The UAE auto finance market faced a huge impact during COVID-19, but soon the market ramped up as the sales of new vehicles spiked. Presently, growing digital advancements and an increasing number of Finance Aggregators are driving the UAE auto finance industry. Further, the market is expected to grow at a CAGR of ~17% in the coming years.
1. UAE population is constantly rising due to the high number of foreigners settling in the country who prefer owning a car over renting
2. Customers in UAE prefer buying used vehicles over new ones due to less cost, and similar rates of interest on auto finance loans
3. UAE Auto Finance Market has decreased from 2016 to 2021 at a CAGR of around -7% owing to government regulations, lifestyle changes and the COVID-19 lockdown
4. Monthly payment restrictions, down payment, loan tenure restrictions, and the time consumed in the process are some of the other challenges faced by end-users in UAE Auto Finance Industry
5. Although the sale and financing of vehicles dropped sharply in 2020 owing to the COVID-19 pandemic, it picked up again in 2021 due to consumers preferring personal vehicles
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6. Moreover, Online Auto Finance Aggregator Platforms in UAE is emerging in the country post COVID, which is expected to extremely simplify the whole loan application process
7. Rising demand for automobiles, the growing finance industry, and the potential for fintech growth are the major developments in the UAE Auto Finance Industry
8 UAE Auto Finance Market is expected to increase from 2021 to 2026 at a CAGR of ~17% owing to the emergence of new and improved technologies
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UAE Auto Finance Market
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