Summary
The market is segmented into types of cars (SUVs, Sedans, Hatchbacks, Coupes, Pickup Trucks, and others), Market Structure (Organised & Unorganised), By Organised & Unorganised (Organized Sector By OEMs, Multi- Brands and Online Marketplaces and Unorganized Sector By Local Dealers, Auction Houses, C2C and others), Brand (By Toyota, Nissan, Mitsubishi, Hyundai, Ford, Chevrolet, Kia and Others), Country of Origin (By Japan, USA, Germany, South Korea, China and Others) and Region (By Dubai, Abu Dhabi, Sharjah, Ras Al-Khaimah, Ajman, Umm Al-Quwain and Fujairah)
Market Overview
UAE Used Car Market Overview
In terms of revenue, the UAE used car market expanded from AED 7.8 billion in 2017 to AED 20.4 billion in 2023, reflecting strong growth over the period. The market is projected to reach AED 39.8 billion, growing at a CAGR of 10.9% during the forecast period, supported by rising vehicle replacement cycles and increasing demand for affordable mobility options. In 2023, over 260,000 used cars were sold across the UAE. Additionally, leading multi-brand players such as Al-Futtaim and Cars24 are strengthening their digital and AI-enabled platforms, allowing customers to compare, enquire, and purchase used vehicles online, thereby enhancing transparency and convenience in the market.
UAE Used Car Market Definition
UAE Used Car Market by Value: It includes the total Gross Transaction Value (GTV) generated from the sale of used cars across the UAE in a year from both organized and unorganized segments.
Organized Segment: An organized segment includes CPO Dealerships, Multi Brand Dealership and Online Marketplaces (including classified) with more than 30 units of cars in stock or that have more than one branch.
Unorganized Segment: The sector includes sales through local dealership, customer to customer sales as well as sales through Newspaper Classifieds, Auctions & Government Sales.
Multi-Brand Outlets: It includes standalone/clustered dealerships or showrooms that sell used cars of various brands through a physical store.
OEM/Franchise Dealership: Franchise dealerships which sell new cars and used cars, they are associated with brands. They sell certified pre-owned cars.
Online Marketplaces: Online marketplaces include platforms that purchase used car itself and then sell it to the end user. It also includes Online Classifieds that bring buyers and sellers together to transact the sale of used vehicles. Depending on the type of advertisement, e-commerce websites charge listing fee/commission from sellers.
Taxonomy
UAE Used Car Market Ecosystem
UAE Used Car Market Size, in (AED Bn), 2017-2023
In terms of revenue, the UAE used car market expanded from AED 7.8 billion in 2017 to AED 23.7 billion, reflecting strong and sustained growth over the period. The market began gaining momentum from 2017 onward due to the introduction of VAT on new cars, which slowed new vehicle purchases and encouraged consumers to consider used alternatives. At the same time, the maturing second-hand car ecosystem, supported by a growing number of organized and digital players, improved market transparency and accessibility. Additionally, consumers increasingly shifted toward affordable and well-maintained used cars, resulting in reduced dependence on new car sales. During 2020–2021, global semiconductor shortages disrupted new car production and extended delivery timelines. Coupled with financial uncertainty and an increased preference for personal mobility during the COVID-19 pandemic, demand for reasonably priced used vehicles accelerated, driving higher growth rates. The market remained resilient in 2022, supported by continued new car shortages, population growth, and sustained demand for personal transportation in the post-pandemic period.
UAE Used Car Industry Analysis
UAE Used Car Market Size, in (AED Bn), 2017-2023
UAE Used Car Market Segmentation by Market Structure (in units sold), 2023
The UAE used car market is characterized by a near-equal presence of organized and unorganized sectors. In 2023, the unorganized sector held a slightly higher share at 52.5%, compared to 47.5% for the organized sector. The dominance of the unorganized segment is driven by a strong auction-based ecosystem and the extensive presence of local dealers operating in well-known unorganized marketplaces such as Al Aweer, Al Quoz, and Souq Al Haraj. Meanwhile, the organized sector continues to gain traction due to the rising adoption of online platforms and the availability of value-added services, including warranties, certified vehicles, transparent pricing, and a more convenient buying experience. These factors are gradually strengthening the organized segment’s position within the UAE used car market.
AE Used Car Market Segmentation by Type of Car (in units sold), 2023
In the UAE Used Car market of 2023, car types are divided into SUVs, Sedans, Hatchbacks, Coupes, Pickup Trucks, and others. SUVs lead the market with the largest contribution, selling 124,859 units, making up 46.4% of total sales. Their popularity among families for trips and vacations, along with the growing population's preference for spacious and comfortable vehicles, drives the demand for SUVs. In 2023, SUVs have the largest share at 46.6%, followed by Sedans at 34.1%. The influx of expatriates for job opportunities has increased demand for sedans and hatchbacks, mainly used for daily commuting. While hatchbacks and coupes also contribute, SUVs and sedans dominate the market, reflecting diverse consumer preferences in the UAE Used Car market.
UAE Used Car Future Market Outlook
The UAE used car market was valued at AED 23.7 billion in 2023 and is projected to reach AED 39.8 billion, growing at a CAGR of 10.9% during the forecast period. Growth is expected to moderate in the near term as conditions in the new car market improve, particularly with the easing of semiconductor supply constraints, which has reduced waiting periods for new vehicles. Despite this, demand for used cars is expected to remain strong, especially for mid-range vehicles, driven by their lower price points, immediate availability, mobility needs, and the UAE’s large expatriate population. Over the longer term, the market is anticipated to grow at a more normalized rate of around 6%, supported by higher new car sales that will gradually feed into the used car ecosystem, ensuring continued supply and sustained demand in the UAE used car market.
Frequently Asked Questions (FAQs)
Find quick answers to common questions about the UAE Used Car Market