Dubai Based Car Dealership ‘Farago Motors’ can be the next biggest dealership in UAE
The used cars market in the UAE is booming and dealership such as Farago Motors offer certified vehicles for purchase.
Used car sales in the UAE are set to surge past the one million mark by 2025, according to research by Frost & Sullivan.
A total of 832,500 used cars were sold in the UAE in 2019, meaning that for every new car, about 3.5 pre-owned cars were purchased. And that ratio is expected to reach 2.9:1 in favour of used cars by 2025.
In 2020, amid economic volatility and weak consumer sentiment due to the Covid-19 pandemic, new vehicle sales declined by an estimated 20-25 per cent. However, the demand for used cars is expected to remain resilient since prices are 30-35 per cent lower, on average, than that of their newer counterparts.
According to Nicholas Farago, CEO of Farago Motors, “the consumers are being drawn to used cars not only because of their greater affordability but also the ease with which transactions can now be executed thanks to the digital transformation of the used car industry.”
New business models, increasingly flexible approaches by both independent and franchised dealers and innovative platforms and services are all redefining how used cars are being bought and sold across the UAE.
The used cars market is now booming and is anticipated to experience double-digit growth rate over the next five years. From the market size of $14.2bn in 2020, it is expected to reach $18.2bn by 2025.
“Given similar or often higher profitability of used car sales compared to new cars, we see growing interest from authorised dealers looking for new ways to offset volatile sales of new cars. Automotive brands are stepping up efforts to introduce certified pre-owned used cars programmes to appeal to customers looking for “just-like-new” cars in the market.”
They deal with automotive companies such as Toyota, Nissan, Isuzu, Hino, Mitsubishi, Lexus and Kia and sells vehicles of all body-types, you just name it.
Every single one of Farago Motors’ vehicles goes through numerous inspections, ensuring both safety and longevity.