April 16th brought unprecedented rainfall to the UAE, causing thousands of vehicles to be damaged. The aftermath of the heavy rains has led to an influx of rain-damaged cars entering the open market, such as classified websites, for sale. Industry executives have noted the increase in these vehicles being sold as insurers are flooded with claims and garages have long waiting lists for repairs.
Sebastian Fuchs, managing director of digital products and services at Auto Data Middle East, confirmed that rain-damaged vehicles are starting to appear in the market after one-and-a-half months of record rainfall. He mentioned that there is a clear trend of more buyers in the market looking for replacement cars, particularly in the price range of Dh30,000 to Dh50,000 for slightly older models. These buyers are individuals whose insurance claims were rejected due to driving on flooded roads and are now seeking safe replacement vehicles.
Abhinav Gupta, CEO of the Gulf region at Cars24, stated that vehicles minimally damaged in the recent rains have already entered the market, while severely damaged cars are expected to hit the market in the coming weeks. He highlighted that many used car dealers are selling rain-damaged vehicles through classified websites and unregulated markets, with some customers facing delays in processing their insurance claims.
Carlos Montenegro, managing director for Fleet and Pre-Owned Division at Al-Futtaim Automotive, mentioned that rain-damaged vehicles are currently undergoing repairs, waiting for necessary parts, or pending inspections from insurance companies. As a result, the influx of these damaged cars into the secondary market has not significantly begun. Despite the increase in damaged cars, there has not been a noticeable drop in pre-owned car prices, as stringent quality control measures are in place to ensure vehicles meet high standards of quality and reliability.
Gupta noted a rise in inquiries from customers regarding whether a vehicle has been rain-damaged before purchasing. He emphasized the importance of transparency in listing flood-free vehicles on their website to reassure customers and meet the demand for regulated and trustworthy transactions. The demand for vehicles from reputable dealers has increased post-rain period, reflecting a shift in consumer behavior towards purchasing from trusted sources.
As the market continues to see an increase in rain-damaged vehicles being sold, it is essential for buyers to exercise caution and conduct thorough inspections before making a purchase. With the influx of these cars into the market, it is crucial for sellers and dealers to maintain transparency and adhere to stringent quality control measures to uphold trust and reliability in the industry. The impact of these rain-damaged vehicles on the market is still uncertain, but the industry experts are closely monitoring the situation to ensure a smooth transition for buyers and sellers alike.
