If you're looking to purchase a new or secondhand vehicle and need to stick to a budget, applying for a car loan is an excellent choice. In the UAE, you have two primary avenues to explore when it comes to car loans: traditional banks and online platforms.
Banks in the UAE, such as Emirates NBD, HSBC, and RAKBANK, offer a wide range of car loan options. Simply visit your nearest bank branch to inquire about their car loan programs, including flexible payment options and competitive interest rates.
In addition to banks, several online platforms specialize in car financing solutions. These platforms enable you to conveniently compare loan rates and proceed with the necessary steps to secure a car loan for purchasing both new and pre-owned vehicles.
By exploring these car financing options, you can find the most suitable loan terms that align with your budget and make your dream of owning a vehicle a reality.
This comprehensive guide will walk you through the step-by-step process of purchasing a used car on installment in the UAE, helping you navigate the intricacies and make an informed decision.
Requirements for Buying a Car on Installment in the UAE
To be eligible for a car loan and purchase a car on installment in the UAE, you will typically need to fulfill the following requirements:
• Age Requirement: You must be at least 21 years old to apply for a car loan.
• Minimum Monthly Salary: Different banks have varying minimum monthly salary requirements, typically ranging from AED 3,000 to AED 5,000.
• Proof of Income: You will need to provide a salary certificate or proof of income to demonstrate your ability to repay the loan.
• Identification Documents: You will need to provide a valid passport or visa and an Emirates ID.
• Bank Statements: You may be required to present bank statements for the previous 3 to 6 months.
• UAE Driver's License: A UAE driver's license is necessary to be eligible for a car loan.
• Valuation Certificate: You will need a valuation certificate for the car you intend to purchase.
Please note that specific requirements may vary depending on the bank or lending institution you choose. It is advisable to contact your preferred bank or lender to obtain precise information regarding their car loan requirements.
Things to do before you buy used cars on installments in UAE
1. Assess Your Budget and Financing Options
Understand your budget limitations and determine how much you can afford to spend on monthly installments. This will help you narrow down your options and find a car that fits your financial situation. Research and compare financing options available from banks, car dealerships, and other financial institutions. Consider factors such as interest rates, loan terms, down payment requirements, and any additional fees.
2. Research and Find the Reliable Dealer
Determine your specific car preferences. Research online platforms, classifieds, and dealerships for available options. Find a reputable dealer offering used cars on installment through online research or recommendations. Choose a dealer with a wide car selection and a good reputation. Inspect the car's condition, review its history report, and consider a professional inspection.
3. Negotiate the Purchase
Practice effective negotiation strategies to secure the best price for the used car. Be prepared to negotiate not only the car price but also the installment terms, such as the down payment amount and monthly payment duration.
4. Complete the Necessary Documentation
Gather the required documents, including identification proof, residence visa, income statements, and bank statements. Submit the necessary paperwork to the financing institution or dealership, ensuring compliance with their specific requirements.
5. Finalize the Installment Agreement
Review the terms and conditions of the installment agreement thoroughly. Make Timely Installment Payments. Set up automatic payments or reminders to ensure timely installment payments. Maintain a good credit record by fulfilling your financial obligations promptly.
Procedure to buy used cars on installments in UAE
1. Find a vehicle you want to buy.
2. Take the car for a test drive and have it inspected at an RTA testing station.
3. Make sure the number on the engine matches the one on the registration card.
4. Contact Dubai Traffic Police to check if the car is stolen or has any fines.
5. After buying the car, get insurance and transfer ownership/registration.
6. Give copies of the new registration card to the insurance company and the seller as proof.
7. If needed, make sure the car has new license plates.
8. Buy a Salik tag to use the electronic toll road system in Dubai.
Costs to Consider When Buying a Used Car
Apart from the mentioned document requirements, it's essential to know about the expenses associated with buying a used car. These expenses may include:
• Bank Processing Fee: This refers to the administrative fee charged by the bank during the car purchase process.
• Downpayment: Typically, a downpayment of 20% of the car's value is required when purchasing a used car.
• Equated Monthly Installments (EMI): These are the monthly payments you make towards the car loan, including both the principal amount and the interest.
• Penalties: Late payment penalties may be imposed if you fail to make your monthly installment payments on time.
Additional Tips When Buying a Used Car
• Before buying a secondhand car, have it undergo testing and inspection to ensure safety and “road-worthiness". Secondhand cars that are older than two years must be inspected at a vehicle testing centre annually.
• Check Tires and Brakes: When purchasing a used car, inspect the tires for any signs of wear and tear. Ensure they are in good condition and not in need of replacement. Additionally, during a test drive, assess the functionality of the brakes to ensure they are in proper working order and not faulty.
• Inspect Car Exterior: Look for dents, color differences, and ask about any accidents. Check for smooth paint without bubbles, indicating rust or improper treatment.
• Inspect Car Engine: In addition to the exterior, the interior of the car is equally important. Check under the hood for belts, car fluids, and other parts. Look for signs of wear, rust, or oil leaks, as they may require costly repairs if you choose to purchase the car. Also, check the radiator cap to ensure fluid levels are within the recommended range, indicating good maintenance.
Where you can buy used cars in UAE
There are several places and online platforms where you can buy used cars in the UAE. We have listed below all the options available for you
Popular Car Markets in Dubai (UAE)
1. Al Aweer Auto Market: Al Aweer Auto Market, located in Ras Al Khor Industrial Area 3 on Nad Al Hamar Road, is a renowned used car market in Dubai. With over 200 car showrooms, it is a favorite destination for car enthusiasts. Situated in the expansive industrial area of Ras Al Khor, this market is also referred to as Dubai Auto Market or Al Aweer Auto Market.
All the showrooms in this market hold licenses from the Dubai Municipality, ensuring a reduced risk of fraudulent activities by sellers. The cars available for sale here are pre-owned vehicles in Dubai.
Referred to as Ras Al Khor Car Market, Al Aweer Used Car Complex, or Al Aweer Car Complex, this market provides a range of facilities to facilitate the car buying process.
Al Aweer Auto Market offers a range of popular facilities to enhance the car buying experience. These include the presence of banks such as Mashreq Bank, Emirates Bank International, and Dubai Islamic Bank, providing car financing options. Auto insurance companies are also conveniently located within the market. For thorough car testing, there are automobile testing services like Gear One for Diagnosis Cars. The market houses a police traffic department for car registration and legal procedures. The Emirates Driving Institute assists newcomers in obtaining driving licenses, while the Tasjeel Centre aids with car registration. Praying areas, a cafeteria for refreshments, and the renowned Dubai Cars and Automotive Zone (Ducams) for import and export cars are also part of the market.
In addition to its offerings, the market features a mosque for prayers, a petrol pump for fueling, shops selling car accessories, public restrooms for convenience, and a designated public parking area for visitors.
Location and Contact Details of Al Aweer Auto Market
Call: 800-900
Opening Hours: The auto market opens from Monday to Saturday, 8:00 am to 9:00 pm.
2. Emirates Auction: Emirates Auction is another car market located adjacent to the Al Aweer Auto Market on Manama Street in the Ras Al Khor Industrial Area of Dubai. Unlike traditional car markets, Emirates Auction operates through an online bidding platform, allowing buyers to participate in auctions to purchase cars. It is the largest online auction platform in the UAE.
Emirates Auction Branches in UAE Location and Contact Details
Call: 600-545-545 (UAE), +971 600 545454 (International).
Opening Hours: Sunday to Thursday from 8:00 am to 9:00 pm, and on Fridays from 8:00 am to 12:00 pm and 2:00 pm to 6:00 pm. Saturdays closed.
3. Al Futtaim Motors' Automall: Experience a seamless process of buying and selling used cars in Dubai with Al Futtaim Automall, our second top pick in the list of the best places for pre-owned vehicles. Explore a diverse range of makes and models, from luxurious Cadillacs to affordable Toyota options, catering to various budgets and preferences.
Not only can you browse and purchase used cars, but you can also trade in your current vehicle for an upgrade that better suits your needs. Al Futtaim Automall goes beyond sales, offering additional services such as vehicle valuation certificates, maintenance, financing solutions, and a 7-day money-back guarantee. This allows you to test drive a car and return it if it doesn't meet your expectations.
Branches of Al Futtaim Motors' Automall Location and Contact Details
Al Futtaim Motors' Automall Website
Call: 600-567-005
Online Marketplace for used Cars in UAE
1. Dubizzle.com: Dubizzle is a popular online marketplace in Dubai, United Arab Emirates, where you can find a wide range of new and used cars for sale. With extensive car listings, you'll find various makes, models, and price ranges to suit your preferences. Each listing provides detailed information about the vehicle, including its year, mileage, condition, and seller contact details. Direct communication with sellers allows you to inquire, negotiate, and arrange viewings or test drives. Dubizzle prioritizes verification and safety measures, ensuring a secure buying experience. Remember to research, inspect, and verify before making a purchase, meeting the seller in a safe location and ensuring proper documentation for a smooth transaction.
2. YallaMotor.com: YallaMotor UAE is the region's top automotive portal, providing visitors with essential tools and information to make informed car purchasing decisions. With a dedicated Car Buyer's Guide, it offers comprehensive details on prices, specifications, and features for every car model in the market. Stay updated with the latest car news and reviews from both local and international sources. Additionally, YallaMotor offers practical shopping tools, including a special offers section, an in-depth car comparison tool, and a vast selection of over 14,000 used cars. Experience the convenience and reliability of YallaMotor as you navigate the car buying process in the UAE.
YallaMotor Website
Email: moderators@yallamotor.com
Call: +971 4 556 9700
3. DubiCars.com: DubiCars.com is a reliable online platform dedicated to buying and selling cars in the UAE. With a wide selection of new and used vehicles, it provides a convenient and trustworthy experience for car buyers and sellers. Whether you're searching for a luxury sedan or an economical hatchback, DubiCars.com offers comprehensive listings, detailed vehicle information, and helpful resources to make your car shopping journey smooth and successful.
DubiCars Website
DubiCars.com mobile app for IOS
DubiCars.com mobile app for Android
4. DriveArabia.com: DriveArabia.com is a leading automotive portal catering to car markets in Dubai, Sharjah, Abu Dhabi, and the Northern Emirates, as well as the wider Middle East region, including Saudi Arabia, Kuwait, Oman, Qatar, and Bahrain. It offers comprehensive coverage of the latest car news, reviews, and features, providing valuable insights for car enthusiasts and buyers. With its extensive database, user-friendly interface, and focus on regional markets, DriveArabia.com has established itself as a trusted source of automotive information in the Middle East. Whether you're looking for detailed car specifications, expert opinions, or comparisons, DriveArabia.com is the go-to destination for automotive enthusiasts in the region.
DriveArabia Website
DriveArabia.com Facebook Group
5. GetThat.com: GetThat.com, offers a wide range of cars for sale in the UAE. It provides a comprehensive selection of new and used vehicles, catering to various preferences and budgets. With detailed listings and user-friendly features, it offers a convenient and reliable experience for car buyers in search of their ideal vehicle in the UAE.
Website: https://getthat.com/autos
Email: hello@getthat.com
Call: 600 587234
6. Carnity.com: "Carnity.com" is a popular online community and marketplace for car enthusiasts in the UAE. It serves as a platform where car enthusiasts can connect, discuss various automotive topics, and share their experiences. In addition to being a vibrant community, Carnity.com also offers a comprehensive car marketplace where users can buy and sell new and used vehicles. With its emphasis on fostering a sense of community and providing a reliable marketplace, Carnity.com has become a go-to destination for car enthusiasts and buyers in the UAE.
Website: https://carnity.com/
7. Motoraty.com: Motoraty.com is a comprehensive online platform that caters to the automotive industry in the United Arab Emirates. With a focus on providing information, reviews, and services related to cars, Motoraty.com aims to be a one-stop destination for car enthusiasts and buyers. The website offers various features, reviews, comparison tools, and a marketplace for buying and selling vehicles. It provides valuable resources and assistance to individuals looking to make informed decisions about their automotive needs in the UAE.
Website: https://uae.motoraty.com/
Conclusion
Buying a used car on installment in the UAE provides a practical and accessible option for those seeking a cost-effective solution. By following this step-by-step guide, you can confidently navigate the process and make an informed decision. Remember to assess your budget, research your options, negotiate effectively, and fulfill your financial obligations to enjoy your newly acquired used car hassle-free.