Used car research is still nascent in the region, and a bit esoteric! The clients for whom we have done this research believe in the ‘catch them young’ philosophy. There is increasing retail demand for used cars in the GCC, and significant volume growth and profit opportunities exist for manufacturers and dealerships by increasing their participation in this sector.
Couple this with the rising population in the GCC and the fact that over 60% of the GCC population are under 34 years, and the used car sector begins to make sense. Particularly as it offers a lower ‘entry level’ to the brand, increases saleability of new car, improves trade-in traffic, residual values and enhances the brand image. In essence, manufacturers can increase conversions of walk in customers by offering both new and used cars.
