Dubai was once the land of most expensive and luxurious vehicles. Each automotive industry started the launch of any exotic vehicles by launching it first in Dubai. Most of the population preferred new vehicles. But the situation took a drastic turn after the global financial crisis of 2008. Since then there has been a steep decrease in the prices of new and used vehicles in Dubai. Various Car Rental Dubai services are offering huge discounts to their clients to attract them to their business.
Dubai is seeing a saturation of abandoned vehicles right now. Most people who purchased luxurious and exotic vehicles are now abandoning their vehicles for various reasons. This surge in the abandoned vehicles throughout the UAE is playing a key role in the exceptionally low prices of cars. The vehicles are so cheap that people now prefer to use used vehicles instead of purchasing a new one from the manufacturers.
Why Cars Are Cheap In Dubai?
There are some crazy and interesting reasons behind the availability of cheap cars in Dubai. And, we are going to discuss some of the reasons that explain why is it so:
1. Saturation Of Abandoned Vehicles
The reasons for the abandonment of vehicles dating back to the global financial crisis of 2008 - 2010. At that time, various people were owning luxurious vehicles. But the laws of Dubai were also quite strict at the moment. If a person was late on his car payment or even if their check was bounced, as a penalty, they had to serve time in Jail.
The financial crisis had left many people without the financial resources to pay off their car payments. To avoid huge fines and serving jail time, people preferred to abandon their lives in Dubai and move to other countries where the situation was not that bad. When a large number of people followed this to keep them safe from fines and Jail times, there were a lot of vehicles that were found all over Dubai. Until now, people preferred to use these refurbished vehicles due to their cheap price.
2. People Leaving The Country And Abandoning Their Vehicles
The other reason for the saturation of abandoned vehicles in the market was also the result of people leaving Dubai. Dubai is one the richest and most lavish country attracted people from all over the world by offering them progressive job opportunities. But the whole scenario changed after the global finical crisis.
Without having a progressive job, people were forced to leave Dubai and accommodate in a country that was at the top. A large part of the foreign community and some UAE residents had migrated from the country. Leaving a huge number of vehicles that would play a role in lowering the car prices.
3. Cheap Fuel
Dubai is one of those countries where the price of fuel is exceptionally lower than the price of water. That is because Dubai is a desert country and has massive reservoirs of fuel. Most of the countries get their fuels from Dubai due to their abundance of fuel reservoirs.
In other countries, the most expensive part of driving is the fueling of the vehicle. Since Dubai does not have a similar problem owing to extremely low fuel prices, the driving of these vehicles has become cheaper too, and drivers do not have to prioritize fuel efficient cars as often.
4. Reduction Of Prices In New Vehicles
With the abundance of used vehicles in the market, and people preferring them over new vehicles, the automotive industries had to reduce the price of the vehicles. All automotive industries in Dubai have to reduce their prices to compete with their competitors, resulting in a huge relief in the prices of luxury vehicles for the public.
With so many vehicles being found in Dubai, the residents of Dubai are turning in Car Savvy Experts. Expertise in automotive has helped them better understand the qualities of these vehicles and bargain the prices of these vehicles. Based on a survey conducted by an automotive firm yields that about 20 percent of the vehicles in the past year have been sold with Dh 5,000 and almost 40 percent of the new vehicles were sold with a discount of Dh 5,000. This shows the depression of the companies to bring their vehicles to the market.
5. Why New Vehicles Are Superior To Used Vehicles
While there is a huge market of used vehicles in Dubai, a small part of the residents still prefers the use of new vehicles over used vehicles. The main reason is the option to perform as much customization as the driver wants in the United Arab Emirates. The option of customization is few in used cars. Especially, with the new vehicle, the driver can pick any vehicle of his favorite color, but with a used vehicle, you must pick from a selected few.
Car Cost Conclusion
The price of vehicles in Dubai is exceptionally lower than in other parts of the world, chiefly due to abundance of the vehicles in the market. It has forced the automotive industry to offer huge discounts on the purchase of new vehicles, just to keep their companies afloat. On the other hand, the maintenance of these vehicles is not that cheap. As Dubai is a hot country and vehicles require frequent maintenance and spare parts, the companies charge a hefty sum for that.
If you are planning to go on a trip to Dubai, and are looking to get a vehicle, the best option will be to Cheap Car Rental Dubai for your stay. This will save you from any kind of maintenance hassle. The rental car agency will be bound to present full safety features in the vehicle, thus saving yourself from any severe injuries. Moreover, if you are looking for the best car rental Dubai company, our top recommendation is RentalcarsUAE. This car rental company is not only providing professional services throughout Dubai, but their charges are also quite reasonable for vehicles of all types.
