Buy a car. Drive it for 3 years. Sell it. Repeat.
According to a recent poll at Dubizzle Motors, a number of car owners in the UAE have been following that approach.
More than 50 per cent of car owners in the UAE use their car for less than three years, before selling it and upgrading to a newer model. The poll also found that only 17 per cent of car owners sell their vehicle after five years of ownership. Over 46 per cent of respondents, who had sold their car, did so to upgrade to a better model, with 16 per cent selling for financial reasons and 13 per cent to upsize to a larger car.
It was determined that since many car manufacturers offer warranty packages up to five years or 100,000km, car owners will use this as a limit point in their plans. The poll results showed that 57 per cent of car owners stated that they sold their car before the mileage reached 100,000km; however, 43 per cent of poll respondents stated that the mileage was above 100,000km when they sold it.
"When a car is bought brand-new directly from a showroom, it is best not to sell within the first 18 months. This is a big period of depreciation, so keep the car and get the value from it if possible." - Matthew Davidson, Head of Motors Services at Dubizzle Motors
“When a car is bought brand-new directly from a showroom, it is best not to sell within the first 18 months. This is a big period of depreciation, so keep the car and get the value from it if possible. The car should still have the manufacturer warranty making it attractive to a buyer and giving the seller the best possible market price for their used car,” Matthew Davidson, Head of Motors Services at Dubizzle Motors, noted.
“Unlike western markets where people hold on to cars for up to seven to eight years, the UAE sees cars changing hands every three to four years,” added Jean-Pierre Mondalek, general manager of Dubizzle Motors.
“This is partially explained by the transient community, but also cars here have shorter lives in the harsher environment, and therefore require more frequent maintenance, especially on their tires. We recommend taking warranty expiry into consideration when selling your car, as buyers will expect a discount once the manufacturer’s warranty expires.”
The article was originally posted on Khaleej Times, which you can find here.