Rain-damaged cars may hit pre-owned market, buyers warned

UAE

In the aftermath of recent heavy rainfall in the UAE, industry experts caution potential buyers in the pre-owned car market to be vigilant. With thousands of vehicles damaged by the storms, flooded cars may soon flood the market. Abhinav Gupta, CEO for the Gulf region at Cars24, estimates that a significant number of cars have been affected, particularly in Sharjah and Ajman. Gupta suggests that while some cars may be repairable, many will be deemed beyond salvage, leading to their eventual sale through auctions, classified websites, or local dealers. However, he warns against purchasing these vehicles due to potential reliability issues stemming from water damage to critical components like engines, transmissions, and electrical systems. He advises buyers to exercise caution when dealing with unorganized markets, classified websites, or small dealers, as these flooded cars may pose a significant risk. Gupta also predicts that organized pre-owned car dealers may experience increased demand and may be able to command higher prices for quality vehicles due to the potential supply-demand gap caused by the influx of flooded cars. Overall, the aftermath of the storms is expected to have a significant impact on the pre-owned car market in the UAE, with potential implications for both buyers and sellers.