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In the UAE, owning a car is not just convenient; it is a necessity. For many residents, it is the best way to commute, run errands, and enjoy the region's lifestyle. However, paying the full price of a vehicle up front can be a challenge. That’s where car finance comes in, allowing buyers to spread the cost over manageable monthly instalments.
At Expat Motors, we offer up to 60 months of car finance on all models in stock. So, we can advise you on the best way to purchase your next vehicle.
Car finance is a practical solution for anyone who wants to own a car without bearing the full cost at once. In the UAE, the process involves securing a loan from a financial institution or through the dealership itself.
A range of competitive options and packages make car finance an attractive option for both citizens and expatriates. Whether you plan on buying a new vehicle or a used car, it is possible to tailor finance plans to fit your budget and preferences.
To apply for car finance in the UAE, there are a few standard requirements. Applicants must be at least 21 years old, hold a valid UAE residence visa, and hold a driving licence. To check eligibility, lenders usually ask for an Emirates ID, passport, a copy of your visa, wage slips, and bank statements.
While both UAE nationals and expatriates can apply for car finance, specific criteria vary between lenders. A stable income and good credit score improve your chances of securing approval and better rates.
In the UAE, those in the market for a car can choose from various finance packages. Even though bank loans are the most common, it is also possible to get car finance from the dealership.
However, for those who prefer convenience, getting car finance through the dealership is often the best option. In those cases, the dealer coordinates directly with finance providers. At Expat Motors, we offer car finance at competitive rates on all the cars we stock.
In Dubai, most financial institutions will cater to locals and expatriates. However, to be eligible, expats must work and live in the UAE for 3 to 6 months.
Before committing to a car finance plan, it’s essential to compare a few critical elements. Interest rates and associated fees vary among lenders. This means that even a slight difference can have a significant impact on the overall cost of the loan.
The loan term, ranging from 12 to 60 months, affects your monthly payments. So, whilst longer terms reduce instalments, they potentially increase the total cost.
Another thing to be aware of is that the lender usually requires a down payment of 20% of the car's value. A final thing to note is that your credit score plays a major role. A higher score can open the door to better rates and more flexible repayment options.
Therefore, careful consideration of these factors can save you money and ensure a smoother financing process.
Getting car finance directly through a dealership can be a convenient and efficient way to secure your next vehicle. Dealerships often offer tailored finance packages designed specifically for the cars they sell. Sometimes, these include lower interest rates, promotional offers, or added perks such as free servicing or extended warranties.
The dealership will have established relationships with preferred banks and lenders. Therefore, it is the ideal solution for expatriates, particularly those who have just settled in Dubai.
Understanding eligibility requirements and familiarising yourself with the different types of finance available will make it easier. However, we would always advise expatriates to get their car finance through the dealership. It is a straightforward process, and you are eligible even though you are a new arrival.
Visit the Expat Motors website to find the used car you want and apply for finance directly.
