Dubai: Motorists in the UAE tend to drive newer cars than drivers in the rest of the world, according to data from retailers and analysts.
Experts say greater spending power, combined with a desire to avoid higher maintenance costs and newer cars being considered status symbols, lead to motorists changing their cars more frequently.
Exactly how frequently is disputed, with a survey from online retailer Carmudi.ae showing that UAE drivers switch cars every 5.2 years on average, while Autodata Middle East indicates motorists swap vehicles every three to four years.
Carmudi, which analysed hundreds of thousands of vehicle listings over the last quarter, said the average age of vehicles listed for sale in the Middle East was 5.1 years, compared to 6.5 years in Asia and 12.8 years in Africa.
In the UK, the age of vehicles offered has increased from 6.7 years in 2005 to 7.95 years this year, suggesting global recession led to motorists holding onto their cars for longer. That trend was seen in other countries as well, with Australians holding onto their vehicles for an average of 10.1 years and Americans 11.5 years.
African motorists remain reluctant to replace their vehicles. In Nigeria, one of Africa’s leading economies, Mohammad Noweir, managing director of Carmudi Middle East, said that the average age stands at 10.6 years and in Congo 16.5 years.
Bill Carter, head of operations and research at Autodata Middle East, said UAE drivers tend to sell their vehicles just before the warranty — usually five years — expires, as that gives them a better return. Cars sold with expired warranties have higher maintenance costs and depreciate faster, he said. Although cars are getting more reliable, the cost of maintenance is not falling, so users are not gaining in the long term.
“The old cars in the UAE tend to be exported to other Gulf countries, North Africa, Iran and Iraq,” he added.
A manager at a local showroom said annual improvements in new models were not a major factor in purchasing patterns. Nor did he believe the recent increase in UAE petrol prices would have much impact, as prices were still cheaper in the country than in the rest of the world.
“The average age of vehicles is much lower in the UAE due to the strong purchasing power and the trend to drive new vehicles, which is considered a status symbol,” he said.
Noweir cited consistent offers from car dealerships and banks as significant factors in regional purchasing patterns, alongside higher incomes.
Autodata and Carmudi disagreed over whether Saudi Arabian drivers keep their cars longer than UAE motorists. Carmudi’s survey indicates cars are sold after 3.8 years in Saudi Arabia, less than the UAE, but Carter said Saudi drivers tended to hold onto their cars for longer, as “we can see many old cars on the road”.
When it comes to purchasing new cars, Noweir said the intent is strongest in Asia. Carmudi predicts that within the next two years, with the growing Asian economy, the average age of vehicles will decrease to six years, slightly below the current 6.5 years. Bangladesh, one of the poorest countries in the Southeast Asia, topped the list for oldest cars on roads in Asia, with an average vehicle age of 7.8 years.
“With today’s cars being built with higher quality and to last longer, the average age of vehicles is likely to show gradual increase. Nevertheless, with older vehicles on the majority of roads, car maintenance and regular car checks will play a greater role than ever before,” Noweir said.
