If you have always wondered what it’s like to be at the wheel of a Lamborghini Sián, travel through the Italian countryside on a Ferrari Enzo, or experience the power of an Audi R8, you are certainly not the only one. And, maybe, it’s this feeling alone – and the availability of capital – that lures wealthy buyers into investing in a supercar.
But what to do once the money runs out? Or what if a new, better model gets released? Dubai supercar owners seem to have an unconventional answer: simply leaving their cars on the street of the city, keys in the ignition.
What happens after might interest you – especially if you are in the market for a cheap supercar.
Dubai: The Supercar Capital of the World
As wealth shifts and new billionaires are born, pinpointing which country homes the most supercars becomes incredibly difficult. But with its focus on luxury, availability of choice, low duties, and no high taxes hindering the buying power of wealthy consumers, there is no doubt that Dubai holds the title of the supercar capital of the world.
The city, which has a current population of 3.3 million people, hosts nearly 85,000 supercars – 3,000 of which are abandoned every year, and mostly sold, at auction, by the Dubai Police force.
Why Does Dubai Have Supercar Graveyards?
The surplus of top-range vehicles and the fast-changing desires of the hyper-wealthy citizens of Dubai are two of the reasons behind the epidemic of discarded cars plaguing the city. But they are not the only ones.
Today, expatriates (expats) account for over 85% of the population of Dubai. Most of the foreign citizens moving to the city do so to access high-paying jobs and prestigious positions. And, as the first money starts pouring in, how to spend it if not on low-tax, highly accessible luxury cars?
But, as the economic crisis rages on, fuel prices continue to rise, and living costs reach an all-time high, not many keep up with their own living standards.
To make things worse as residents of the UAE, expats are subjected to the Sharia-influenced legal system, which considers missed payments as criminal offenses punishable with time in prison.
In turn, many expats resort to fleeing the country to avoid having to face charges in Dubai, and can’t do anything with their cars aside from abandoning them by the roadside.
What You Need To Know Before Buying a Supercar in Dubai
Buying a supercar in Dubai can be particularly tempting, especially when looking at the standards of living held by your friends or neighbors. However, great luxury comes with great responsibilities that should not be overlooked.
Here are three important aspects to understand before buying a supercar in Dubai – but don’t forget that you can only judge whether buying a high-end vehicle will push you out of your depth.
Maintenance Costs Can Be High
While it isn’t uncommon for expats to take out loans to afford a supercar, many forget about the implications of maintaining their new vehicle.
Maintenance costs vary from one model to another but, as an example, changing the oil on a Ferrari Enzo can set you back $6,000, and buying a new set of tires for your Lamborghini LM002 can cost you over $20,000!
Finding the Right Insurance Provider Can Make a Difference
The power and speed of a supercar might be its greatest selling point – but can also be its most significant drawback! On average, insurance cover for supercars will rest at around 1-1.5% of the vehicle’s value – which can be as high as $40,000 for a $3.8 million Ferrari Enzo!
Finding the right UAE car insurance provider can help you save on your insurance premium and find a policy that truly meets your needs as a driver and as an owner!
Checking Out Auctions Can Help You Secure a Great Deal
Abandoned supercars are sold at organized auctions, which are usually invitation-only events. Prospective buyers must also register with the police and provide evidence of funds before placing a bid.
While the process of buying a supercar at an auction isn’t particularly straightforward, buyers looking to invest in a luxury vehicle can find models selling for a fraction of their original price!