The demand of used cars in UAE has elevated to such a great extent that the companies have started to compile large lists of awaiting clients, interested in buying second hand cars over the new ones. The sudden change in the trend of consumer buying can be linked to the inflation and the ongoing economic downfall in the European and Japanese markets. This has influenced the buyer to opt out for a used car instead of a new model. The issue prevailing at the moment is that the new cars are very expensive and can’t be placed instantly. But the companies are accepting advance orders on second hand cars as people are more willing to buy them at very affordable prices.
Companies have acquired huge hopes for used cars and aim to boost sales threefold next year to make up to 15% of total sales. These plans are not unique to one specific brand. All the main dealerships have begun to center on used cars as their next big income earner. In year 2013, there has been a noticeable increase of used-car showrooms that offer pre-owned cars permitted by the producer or parent company.
A major automobile manufacturing company which opened a showroom in August for Nissan, Renault and Infiniti models, conducted a survey of the overall UAE market trend and found that last year just a quarter of the 850 used car dealers were specialized garages associated with key manufacturers, while the greater part were small independent sellers. Many cars are also sold directly to buyers through online websites. Buying trends are shimmering the global economic representation and consumers are now prepared to buy used vehicles rather than new ones. New car buyers are also becoming more cautious and understanding their limits with the growing inflation.
Buying powers and habits are changing rapidly in the UAE. Those customers who once used to purchase brand new cars are now the ones booking used cars on down payment basis. Many companies have even created a waiting lists of potential buyers of used cars because car rental companies are also under them who sell their leased cars every 18 months, effectively guaranteeing a steady supply. These trends can be related to the fact that because of the shortage of cars, companies are focusing more on used cars. The stats of the sales of the companies has clearly indicated that within a short span of time, the sales of the used cars have increased manifolds.
Many financial constraints have taken the heart of many valued customers and reliable companies. From dwindling buying power to agitating inflation, from market competition to natural hazards, both the client and customer is under a constant pressure where demand and supply possess a major conflict of interest. The major companies such as Honda and Toyota still own only 60% of its customary supply after the earthquake and tsunami that hit Japan and disturbed its car production massively. So the brand has had to come up with a scheme to ease the supply problem without any difficulty and one of these has been the used-car sector.
