United Arab Emirates: Where Ferraris go to die?
Ferrari 599 GTB. Picture by Ed Callow, all rights reserved.
This update is brought to you by HSBC.
If you are a regular BSCB reader you will know that the new car market in the United Arab Emirates is up a formidable 29% year-on-year so far in 2012 at 228,702 registrations. HSBC says the main reasons for this growth have been favourable oil prices and stability in the fundamental parts of the economy, as well as an increasing range of cars available. There are however two very interesting and quite unique car sales trends in the UAE that I haven't covered yet, mainly because they apply to the used car market. The first one is that more and more people in the UAE seem to be buying classic cars (over 30 years old), with 7,000 to 8,000 in the country at the moment. Note the 'Range of cars' link is sponsored.
Burj Khalifa, Dubai. Found any abandoned Ferraris lately? Picture by Avatarmin, all rights reserved.
The second trend in the UAE relates to luxurious cars. We know that a lot of African countries are where European cars like the Mercedes 190 go to finish their long and eventful life. But who would have thought the UAE is shaping up to be where Ferraris go to die? Given fuel is cheaper, many expats and UAE nationals do give up to the temption to splash out on their dream car...
Or perhaps a lost Mercedes SLS AMG? Picture by Martijn Beekmans, all rights reserved.
However the turmoil in the international economy has disrupted their owners’ ability to pay for them. UAE law frowns upon debt, so rather than face stiff penalties their owners have fled the city, or even the country, abandoning their cars. If you see a Ferrari lying around unused and unloved (yes you read that right), you’ll know why. When these cars get towed away and if no one has claimed them after 15 days, they go up for auction, giving consumers the chance to take one at a knock down price...
Looking to buy a car in the UAE? Check out car insurance from HSBC here.
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