Introduction
The estimated market value of Kuwait's automotive sector is 3.1 million, of which 1.5 million are predicted to come from the used vehicle market and 1.6 million from the new car market.
Additionally, as of 2021, the sector will likely serve 1.8 million people. This article seeks to give readers a general understanding of the used car market in Kuwait and consumer preferences related to it, so brands can develop proper marketing strategy and build a unique offering for the market.
Consumer Behavior
We surveyed a segment of the population, of which 76% are Kuwaiti nationals. The majority of them currently drive a new-bought vehicle, indicating a preference for new cars. However, 34% are driving a used car. When asked where they prefer to purchase used cars, 49% of respondents said they prefer to buy directly from the owners, while 30% said they prefer to buy certified pre-owned cars. As a result, the favorite places to buy used vehicles in Kuwait are both dealerships and individual sellers.
Additionally, 82% favor a factory-made automobile warranty that is already in place. As a result, in addition to considering the price and condition of the vehicle, people often consider warranties when purchasing used automobiles.
Buying and selling used vehicles
Individual sellers sell their vehicles on online platforms such as OpenSooq, 4Sale, and even Facebook groups. Being defrauded by sellers can be an issue. With used vehicle sales, we found that 39% of people who purchase used cars online have been defrauded, making it a reasonably secure way to do business (provided the buyer takes the necessary measures).
Consumers can take different amounts of time to purchase a used vehicle. According to our study, 40% of respondents claim that buying a used car takes up to 14 days, whereas buying a new one takes comparatively lesser time.
Buyers who wish to buy vehicles have many avenues to go towards. Poixel finds that the majority use online applications, while others also go for social media. Websites are the third preference for sellers. Hence, buying from individual sellers is the popular way to buy used vehicles in Kuwait. As a result, the best places to buy and sell used cars online include online apps, social media, and websites according to preference
Online Applications to buy Used cars in Kuwait
Automotive apps are preferred by 68% of car owners who want to sell their automobiles. In Kuwait, 4Sale is the most widely used application for used automobile purchases. In Kuwait, 4Sale owns 75% of the used car market.
The majority of people are content with the current apps and websites for buying and selling automobiles, while 27% are extremely happy with them. Hence, it’s difficult for new players to enter the market without a unique offering that solves a consumer problem.
Would agencies collaborate with applications to sell cars?
The automotive applications market is dominated by a small number of companies, namely 4Sale. Car dealerships often collaborate with applications to sell used and new cars. The app features, user base, and marketing reach that the application provides to agencies give it a competitive edge, which restricts the entry of new applications into the market.
According to Poixel’s in-field interviews, only 3 out of 11 vehicle agencies have collaborated with regional applications including Motergy, Opensooq, and 4Sale. The collaboration's main goals are lead generation and brand recognition. Most agencies don’t prefer to collaborate with applications mainly due to the influx of bad leads. As a result, Mercedes prefers not to collaborate with apps. Instead, they nurture their existing consumer base instead of getting new ones.
Conclusion
Get our full market research report on the automobile market of Kuwait. Reach out to us at info@poixel.com to initiate a market research study for your business.
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