We think a lot about our cars in the UAE and have also spent a lot of time weighing up whether it makes more sense to rent, buy, take taxis, or a Careem.
As is the case in any maturing market, the recent years have seen the used-car industry outpace the more sluggish market for new cars.
The trend is outlined in a new report on the secondary car market shared exclusively with The National by SellAnyCar.com, a website which provides services regarding car sales.
The report's figures, based on a year-on-year comparison of data collected from sellers on why people have sold their cars over the past three years, provides a snapshot of an important part of the economy.
In 2018, close to 15 per cent of consumers sold their cars for financial reasons, a number that grew by 63 per cent from 2016. In the same period, the number of people who were planning to purchase another car after selling dropped by 18 per cent, while the people who mentioned leaving the country as a reason increased by 25 per cent in the same period.
“We see that there have been less transactions in the car market overall,” says Saygin Yalcin, the company’s founder and chief executive.
"We also believe that during the 'good' times people had more cars than necessary and are disposing them off currently – a number which has grown by 16 per cent since 2016."
According to SellAnyCar, the most popular cars on the market are Japanese, which have a market share of 41 per cent, up 25 per cent since 2014. In response to tougher UAE regulations, 91 per cent of the cars on the road now have GCC specs, which has led to a significant drop in chassis problems.
Interestingly, while white cars account for about 20 per cent of all vehicles in other parts of the world, in the GCC they account for almost 35 per cent, followed by black and silver, the research found.
This was something noticed by Imad Hammad, the founder and chief executive of Carswitch.ae, who tried to find different coloured cars in Dubai to film as part of a video for his company’s website. He couldn’t.
That is when he realised that when it comes to vehicles, the UAE is all about white, black and grey.
"I literally struggled," says Mr Hammad. "It's even hard to rent coloured cars, the red, the orange the yellow. In the UAE it's white, black and shades of grey, and if you just drive and look out your window at a parking lot, that is what you will see. If you drive a blue or a red car, you kind of stand out and turn heads more than others."
Like SellAnyCar, CarSwitch specialises in used cars, serving as a bridge between buyers and sellers on the secondary market.
One development SellAnyCar's research found was that the secondary car market has exploded in the UAE and shows no signs of stopping.
“That’s one major development and it’s nothing unexpected, this has to happen as a developed market,” says Mr Yalcin.
"This will happen. And within the next decade you are going to see that used-car business is going to be double or triple the new-car business."
Consumers are fleeing classified websites and using “car buying experts” to sell their cars to increase their profit, maintain their privacy and save time, he says.
SellAnyCar reports that 95 per cent of its customers have gone to them first, with a success rate of 50 per cent.
Mr Yalcin says so far in 2018, his company has received bids worth Dh1.5 billion.
It is a steep growth from five years ago, when he launched the business after having a "broken experience" unloading his own car.
“I was trying to sell my car in Dubai and realised how difficult, lengthy and risky it was,” he says. “I was not an automotive expert, did not know much more than the make, model and year of my car, let alone anything about the required legal secondhand car selling process.”
___________
Read more:
Green car finance market revs up in the UAE
Should UAE expats ship their car home when they relocate?
Top 5 affordable dream cars in the UAE - if you buy second hand
Listen: Business Extra podcast: SellAnyCar.com's Saygin Yalcin
____________
The situation could not have been different this summer for Stephanie Jones, a flight attendant from Australia who has just left the UAE for the United Kingdom.
She successfully sold the 2010 Audi TT 2.0 TFSI Quattro she bought from a friend three and a half years ago. Ms Jones advertised it for Dh35,000 on a Facebook page dedicated to Etihad employees buying and selling cars, and ended up selling it to another cabin crew for Dh32,000.
The sale was "also word of mouth from a friend," says Ms Jones. "He mentioned it to the girl I sold it to. However she had seen it advertised on the Facebook page."
After a test drive, the buyer paid Dh200 for a service check in Mussafah and then they took it to be registered.
Jon Boger is an American who moved to Dubai for a two-year stint with the US government.
"I need to find a car, because I'm not going to pay $500 (Dh1,836) in rental every month, so I got my apartment taken care of and the next thing is a car, because I have to drive while I'm here," he says.
“$12,000 is my max, I have that and I can just pay cash. I don’t necessarily want to go above that. I sold my truck [back home]. I came over here to save money.”
While the US consulate lists cars for sale from Americans who are leaving the UAE, many were out of his price range. So on a recommendation, Mr Boger turned to the classifieds website Dubizzle.
He made a call about an Audi A6 for $5,000, but it had already sold. After looking around, he is considering picking up a 2014 or a 2015 Kia Sportage cars he saw on Dubizzle.
“Nothing expensive,” he says. “It just fits the bill.”
Mr Hammad says many are turning to smaller 4x4s such as the Sportage, for a variety of reasons, including their economic situation.
“The other thing we are seeing is a shift to more affordable cars, and what I mean by affordable is more economic, and I think that is largely the fuel [price] increases,” he says.
"We have a couple of folks, just anecdotally, who acquired another car for their daily commutes, because of the petrol expenditure and a lot of them still keep a car for the family."
Mr Boger is grateful he met people who could show him how to navigate the UAE’s still-tricky secondary car market before setting out to buy one.
"If I came here blind and didn't have the people who have gone through the process, of getting cars and going through stuff, I wouldn't even know where to start," he says. "I'd be like: 'Uhhh, OK, where's the little car trader magazine that I see in 7-11?'"
Mr Boger is doing the right thing buying a car, even though he knows for sure that his stint in the UAE will be only two years, says Mr Hammad.
Using a Lexus ES300, and taking into account depreciation, service costs, fuel, Salik, cleaning and insurance, but not traffic fines or costs related to an accident, the company calculated the total price of renting as Dh60,000 to Dh65,000; taking an Uber or Careem, Dh45,000, and owning Dh35,000 to Dh40,000.
"Generally, buying is the best choice," says Mr Hammad, who pointed out that his company also rents their staff fleet to avoid the "administrative pain" of servicing and insuring.
"There are certain circumstances where renting is better, that's mostly if you are only in town for a short time. So if you don't know how long you are going to be in the UAE … and everybody is only going to be here for six months, and everybody is still here 10 years later, the general rule of thumb is buy a car."
However for some people who are cash-strapped, it makes sense to unload such a big asset. And increasingly there are those who just don't want to deal with owning a car, whether it's due to traffic, or problems finding parking.
“You have a relatively large movement on these car sharing economies, shifting to Uber, Careem, the metro,” says Mr Hammad.
“I actually know people who have sold their cars and exclusively relied on these other transportation mechanisms. That could be the other reason for selling your car.”
__________
Read more:
Car insurance premiums fall by an average Dh169 in the first half of the year
Nissan Patrol the best car for retaining value in the UAE
Japanese cars rule the UAE's used car market with Toyota the most popular
___________
Tips for selling a car in the UAE
• Avoid test drives with strangers.
• Do not share your home address or personal phone number with random people.
• Make sure to check the dealer’s trade licence, which should read “Used Car Trading”, nothing else.
• Sign a binding, certified purchase agreement with the buyer before transferring title.
• Do not accept cheques from strangers.
• Never pay anyone to do it for you
• Make sure the company you are dealing with is reputable and licensed appropriately.
• If your car has an outstanding loan, make sure to request a liability letter from your bank.
• After selling, make sure to remove your personal belongings, number plate and Salik tag from your car.
• After title transfer, ask for a copy of the new ownership certificate of your car, send it to your insurance company to receive a potential refund and notify them about the change in title.
Source: SellAnyCar.com
__________
Busiess Extra podcast
SellAnyCar.com's Saygin Yalcin on being a leading entrepreneur. Listen here:
UAE currency: the story behind the money in your pockets
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
The specs: 2018 Ford F-150
Price, base / as tested: Dh173,250 / Dh178,500
Engine: 5.0-litre V8
Power: 395hp @ 5,000rpm
Torque: 555Nm @ 2,750rpm
Transmission: 10-speed automatic
Fuel consumption, combined: 12.4L / 100km
Indoor Cricket World Cup
Venue Insportz, Dubai, September 16-23
UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty
The%20specs
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
The%C2%A0specs%20
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The specs: Rolls-Royce Cullinan
Price, base: Dh1 million (estimate)
Engine: 6.75-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 563hp @ 5,000rpm
Torque: 850Nm @ 1,600rpm
Fuel economy, combined: 15L / 100km
Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
LIVERPOOL SQUAD
Alisson Becker, Virgil van Dijk, Georginio Wijnaldum, James Milner, Naby Keita, Roberto Firmino, Sadio Mane, Mohamed Salah, Joe Gomez, Adrian, Jordan Henderson, Alex Oxlade-Chamberlain, Adam Lallana, Andy Lonergan, Xherdan Shaqiri, Andy Robertson, Divock Origi, Curtis Jones, Trent Alexander-Arnold, Neco Williams
UAE currency: the story behind the money in your pockets
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Small%20Things%20Like%20These
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'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
RESULTS
ATP China Open
G Dimitrov (BUL x3) bt R Bautista Agut (ESP x5)
7-6, 4-6, 6-2
R Nadal (ESP x1) bt J Isner (USA x6)
6-4, 7-6
WTA China Open
S Halep (ROU x2) bt D Kasatkina (RUS)
6-2, 6-1
J Ostapenko (LAT x9) bt S Cirstea (ROU)
6-4, 6-4
ATP Japan Open
D Schwartzman (ARG x8) bt S Johnson (USA)
6-0, 7-5
D Goffin (BEL x4) bt R Gasquet (FRA)
7-5, 6-2
M Cilic (CRO x1) bt R Harrison (USA)
6-2, 6-0
Dubai World Cup Carnival card
6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m
7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m
7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m
8.15pm: Handicap (TB) $175,000 (D) 1,600m
8.50pm: Handicap (TB) $135,000 (T) 1,600m
9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m
10pm: Handicap (TB) $135,000 (T) 2,000m
The National selections:
6.30pm - Ziyadd; 7.05pm - Barney Roy; 7.40pm - Dee Ex Bee; 8.15pm - Dubai Legacy; 8.50pm - Good Fortune; 9.25pm - Drafted; 10pm - Simsir
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
High profile Al Shabab attacks
- 2010: A restaurant attack in Kampala Uganda kills 74 people watching a Fifa World Cup final football match.
- 2013: The Westgate shopping mall attack, 62 civilians, five Kenyan soldiers and four gunmen are killed.
- 2014: A series of bombings and shootings across Kenya sees scores of civilians killed.
- 2015: Four gunmen attack Garissa University College in northeastern Kenya and take over 700 students hostage, killing those who identified as Christian; 148 die and 79 more are injured.
- 2016: An attack on a Kenyan military base in El Adde Somalia kills 180 soldiers.
- 2017: A suicide truck bombing outside the Safari Hotel in Mogadishu kills 587 people and destroys several city blocks, making it the deadliest attack by the group and the worst in Somalia’s history.
Korean Film Festival 2019 line-up
Innocent Witness, June 26 at 7pm
On Your Wedding Day, June 27 at 7pm
The Great Battle, June 27 at 9pm
The Witch: Part 1. The Subversion, June 28 at 4pm
Romang, June 28 at 6pm
Mal Mo E: The Secret Mission, June 28 at 8pm
Underdog, June 29 at 2pm
Nearby Sky, June 29 at 4pm
A Resistance, June 29 at 6pm
Zayed Sustainability Prize
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Charlotte Gainsbourg
Rest
(Because Music)
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
THREE
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Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
More from Rashmee Roshan Lall
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Result
Crystal Palace 0 Manchester City 2
Man City: Jesus (39), David Silva (41)
Killing of Qassem Suleimani
Zayed Sustainability Prize
Mohammed bin Zayed Majlis