What is the average car depreciation rate in the UAE?

Roughly 10% per year geometric across mainstream segments — meaning a car worth 100,000 AED today is worth about 90,000 a year from now, then 81,000 the year after, and so on. CarWorth uses 10%/year as its baseline depreciation rate when extrapolating prices across model years.

Which brands hold their value best in the UAE?

Toyota Land Cruiser, Toyota Land Cruiser Prado, Lexus LX, and Nissan Patrol consistently sit 2–4 percentage points below the 10% baseline — their effective depreciation is closer to 6–8%/year. The combination of strong local demand, GCC-specification reputation, and ubiquitous parts availability supports residuals.

Why do German luxury cars depreciate so fast in the UAE?

Heat, service costs, and out-of-warranty fear. A 5 Series, E-Class, or 7 Series can drop 18–22% in year one and 12–15% in year two, against the 10% baseline. The cliff is buyer reluctance to take on post-warranty maintenance, not the car itself.

When is depreciation steepest?

Year one (15–25% on luxury, 10–15% on mainstream) and the year after warranty expiry (6–10% extra drop in the first three months). Years 2–4 are the slowest part of the curve — buying a 2-year-old car and selling at 5 years is the most depreciation-efficient ownership window in the UAE.

Market6 min readUpdated 26 May 2026

Used-car depreciation in the UAE, year by year

The UAE used-car market depreciates at a defensible 10% per year on average — but the average hides three cliffs and two brands that quietly hold their value.

Depreciation is the largest cost of UAE car ownership for almost everyone — bigger than fuel, insurance, Salik, and maintenance combined for the first three years of ownership on a typical mainstream car. Understanding it changes which car you buy, when you sell, and how much room you have to negotiate either side.

The UAE market depreciates at roughly 10% per year geometric on average. That's our engine's default rate when extrapolating between model years. The average is a fair starting point. The interesting question is where the deviations are.

The 10%-per-year baseline

Year 0 → 1: 100 → 90
Year 1 → 3: 90 → 73
Year 5: 59

10% per year compounds — five years halves the value of most cars in the UAE. Eight years lands you near 43% of new. That curve is the answer to "how much will I lose driving this for three years": about 27% of what you paid, ±10% depending on the brand.

Cars that beat the average

Toyota Land Cruiser (200 / 300 series): ~6%/year effective depreciation. The most residual-stable car in the UAE for the last decade. Five-year retained value sits at 70–75% versus the 60% baseline.
Toyota Land Cruiser Prado: ~7%/year. Family demand keeps the floor high; mileage matters less than condition.
Nissan Patrol (Y62): ~7%/year for SE / LE trims. Titanium and Nismo depreciate faster because lower initial sticker volume thins the resale market.
Lexus LX / GX: ~7–8%/year. Reputation premium + Toyota-style reliability.
Toyota Hilux / Land Cruiser Pickup: ~6%/year. Commercial demand provides a floor that doesn't exist for passenger cars.

Cars that depreciate faster

German luxury sedans (5 / 7 Series, E / S-Class, A6 / A8): 12–14%/year average, with year-one drops of 18–22%. The warranty cliff drives most of this — buyers in the secondhand UAE market are scared of post-warranty repair bills, and the prices reflect that.
Performance European (Maserati, Jaguar, Alfa Romeo): 14–18%/year. Thin enthusiast demand in the UAE secondary market versus strong launch-year sales.
American full-size with low GCC presence: Lincoln Navigator, Cadillac Escalade ESV in non-Platinum trims: 12–14%/year. Patrol and Land Cruiser are the same-segment alternatives with much stronger residuals, so buyers default to those.
Electric vehicles (most non-Tesla): 15–18%/year. Battery-replacement uncertainty drives secondhand-market caution. Tesla Model 3 / Y closer to 12%/year as the brand stabilizes.

Three cliffs that compound the curve

Year-one drop: On luxury, 15–22%. On mainstream, 10–15%. This is the gap between the new-car premium and the "basically new" used market. If you can find a 6–12 month-old car with 5,000 km on the clock you've already won this round.
Warranty expiry: 6–10% extra drop in the three months after expiry. Plan your sale before this if you can.
Mileage thresholds: 100,000 km and 150,000 km show step-function declines, not just smooth ones. Crossing 100k costs 4–7% of value on most cars beyond the linear mileage-per-km adjustment.

How to use this

If you're buying: avoid year one, target year two to four, sell before warranty expiry. The depreciation curve is shallowest in that window.

If you're selling: model what your car will be worth in three more months and compare to what it's worth today. If the three-month drop is more than the cost of your alternative transport, sell now. Run the number for your specific car and check.

Frequently asked

What is the average car depreciation rate in the UAE?: Roughly 10% per year geometric across mainstream segments — meaning a car worth 100,000 AED today is worth about 90,000 a year from now, then 81,000 the year after, and so on. CarWorth uses 10%/year as its baseline depreciation rate when extrapolating prices across model years.
Which brands hold their value best in the UAE?: Toyota Land Cruiser, Toyota Land Cruiser Prado, Lexus LX, and Nissan Patrol consistently sit 2–4 percentage points below the 10% baseline — their effective depreciation is closer to 6–8%/year. The combination of strong local demand, GCC-specification reputation, and ubiquitous parts availability supports residuals.
Why do German luxury cars depreciate so fast in the UAE?: Heat, service costs, and out-of-warranty fear. A 5 Series, E-Class, or 7 Series can drop 18–22% in year one and 12–15% in year two, against the 10% baseline. The cliff is buyer reluctance to take on post-warranty maintenance, not the car itself.
When is depreciation steepest?: Year one (15–25% on luxury, 10–15% on mainstream) and the year after warranty expiry (6–10% extra drop in the first three months). Years 2–4 are the slowest part of the curve — buying a 2-year-old car and selling at 5 years is the most depreciation-efficient ownership window in the UAE.