Used Car Valuation
Car valuation in the United Arab Emirates (UAE) is no different to any other country. You can always consult a local expert, ask for an estimate or you can always rely on the internet. The latter has been the favoured method of valuation used by people in the region for quite some time now. The traditional method of valuation was based on the purchase costs or price at the time of purchase, with little reliance on actual future sale prices. This meant that many buyers in the region were not able to realize their full potential and the real value of their cars, especially those sold on the domestic market, was often lower than the true worth of the vehicle.
With the introduction of new laws in 2021, the way used car valuation is performed has changed dramatically. This law states that the buyer must be provided with a certificate of inspection which will confirm that the vehicle meets all necessary safety standards. This is the first time such a certificate has been required for any vehicle export or re-export to the UAE. Prior to this requirement, the only way that a UAE importer would check the car’s condition was to rely on the seller’s word. The new laws have seen an end to false advertising and misleading statements being made by car exporters. As a result, the standard of used car valuation in the UAE has improved significantly and has now become comparable with most countries.
There are a number of factors that will affect the valuation of any used car that you might purchase. The most important of these is the age of the car. Each automobile has an estimated average life expectancy and this is considered when calculating the contract price of the vehicle. Younger vehicles will obviously be more expensive than those that are more mature. Some car manufacturers in the region however, like Nissan, have established tie-ups with car dealerships in the region to provide discounts on the purchase of used cars.
Used Car Valuation in the UAE
The condition of the engine is also considered by used car valuation in the UAE. In fact, most consumers will look for a car that has been test driven. If a test drive is not available then a buyer may opt for a car that has been inspected by a mechanic. mechanic inspections will reveal any problems that the car may have before a contract is signed. If problems are found during inspection, then they can be pointed out and negotiated at the time of negotiation.
An important factor that will determine used car price is the model and year of the car. Each contract is unique and the stipulations and price of the contract will be different. It may therefore be that you will find a better price if you buy the car new than if you buy it used. New models have been known to have higher resale values.
Once all aspects of used car valuation in the UAE have been considered, the buyer will make an offer based on the price and condition of the vehicle. This is where a dealer will usually enter the picture. They are able to advise the buyer of the going rate in the market and can also negotiate with the seller to get the best possible price and value for money. The dealer will try to get the best possible price for the used car, so that the used car valuation in the UAE reflects the true worth of the car.