Thinking about buying a new car?
Dubai roads are known globally for having the most luxurious and expensive cars, and you often don’t have to look far until you see cars which you could only dream of owning. Driving up Sheikh Zayed Road during rush hour, or down Beach Road at sunset, and you’ll tend to see everything and anything from the latest Nissan and Toyota SUVs, to a supped-up Ferrari, to a classic Ford which you don’t even recognise the model of because it’s so vintage.
The urge is compelling. Why don’t I purchase something similar? It doesn’t have to be a Lamborghini or a Bentley but why not buy a new car? Well, truth be told, there are many reasons why purchasing a new car in the UAE is not worth your Dirhams. Below, we’ll list the top reasons as to why we think buying a used car is a much better idea.
Why buying a second-hand car makes more sense
1. Lower upfront cost
Buying a new car will often set you back a long way. Once they’ve been driven out of the showroom, most vehicle depreciate by at least 20%. This means that by buying second hand, you can pay 20%-50% less for a vehicle, and many could well be in very good condition. This means a large money saving, without the ‘new-car premium’.
2. Less depreciation
Most new cars depreciate by around 20%-30% in their first year alone. After this milestone, whilst still ongoing, the depreciation slows significantly. Hence, if you buy a used car after this initial depreciation, you can save a lot in the long term, and this initial hit is taken by the first owner. This is also great for car buyers who plan on selling their car sin 2-3 years’ time who don’t want to lose money.
3. Lower ongoing cost
In the UAE, buying a new car will mean you have to pay more in registration fees since this is often the case with new vehicles. Buying a second-hand car in the UAE will result in lower administrative costs when it comes to registration. In addition to this, in the UAE, the insurance premium is based on the value of the car, and since second-hand cars are always less expensive than the new models, the insurance costs will also be significantly lower. This means ongoing costs are a lot less with second hand cars.
4. Greater selection
Buying a used car means that you have a much larger choice. Marketplaces like Carabia have a much larger inventory than traditional dealerships, who only stock the newest models. For those looking for a wider selection from different makes, models and years, this is often much better than buying a new vehicle.
5. Flexible choice
Due to the factors described above, buying a second hand car can be a much better proposition for expats, families and others entering the UAE. There is much greater choice, and used vehicles lose their value at a much slower rate than if you were to buy new – so often buying and selling a second hand car is a lot less costly than selling a new car.
What to watch out for when buying a used car
1. Hidden issues
Some cars on the market may have issues that either haven’t been found or haven’t been declared by the previous owner. It is important that you conduct your due diligence before buying a used car as otherwise repair costs may end up costing a lot more in the long run, due to hidden issues. There are also safety issues if the car has been in an accident before.
2. Higher costs
For older used cars that have exceeded their warranty period, they may end up being costly in the long run as you’ll need to pay out of pocket for ongoing repairs. This is why buying cars still under warranty is a good idea. Marketplaces, like Carabia, have a certified section which only includes cars still under warranty, and even better than that, cars which have already been inspected!
3. Buying from a private buyer
Buying from a private buyer can often mean lower prices, as individuals tend to sell their car without a significant mark-up. You will sometimes need to be wary as buying privately can have its complications – some used cars being sold privately may have flood or accident damage. Carabia was designed to stop this from happening, as it allows private individuals to sell at the best price, whilst also providing all the tools to enable private buyers to ensure they are buying a high-quality vehicle.
Why buying a used car is a lot better
Overall, it is clear that buying a used car has significant advantages over buying a used car. And especially when using a trusted online marketplace like Carabia, you can be sure that the used car you are purchasing is of the highest quality. It is still important that you do your due diligence, and that you carry out any checks before agreeing to purchase a car from another individual. If done correctly, this approach will save you a lot of money in the long run, and you’ll be happy you didn’t buy a new car!
