Flood-damaged cars from UAE now available for sale on the market

In a surprising turn of events, thousands of vehicles that were damaged during the heaviest rainfall in the past 75 years in the UAE have started to appear in the open market for sale. The unprecedented April 16 rains wreaked havoc on the roads and infrastructure, leading to a significant number of cars being damaged beyond repair.

Industry executives have confirmed that rain-damaged vehicles are now being sold on classified websites and through unregulated channels. Sebastian Fuchs, managing director of digital products and services at Auto Data Middle East, stated that repaired cars are entering the market, with a noticeable increase in buyers looking for replacement vehicles.

The aftermath of the heavy rainfall has created a new trend in the market, with buyers focusing on slightly older models in the Dh30,000 to Dh50,000 range. These buyers are individuals whose insurance claims were rejected due to driving on flooded roads and are now seeking affordable and safe alternatives.

Abhinav Gupta, CEO of the Gulf region at Cars24, mentioned that vehicles that were mildly damaged during the rains have already started appearing in the market, while severely damaged cars are expected to follow suit in the coming weeks. He highlighted the presence of distressed sellers trying to liquidate their damaged vehicles through various online platforms.

Despite the influx of rain-damaged cars in the market, Carlos Montenegro, managing director for the Fleet and Pre-Owned Division at Al-Futtaim Automotive, emphasized that the impact has not been significant yet. Many damaged vehicles are still undergoing repair processes and awaiting inspections from insurance companies, delaying their entry into the secondary market.

As of now, there has not been a noticeable drop in the prices of pre-owned cars due to the presence of rain-damaged vehicles. Montenegro assured that rigorous quality control measures are in place to ensure that all vehicles meet high standards of quality and reliability, mitigating any negative impact on the overall market.

In response to the rising demand for flood-free vehicles, Gupta noted that customers are now inquiring about the damage history of the cars they intend to purchase. To meet this demand, reputable dealers are assuring customers of the quality and reliability of their vehicles, leading to a surge in inquiries and sales post the heavy rainfall.

The market dynamics are shifting as buyers become more cautious and informed about the risks associated with purchasing rain-damaged vehicles. It remains to be seen how the market will adapt to the influx of these vehicles and whether regulatory measures will be implemented to protect consumers from potential risks.