Where have all the 2008-2009 used cars gone?
Autodata reports on the health of the industry – December 2011
By Shahzad Sheikh
Autodata Middle East has sent out its monthly report on the car industry and Bill Carter (head of valuations at Autodata) confirms our own findings that the local car industry is in rude health, adding that “a surprising numbers of orders were taken over the 5 days…” of the Dubai Motor Show, and that three of the manufacturers had actually sold some of the cars on the stand.
We know BMW was certainly one of them – selling the new M5 super saloon instantly!
But what’s happened to the used cars from the start of the recession?
“The great ‘stock hunt’ continues in the used car market and we are being asked why it is difficult to find 2008-2009 model year cars,” says Carter. Well clearly that’s when everyone lost all their money and left the country with big defaults and nobody was getting loans to buy any cars.
As Carter says, it just illustrates that “if you sell less new cars you will have less used cars further down the line”.
But some were indeed sold and what about the model year stocks that were already sitting here? Well the answer could be in the export market. “Russia and its surrounding states used to be big market for SUVs such as Land Cruiser and Patrol,” according to Carter.
“However, we are now being told that the demand is for small hatchbacks such as Yaris and Tiida. In particular, 2007 and 2008 models, which creates even more pressure on the supply of used cars.
“One saving grace is that the export market may well take the quality of vehicle that does not meet the standard required for our internal use.” In other words, Carter’s correctly pointing out that nobody wants to buy cheap second-hand budget cars here (still!) when they can get bigger more comfier cars as insurance and fuel prices remain relatively affordable.
Plus it’s easier to shift dodgy used motors by sending them overseas – which bodes well for the buyer here looking for a quality pre-owned car.
Chevrolet Tahoe
Meanwhile the humble Chevy Tahoe has been highlighted this month as one of the great value cars that will keep your money safer for longer.
Turns out it has a low and consistent depreciation in used value typical of the most popular models in the UAE. It appears to retain well over 55% of its value even after six years!
Its popularity amongst locals and American expats, plus its unashamed metal-for-your-money proposition is keeping it popular. Watch out for a rumoured new model in 2013.
