Digital Car Sales Increases as 60% of Saudi Buyers Prefer Online Platforms by 2025

The KSA used car market is experiencing growing demand due to mix of economic, demographics, and technological factors. The rising urban population which reached 84% in 2024 is fostering increased vehicle ownership. Furthermore, average age of cars in the country is increasing and most of the vehicles on road are older than 7 years. This highlights the growing demand for pre-owned vehicles. In 2024, hybrid vehicles sales increased by 35%, reflecting growing trend of fuel-efficient and technologically advanced vehicle among consumers. Moreover, the consumers are preferring digital platforms for their purchase. This is creating opportunity for businesses to leverage digital tools for price comparison, vehicle history checks, and financing options.

What's Driving the Used Car Market Growth in KSA?
• The rising demographic expansion and urbanisation is becoming critical factor for expansion of used car market in KSA. By 2030, the country's population is expected to reach around 60 million. This will lead to more numbers of vehicle owners in the country. Furthermore, young population which accounts for 70^% of the population are prioritising cost-effectiveness over brand loyalty. Thus, driving the demand for pre-owned vehicles.
• The digital transformation and growing presence of online marketplaces are driving the KSA used car market. In 2024, over 40% of the used car transactions were conducted through digital platforms. This growth is influenced by convenience, transparency, and broad selection offered by online platforms. Moreover, integration of digital payment solutions and financing options are further encouraging consumers to opt for online platforms.
• The rising female participation in driving are impacting the KSA automotive market. By the end of 2025, additional 3 million women are expected to obtain their driving licence. The female drivers usually prefer affordability, fuel efficiency, and hybrid model, reflecting growing opportunities for used car market in the country.

Read our full report on KSA Used Car Market: https://www.nexdigm.com/market-research/report-store/ksa-used-car-market-research-report/

Market Competition
The KSA used car market is highly competitive and is dominated by mix of regional and international players. The key players leading the landscape include Abdul Latif Jameel Motors, Syarah, YallaMotor. Abdul Latif Jameel Motors dominates the market by leveraging extensive dealership network and strong brand reputation. The company received accolades including "Best Car Distributor in Saudi Arabia" and "Most Reliable Car" for the Toyota Land Cruiser 70 in 2024. Syarah is a leading e-commerce platform which has expended its operations to meet growing market demand. In late 2023, company inaugurated largest car refurbishing and servicing centre in the Middle East that spans 55,000 square meters which is five times larger than its previous facility. Meanwhile, YallaMotor reported 14.4% year-over-year increase in average monthly active users in 2024, reflecting platforms effectiveness in engaging users and facilitating used car transactions across KSA.

Limited Availability of Financing Options
One of the major challenges faced by KSA used car market is limited availability of financing options for pre-owned vehicles. This affects first-time buyers and lower-income individuals who cannot afford vehicle ownership. With Saudi Arabia auto finance market expected to reach USD 18 billion by 2030, the penetration of financing in used car segment is very low. This scarcity due to higher perceived risks associated with used car loans and lack of standardized vehicle valuation is slowing down the growth of used car market in the country.

Future Outlook
The KSA used car market is set to undergo rapid transformations through 2030. The market will be driven by evolving consumer preferences, technological advancement, and demographic shift. By 2030, expatriates' population is expected to account for 50% of the total population, creating demand for affordable transportation like used vehicles. The digital platforms will continue to grow, accelerating the market by providing greater transparency and convenience to consumers. The businesses will integrate AI-powered valuation tools and virtual inspection services to enhance confidence and streamlining the purchase process. Moreover, government's commitment to sustainability will lead to 40% adoption of electric vehicle by 2030.
Consultant at Nexdigm In their latest publication "KSA Used Car Market Outlook to 2030: By Vehicle Type (Hatchbacks, Sedans, and Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs)), By Sales Channel (Online and Offline), and By Vendor Type (Organized and Unorganized)" believe that by expanding digital presence and integrating AI for better customer experience, businesses can gain competitive advantage in KSA used car market.

Explore similar studies on the Used Car Market: https://www.nexdigm.com/market-research/tag/used-vehicle-industry-reports/

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This release was published on openPR.