The latest report by IMARC Group, titled “UAE Certified Pre-Owned Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028“, offers a comprehensive analysis of the industry, which comprises insights on the UAE certified pre-owned car market report. The market size reached US$ 5.6 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 9.2 Billion by 2028, exhibiting a growth rate (CAGR) of 8.6% during 2023-2028.
Factors Affecting the Growth of the UAE Certified Pre-Owned Car Industry:
- High Cost of New Vehicles:
The UAE’s luxury car market is known for its high import taxes and fees, which significantly elevate the price of brand-new vehicles. As a result, many UAE consumers, while desiring quality and reliability, seek more affordable options. Certified pre-owned (CPO) cars offer a compelling solution, as they provide nearly new vehicles at a substantially lower cost. This affordability factor is a major driver of the CPO car market, appealing to budget-conscious buyers who wish to make financially prudent choices while still enjoying the benefits of owning a high-quality vehicle.
- Quality Assurance and Warranty:
In the UAE, consumers are increasingly prioritizing quality and reliability when making significant purchases such as vehicles. CPO car programs offered by reputable dealerships address these concerns by subjecting CPO vehicles to comprehensive inspections, ensuring they meet strict safety standards, and providing warranties. These quality assurances are a significant driver of the CPO car market, as they instill confidence in buyers regarding the vehicle’s condition and performance. Consumers appreciate the peace of mind that comes with knowing their CPO vehicle is reliable and comes with warranty coverage, reducing concerns about unexpected maintenance expenses.
- Preference for Luxury and Premium Brands:
The UAE has a strong affinity for luxury and premium automotive brands, reflecting the region’s affluence and desire for prestige. Many consumers aspire to own these high-end vehicles but often find that new luxury cars are financially out of reach. Certified pre-owned (CPO) programs offered by luxury automakers provide a solution, allowing buyers to access these coveted brands at a more affordable price point. The growing popularity of CPO luxury vehicles has been a significant driver of the market, as consumers seek the status and quality associated with these brands while enjoying the value proposition of CPO cars.
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/uae-certified-pre-owned-car-market/requestsample
Leading Companies Operating in the UAE Certified Pre-Owned Industry:
- Al Naboodah Group (Saeed & Mohammed Al Naboodah Holding LLC)
- AL Tayer Group
- AW Rostamani Group
- Car Switch Dubai
- Dubicars International FZ-LLC
- Dubizzle Middle East FZ-LLC
- The Elite Car.
UAE Certified Pre-Owned Car Market Report Segmentation:
By Car Type:
- Sports Utility Vehicle
Sports utility vehicle represented the leading segment due to the rising popularity of SUVs in the UAE, driven by their versatility, spaciousness, and off-road capabilities.
By Car Age:
- 0-4 Years
- 4-8 Years
- More than 8 Years
0-4 years accounted for the largest market share owing to the preference for relatively newer CPO cars that offer the latest features and technologies.
By Fuel Type:
Petrol represented the largest segment as it aligns with the prevailing consumer preference for petrol-powered vehicles, which are commonly perceived as reliable and easier to maintain.
By Vendor Type:
Organized held the majority of the market share on account of established dealership networks, comprehensive inspection processes, and reliable warranties that enhance buyer trust.
By Distribution Channel:
Offline represented the leading segment due to the preference for in-person inspections and test drives, which provide a hands-on experience for buyers.
- Abu Dhabi
Abu Dhabi’s dominance in the UAE certified pre-owned car market is attributed to its higher economic activity, greater demand for premium and luxury vehicles, and the presence of well-established dealerships that cater to the affluent consumer base in the region.
UAE Certified Pre-Owned Car Market Trends:
The UAE certified pre-owned (CPO) car market is primarily driven by the high cost of brand-new vehicles and rapid depreciation rates that encourage consumers to opt for certified pre-owned cars as a more economical and value-driven alternative. Apart from this, the implementation of stringent regulations and safety standards by the UAE government ensures that CPO cars are in excellent condition and meet quality benchmarks, thus accelerating the product adoption rate. Additionally, the increasing popularity of luxury and high-end vehicles in the region has augmented the demand for CPO cars from premium brands as buyers seek both quality and affordability. Furthermore, CPO programs offered by reputable dealerships provide warranties and comprehensive inspections, addressing concerns about vehicle reliability and thus supporting market growth.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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