UAE USED CAR MARKET

UAE used car market is growing at a robust CAGR of 10.8% between 2025 and 2032 primarily driven by rapid urbanization and infrastructure developments along with the emerging online platforms.

Major Market Drivers and Emerging Trends

Infrastructure developments and road expansions coupled with rapid urbanization are making car ownership increasingly appealing in the UAE. Urbanization is progressing rapidly with around 88% people within the population residing in urban areas which significantly influences the lifestyle of its residents.

The country now offers numerous job opportunities with the tourism sector also experiencing significant growth. The growing need for efficient and comfortable transportation in this highly urbanized country is driving the growing interest in used cars as a practical transportation solution. Attractive pricing and affordability are major contributors to the strong market demand. Many consumers choose used vehicles particularly cars in good condition.

The growing used car market in UAE is also driven by the emerging online and certified platforms for purchasing or selling secondhand vehicles. Online platforms for used cars allow consumers to easily access vital information including price comparisons and visual condition among others which enhances buying experience. These factors significantly assist consumers in making their final purchasing decision.

Numerous independent dealerships and multi brand outlets are anticipated to build their digital presence to actively engage in the online used car sector. Several market players are implementing new business plans through their digital platforms which aim to improve the experience for used car owners and cater to B2B customers throughout the value chain. Many used car platforms are expected to prioritize creating a transactional marketplace that supports complete online transactions and eliminates the need to visit physical showrooms.

Dubai is a leading economic and cultural center which significantly influences the used car market in the country. The city attracts residents and tourists that have varied requirements and the market reflects this diversity. In Dubai buyers tend to favor luxury vehicles. Its cosmopolitan nature supports thriving showrooms and dealerships which offer various vehicles from economical to luxurious. Online marketplaces are gaining popularity in the city which offer convenience and access to wide vehicle selection. Its thriving rental car sector further supports the availability of carefully maintained used cars.

By vehicle type the SUV segment is projected to lead the market owing to their versatility and broad consumer interest. Many families are attracted to SUVs for their generous space and comfort which makes them perfect for long trips. The rising population is also fueling the growing interest in SUVs with the vehicles becoming increasingly popular and further supported by the booming tourism sector. These vehicles are preferred for their comfortable interiors which easily accommodate passengers or luggage. Their durable design makes them perfect for navigating diverse terrains during travel which provides consumers with confidence. Their growing popularity among youth may be fueling the demand for them among local customers. Even within a low budget, affordable SUVs provide a robust and modern look. This SUV segment is an ideal choice for buyers in a middle income class.

Sedans along with other compact cars continue to be favored in the market largely owing to their practicality and excellent fuel efficiency. These smaller vehicles are highly preferred by residents for daily commuting which drives their popularity in the market. These vehicles combine fuel efficiency with comfort and affordability which makes them an attractive option to many consumers.

By vendor type, the unorganized sector that encompasses C2C transactions or local dealers captures a major market share. The dominance is driven by a strong auction market and the large number of local dealers including in Al Quoz and Al Aweer which reflects the complex dynamics in the market. The organized sector including OEMs and online marketplaces also gain significant popularity driven by the rising prominence of online platforms and the comprehensive services provided by organized vendors.

By fuel type, the market continues to be led by petrol used cars largely owing to their abundant supply and the comfort buyers have with these vehicles. With abundant petrol stations across the country these vehicles cater to consumers that need flexibility because they are suitable for short city trips or long highway drives. These cars offer strong performance and reasonable pricing which makes them a popular option for many buyers. Diesel vehicles are also common in the market especially among buyers who need more torque and superior fuel efficiency for long drives. Diesel vehicles excel in fuel efficiency on highways and are especially preferred for larger vehicles like SUVs that are often driven in tough environments.

By sales channel, the online segment is projected to experience the highest growth rate. The UAE boasts high internet penetration which ranks among the top countries globally in internet usage. This surging internet usage is largely owing to the widespread access to fast and affordable internet services with almost 99% of the entire population are internet users. This trend further facilitates the increasing online used car purchases in the country.

Top Market Players

Several prominent companies in the market include CARS 24, Arabian Automobiles, Al Futtaim, Yalla Motors among others. Leading used vehicle dealerships are expanding through mergers and collaborations. While emerging entrants are also capitalizing on fleet growth and offering a broader selection to capture market share.

Key Developments

• • In 2023 an online marketplace for used cars in Dubai CarSwitch revealed its intention to expand throughout the UAE. The company further introduced new services like subscription options and car financing. It is also looking to expand its footprint by opening new showrooms in major urban centers.
  • In 2023 AW Rostamani revealed its first showroom for luxury used vehicles in Dubai. This achievement signals the used car sector in the country with AW Rostamani enhancing its portfolio to meet consumer needs.
  • In 2022, Cars 24 rolled out a software based on AI in the UAE which offers car enthusiasts the ability to purchase and sell vehicles within just 30 minutes right after downloading the platform.

Segments covered in the Report:

The UAE Used Car Market has been segmented on the basis of Vehicle Type, Vendor Type, Fuel Type, and Sales Channel. Based on Vehicle Type, the market is segmented into Hatchbacks, Sedans, and Sports Utility Vehicles (SUV). Based on Vendor Type, the market is segmented into Organized and Unorganized. Based on Fuel Type, the market is segmented into Petrol and Diesel. Based on Sales Channel, the market is segmented into Offline and Online.

Market Segmentation

UAE Used Car Market by Vehicle Type

• • Hatchbacks
  • Sedans
  • Sports Utility Vehicles (SUV)

UAE Used Car Market by Vendor Type

• • Organized
  • Unorganized

UAE Used Car Market by Fuel Type

• • Petrol
  • Diesel

UAE Used Car Market by Sales Channel

• • Offline
  • Online

Major Players Operating in the UAE Used Car Market

• • CARS 24
  • Arabian Automobiles
  • Al Futtaim
  • Yalla Motors