Dubai may well be synonymized with luxury, innovation, and splendor. The skyline looks so beautiful that one might consider the world-class malls a lifestyle style spelling out to be extravagant. Glamour and prosperity may become synonymous with its name. But amidst all the glamour and dollars is something different and attention-grabbing: littering public car parks, airports, and streets are abandoned supercars.
Source: Google Images
In Dubai, one can find a car, even an idle luxury car, which is covered in dust and will get impounded soon. The thing is how and why a person abandons his favorite supercar. What usually happens to that lost supercar when recovered, and, in the end, is the question: to avoid this situation? All this, including why it is this way and how, followed by what turns up after having left it there in car-parking behind someone, what may very well have to be done just to get these cars not to turn up all can be found here.
Table of Contents
| S. No. | About the Abandoned Cars in Dubai |
| 1. | Why are Supercars Abandoned in Dubai? |
| 2. | What happens to the abandoned supercars? |
| 3. | Solutions to Decrease Abandoned Cars in Dubai |
| 4. | Conclusion |
| 5. | FAQs |
1. Why are Supercars Abandoned in Dubai?
The fact that the government does not tax anything yet and the economy seems to be running shows a much darker reason why people have been running from this country in their heads loads on the economic front.
Draconian laws on bankruptcy laws and its effects under law
Under Sharia, bad debts are considered a crime in Dubai. This differs from the Western countries, which see bankruptcy as an affair of the civil case. Dubai law system takes so much in punishment on those who cannot pay their loans. Therefore, somebody who fails to pay debts is punished with imprisonment, heavy fines, or a lawsuit.
Most expatriates on super salaries and most locals, for that matter, are made into supercars through loans on hire-purchase leases or, more accurately, credit hire. However, at the tail end of economic doomsday, when that finally comes, after one loses employment, a business collapses, or in a full-fledged economic crash, investors beg to find means of liquidating the loans.
Most people are being forced into desperation outside the country because of digging these expensive supercars underground car parks or street sides, and worse still, in the Dubai International Airport. This problem of abandoned cars brings an interesting light as most of these cars range in millions of dollars.
Source: Carscoop
Too Expensive Maintenance and Insurance Costs
High-performance cars, not to mention exotic car brands, incur specialty service, costly spare parts, and expensive fuels. These are too heavy for the financially poor car owner or the surprise expense that has them walking away from their beloved asset and not fighting the battle with the maintenance and payments.
Permanent Expatriate Leaving the Country
Dubai is a global business hub with international businesses and an attractive marketplace for professionals and high-net-worth entrepreneurs worldwide. Most expatriates are in the UAE on expatriation contracts or visas. Upon the expiration of the contracts or work visas, most professionals return to their homeland or move to another country.
Such is the concept that a luxury car loses value quickly, and one cannot sell the exact vehicle very soon. The car’s owner also cannot get a customer or owes some dues in due time. They just keep their car aside then. So the number of deserted supercars is increasing daily in this whole city.
Impulsive Buying in the Boom phase of the Economy
Many, especially the youths who are businessmen and working professionals, then go on “reckless spending” during the boom. Such supercars then become exhibition status symbols, especially amongst the high society within Dubai. Still, it is then, in that boom which would develop into a recession, that most purchasers would be plagued with cash flow problems, either lose their job or their business would suffer and hence could not fund such an extravagance lifestyle for much more extended periods.
Most owners get into financial messes because they spend their credits on the most exotic cars on loans that soon become too much to handle. When things change, the emotive buyers run away from the financial mess, leaving behind their luxury supercars.
2. What happens to the abandoned supercars?
Once left behind in Dubai, such a supercar never remains forgotten. Ultra-luxury cars always have an interesting storyline wherein one leads to a pretty interesting police auction and heavy impounding yards to unanticipated returns into their original hands.
Source: ED Times
There always happens to be a warning, followed by the officials’ impoundment of automobiles
There is a proper procedure by which Dubai police, in association with the Municipality, tag an abandoned car. Suppose it remained idle for almost two or three weeks dust particles. In that case, it is when authorities put a notification on the windscreen of that particular car, giving a grace period of 15 days while the owner must come down and retrieve back his vehicle failure reporting for such incidents to occur.
If things happen without incidents, the car will be taken to a yard. Most supercars end up parked in big lots with other motor vehicles impounded, waiting for the final judgment.
Cars That Are Taken Away to the Government Car Impound Yards
Some are just a parking lot, part and parcel of the luxury car expo, rows after rows of high-performance sports cars parked silently gathering dust gradually. It is an incredible yet eerie site of endless Ferraris, Lamborghinis, Aston Martins, and McLarens parked as if to be forgotten by time.
Most of them are almost spotless, even as their aerodynamically molded bodies have been covered with a profuse layer of dust. Some will be driven; touch-ups will set others right, but some seem to have weathered the fury of the desert for decades.
Supercars sold for Discounted Public Prices
So, if the owner does not recover it, that car goes under a public auction. The Dubai government also frequently conducts auctions led by the government through which these ultra-high-end supercars are put up for grabs from the bidders with considerable discounts and, in many instances, even selling at 40-60% discount against their market values.
That is why most collectors and dealers are having nightmares regarding car auctions when they go to the car auctions in Dubai. Sometimes, luck favors some buyers by being sold a pristine Ferrari or Porsche for less than a Toyota sedan costs. Sometimes, they strip down such cars, take them to other countries, and collect a nice profit there.
Some Supercars are simply disassembled for the parts that can be refurbished.
While the others, such as junked cars, are sold to most in the auctions, some are very exposed, hence get disintegrated due to being entirely broken apart and thus get sold partly; some end up going to be broken down for spare parts before selling; on the other hand, most get channeled through transport into recycling plants whereby aluminum, titanium, and even carbon fiber salvaged for further reusing.
The owner sometimes collects his car.
In a few rare cases, the owners return to Dubai after clearing all the mess of finances or lawyer matters and try to reclaim their deserted supercars. Due to the recovery of all the pending arrears and thus paying the levies for impounding, one might be fortunate enough to recover his supercars. But the prices are too high; therefore, one opts for their sale at auctions.
And abandoned supercars of Dubai are no less interesting than the city, standing in line – waiting, either to be sold maniacally to some impatiently waiting buyer or torn into parts – such forgotten symbols of luxury revive, either in a new house or by legendary tales of erring fantasies indulged by the overly rich Dubaian.
3. Solutions to Decrease Abandoned Cars in Dubai
Abandoned luxury cars in Dubai present a problem with an underlying cause: financial insecurity, legal complexity, and a weak secondary market. Authorities, lenders, and car owners should join forces to provide workable solutions for eliminating abandoned supercars in Dubai. The following are some possible steps that could decrease the number of abandoned supercars in Dubai:
Source: Hotcars
A. Adopt Looser Loan Repayment Policies
Loan defaults and runaway car owners from serious judicial repercussions constitute some of the reasons why many supercars end up deserted. Easy options regarding loan payment terms could lighten the monetary burden and ensure vehicles are not left to roam about in isolation. Some solutions for this would include:
- Loan Restructuring Programs – Banks or other financing organizations could offer such services of loan restructuring when paying debts during the current crisis becomes inconvenient.
- Respite Payments – Short-term payment holidays or deferral programs to borrowers facing temporary financial distress could prevent default.
- More Lenient Penalties for Overdue Payments: Making stiff fines imposed for overdue payments less punitive would prevent sudden financial despair, and the borrowers could repay the loans without running.
B. Educate People on Bankruptcy Laws and Debt Solution Programs
Most expatriates and residents fear strict legal consequences regarding unpaid debt when they abandon their vehicles. In recent years, however, the UAE government introduced various laws to help deal with financial distress issues, such as the UAE Insolvency Law in 2019 and programs facilitating debt settlement. Increasing public awareness of these measures reduces panic abandonment of vehicles. This can be effective through:
- Public Awareness Programs: Organize information dissemination programs across banks, real estate agencies, and corporate employers to explain legal alternatives for refugees in case of financial difficulties.
- Debt Advisory and Counseling Services: Set up centers offering debt consultancy and inform car owners of legal alternatives before leaving.
C. A More Efficient Used Car Market
Source: Dubai Municipality
One of the challenges for car owners leaving Dubai is the difficulty in selling their vehicles quickly at a fair price. Expanding Dubai’s used car market to facilitate faster transactions can provide alternatives to abandonment. Solutions include:
- Government-Supported Fast-Sale Programs – The Dubai government could introduce an official Used Luxury Car Portal where high-end cars can be listed and sold at reasonable prices.
- Streamlined Resale Platforms – More efficient digital marketplaces can help expatriates sell their supercars faster, especially before they leave the country. Popular platforms such as Dubizzle and CarSwitch could be expanded for easier transactions.
- Incentives for Dealership Buy-Backs – Encouraging authorized dealers to offer better buy-back options for supercars can enable owners to recover costs instead of abandoning their cars.
D. Create a Legal Grace Period for Debt Resolution
Dubai can allow expatriates and residents more time to sort out their finances and pay back their debts rather than abandoning their car in public due to economic pressure or loss of job. Potential policies include the following:
- A 60-90 Day Amnesty for Defaulters – Instead of taking immediate action in court, the owners of cars can be provided with three months to restructure their finances to clear the amount owed.
- Exit Visa Debt Negotiation System – A system where people negotiate settlements before leaving rather than having to abandon their vehicles because of an unexpected financial problem.
E. Encourage Long-Term Lease and Subscription-Based Car Ownership
Rather than car loans with the enormous costs associated with them, the financial sector of Dubai can adopt the subscription-based models of car ownership, where more flexibility can be achieved, such as:
- Car Subscription Services – Monthly or yearly leasing plans that give users access to luxury vehicles without the headache of ownership.
- Low Down Payments for Luxury Car Rentals – Increased accessibility of rental options would make purchasing a car for no good reason less likely to be abandoned in the future.
Conclusion
Dubai is a unique canvas of affluence, financial stress, and cautionary tales about overindulgence. The sight of abandoned luxury supercars in Dubai will remind everyone that, if not handled well, luxury can be seriously bad for the finances.
Through better financial policies, educational awareness, and alternative ownership solutions, Dubai can ensure that the glamour of its luxury car scene does not come at the cost of economic instability.
FAQs
1. Why are so many luxury cars abandoned in Dubai?
Luxury cars are abandoned in Dubai due to financial crises, legal consequences of unpaid debts, high maintenance costs, job loss, and expatriates leaving the country without the ability to resell their cars.
2. What if someone does not pay the car loan amount in Dubai?
Under the law of UAE, failure to clear a car loan is a crime. Debtors may face jail terms or heavy fines; thus, some expatriates may flee the country and leave behind their supercars.
3. Where are the most abandoned supercars found?
Mostly in parking lots, airports, streets, and expensive impound yards of cars, which just remain there for dust collection over time.
4. How does the government handle the abandoned supercars?
The authorities issue a warning by putting a notice on the vehicle. If no one claims the car within 15 days, it gets impounded, sent to auctions, or scrapped later.
5. Who can buy these supercars at Dubai auctions?
Yes, the police auctions in Dubai often hold abandoned luxury vehicles at significantly reduced prices based on their face values, which are frequently as low as 40-60%. Players from all over the world participate in these auctions.
6. Why do expatriates leave their supercars when leaving Dubai?
Most expats buy supercars on hire purchases or loans. If they lose money or end their work stay, they cannot repay the loan money or the selling price, and so they cannot afford to return home.
