Cars damaged during the unprecedented April 16 rains in the UAE have begun to appear on the unregulated market, including classified websites, industry executives revealed. It is estimated that over a thousand vehicles were affected by the heaviest rainfall in 75 years. Insurers are inundated with claims, and garages have long waiting lists.
Sebastian Fuchs, managing director of digital products and services at Auto Data Middle East, confirmed that rain-damaged vehicles are now entering the market after approximately one-and-a-half months since the record rains. The company's data shows a clear trend of more buyers than sellers in the market, leading to the emergence of a new bracket for car values.
Abhinav Gupta, CEO of the Gulf region at Cars24, mentioned that vehicles lightly damaged by the recent rains have started to enter the market, while severely damaged vehicles are expected to be available for sale in the following weeks. There is also an increase in distressed sellers resorting to platforms such as Facebook Marketplace and classified websites.
Despite this, Carlos Montenegro, managing director for the Fleet and Pre-Owned Division at Al-Futtaim Automotive, stated that the influx of damaged cars into the secondary market has not yet significantly begun due to delays in repairs and inspections.
As for the impact on pre-owned car prices, Montenegro noted that there has not been a noticeable drop so far, attributing it to rigorous quality control measures in place. Meanwhile, Gupta highlighted the rising inquiries from potential buyers regarding whether vehicles were affected by the rains, emphasizing the importance of buying from regulated and trustworthy sellers.
