We are all trying to navigate our "new normal" at the moment, as the Covid-19 pandemic has been affecting financial situations across the globe. Families have been separated from loved ones and many residents across the UAE are choosing to return home, while others have been forced out of work due to a worldwide economic downturn.
This is why there is a sudden influx of second-hand goods available online, including, quite literally, thousands of used cars.
If you’ve found yourself in this situation and you are worried about how to sell your car successfully, or concerned you might not get a good price for it, we are here to help.
1. Decide where you want to advertise
It wasn't long ago that selling a car meant writing a sign and sticking it to the car window, then placing a small advertisement in the local newspaper or printing a poster and pinning it on to your local supermarket's noticeboard.
Times have changed and, nowadays, there are numerous outlets to choose from when it comes to finding a buyer for your beloved run-around.
Online trading platforms are very popular, with sites such as Facebook Marketplace, Dubizzle and Auto Trader all offering a great sales space.
But don’t rely on digital sites alone. Other options to consider are traditional auctions, part-exchanging at a local dealer or selling via a company that offers to "buy any car".
2. Prepare your car
Don’t even think about advertising your car until it is ready for inspection. Take your vehicle for a deep clean and make sure it’s tidy inside and out. There are plenty of valeting companies across the UAE, and many offer a professional service at a reasonable price.
Displaying a car that has been washed, polished and deodorised shows you have taken care of your vehicle both on the exterior and under the hood.
If you are hoping to achieve a good price, invest in the removal of any chips, dents and wheel damage from a professional company. It’s not as expensive as you might think.
3. Take great pictures
With your car sparkling, it’s time to take some photographs. You don’t need a professional photographer, as a modern smartphone will do.
It’s essential to take a good range of shots, including of the exterior and interior, in daylight and with a simple background.
Show every angle of the car, any damage or modifications and, if it’s a convertible, take pictures with the roof up and down.
4. Describe your car accurately and don’t lie
The two most important elements to catch the eye of any potential buyer are great photographs and a killer description. The more relevant the information you include in your write-up, the more effective your advertisement will be.
Start with the basics: include the make, model, mileage, body type and trim. The trim level is important because it represents how many features are included on the car and this can really affect the price. People are willing to pay more for a car with alloy wheels and the latest safety features, after all.
Make sure to highlight all the features on your vehicle and be honest: if it still has a tape deck, don’t describe it as having a "state-of-the-art digital sound system" simply because you bought an auxiliary cable to connect to your phone.
5. Price your car accordingly
The Middle East is famous for its love of cars and many of us believe ours is extra-special. Take a step back and remember: it’s a commodity and car values are set by demand.
The value of your car will be affected by age, mileage, condition, service history and modifications, which can often have a negative impact on the price.
Take your car to a couple of dealers and ask for their opinion on its value. Check out online advertisements for other vehicles of the same make and model, then assess the age, condition and trim level to determine where your car fits into the market on price.
6. Be patient
With so many cars up for sale, its good to prepare yourself and remember that some prospective buyers will try to offer a ridiculously low price, knowing that it’s a buyer's market.
Make sure you are armed with the research about what your car is worth and don’t come to a deal too soon. Give yourself at least a month to sell your car and definitely don’t add “Must sell today”. This will only encourage low offers.
Ultimately, be patient, but be prepared to negotiate.
UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Tonight's Chat on The National
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Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.
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Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
match info
Union Berlin 0
Bayern Munich 1 (Lewandowski 40' pen, Pavard 80')
Man of the Match: Benjamin Pavard (Bayern Munich)
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 258hp from 5,000-6,500rpm
Torque: 400Nm from 1,550-4,000rpm
Transmission: Eight-speed auto
Fuel consumption: 6.1L/100km
Price: from Dh362,500
On sale: now
