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Why Used Cars in Dubai value is depreciating so much?


Baraz

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Since almost more than a year, that I am noticing that Used cars in dubai value has gone down drastically. I know it's an oil price effect but I am wondering why in rest of the world used cars price have been stabilize where as used cars in dubai still going down and down and hitting so bad that car worth 100K year back is not even getting sold at 60k now. What is wrong with the used car market in dubai, who is rigging it and who is geting benefit out of all this manipulation??????

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Hi @Baraz I have been a victim of this used car prices dropping. At one point i was quoted AED 17K for my previous car which I wanted to sell and just 2 days later nobody would pay me AED 10K for the same. Bad decision on my part, but later I came to know that the Saudi, Oman and other car buyers who used to buy vehicles in Dubai and register them in their country, that market is almost closed due to some new rules. The new rule states that any car over 6 or 7 years cannot be imported to these countries and would not be registered. This means less buyers and more vehicles for sale, thus demand is not there, but supply is plenty. The economic situation is also gloom and lesser people want to invest and buy any cars. This has also driven new cars to come with lower prices or attract the customers with offers which save the end user some money. If you are buying a used car you would now like to take the cost out of the vehicle for the freebies being offered by these companies. hence the resale value of the used cars has decreased somewhat. If you go to Al Aweer Car Complex you will also realize that these showrooms are so full of cars they want to sell and they are not keen on buying anything, as it takes than now more than 6-7 months to turn it around and sell it to the end buyer. If they will buy, they want it for peanuts as they would depreciate the car for another year, to make sure if their car does not sell for a year, they are covered.

Just my view and opinion as to why the resale value of used cars have decreased. Everyone, please feel free to add if you have any inside information which I would have missed out.

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