comparing various makes and models, examining specifications, conducting thorough inspections, and exploring financing options, you can streamline and simplify your used car purchasing process. This diligence will ultimately lead to a solid investment that provides value for your money.
Here are a few tips you should know before buying a used car:
Research – Before making a purchase, it is essential to conduct thorough research by comparing similar models from different brands. By benchmarking the quality and price of various brands, you can make a more informed decision.
Specifications – One crucial aspect to consider when buying a car is whether it has GCC specs or foreign specs. The type of specifications can significantly impact the resale value of the vehicle, with GCC specs generally holding a higher value in the market.
Mileage – It is imperative to verify the original mileage of the car and review the service records before finalizing a purchase. This step helps to prevent cases of mileage rollback, a common form of fraud in the market.
Mechanic Inspection – Before sealing the deal, it is highly recommended to have a trusted mechanic inspect the car thoroughly. This step is crucial as it can reveal any hidden issues that may not be visible to the untrained eye. Many reputable dealers offer mechanical inspection services for a small fee, which can help prevent potential problems in the future.
Vehicle Inspection – Before purchasing a car, it is crucial to conduct a thorough legal inspection to check for any accident records or insurance claims that could impact the car’s price. It is not uncommon for cars that have been deemed a total loss by insurance companies to be resold without proper documentation. Therefore, it is imperative to review all legal documents before finalizing a purchase.
Warranty Coverage – It is important to verify that the car comes with warranty coverage post-purchase. Many individuals opt to buy new cars despite losing a significant portion of their value because of the manufacturer’s warranty. Trusted dealers often sell certified pre-owned cars with warranties ranging from 3 to 12 months, minimizing the loss in value.
Administrative Assistance – Seek out a dealer who can provide support with administrative tasks such as passing RTA inspections, registration, insurance comparisons, and mortgages. Properly handling these administrative processes is essential, as errors can result in costly consequences in the future.
Financing Options – Choose a dealer who can assist you in securing the right financing for your car. Whether it’s a low down payment or an attractive interest rate, the right dealer will ensure that your purchase is not only of high quality but also structured with favorable financing terms.
Also Read: Buying a used car? Here’s how to check its accident history
