Saudi Arabia Used Car Market Size (2024 - 2029)

Saudi Arabia Used Car Market Analysis

Saudi Arabia Used Car Market was valued at USD 4.91 billion in 2021 and is expected to surpass a net valuation of USD 8.69 billion by 2027 end, registering a solid CAGR growth of 7.36% over the forecast period.

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components.

Over the medium-term forecast period, factors such as the improved quality of used cars, the large number of expatriates, and affordable rates available for used cars are expected to stand as primary driving factors of the market. However, lack of trust during the used car purchase and lack of standardization are expected to act as major restraints to the growth of the market.

Although Saudi is the fifth largest country in the Asia and one of the key country among the Middle East. Region has always favoured the adoption of used/pre-owned car owing to rising demand for luxury car which are affordable in the used car segment. Consumer in the Saudi Arabia prefer used car over pre-owned as these cars offer them better price, easy financing and aftermarket maintenance support. Players including organized and unorganized member offering the vehicles provide consumer engagement program and offer competitive discounts to promote the sales of used cars in Saudi Arabia.

Considering these prime factors, demand for used car in Saudi Arabia is expted to remain high during the forecast period.

Saudi Arabia Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.

Saudi Arabia Used Car Market is segmented by vehicle type, sales channel and vendor type. On the basis of vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicle (SUV) and multi-purpose vehicles (MPVs)). On the basis of sales channel, the market is segmented into online and offline, and on the basis of vendor type, the market is segmented into organized and unorganized. For each segment, market sizing and forecast have been done on basis of a value (USD billion).