In April 2024, the UAE faced unprecedented rainfall, causing significant disruptions across various sectors. Although the country quickly recovered from the storm’s damage, the car industry experienced notable changes that persist. This article examines the specific shifts in the UAE car market following the April 2024 floods, supported by detailed data points.
The Storm & Its Aftermath
In April 2024, the UAE witnessed the highest rainfall over a 24-hour period since 1949, with up to 254mm of rain recorded. The floods left thousands of cars inundated, including up to 50,000 cars damaged. The UAE announced an AED 2 billion fund to repair damages. Hatchbacks and sedans were the most affected by the floods. Here’s a detailed guide to help you deal with a car damaged in the floods.
The Car Market Has Shrunk: Will It Affect Pricing?
The car market has shrunk by approximately 10%, with around 50,000 cars damaged in the floods. This dynamic is expected to result in increased prices for cars in demand, while prices for less popular models will remain stable. Additionally, many of these damaged cars will eventually enter the market for sale. If you’re considering purchasing a flood-damaged car, here are some tips to help you make an informed decision.
Shifting Preferences in Vehicle Types
In the wake of the floods, consumer preferences have shifted towards more robust and versatile vehicles. SUVs and pickup trucks, known for their higher ground clearance and off-road capabilities, have seen a significant increase in searches and demand.
- Pickup Trucks: Searches surged by 8.18% immediately after the floods and continued to rise by 11.06% month-on-month in May.
- SUVs/Crossovers: Searches increased by 6.63% immediately after the floods, with an 8.99% rise in May. By July 2024, searches for SUVs were up by 12.86% compared to April.
Increase in Interest for Other Vehicle Types
- Hatchbacks: Despite the damage, hatchbacks saw a 5.09% increase in searches in late April, with a 14.24% rise in July compared to April.
- Vans & MPVs: Searches for vans modestly increased by 1.20% immediately after the floods and by 2.09% by July. However, demand for vans on DubiCars surged by 28.45% in July compared to April 2024.
Slightly Lower Interest in Sedans
Sedans saw a minimal increase in searches (1%) immediately after the floods, with a 3.3% rise by July. However, demand for sedans on DubiCars dropped by 5.20% in July compared to April 2024.
Surge in Overall Demand for New & Used Cars
The need to replace damaged vehicles drove a significant increase in demand for new cars (30.17% in July compared to April 2024). However, demand for used cars decreased by 17.89% in July compared to April 2024.
EVs vs. Petrol
Searches for both petrol and electric vehicles increased after the floods. Petrol car searches rose by 29.08% in July compared to April 2024. Notably, EV searches increased by 11.01% in July 2024, influenced by viral videos showcasing their performance in waterlogged areas. Read this detailed article to know if EVs are better for flooded areas than internal combustion-powered cars.
Rising Demand for Car Rentals
Car rental searches surged by 28% in April compared to March, reflecting the immediate need for temporary transportation. This demand continued to grow, with a 7.04% increase in July compared to April.
Increased Interest in Car Financing
Searches for car financing grew by 12% immediately after the floods, with an 11.48% increase in May and a 12.23% rise in June. This indicates that consumers are looking for ways to manage the financial burden of replacing their vehicles.
Rise in Car Insurance-Related Searches
While May saw a slight drop in car insurance searches, June witnessed a 14.11% increase as more people sought to insure new or used cars purchased after the floods. If your car was damaged in the floods, here’s a detailed guide to help you with insurance claims.
Car Buying Checklist: Post-Flood Edition
Given the recent floods, it’s crucial to be extra cautious when purchasing a car to avoid hidden water damage.
Here’s a short and specific checklist to help you make a wise decision:
- Check for Flood Damage:
- Look for signs of water damage, such as musty odors, water stains, and silt in hard-to-clean areas.
- Inspect the engine, electrical systems, and undercarriage for corrosion or rust.
- Obtain a Vehicle History Report:
- Ensure the report includes information on flood damage and past insurance claims.
- Professional Inspection:
- Seek professional help in checking for hidden flood damage, especially in the engine, transmission, and electrical components. Book your detailed inspection with DubiCars.
- Test Drive:
- Test all electronics (lights, radio, windows) to ensure they function properly.
- Drive in different conditions to detect any irregularities in performance.
- Verify Insurance Claims:
- Confirm with the seller if any insurance claims were made for flood damage and ensure proper repairs were conducted.
- Negotiate Based on Condition:
- Use the findings from inspections and history reports to negotiate a fair price, considering any potential flood-related issues. Start by getting a free car valuation from DubiCars.
- Review Warranty Coverage:
- Check if the car’s warranty covers flood damage and confirm any remaining coverage with the manufacturer or dealer.
- Final Checks:
- Ensure all documents (title, service records) are in order.
- Confirm the seller’s details and verify the authenticity of the sale.
When is the Right Time to Buy a Car in the UAE?
The best time to buy a car in the UAE is now, during the summer months. With many residents leaving the country, the car market sees more cars for sale and fewer buyers, making it easier to find great deals. Check out our detailed checklist for buying a used car.
Long-Term Trends: Preparing for Future Events
The increased focus on vehicles that can handle adverse conditions suggests a long-term trend towards robustness and versatility. To prepare for future heavy rainfall, the Dubai government has announced a $8.2 billion (AED 30.12 billion) project to upgrade the emirate’s rainwater drainage system, designed to last 100 years. New projects, like the Al Khaleej Street Tunnel, will also consider adverse weather conditions. Here’s how you can protect your car from flood damage.
Find new cars for sale in the UAE & used cars for sale in the UAE.
Subscribe to DubiCars’ WhatsApp Channel for the latest automotive news, guides, polls, and informative infographics.
Stay tuned to UAE’s most popular auto blog for more exciting content on the UAE car market.
Also Read:
– DubiCars Celebrates 10th Anniversary: 10 Of The Important Milestones
– The Growth Of Chinese Cars & Brands: A Data-Driven Analysis
– Top 10 Longest Range EVs In The World
