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Do you buy used or new car in UAE? Why it comes down to one factor!

Published on : 16/Aug/2017
Do you buy used or new car in UAE? Why it comes down to one factor!

With many "experts" trying to detail the Pro's and Con's of buying a new car vs buying a used car in Dubai, This question still boggles the mind of the people across UAE. There are many factors that people look into while choosing a car. The manufacturer, model, design, financing options, inbuilt features and much more. However, after all this it always comes down to the very same question, weather to buy a new or used car in UAE?


How long do you intend to keep the car you are buying?

  • If you are a person who would keep a car only for 1-5 years as you prefer changing cars often, Then you are better off buying a used car.
  • If you are a person who is indefinite about this answer and wishes to stick to the same car as long as possible, then your best choice would be to buy a brand new car.

Let's work on the math now:

- The minute you drive out your brand new car out of the dealer showroom, the car loses 20% of its value. Even though the car is still brand new.

- Within one year, the car usually loses 30% of its original value, unless you are buying a Japanese car like Toyota or Nissan. These cars generally hold value without depreciation even within the first year because of the high demand for buying Toyota and Nissan cars in Dubai, Abu Dhabi, and the rest of UAE.

-A new car will continue to have a high level of depreciation for the first 2-5 years and then the depreciation will level off. At the 5 years mark, most of cars will lose 50% to 60% of their value after being bought directly from the dealer.

So if you a car lover who prefers to change cars and buy one every 2-5 years, you are better off buying a used car in UAE, unless you are relying on a bank and can afford to burn all that cash every couple of years. Generally a lot of expatriates in UAE end up doing exactly that and end up complaining about not being able to make savings.


On the other hand, when you buy a used car in UAE, most of the car value loss happens in the first 1-5 years. However, what you need to be aware of is that the warranty would have ended and you have to deal with the maintenance of the car from your own pocket. If you are buying a budget or Japanese cars, that may not be a big deal. But if you are buying a luxury European or German cars like BMW, Mercedes or Land Rover, then the cost of car spare parts in UAE for such vehicles, especially in case of a major breakdown can add up to a price of a new car. Due to this, it is very essential to do a thorough inspection before buying a used car.

Here is a quick check list:

  1. Don't go cheap on inspection. It is always recommended to request for a full inspection in the dealership and not worry about it later.
  2. Check the service history of the car. If the car has not been serviced in the dealer, walk away from the deal. A car that is mistreated in the early years, will do you no good later.

Our next article will be on "Buying 4x4 SUV vs Sedan Cars, The best choice for families and individuals".