“There is a buyer for every available car whether new or old,” is what is said about cars. It turns out my car which is an old Eddie Bauer Ford Expedition is comparatively way too popular in Saudi Arabia. The Saudis love such cars or for the matter of fact any good car..!!
Buying and selling cars is a multi-billion $ business in the UAE, where prominent and influential locals covet ultra-luxury cars. Unlike in the USA, where the average life of a car is 11 years, or the UK where it is 7 years, the average years for which a car is utilized here in UAE is between 5 and 6 years due mainly to the arid climate and also partly due to their love for cars. Add in new, well-maintained road infrastructure, favourable gasoline prices and a higher ratio of cars per household and what you finally get is a strong car culture. Sheikh Zayed Road which is the 8-lane highway and serves as the main traffic artery within UAE is lined with car dealerships to cater to every taste.
Also selling and buying is a mainstream business amongst the merchants of UAE. Many of these entrepreneurs have some prior experience working as salespeople for big dealers and cut their teeth while going to car auctions.
Two years ago in June, I came across a “sweet spot” in the used car market. The intricacies involved buying a 2 to 3 year-old car which is still under a service contract and later sell it 3 years later when you have plans for up gradation. For instance Toyota Prado purchased as used in August 2008 was later sold in June 2011 for 10,000 AED less than was originally paid for it. The make of car was of help too. Toyotas in particular along with other Japanese cars in general tend to hold their value well till late in the Dubai market.
You also won’t see many old cars running on Dubai’s roads thanks to the law according to which UAE bans cars older than 15 years and at the same time prohibits owners of vehicles older than 10 years from transferring ownership in the UAE. When the cars are too old for the local market, they often get shipped to northern parts of Africa, where they are driven for many more years.
