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5 Do’s and Don’ts of Starting Used Car Business in Dubai

Automobile - Used Cars
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If you are planning to launch a used car business, here are some do’s and don’ts when starting a used car business in Dubai.

According to stats compiled by the Roads and Transport Authority (RTA), Dubai has 540 cars per 1,000 people. It is the highest in the GCC region and one of the highest in the world. As Dubai continues to experience a surge in population in the lead up to Expo2020, used car sales will grow since new cars have higher depreciation.

Know the Audience for Used Car Business

A critical aspect of knowing what types of cars to sell is to understand the demand in the market. Dubizzle Motors, the UAE’s largest used car marketplace, has revealed that listings for sedans from Japanese brands received the most inquiries from potential buyers. Based on an analysis of thousands of used cars listed on the platform, the Toyota Camry, Toyota Corolla, Honda Accord and Nissan Altima were most popular.

Don’t try to push brands that are not popular or well known in the market. We often come across used car sales businesses that try to replicate the inventories that are popular in their home market. If you decide to go this route, you will end up selling to a niche market.

Related: In case you are interested in how to start a car rental business in Dubai?

Know the Optimal Price Point

In terms of price distribution of used cars in the market, 61 percent of the cars listed on Dubizzle Motors last year were for less than AED 60,000, 20 percent were between AED 60,000-119,999 and 8 percent between AED 120,000-179,999. Contrary to popular opinion, expats often choose to select an economical vehicle when purchasing from used car businesses.

Don’t get swept up in the belief that the road to fortune lays through selling high-end premium brands. The premium brand sector is saturated by well-established dealerships. The buyers can afford to pay a premium for the peace of mind that comes with extensive warranties that those dealerships provide.

Have the Right Sales Staff to Sell More Used Cars

People buy cars only when they feel at ease with the sales staff. It’s the sales staff and customer service that convinces people to select one dealership over another. Also, these days prices can be easily compared online. Hire staff that deliver a superb customer experience to distinguish you from the competitors.

Don’t make the mistake of dealerships that only hire from one nationality group. You need to have a diverse crew that can communicate in a multitude of languages. And, who will cater to regional cultural sensitivities. Also, make sure that your entire team has a united focus on quality customer care.

Conduct your Marketing via a Variety of Techniques

Used car dealerships have traditionally used newspaper and print publications to advertise their inventory. A few have placed their inventory online or have advertised on local car selling sites. While these techniques still work, it’s important to distinguish yourself from the competition by using a diverse set of tools to attract clients that use modern tools of communication.

Don’t solely rely on well-known tactics to establish your name in the marketplace. Use content marketing to highlight satisfied clients through stories and case studies. Harness the power of targeted social media ads to host events in the community to bring in new clients. The key element is not to follow blindly what everyone else is doing.

Don’t Limit Yourself to the UAE Market

It is well known amongst the used car sector that there are seasonal aspects to car sales within the UAE. The summer months where expats go on vacation and the holiday season in December tend to be slow. What do you do when you are sitting on inventory that is depreciating on your lot?

The answer lies in selling cars to wholesale buyers in regional markets. South Asia and East Africa are popular destinations for cars from the UAE. There has even been a growth in car exports to CIS and Eastern European states as well. It takes time to establish contacts in foreign markets; however, with perseverance and a strong profit motivation, these deals can be profitable for everyone involved.


In conclusion, while there might be some pitfalls to launching a used car dealership in Dubai, the benefits far exceed them and this why every year entrepreneurs from around the world decide to launch a used car business in Dubai. If you need some essential advice, contact us today.

Gilbert Sakr

Do you need help in business setup or looking to start a business in Dubai? Here you will find all the information and business ideas you need for starting your own company in Dubai.

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