Saudi Arabia Used Car Market

Saudi Arabia Used Car Market Size and Share:

The Saudi Arabia used car market size was valued at USD 9.60 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 16.80 Billion by 2033, exhibiting a CAGR of 6.43% from 2025-2033. Some significant factors driving the Saudi Arabia used car market are the rising buyer concerns related to steep prices and the availability of new cars, increased concerns about environmental issues, rising demand for transportation that is not expensive, and increased purchasing power among individuals.

The used car market in Saudi Arabia is largely driven by a combination of demographic, economic, and technological factors. Used cars are crucial for those looking for budget-friendly transport solutions. People in the Kingdom, largely comprising expatriates, form a major population that creates demand for vehicles offering value for money. It remains costlier to buy brand new cars while the percentage level of depreciation is much higher. Moreover, current reforms under Vision 2030, focused on diversity as well as increasing productivity toward more jobs, really create a huge demand among low and middle-income tiers toward affordable private transport solutions.

The digital revolution sweeping through Saudi Arabia has greatly impacted the used car market. Online platforms and marketplaces are making it easier for buyers and sellers to connect, enhancing transparency and convenience in the buying process. Websites and mobile applications are gaining popularity, offering extensive listings of used vehicles. These portals usually provide features such as vehicle history checks, pricing insights, and financing options that make people confident and facilitate smooth transactions. The growth of e-commerce and digital platforms is boosting the growth of the market. With the growing used car market, automotive manufacturers and dealerships are increasingly investing in certified pre-owned (CPO) programs to acquire a share of this market. CPO programs provide an additional layer of quality assurance in that the vehicles are properly inspected and refurbished and usually come with warranties and after-sales services. Such programs are quite attractive to buyers who are looking for reliability and trust associated with brand-certified vehicles.

Saudi Arabia Used Car Market Trends:

Rising Demand for Affordable and Reliable Mobility Solutions

One of the major reasons driving the market in Saudi Arabia is the growing demand for affordable transport. A vast number of people are on the lookout for cheaper alternatives than expensive new vehicles, mostly expatriates and the middle-class families. In an article published in 2024 by Arab News, import of new as well as used cars saw an increase and annual car sales exceeded 700,000. In this regard, the automobile manufacturers and dealerships are launching competitive pricing strategies and value-added services for used cars to meet this demand. For instance, they have launched certified used cars programs in Saudi Arabia, where pre-owned vehicles are provided with warranty and free maintenance packages. Moreover, the access to affordable vehicles is being increased by the flexible financing options, including zero-down-payment plans and low-interest-rate loans specifically for used cars.

Technological Innovations and Digital Platforms

Digital technologies are integrated into the used car market and transforming the buying and selling processes by increasing both transparency and efficiency. Today, central to the business is being offered through online marketplaces and mobile applications that allow listings of great depth and provide real-time pricing tools as well as vehicle history reports. With access to more vehicles and all detailed specifications, photos, and customer reviews, buyers are in a better position to make informed decisions. This helps accelerate product launches in the tech-driven segment, further supporting growth in the market. Firms are introducing such superior features as AI-based tools for car valuation and completely transactional services. All these platforms enable a purchaser to compare prices according to real-time market data with an assurance of secure payments, which has picked pace among the tech-savvy people. Technologies concerning vehicle inspection are also well advanced, providing reports with details on the car's status in greater detail. For example, in October 2024, the Motor Vehicle Periodic Inspection (MVPI) launched six mobile vehicle inspection stations, overseen by the Saudi Standards, Metrology, and Quality Organization. These mobile units, developed with French manufacturer Muller, enhance service station development and support the Kingdom's Vision 2030 goals for traffic safety. They can inspect all vehicle types, including public transport, and are designed to reach remote areas efficiently, ensuring high-quality service without requiring access to fixed stations.

Expansion of Certified Pre-Owned (CPO) Programs

The rise of certified pre-owned (CPO) programs is giving the used car market credibility as concerns are alleviated about the quality and reliability of pre-owned vehicles. The CPO programs offered by leading manufacturers and dealerships ensure that a used vehicle is put under rigorous inspections, reconditioning, and sold with warranties, thus assuring the buyer about maintenance costs and hidden problems. Furthermore, the government has implemented new rules and regulations for the right use and maintenance of used cars. For instance, in 2024, Intertek, a global provider of total quality assurance to industries, has been accredited by the Saudi Standards, Metrology and Quality Organization (SASO) to conduct inspection and issue certificates of inspection (CoI) within the cyber system for used motor vehicles imported into Saudi Arabia.

Saudi Arabia Used Car Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia used car market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on vehicle type, sales channel, and vendor type.

Analysis by Vehicle Type:

• Hatchback
• Sedan
• MUV and SUV

Hatchback in the Saudi Arabian market is rapidly increasing with budget-conscious customers, mainly young professionals and expatriates who desire a compact, affordable mode of transport for city rides. Hatchbacks are associated with good fuel efficiency, maneuverability, and economy. This is why first-time buyers favor them as most of these models are efficient with excellent performance and low cost maintenance.

The sedan segment remains one of the most prominent categories in the market, driven by its versatility and widespread appeal among families and corporate users. Sedans offer a balance between comfort, performance, and affordability, making them a staple in the automotive landscape.

The MUV and SUV segment is the fastest-growing category in the market, driven by a combination of consumer preferences and the country’s unique geographic and cultural landscape. SUVs and MUVs are particularly popular due to their robust build, spacious interiors, and adaptability to diverse terrains, making them ideal for large families and off-road enthusiasts.

Analysis by Sales Channel:

• Online
• Offline

The online sales channel in the Saudi Arabia used car market has witnessed remarkable growth, driven by increasing digital adoption and the convenience offered by e-commerce platforms. These platforms often include value-added services such as vehicle history reports, price comparison tools, virtual inspections, and financing options, which enhance buyer confidence and transparency. Furthermore, the integration of artificial intelligence for car valuations and blockchain technology for secure transaction records has revolutionized the online sales experience.

The offline sales channel continues to hold a significant share of the Saudi Arabia used car market, particularly among buyers who prefer in-person transactions and physical inspections of vehicles. Traditional dealerships, independent sellers, and auction houses dominate this segment, offering a hands-on buying experience.

Analysis by Vendor Type:

• Organized
• Unorganized

The organized vendor segment in the Saudi Arabia used car market is experiencing rapid growth, driven by increasing consumer preference for reliability, quality assurance, and professional services. This segment includes authorized dealerships, certified pre-owned (CPO) programs by automotive manufacturers, and large-scale multi-brand used car dealerships. Organized vendors provide buyers with added benefits such as thorough vehicle inspections, warranties, financing options, and after-sales support, which enhance consumer trust and satisfaction.

The unorganized vendor segment, comprising individual sellers, small-scale independent dealers, and informal networks, remains a significant part of the Saudi Arabia used car market. This segment appeals to price-sensitive buyers seeking lower-cost options without the added expenses associated with warranties and dealership services.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The Northern and Central Region, including cities like Riyadh and Al-Qassim, constitutes the largest market for used cars in Saudi Arabia, driven by high population density and significant economic activity. Riyadh, the capital city, serves as a hub for both commercial and governmental operations, resulting in robust demand for private vehicles among professionals and middle-income families.

The Western Region, encompassing cities like Jeddah, Mecca, and Medina, is a key market for used cars due to its high tourism and pilgrimage-related activities. The region's vibrant trade and tourism industries create substantial demand for private and rental vehicles, particularly among expatriates and short-term visitors.

The Eastern Region, which includes cities like Dammam, Khobar, and Jubail, plays a significant role in the Saudi Arabia used car market due to its industrial base and proximity to the oil and gas sector. The region is home to a large expatriate workforce, which drives demand for affordable used cars as a primary mode of transportation.

The Southern Region, including cities such as Abha, Jazan, and Najran, represents a smaller but steadily growing market for used cars in Saudi Arabia. This region's market is primarily driven by affordability, with demand concentrated on hatchbacks and older sedans that suit the preferences of cost-sensitive buyers.

Competitive Landscape:

One of the most critical steps taken by key players in the Saudi Arabia used car market is embracing digital transformation to enhance customer experience and streamline operations. Online platforms are leveraging advanced technologies like artificial intelligence (AI) and big data analytics to provide value-added services such as accurate car valuations, real-time pricing insights, and predictive market trends. Automotive manufacturers and dealerships are increasingly focusing on expanding their certified pre-owned (CPO) programs to capture a larger share of the growing used car market. These programs address common consumer concerns regarding the reliability and quality of used vehicles, offering benefits such as warranties, multi-point inspections, and reconditioning services. CPO programs are particularly appealing to buyers who seek affordability without compromising on vehicle performance and safety.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia used car market with detailed profiles of all major companies.

Latest News and Developments:

• September 2024: Syarah, major trading online platform, raised more than SAR 22 million thorough a group of investors in its recent Series C round. The round was conducted by Artal Capital, a Riyadh-based investment management company, via Artal Growth Opportunities fund.
• June 2024: TUV Rheinland announced its new strategic partnership with SASO to ensure comprehensive quality and satisfaction in verifying compliance of imported used cars with national and international rules.

Saudi Arabia Used Car Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia used car market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia used car market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia used car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.