UAE Used Cars Market Research Report: Forecast (2026-2032)

UAE Used Cars Market Size: Forecast (2026- 2032)

The UAE Used Cars Market size is valued at around USD23.47 billion in 2025 and is projected to reach USD29.48 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 3.31% during the forecast period, i.e., 2026-32.

UAE Used Cars Market Outlook:

The UAE Used Cars Market is entering a period of steady and healthy growth, supported by a mix of economic stability, rising buyer confidence, and strong vehicle availability. Additionally, the country’s expanding expatriate population continues to drive consistent demand for affordable mobility options. For instance, in 2023, the UAE had a population of around 9.97 million, of which roughly 88% were expatriates, underscoring how strongly the market is shaped by non-citizen residents. Many of them prefer used cars due to affordability, shorter residency periods, and lower long-term ownership commitments.

Also, demand from businesses and fleet buyers is rising as logistics, delivery services, and corporate mobility expand. Dubai’s e-commerce logistics sector has been growing steadily, with the emirate handling over 5 million shipments of freight annually, supporting the need for reliable pre-owned sedans, vans, and SUVs for corporate fleets.

Moreover, the rental and leasing segment is another strong contributor. The UAE remains one of the region’s largest car-rental markets, with major operators managing tens of thousands of vehicles that are typically replaced every 2–4 years, feeding a steady supply of young used cars back into the market. Companies like Hertz UAE highlight strong year-round demand across tourism and corporate leasing, reinforcing continuous fleet renewal.

Similarly, rising vehicle registrations reported by Dubai’s RTA signal growing ownership turnover, driving a steady inflow of 3–5-year-old vehicles into the secondary market. Moreover, growing demand for SUVs and mid-priced cars aligns with evolving household mobility preferences.

Likewise, the UAE’s economic diversification is boosting disposable income and credit availability, widening access to certified pre-owned cars offered by organized dealerships. For instance, companies such as Al-Futtaim Automall, Al Habtoor Motors, and Arabian Automobiles continue expanding pre-owned facilities and service centers, improving quality assurance. Additionally, digital platforms such as CarSwitch and DubiCars simplify inspection, valuation, and financing, further supporting market formalization.

UAE Used Cars Market Recent Developments:

• June 2025: Al-Futtaim Automall expanded its presence in the UAE's used-car industry by opening a new showroom near Dalma Mall in Dubai. This expansion increases customer access to certified pre-owned vehicles, offering inspected cars, warranties, and financing options. The new facility strengthens Al-Futtaim’s role as a leading provider in the country’s growing used-car retail sector.

UAE Used Cars Market Scope:

UAE Used Cars Market Drivers:

VAT Profit Margin Mechanism Supporting Market Growth

The UAE’s Profit Margin Scheme (PMS) is strengthening the used-car market by reducing the tax burden on pre-owned vehicles. Under this scheme, the Federal Tax Authority (FTA) allows VAT to be charged only on the dealer’s profit margin, not on the vehicle’s full resale value. This prevents double-taxation on assets that have already been taxed once when sold new, thus contributing to the market growth.

This structure makes dealer-sold used cars more competitively priced, enabling buyers to save significantly compared to paying VAT on the full value. Additionally, dealers benefit from better pricing flexibility, encouraging more organized and transparent resale transactions. Together, these advantages make the PMS a powerful fiscal driver, supporting higher demand, smoother market operations, and stronger growth across the UAE’s used-car ecosystem.

Expansion of Certified Pre-Owned (CPO) Ecosystem

The expansion of Certified Pre-Owned (CPO) programs has become one of the most powerful forces driving growth in this market. This shift is mainly due to the rising need for trust, safety, and transparency among buyers who want reliable vehicles without the risks associated with private or unverified sellers. CPO programs provide this assurance by offering standardized, dealership-backed evaluations that carefully assess the condition of each vehicle.

Dealers now use structured multi-point inspections, verified service histories, and warranty protection to prove that vehicles meet strict quality standards. For instance, Al-Futtaim Automall conducts a 99-point inspection, checks mileage authenticity, and offers warranty coverage that reduces the risk of unexpected repair costs. These features are especially attractive to families, expatriates, and first-time buyers who prefer a secure and predictable purchase experience, and directly boost overall market growth.

UAE Used Cars Market Trends:

Shift Towards Digital-First Used-Car Transactions

The UAE is rapidly moving toward digital-first used-car transactions as buyers increasingly depend on online tools for transparent and convenient vehicle selection. Platforms offering remote inspections, instant valuations, and secure payment support are driving this shift. For instance, CarSwitch enables customers to book inspections, manage paperwork, and finalize payments digitally, highlighting how online processes are steadily replacing traditional showroom steps.

This behavioral shift is reinforced by rising digital engagement across major automotive portals. For instance, as per the DubiCars (2025), demand on its online platform increased by 42% in H1 2025 compared to H1 2024, demonstrating a strong acceleration in online buyer activity and digital browsing habits.

Similarly, YallaMotor strengthens digital-first buying through verified vehicle histories, remote viewing options, and direct dealer communication, enabling customers to compare vehicles without visiting multiple physical locations; thus, it is actively transforming the growth of this market.

UAE Used Cars Market Challenges:

Rapid Adoption of New-Car Models Impeding Market Expansion

Rapid product refreshes, frequent new-model launches, and continuous technology upgrades, such as ADAS, infotainment, and EV features, are creating greater volatility in vehicle depreciation across the UAE Used Cars Market. For instance, pre-owned car prices in the UAE declined by nearly 15% year-on-year, mainly because new-car deliveries improved and new brands expanded supply, putting downward pressure on used-car values.

Additionally, increased registrations in the rental and fleet segment continue to feed a large number of near-new vehicles into the resale market, rather than used cars. For instance, rental fleet size grew by around 71,040 in 2024, adding more recent-model inventory and further accelerating depreciation. Likewise, shifting consumer preferences toward advanced in-car technology and electric vehicles also influence resale dynamics.

Together, these factors mean that faster model cycles are shortening the period during which vehicles hold strong resale value, increasing inventory risk for dealers and reducing profit margins for used-car owners, thus hindering market growth.

UAE Used Cars Market (2026-32) Segmentation Analysis:

The UAE Used Cars Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Vehicle Type

• SUVs
• Sedans
• Hatchbacks

SUVs lead the UAE Used Car Market because consumer mobility patterns strongly favor vehicles that perform reliably across both urban and desert environments. SUVs continue to attract stronger demand than other vehicle types due to their higher safety perception, spacious cabins, and suitability for desert and inter-emirate driving conditions.

Additionally, UAE automotive evaluations show that SUVs, especially the Toyota Land Cruiser and Nissan Patrol, rank among the country’s strongest resale-value performers, due to their durability under extreme heat and rough terrain. This resilience is highlighted by independent assessments listing these models as top value retainers in the UAE.

Moreover, organized dealerships reinforce SUV dominance through certified pre-owned programs. For instance, Al-Futtaim Automall reported selling over 25,000 used cars in 2023, of which 48% were SUVs, showing how high SUV turnover, supported by warranties and detailed inspections, continues to attract risk-averse buyers.

Based on Vehicle Age

• Less than 3 Years
• 3 to 5 Years
• More than 5 Years

The 3 to 5-year vehicle age band is dominating this market because it aligns with the country’s structured vehicle replacement cycles, particularly within rental and leasing fleets. UAE automotive experts note that rental companies commonly refresh large portions of their fleets every three to four years, pushing a steady supply of well-maintained cars into the used-car market at predictable intervals.

Additionally, 3–5-year-old vehicles offer the strongest value proposition because they retain modern features, such as updated safety systems, infotainment screens, and fuel-efficiency improvements, while avoiding the steep depreciation that typically occurs in the first two years. UAE automotive industry identifies this age range as the smartest buying window, noting that such cars often deliver 20–40% savings after 3-5 years compared with new vehicles while still providing reliability and contemporary specifications. Thus, this range is leading the market segment.

Leading Players of the UAE Used Cars Market:

• Al-Futtaim Automotive Group

Al-Futtaim Automotive, part of the Al-Futtaim Group, founded in the 1930s, began its automotive operations in 1955 and today stands as one of the UAE’s most influential mobility players. It contributes significantly to the used-car market through Al-Futtaim Automall, launched in 2001, which offers certified multi-brand pre-owned vehicles backed by inspections, warranties, and finance support. Its strong dealer network, service infrastructure, and reputation for transparency position it as a trusted leader shaping the organized used-car ecosystem in the UAE.

• Arabian Automobiles Company

Arabian Automobiles Company, established in 1969 as the flagship automotive subsidiary of the AW Rostamani Group, plays a key role in the UAE’s mobility landscape. While best known as the exclusive distributor for Nissan, INFINITI, and Renault in Dubai and the Northern Emirates, it also supports the used-car segment through trade-in programs, certified pre-owned options, and dealership-backed resale channels. Its structured processes, brand strength, and after-sales capabilities help elevate buyer confidence in the UAE’s pre-owned vehicle market.

• Al Habtoor Motors

Al Habtoor Motors, founded in 1983, is a major multi-brand automotive distributor with a strong presence across passenger, luxury, and commercial vehicle categories. It entered the used-car segment in 2011 with the launch of CarZone Megastore, one of the UAE’s earliest large-format used-car supermarkets. By offering inspected vehicles, financing, warranties, and dealer-grade support, the company strengthens the organized pre-owned car space and enhances customer trust through professionally managed resale operations.

Gargash Enterprises, Bin Hamoodah Auto, Al Tayer Motors, Carswitch, Dubicars, YallaMotor, and Others are the key players in the UAE Used Cars Market.

UAE Used Cars Market (2026-32): Regional Projection

Dubai is the leading region in the UAE Used Cars Market. Its dominance is reinforced by its scale, infrastructure, and continuous government-backed development. For instance, the emirate is creating the Dubai Auto Market, a 22-million-sq-ft complex designed to accommodate more than 800,000 vehicles annually, positioning Dubai as the region’s central automotive trading hub and directly strengthening its used-car ecosystem.

Additionally, vehicle registrations and overall transport activity continue to rise sharply in Dubai, supported by the city’s expanding population and high mobility needs, which in turn increase the circulation and resale of pre-owned cars.

Similarly, leading automotive retailers and certified pre-owned specialists concentrate most of their operations in Dubai. For instance, Al-Futtaim Automall, which expanded its used-car retail network by opening a new showroom near Dalma Mall in June 2025, is further increasing access to inspected and warrantied vehicles. Likewise, Dubai hosts the largest digital inventory of used cars in the UAE. DubiCars, for reference, lists over 30,000 verified vehicles, including used cars from hundreds of local dealers, giving Dubai unmatched supply depth and market liquidity.

Gain a Competitive Edge with Our UAE Used Cars Market Report

• UAE Used Cars Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• UAE Used Cars Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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