A former dealer reveals the truth about how the industry operates. [The dealer asked to remain anonymous. We'll refer to him as Yousef. He worked for two leading dealership chains in Dubai from 2015 to 2023, eventually becoming a senior sales manager before exiting the industry altogether. He now works in real estate.]
"The first thing you need to understand: we're not trying to cheat you. We're just trying to maximize margin. There's a difference."
Yousef states this in a straightforward manner, not defensively, similar to how one might explain restaurant wine markups or hotel minibar charges. It's simply business. "When someone arrives with a car to sell, we already know three things: their price, its true value, and what we can sell it for. The key is discovering how much they are willing to reduce the price."
The Inspection Theatre
Those 10-minute inspections? They’re just for show. I can assess a car's value in 90 seconds - check the mileage, review the service book, and take a quick test drive. That’s it.
But we extend it unnecessarily. We bend down and scrutinize objects. We hiss through our teeth. We identify ordinary wear and label it as 'concerning.' Why? Because each 'problem' we detect diminishes their expectations.
I once had a manager who would randomly tap different parts under the hood while shaking his head, clearly clueless about what he was inspecting. It didn't matter, though. The seller saw a concerned expert and reduced the price by AED 3,000 before we even made an offer.
The Pricing Formula
"Here's the actual math. Say your car's worth AED 50,000 in a private sale. We aim to buy it for AED 40,000 and sell it for AED 55,000. That's AED 15,000 margin.
Out of that, maybe AED 3,000 goes to overhead - lot fees, cleaning, photos, advertising. Another AED 2,000 for minor fixes or detailing. That leaves AED 10,000 profit per car.
Some dealers are more aggressive. I've seen 60-40 splits where they buy at AED 35,000 and list at AED 58,000. The lower-end lots in Sharjah? They're brutal. AED 30,000 offers on AED 50,000 cars.
But even the 'fair' dealers are taking AED 8,000-12,000. That's not a service fee. That's a redistribution of wealth from your pocket to ours."
The Lowball Strategy
"Rule one: always offer 20% below what you'd actually pay. Always.
If I think I can get your car for AED 40,000, I'll start at AED 32,000. Why? Because most people counter-offer somewhere in the middle. They say AED 45,000, I say AED 37,000, we settle at AED 41,000. They feel like they negotiated well. I just saved AED 3,000.
The best part? If they accept the lowball immediately, we know we offered too much. I've had managers pull offers back - 'Oh sorry, I made an error in my calculation' - and come back lower."
The Emotional Leverage Points
"We're trained to read why you're selling. Are you leaving the country? Upgrading? Need cash fast? Each reason has a strategy.
Leaving the country: We emphasize speed. 'Look, you need this sorted before your flight. I can do this today. Cash in your account by tonight. No hassle, no waiting for buyers who might flake.'
Upgrading: We'll neg your current car while praising what you're buying. 'This old model's great, but yeah, time for something newer. These are getting hard to move. Let me take it off your hands so you can focus on the new one.'
Need cash fast: This is the easiest. We just wait. Let silence do the work. They'll drop their price without us even asking.
The "Market's Soft" Lie
"Everyone says this. Every dealer, every day. 'Market's really soft right now.' It's basically a greeting.
Know what's funny? I've said 'market's soft' while standing in front of a lot with 90% of inventory sold in the last month. I've said it during Ramadan when people are buying cars like crazy. I've said it when we had a waiting list for certain models.
Why do we say it? Because it works. It plants doubt. Suddenly you're thinking, 'Maybe my car isn't worth what I thought. Maybe I should take what I can get.'
The market's almost never actually soft. We just need you to think it is."
The Instant-Buy App Trap
"Those apps that give you instant quotes? Same game, different interface.
They'll give you a decent number online - say AED 43,000 - to get you to bring the car in. Then during the 'final verification,' they'll find reasons to drop it to AED 38,000.
'Oh, the photos didn't show this scratch.' 'The tire tread's lower than we thought.' 'There's a weird sound when we start it.'
By that point, you've driven 30 minutes to their location, taken time off work, and you're already mentally spending that money. Most people just accept the lower offer rather than start over.
We called it 'sunk cost manipulation.' Corporate called it 'price optimization.'"
The Red Flags You Should Watch For
"If you do sell to a dealer, watch for these:
- Rushed inspections: If they're not actually checking things, they're just performing.
- Vague problem descriptions: 'This just doesn't feel right' means nothing. Ask them to show you specifically.
- Immediate expiration dates: 'This offer's only good for today' is designed to prevent you from shopping around.
- No breakdown: If they won't explain how they calculated their offer, they're hiding something.
- Pressure language: 'You won't get better anywhere else' is almost always false.
- Price drops after initial quote: This is bait-and-switch. Walk away."
His Advice
"If you must sell to a dealer, get at least three quotes. We count on you not shopping around.
But honestly? Sell privately. Yes, it may take longer. Yes, you'll deal with some time-wasters. But you'll keep the money we would've taken.
There are now platforms now that make it easier - I’ve only just head of yours (Carabia), but it sounds like you guys are really filling a gap here. Letting people list and sell for free is the complete opposite to what’s out there.
