Saudi Arabia Used Car Market (2024-2030) | Analysis, Revenue, Value, Forecast, Outlook, Growth, Trends, Companies, Industry, Share, Size

Saudi Arabia Used Car Market Synopsis

The Saudi Arabia Used Car Market is anticipated to experience significant growth in the coming years due to several factors, including an increasing number of young working professionals, the lifting of the ban on women drivers, and a rising expat population. These demographics prefer purchasing used cars rather than investing in brand-new ones. However, during the COVID-19 pandemic, the Kingdom of Saudi Arabia witnessed a notable decline in used car sales, attributed to adverse economic conditions, the discontinuation of government allowances, and the implementation of a triple VAT rate increase from 5% to 15% in 2020.

Despite these challenges, the market rebounded in 2021 and exceeded pre-pandemic levels, driven by a growing preference for private automobile ownership amid ongoing virus concerns. This surge in demand revitalized the used car market, with consumers seeking affordable options for daily commuting and long-distance travel. Furthermore, there has been a noticeable shift in consumer mindset since the pandemic's onset, with many individuals favouring used vehicles as a practical and cost-effective alternative to new ones.

According to 6Wresearch, Saudi Arabia Used Car Market revenue size is projected to grow at a CAGR of 9.3% during 2024-2030. By 2025, an additional 3 million people are projected to acquire private licenses in the country, and the total number of female drivers to 3 million by 2030. Furthermore, Saudi Arabia's expected population growth, estimated to reach between 50 to 60 million by 2030, with half being expatriates, is poised to drive the expansion of the used car market in the foreseeable future. Enhanced offers and certifications on pre-owned vehicles from OEMs and dealers are anticipated to bolster the growth of the used car market. The positive trajectory in used car sales will be complemented by pre- and post-purchase inspections, vehicle certifications, and value-added services offered by OEMs and dealers.

Market Segmentation by Ownership

Private owners hold the largest share of revenue in the Saudi Arabian used car industry, primarily due to their more frequent selling activity compared to rental and leasing services. Additionally, expatriates, who typically have short-term contracts in Saudi Arabia, contribute to the market's supply of used cars by frequently selling their vehicles when their contracts end.

Market Segmentation by Sales Channel

C2C sales channel dominates the Saudi used car market driven by a combination of factors such as ease of transaction, the Government’s VAT hike, user control, personal connections, and pricing considerations, followed by knowing the person, guarantee, warranty provided, and mileage of the car.

Market Segmentation by Vehicle Type

Sedans have garnered a major revenue share in the used car market in Saudi Arabia due to their high sales volume, with three to five-year-old used cars dominating sales in the country. This preference is also influenced by the easy availability of spare parts and the higher residual value of sedans, particularly those from popular brands like Toyota and Hyundai.

Market Segmentation by End Buyer

Within Saudi Arabia, used car dealers are anticipated to experience a faster growth rate among end buyers. This trend is influenced by factors such as the convenience and expertise offered by dealerships, and the diverse inventory of used cars available to cater to various customer preferences and budget

Market Segmentation by Region

The central region, particularly Riyadh, commands the largest share of revenue in the Saudi used car market, mainly due to the dominance of private cars, which account for 95% of all trips in Riyadh, showcasing a robust preference for private vehicle ownership among residents.

Key Highlights of the Report:

• 10 Years Market Numbers.
• Historical Data Starting from 2020 to 2023.
• Base Year: 2023
• Forecast Data until 2030.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.