Understanding Used Car Prices: Factors that Affect the Market
If you’re planning to buy a used car in the UAE, there’s one factor that’s at the top of your list of considerations and that’s price. To get the best deal, it’s important to have an understanding of what influences the prices of pre-owned cars, from the time of the year down to the colour of the car. At Al-Futtaim Automall, we specialise in buying and selling used cars in the UAE, so we have a very good insight into what can affect the price you pay. Here’s a quick guide to what to think about before you start looking at used cars for sale.
The time of year
There are certain times of the year when used cars are more likely to sell for their optimum price. This is due to the supply and demand of different types of cars. Although this doesn’t have quite the impact that it once did, there are still ‘selling seasons’, especially during the spring and early summer when used cars sell for their best price.
The demand for a particular type
Cars, like almost everything else in the world, have their ‘trend cycles’ – when one type or brand of car becomes particularly attractive to buyers. The most recent of these is the crossover, a blend of all the best bits from a sedan and an SUV. Due to their relatively compact size, they’re ideal for families in the city, yet still give you that SUV feeling when you’re heading off on an adventure. The result is that demand for crossovers such as the Toyota Corolla Crossover, the Renault Captur or the Mitsubishi ASX Lowline increases, driving up the price.
The direction of the market
Currently, the market is moving towards more hybrids and EVs, making these the more desirable option for used cars. That in turn pushes up the prices of these types of vehicles, while standard petrol or diesel options start to fall out of favour. Add the demand for particular types of cars that we mentioned earlier and crossover hybrids like the Toyota C-HR Hybrid are more desirable and therefore more expensive than a standard petrol sedan.
Age, condition and mileage
Apart from the model or make, the three big factors that influence the price of any used car are the age, condition and mileage. The three need to be taken into consideration together. A relatively new car may have very high mileage that could detract from its value. Contrarily, an older used car may have very low mileage and be in excellent condition. If it’s a desirable model, that could make it more expensive than a newer option.
Buying from a dealership
If you buy a used car from a private seller there is usually some ‘wriggle room’ when it comes to the price. The seller wants to get the highest return on his vehicle and the buyer wants the best deal. The two usually meet in the middle, but are you really getting the deal you think you are? Buying and selling through a dealer means that not only do you have greater choice and the reassurance that the vehicle has been thoroughly inspected and checked before the wheels touch the forecourt, but you also have the peace of mind that comes with a warranty.
Most importantly, if you sell your car through a dealership like Al-Futtaim Automall, you get the full market value for your vehicle, with no haggling. And if you buy your pre-owned car through us, you’ll also have access to finance offers that could make it easier to ‘upgrade’ to a more desirable model.
If you want to buy a used car in the UAE and want a fair deal with plenty of choice, as well as complete peace of mind, take a look at the selection of top models at Al-Futtaim Automall today, or contact one of our friendly team who will be happy to answer any queries. You can also book a test drive online today.