Saudi Arabia Used Car Market: Price Sensitivity, Certified Used Cars & Sales Momentum

According to IMARC Group's latest research publication, Saudi Arabia used car market size was valued at USD 10.2 Billion in 2025. The market is projected to reach USD 17.4 Billion by 2034, exhibiting a growth rate (CAGR) of 6.11% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Used Car Market

• Precise Valuation & Pricing Engines: AI algorithms analyze mileage, condition, and market data to generate accurate vehicle valuations on platforms like Syarah and Haraj, reducing pricing errors and speeding up transactions.
• Enhanced Fraud Detection & Transparency: Machine learning scans vehicle histories, identifies listing anomalies, and verifies authenticity, building buyer trust and reducing risks in both organized and unorganized market segments.
• Personalized Recommendations: AI-powered apps evaluate buyer preferences, budgets, and locations to recommend suitable vehicles—whether family SUVs for growing households or fuel-efficient sedans for city commuters.
• Streamlined Digital Transactions: AI-driven platforms integrate real-time pricing comparisons, secure payment gateways, and digital financing options, making online car purchases faster, safer, and more accessible across the Kingdom.
• Advanced Vehicle Inspection: AI-enhanced diagnostic tools generate detailed 200-point inspection reports, offering buyers comprehensive condition assessments and helping sellers demonstrate vehicle quality transparently through digital channels.

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How Vision 2030 is Revolutionizing Saudi Arabia Used Car Industry

Vision 2030 is reshaping the used car sector by driving economic diversification, boosting workforce participation, and promoting sustainable mobility solutions. The initiative has fueled massive infrastructure projects across the Kingdom, increasing demand for affordable private transport among middle-income families and the expanding expatriate workforce. With female labor force participation rising dramatically—from roughly 750,000 licensed female drivers projected in Riyadh alone to 3 million women drivers nationwide—household vehicle ownership has surged. Government investments in digital platforms, certified pre-owned programs, and regulatory frameworks have enhanced market transparency, with platforms like Syarah raising over $82 million to scale operations. The push toward localized production and eco-friendly practices is accelerating the entry of used electric and hybrid vehicles, while new inspection standards ensure quality and safety compliance, positioning Saudi Arabia as a regional mobility leader.

Saudi Arabia Used Car Market Trends & Drivers:

Rising demand for affordable mobility is transforming the used car landscape, driven by steep new vehicle depreciation rates and growing budget consciousness among expatriates and middle-class families. With annual new and used car sales exceeding 700,000 units and the population projected to reach 50-60 million by 2030 (half being expatriates), demand for value-driven transport solutions continues climbing. Dealers and manufacturers are responding with competitive pricing, certified pre-owned programs offering warranties and maintenance packages, and flexible financing including zero-down-payment plans and low-interest loans. Female workforce participation has been a game-changer, with 61% of Saudi women intending to obtain licenses and households with licensed female drivers jumping from 22% to nearly 64%, directly fueling multi-car ownership and boosting used vehicle transactions across all segments.

Digital transformation is revolutionizing how Saudis buy and sell used cars, with internet penetration nearing 99% and online sales channels growing at over 17%. Platforms like Syarah, Haraj, and Motory now offer comprehensive vehicle history reports, AI-based valuations, virtual inspections, and doorstep delivery services. In October 2024, the Motor Vehicle Periodic Inspection launched six mobile inspection stations in partnership with French manufacturer Muller, supporting Vision 2030 traffic safety goals and reaching remote areas efficiently. These mobile units inspect all vehicle types and provide detailed digital reports, enhancing buyer confidence. AI integration has streamlined price comparisons, enabled secure digital payments, and reduced fraud through blockchain-based transaction records, making online purchases increasingly popular among tech-savvy buyers and first-time vehicle owners.

Certified pre-owned programs are rapidly expanding as manufacturers and dealerships compete for market share, offering rigorous multi-point inspections, reconditioning services, and warranties that address buyer concerns about reliability. Major dealerships now provide value-added services including free roadside assistance and extended warranty options, transforming consumer perceptions of used vehicles. In June 2024, TUV Rheinland partnered with the Saudi Standards, Metrology and Quality Organization (SASO) to verify compliance of imported used cars with national and international standards, strengthening quality assurance. Additionally, September 2024 saw Syarah raise over $22 million in Series C funding led by Artal Capital, bringing total capital raised to over $82 million for platform expansion. These developments signal strong investor confidence while the growing preference for low-mileage, recent-year vehicles with advanced safety features drives organized segment dominance across urban hubs.

Saudi Arabia Used Car Market Industry Segmentation:

The report has segmented the market into the following categories:

Vehicle Type Insights:

• Hatchback
• Sedan
• MUV and SUV

Sales Channel Insights:

Online

Offline

Vendor Type Insights:

• Organized
• Unorganized

Regional Insights:

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

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Used Car Market

• September 2024: Syarah, a leading online trading platform, raised over SAR 22 million through a group of investors in its Series C round. The round was led by Artal Capital, a Riyadh-based investment management company, via the Artal Growth Opportunities fund.
• June 2024: TUV Rheinland announced a strategic partnership with SASO to ensure comprehensive quality and verification of imported used car compliance with national and international regulations.
• 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 Vision 2030 traffic safety goals.
• 2024: Import of new and used cars increased significantly, with annual car sales exceeding 700,000 units across the Kingdom, demonstrating robust market momentum.
• 2024: Intertek received accreditation from the Saudi Standards, Metrology and Quality Organization (SASO) to conduct inspections and issue certificates of inspection within the cyber system for used motor vehicles imported into Saudi Arabia.

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