Market Overview

The Saudi Arabian used car market is set to witness substantial growth from 2025 to 2033, driven by increasing consumer preference for affordable mobility, rising disposable incomes, digital transformation in automotive sales, and regulatory changes. In 2024, the market was valued at approximately USD 9.6 billion and is projected to reach USD 16.8 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.43%.

Key factors such as economic shifts, expanding expatriate populations, depreciation of new cars, and increasing adoption of online automotive platforms are shaping the Saudi used car market. Additionally, the gradual adoption of electric and hybrid vehicles within the used car segment is expected to further diversify the market landscape.

Key Growth Drivers

Affordability and Economic Factors

• Rising cost of new vehicles has driven demand for pre-owned alternatives, especially among middle-income consumers.
• The depreciation of new vehicles, often losing 30-40% of their value within the first three years, makes used cars a more attractive purchase option.
• Availability of competitive financing options for used cars has improved affordability and accessibility.

Growing Expatriate Population and Changing Consumer Behavior

• Saudi Arabia’s large expatriate workforce, especially in Riyadh, Jeddah, and Dammam, frequently opts for used vehicles due to shorter stays and affordability concerns.
• Millennials and young professionals are shifting toward budget-friendly and fuel-efficient vehicles, contributing to higher demand for hatchbacks and sedans in the used car market.

Expansion of Digital Marketplaces and E-Commerce in Auto Sales

• The rise of online platforms for buying and selling used cars has improved market transparency, pricing standardization, and convenience.
• Certified pre-owned (CPO) programs backed by dealerships have increased consumer trust, offering warranties and vehicle history checks.
• AI-powered valuation tools and digital financing solutions are making transactions faster and more secure.

Regulatory Changes and Import Policies

• Government restrictions on importing used vehicles older than five years have encouraged domestic trade of locally owned used cars.
• Stricter vehicle inspection standards and environmental regulations are improving the quality and reliability of pre-owned vehicles.

Increasing Demand for SUVs and Hybrid Vehicles

• SUVs remain a popular choice in the Saudi market due to their durability, road conditions, and family-friendly features.
• Hybrid and fuel-efficient vehicles are gaining traction in response to rising fuel costs and sustainability initiatives.

Challenges in the Saudi Arabia Used Car Market

Competition from New Car Sales and Ride-Sharing Services

• Attractive financing offers, extended warranties, and promotional discounts on new cars pose competition to the used car market.
• The expansion of ride-hailing and car subscription services may reduce long-term ownership demand.

Pricing Volatility and Lack of Market Standardization

• Inconsistent pricing across different sellers and platforms makes it difficult for buyers to assess fair value.
• Fluctuations in supply and demand impact resale prices, especially during economic downturns.

Limited Access to Vehicle History and Transparency Issues

• Buyers often face difficulties in verifying vehicle accident history, mileage tampering, and hidden mechanical issues.
• The lack of a centralized vehicle history database affects trust in private transactions.

Future Outlook (2025-2033)

The Saudi Arabia used car market is set for transformation due to:

• Increased Market Digitization
  • Adoption of blockchain-based vehicle history tracking will improve transparency and trust in transactions.
  • AI-powered predictive analytics for resale values will help buyers and sellers make informed decisions.
• Expansion of the Certified Pre-Owned (CPO) Segment
  • More dealerships will offer CPO programs with extended warranties and service packages, bridging the gap between new and used car sales.
• Growth of Electric and Hybrid Used Car Sales
  • As new EVs enter the market, more pre-owned electric vehicles (EVs) and hybrids will be available in the secondary market.
  • Government incentives for fuel-efficient and eco-friendly vehicles will boost demand in this segment.
• Strengthening Regulatory Measures
  • Enhanced vehicle inspection and emissions testing will ensure higher-quality used cars on the market.
  • Policies encouraging safe and transparent online transactions will increase buyer confidence.

Market Segmentation 

By Vehicle Type:

• Hatchbacks 
• Sedans 
• SUVs and MUVs 
• Luxury Vehicles 
• Pickups 

By Sales Channel:

• Organized Dealerships 
• Independent Dealerships 
• Online Marketplaces 
• Auctions

By Fuel Type:

• Petrol 
• Diesel 
• Hybrid & Electric 

Competitive Landscape

The Saudi Arabia used car market features a mix of global brands, certified dealerships, and online marketplaces, including:

• Abdul Latif Jameel Motors 
• Haraj 
• CARS24 
• SellAnyCar 
• YallaMotor 

Conclusion

The Saudi Arabia used car market is on track for substantial growth, with projected revenues reaching USD 16.8 billion by 2033. The industry’s expansion is fueled by:

• Growing demand for affordable transportation solutions.
• Advancements in digital auto trading platforms.
• Increased focus on transparency and regulatory improvements.
• The rise of hybrid and electric vehicle options in the used car market.