ABU DHABI // High income levels, a large and transient expatriate community, easy financing options, and the rapid depreciation of a car’s value after sale all contribute to a fast turnaround when it comes to drivers looking to replace their car in the UAE.
On average, motorists in the Emirates keep a car for about 5.2 years, less than half the 11.5 year average for vehicles in the United States, but much longer than drivers in Saudi Arabia who keep their cars for 3.8 years before selling them.
The average age of a vehicle listed for sale in the region is 5.1 years, 6.5 years in Asia, and 12.8 in Africa, according to Carmudi, an online vehicle marketplace.
Higher salaries encourage drivers to buy the latest models and with expats staying on average four to five years, the market is full of relatively new and cheap cars, said Mohamed Noweir, managing director of Carmudi Middle East.
“If you know it will be easier to sell your car if it is less than five years old because people can get financing, you are more likely to sell it before then and buy a new one,” said Mr Noweir, who added the UAE was an established used car export market for Asia and Africa, which helped keeps the average age down.
“The quicker you can sell the older cars, the faster you can bring in the new ones,” he said.
The average age of Eissa Al Harthi’s cars – a Mercedes C63, BMW X5, Toyota FJ Cruiser and a modified Honda Civic – is four years, which while young is still older than his father’s vehicles.
“My father, who got me into cars, values his more now and keeps them for at least two years compared to just the one before,” said the self-described Emirati petrolhead, 35.
Mr Al Harthi said one of the reasons people opt for newer cars was the rapid wear and tear from the harsh climate, frequent use, and aggressive driving.
However, not everyone desires the latest models. Nizar Madani is the owner of 35 classic cars.
“New cars don’t interest me,” said the owner of Dubai-based Classic Cars who buys, sells and services vintage vehicles.
Mr Madani’s fleet includes cars from every decade since the 1950s. His collection started in 2007 with a 1966 Chevrolet Corvette (C2).
“It became addictive and since then I haven’t stopped,” said the British citizen, who moved to Dubai in 2000. “In the beginning it was difficult to get the cars registered but as interest grew the authorities took note and have made it easier to get them on the road,” he said.
Mr Madani said the only obstacle remaining was that insurance companies tend to only offer third-party and not comprehensive cover for older vehicles.
“I sometimes drive cars worth Dh500,000 and it makes me nervous to know its not fully insured,” he said.
However, he still prefers driving his classics around the UAE for their looks, and the attention they get.
“I pulled up next to a young man driving a 2015 Porsche 911 and he ended up giving my classic Porsche a thumbs up,” he said.
tsubaihi@thenational.ae
