UAE Used Car Market Hits Record Values: What Buyers and Sellers Need to Know
Priya Mehta·20 April 2026·5 min read
UAE used car transaction values reached a record AED 45 billion in 2025. Strong demand from expat buyers, limited new car availability and rising import costs are the key drivers.
The UAE used car market recorded its highest-ever transaction value in 2025, driven by continued demand from new expat arrivals, a shortage of new car supply for popular models, and rising import costs for grey-market vehicles.
What We Know
The AED 45 billion figure represents approximately 800,000 individual transactions. The average used car sale price was AED 56,000 — up from AED 47,000 in 2023.
Models Holding Value Best
Data from Dubizzle, the UAE's largest used car platform, identified the models with the highest 3-year resale value retention:
| Model | Purchase Price (2023) | Used Value (2026, 60,000 km) | Retention % |
|---|---|---|---|
| Toyota Land Cruiser 300 | AED 375,000 | AED 315,000 | 84% |
| Toyota Camry Hybrid | AED 94,900 | AED 74,000 | 78% |
| Tesla Model Y LR | AED 204,900 | AED 158,000 | 77% |
| Lexus LX 600 | AED 395,000 | AED 295,000 | 75% |
| Nissan Patrol Y62 | AED 289,000 | AED 205,000 | 71% |
What Is Driving Prices Up?
Three structural factors: 1. New expat arrivals: UAE population grew by 8.4% in 2025. New residents typically purchase used vehicles in their first 6–12 months before establishing credit history for new-car financing. 2. New car shortages: Popular models including the Toyota Land Cruiser, Nissan Patrol and Kia Telluride had waiting lists of 3–8 weeks in H1 2025, pushing buyers to used alternatives. 3. Grey import cost rises: Shipping costs from Japan and the US increased by 35% in 2025, raising the floor price of the UAE's large grey-market import sector.
Electric Vehicle Used Values
Used EVs in the UAE are beginning to develop a genuine secondary market. Tesla Model 3 and Model Y used values have stabilised at 75–80% of original purchase price at 2-3 years old — better than comparable petrol cars. BYD Seal and Hyundai IONIQ 5 used values are less established.
What This Means for Buyers
The price environment favours sellers and complicates buyers' decisions. Key advice for 2026 used car buyers:
- Buy at the right time: January–March typically sees more supply as expats leaving before the school year end their leases and sell their cars.
- Verify UAE history: Insist on a UAE Tasjeel-based report (not just an international VIN check) to confirm accident history and service records.
- Check finance status: In UAE, vehicles can be sold while still subject to bank finance. Always verify clearance before completing a transaction.
What Happens Next
Analysts predict used car prices will stabilise or slightly reduce in H2 2026 as new car supply normalises for popular models. The waitlist for the Toyota Land Cruiser and Nissan Patrol Y63 is expected to clear by Q2 2026, reducing demand pressure on used alternatives.