How to Start a Used Cars Business in Dubai, UAE?

5 mins read
Used Cars
Used Cars

Dubai, a city renowned for attracting millions of tourists every year and known for its high living standards and successful economy. This brings an influx of demand for car, specifically used automobiles that are often more affordable and common than buying brand new ones. Thus, starting a used vehicle business in the United Arab Emirates (UAE) may be rewarding for many. This blog will examine the market possibilities and give insights into building a successful business in the UAE rising automotive sector.

Are used cars in demand in Dubai and the UAE in 2024?

While new car showrooms often catch the spotlight, the UAE’s pre-owned car market thrives quietly, serving a large segment of car buyers with its affordability and variety. Even in 2024, several factors will continue to drive the high demand for used cars in the UAE. Here’s why this market remains so attractive:

Diverse expat population: Many expats in the UAE prefer used cars due to their relatively short stays. They value being practical over luxury, making pre-owned vehicles a popular choice among them.

Tourism hub: The UAE attracts millions of tourists annually, many of whom look for used and rental cars to explore the country during their stay.

Cost of living: With the increased cost of living, residents and visitors find it more reasonable to buy or lease used cars.

High per capita income: High-income earning individuals can strategically purchase multiple well-maintained cars that are within their budget rather than spending it all on one expensive car.

These factors collectively make the UAE’s used car market a powerful economic force, appealing to both car owners and aspiring entrepreneurs.

How do I start a used car business in Dubai, UAE?

Below are the steps to start a used car business in the UAE:

Market research

Market research encompasses a thorough study of the UAE’s car market to understand consumer preferences, the trends over the years, and the prices that suit the public. It also includes understanding your competitors and analysing their strengths and weaknesses. This will help you position your business strategically.

Select the jurisdiction for your used car business

Selecting the ideal jurisdiction structure for your company is the next stage. The UAE is divided into three jurisdictions, namely:

●  Mainland: The mainland is the most common business jurisdiction in the UAE. Mainland businesses follow UAE laws and can operate anywhere in the country.

●  Free Zone: Special economic zones called free zones offer tax breaks and other benefits. To start a used car business here, you will need a trade licence from the specific free zone authority.

●  Offshore: Offshore companies are set up in a different country from where their owners reside, often for asset protection and tax planning.

Facilities and location

When choosing an ideal location for your retailer or online business, consider aspects such as target market proximity, visibility, and ease of access. If you own a physical dealership, furnish it with a stylish and useful showroom where your used cars can be presented.

Registering a trade licence

Once the legal structure is in place, the next step is to register the company with the government authorities and obtain a trade licence.

Look for used vehicles

In the UAE, there are several options for finding second-hand cars. One way is to purchase vehicles from private sellers. Purchasing automobiles at an auction is another choice. Other used auto dealers also sell automobiles for purchase.


The booming car market in Dubai offers immense opportunities for individuals and businesses in this sector. However, setting up a business is a challenging and time-consuming task due to the ever-changing rules and legal implications in the UAE that must be followed. Our experts simplify the setup process, ensuring a smooth start for your used car business in the UAE. Get in touch with us today and make your dream a reality. Reach out at [email protected] or call +971 4 450 1023 or +971 52 410 0849.

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