UAE residents planning to buy pre-owned vehicles in the next six to 12 months are advised to exercise caution. Industry experts recommend purchasing from approved pre-owned vehicle dealers or thoroughly inspecting vehicles before buying.
Recent storms in the region brought the heaviest rainfall in 75 years, causing severe road flooding and resulting in thousands of damaged cars. These vehicles may soon enter the local market.
Abhinav Gupta, CEO of Cars24 for the Gulf region, estimated that thousands of cars were affected, with varying degrees of damage. Sharjah and Ajman experienced more significant impact than some parts of Dubai.
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Gupta predicts that 20-25% of submerged cars may have serious damage. He categorized affected vehicles into three groups: cars that are completely submerged and beyond repair; cars that are repairable but costly; and cars with minor damages.
Many damaged cars could end up at auctions, classified websites, or local dealers in industrial areas for basic repairs and cosmetic fixes. Gupta warned that buying these cars poses risks as they may have engine, transmission, electrical, or airbag issues, making them unreliable.
He advised against purchasing from unorganized open markets or small dealers due to the risk. Some damaged cars may be exported to African and Middle Eastern countries, while most will stay in the local market.
Gupta forecasts that trusted pre-owned car dealers will benefit, commanding a premium due to supply-demand gaps. He expects prices for quality used cars to increase in the next 6 to 12 months. UAE residents who lost their vehicles will likely seek replacements, adding to the demand for cars.
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