logo

Saudi Arabia Used Car Market Size (2024 - 2029)

The used car market in Saudi Arabia is anticipated to experience significant growth over the forecast period, driven by factors such as improved vehicle quality, a large expatriate population, and affordable pricing. The market's expansion is supported by a consumer preference for used cars, which offer better pricing, easy financing, and maintenance support. Despite challenges like trust issues and lack of standardization in purchases, the demand for used cars is expected to remain robust, reflecting the region's inclination towards affordable luxury vehicles.

Home Market Analysis Automotive Research Vehicles Research Vehicle Ownership Research Pre-owned Vehicles Research Pre-owned Passenger Cars Research Used Car Industry in Saudi Arabia Market Size

Market Size of Saudi Arabia Used Car Industry

Saudi Arabia Used Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 6.41 Billion
Market Size (2029) USD 9.03 Billion
CAGR (2024 - 2029) > 7.10 %
Market Concentration Medium

Major Players

Saudi Arabia Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Used Car Market Analysis

The Saudi Arabia Used Car Market size is estimated at USD 6.41 billion in 2024, and is expected to reach USD 9.03 billion by 2029, growing at a CAGR of greater than 7.10% during the forecast period (2024-2029).

Over the medium term, factors such as the improved quality of used cars, the large number of expatriates, and affordable rates available for used cars are expected to stand as primary driving factors of the market. However, lack of trust during the purchase of a used car and lack of standardization are expected to act as major restraints to the market's growth.

Other factors like increasing urbanization and an increase in internet and smartphone usage have paved the way for a rise in the online usage of various platforms. For example:

According to the Communications, Space, and Technology Commission (CST), internet usage in Saudi Arabia reached 98.6% of the population in 2023.

Considering the advancements, used car owners can use digital channels to effectively showcase their cars by providing necessary details, thus propelling consumer-to-consumer business models.

Various companies are purchasing and selling used cars without acting as an intermediary using digital platforms. These platforms also provide home inspection services and sell used cars through a digital auction process.

Saudi Arabia is the fifth-largest country in the Middle East and one of the key countries in the region. The region has always favored the adoption of used/pre-owned cars due to the rising demand for affordable luxury cars in the used car segment. Consumers in Saudi Arabia prefer used cars over pre-owned ones as these cars offer them better prices, easy financing, and aftermarket maintenance support. Players, including organized and unorganized members offering vehicles, provide consumer engagement programs and competitive discounts to promote used car sales in Saudi Arabia.

Considering these prime factors, the demand for used cars in Saudi Arabia is expected to remain high during the forecast period.

Saudi Arabia Used Car Industry Segmentation

A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.

Saudi Arabia’s used car market is segmented by vehicle type, sales channel, and vendor type. By vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs)). By sales channel, the market is segmented into online and offline. By vendor type, the market is segmented into organized and unorganized.

The report offers market size and forecasts in value (USD) and volume (units) for all the above segments.

Vehicle Type
Hatchbacks
Sedans
SUVs and MUVs
Sales Channel
Online
Offline
Vendor Type
Organized
Unorganized
Need A Different Region Or Segment?
Customize Now

Saudi Arabia Used Car Market Size Summary

The used car market in Saudi Arabia is poised for significant growth, driven by factors such as the improved quality of pre-owned vehicles, a large expatriate population, and the affordability of used cars. The market has shown resilience despite the challenges posed by the COVID-19 pandemic, which initially slowed demand due to lockdowns. However, as restrictions eased, consumers increasingly favored used cars over new ones, influenced by supply chain disruptions and a shortage of new vehicle production. The preference for used cars is further bolstered by the country's inclination towards luxury vehicles that are more accessible in the used segment, offering better pricing, financing options, and maintenance support. Despite these positive trends, challenges such as a lack of trust in the used car purchasing process and standardization issues remain significant hurdles to market expansion.

The demand for used hatchbacks, in particular, has seen substantial growth, attributed to their affordability, fuel efficiency, and lower taxation compared to sedans. The popularity of hatchbacks like the Volkswagen Golf GTI and Suzuki Swift Sports underscores a shift in consumer preferences towards vehicles that offer better economic value. The increasing penetration of the internet and the expansion of online sales channels have further amplified market demand, with platforms like YallaMotor and CarSwitch playing pivotal roles in facilitating online transactions. These platforms provide a diverse range of vehicles and offer features such as virtual tours and post-purchase support, catering to the evolving needs of consumers. The market is moderately fragmented, with key players and new entrants actively pursuing expansion strategies, including online business models and strategic investments, to capture a larger share of the growing market.

Explore More

Saudi Arabia Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing Penetration of SUVs in the Used Car Market

    2. 1.2 Market Restraints

      1. 1.2.1 Competition from Other Forms of Transportation

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 Vehicle Type

      1. 2.1.1 Hatchbacks

      2. 2.1.2 Sedans

      3. 2.1.3 SUVs and MUVs

      4. 2.1.4

    2. 2.2 Sales Channel

      1. 2.2.1 Online

      2. 2.2.2 Offline

    3. 2.3 Vendor Type

      1. 2.3.1 Organized

      2. 2.3.2 Unorganized

Saudi Arabia Used Car Market Size FAQs

The Saudi Arabia Used Car Market size is expected to reach USD 6.41 billion in 2024 and grow at a CAGR of greater than 7.10% to reach USD 9.03 billion by 2029.

In 2024, the Saudi Arabia Used Car Market size is expected to reach USD 6.41 billion.

Saudi Arabia Used Car Market Report Snapshots

Used Car Market In Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)