According to a 2015 study by Frost & Sullivan, 350,000 used cars were sold in the UAE in 2014 alone and this number was expected to reach 550,000 by 2020 including private sales and those made through dealerships.
Are you thinking of selling your car? Have you decided whether you want to sell it privately or through a dealership? Most of us face this dilemma when it’s time to let go of our old set of wheels! Both options come with their pros and cons. While it is easy to put up an advertisement it is not always possible for sellers to set up meetings with buyers for negotiations or paperwork.
If you sell it privately…
Generally selling a car privately can fetch you more money but you will need to consider few aspects which will determine whether your car is suitable for sale. Private sellers usually examine the car from every aspect from low mileage, excellent condition and service records. You must also consider the fact that selling a car privately can be time-consuming and can even take up to several weeks or months before you find a buyer. Popularity of vehicle models also plays a huge role in how quickly your car can be sold (for example, a car with manual transmission will take a relatively longer time to sell).
With increasing popularity of online marketplaces it has become easier to find buyers. In the UAE, you’ll find many sellers posting ads of their vehicles on platforms such as Dubizzle. If you pick this route, make sure the car is clean, presentable and in working condition. The posted images in advertisements should look appealing as it can influence buyers’ interest. Also keep yourself available for potential buyers if they are interested in test drives or inspections.
Sellers can also visit the used car market in Al Ruqa Al Hamra, Sharjah which currently houses over 350 car outlets involved in buying and selling of pre-owned cars. Try to be flexible in negotiations with buyers, while keeping a minimum sale price in your mind. Selling privately can get you a better deal compared to selling to dealerships, but it can also be time-consuming.
If you sell it to a dealership…
In order to tap the growing used car market, over 77 dealers in the UAE have launched certified pre-owned programs. Selling your car to a dealer is the quickest way to do it but this convenience can turn out to be costly. It involves minimal procedures to be carried out which is the main advantage of selling to a dealership. Dealerships accept cars in any condition regardless of accident dents or scratches. Once the sale has been made it is the dealer’s responsibility to fix all the damages which could have cost you thousands. It doesn’t mean that these imperfections will not affect the selling price of your car, and will lower the overall value drastically.
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Before you decide to go the dealership route, you must consider your car type and look up other sources to find out the approximate value of your car. This can help give you some bargaining power in negotiations with the dealer. You must also take your car to the right dealership, so if you own a Toyota, take it to Toyota’s dealership and in case of a sports cars, pick a dealer that specializes in sports car sales.
However you decide to sell your car, in all cases make sure you keep yourself aware of your current car value in the market, and keep your car clean and in working condition before the sale. Also, keep in mind that for the final sale both parties have be present at the RTA office to transfer car ownership for a fee of AED 350.