Used Car Prices Falling in UAE—Why?

The UAE's used car market is one of the most active in the GCC. The market is dominated by demand from expatriates, a strong car culture, and the emergence of several online platforms. This has resulted in robust demand due to re-exports, easy and flexible financing, and trusted certification programmes, making it quite strong with a high-turnover automotive ecosystem.

However, if you happen to browse through used car listings lately in either Dubai or Abu Dhabi, there is a noticeable decline in prices. This is showing in both the online and offline markets; reports indicate as much as 8-12% compared to a year ago. 

This price drop is a positive development for buyers who are on the lookout for a great deal. But what are the factors causing this shift? We break down exactly what is happening in the used car market and determine whether it is the right time to buy your dream used car that you have been planning for a while.

Estimated Price Drop by Vehicle Segment (2024 vs 2025)

Vehicle Segment	2024 Average Price	2025 Average Price	Price Drop	Reason
Economy Sedans	AED 45,000	AED 40,000	11%	High supply, new car competition
Mid-Range SUVs	AED 95,000	AED 85,000	10.5%	Market correction, oversupply
Luxury Sedans	AED 180,000	AED 155,000	14%	EV shift, depreciation
Large SUVs	AED 220,000	AED 195,000	11.4%	Reduced petrol SUV demand
Sports Cars	AED 350,000	AED 310,000	11.4%	Luxury segment correction

Supply Surge

One of the main factors in lowering the prices of used cars in the UAE is the massive import of cars over the last year or so. This has happened against the background of economic recovery and relaxed import policies, resulting in the market being flooded with cars from Japan, the US, and European markets. The increased supply has put pressure on dealers, who are trying harder than before, and prices are now bottoming out.

This situation is no longer restricted to the entry- or mid-sized car brands; rather, it has spread even to the luxury brands, which generally are shielded from such market dynamics. Brands such as Mercedes-Benz, BMW, and Range Rover consistently enjoy protection from price corrections in their resale value. This scenario is a typical supply-and-demand situation; when there are more cars than buyers, prices naturally fall, as everyone is chasing the same limited pool of buyers.

Key factors causing oversupply

• Increased imports from Japan, the US, and Europe
• Corporate and rental fleets releasing 3-year-old vehicles
• High dealership inventory turnover
• Relaxed import policies

New Car Prices Becoming More Competitive

While the used car market has always been robust, the dynamics of new cars are also impacting it. All the top brands have been facing supply-chain issues. Some of this is a spillover from the pandemic-era delays, and so showrooms across cities are now left with major stock backlogs dating back to 2024 and 2025 models. To address these challenges, which impact profitability, the prices of new cars have become more competitive than ever, leading consumers to rethink their purchasing decisions. 

Instead of going for a used one, buyers have started to find attractive prices for new ones. Hence, it is natural that when new cars become more affordable, used car prices naturally adjust downward to remain attractive. They have made the New vs Used car debate more necessary for UAE car buyers.

According to some agencies that track automotive market data, there are hundreds of new 2025 car models that have seen notable price reductions in the UAE market. Another key factor is the presence of Chinese brands; some of them, like Changan, have been lowering prices by 10–30% to expand market share. Such activity naturally puts a lot of pressure on established brands to offer some discounts to attract buyers.

Again, this situation has not protected the marquee brands either, like the German luxury brand Audi, whose Q8 pricing has declined by around 5–7% in some offers, driven purely by competition. Frankly, this rarely occurs; it is quite unprecedented and tells us the market status right now, along with lower shipping costs and favourable currency rates. New cars also have the Lowest Maintenance Cost in the UAE on average in comparison to Used cars. 

Why new cars are cheaper in 2025

• Lower shipping costs from Asian countries 
• A strong US dollar against the dirham benefits importers.
• Chinese brand competition compelling price cuts
• Dealer promotions with 0% financing offers
• Extended warranties with some brands offering up to 10 years

Keep in mind, when brands let their dealers offer compelling deals like multi-year free insurance, extended warranties, and 0% financing, this changes the whole market dynamic. It impacts buyers' choices, as they find going for a new car makes a lot more sense than a used one due to huge savings in the overall deal. Hence, all of this downward pressure from the new car market directly affects used car values.

Electric Vehicles Demand Impact

One fact hard to ignore in this used car price correction is that electric vehicles are reshaping the UAE market a lot faster than previously anticipated. While right now only premium brands like Tesla, BYD, and Porsche are expanding their lineups, the mid-size brands, including Chinese options, are driving the market, making EVs more affordable than before. At the same time, the government pushes for greener mobility with incentives and improved charging infrastructure.

As EVs make a strong impact on overall new car sales, naturally demand for traditional petrol-powered used cars, mostly the popular large SUVs, has started to taper down as buyers are thinking long-term about:

• Charging infrastructure availability
• Fuel savings vs electricity costs
• EV depreciation patterns
• Environmental sustainability

It is quite visible; this shift, albeit on a small scale right now, is making a strong impact on large petrol SUVs like the Nissan Patrol, Toyota Land Cruiser, and Range Rover. While these SUVs are highly popular, constantly raking in huge sales, their premium pricing in the used market, after a long time of domination, has started to adjust downward as some buyers switch to EVs or hybrid options for their obvious benefits.

Impact on specific segments

• Bigger petrol SUVs: Softening demand, slower sales
• V6 and V8 sedans: Reduced appeal for younger buyers
• Diesel vehicles: Declining interest
• Hybrid models: Holding value better
• Electric vehicles: Strong resale in the used market

Pandemic Inflation Corrected Prices

Believe it or not, the hangover of the pandemic is still visible. Between 2021 and 2023, the used car market witnessed inflated prices due to global shortages. We saw supply chain disruptions and production delays, which created an artificial shortage of new cars and pushed used car prices up significantly. This has certainly had its own impact. Now, in late 2025, we are observing a clear market correction, as cars are starting to move closer to their actual value, especially in the AED 40,000–100,000 range. Used cars at this price make more sense for First-Time Buyers in the UAE.

Current price ranges

• Economy cars: AED 18,000-40,000
• Mid-range sedans: AED 35,000-55,000
• SUVs: AED 45,000-120,000
• Luxury vehicles: AED 70,000-170,000

Influence of Digital Platforms 

Another key factor that is hard to ignore is the emergence of digital plays, which have gone from niche to mainstream in no time. This has a huge positive impact on the used car market, transforming the used car sector and significantly impacting the prices. Some of the popular platforms, like AutoTrader, Dubizzle, Cars24, and traditional dealers offering digital service, offer transparency and boost confidence in the buying process by promising standardised 200-point inspection protocols and high-resolution imagery.

This has changed the used car market forever, as buyers now look at things differently, as cars listed with digital certification clear inventory more than twice as quickly as unverified listings. Most buyers can now easily compare prices across Emirates; this has lifted the hold on dealers' ability to maintain inflated prices, as buyers can now access clear, open, and visible information.

Digital marketplace benefits

• Easy price comparison across multiple platforms
• Verified inspection reports building trust
• Transparent vehicle history checks
• Faster inventory turnover
• Reduced price manipulation opportunities

What This Means for Buyers

While there have been many factors that are playing out in the used car market. One positive aspect of this is the opportunity it presents to buyers who are looking to buy a used car in Dubai or Abu Dhabi:

• Widest options to choose from: Larger inventory means better selection
• Attractive prices: Premium brands now more affordable
• Transparent Process Verified listings becoming standard
• Strong protection: Better warranties, and return policies

Tips To Follow

1. Compare across AutoTrader, Dubizzle, Cars24
2. Verify vehicle history and request RTA checks
3. Negotiate confidently—dealers have flexibility
4. Avoid summer months; buy in September-February
5. Get independent pre-purchase inspections

To not make a mistake while buying a used car, check out the New Guide to Buying a Used Car From GCC - Latest Import Fees and Paperwork.

Conclusion

In summary, it is quite clearly visible that used car prices are coming down in the UAE due to several factors working together. This gives buyers opportunities to look for better deals. Whether you're in search of an affordable sedan for everyday commutes from a Japanese brand or want to move to a luxury SUV for fun desert drives or family needs, this is a good time to secure an exciting deal.

The key is doing your research, comparing prices across platforms, verifying car history, and negotiating confidently. The market has shifted in buyers' favour; it is up to buyers to take advantage of it, as long as the conditions remain favourable.