Looking to buy a car in Dubai, UAE and hoping you can finance it through a bank? You will need to be aware of certain rules and regulations before you can get your hands on a car loan. CarSwitch has brought all the info you need about car loan rules in the UAE in one place. Take a look.
- Shop around for the best rates and terms even if you have to change your payroll account to a different bank. The bank should be able to inform you about the value of payment and the interest rate according to the specifications of the vehicle.
- Car loan should not exceed eighty percent of the value of the financed vehicle. The maximum loan repayment period should not exceed 60 months. All banks require a valuation certificate from an authorized provider to prove the value of the car that you are trying to finance.
- The bank would insist that you get comprehensive insurance with the bank being the primary beneficiary. Make sure the insurance documents reflect this.
- The bank has the right to foreclose on the vehicle or sell the car for the sum due in case the borrower defaults. The loan will be considered default under the following conditions:
- The security provided by the borrower is no longer valid or the bank has reason to believe it may soon become invalid.
- The vehicle becomes a total loss or totally inoperable due to severe damage.
- The borrower has defaulted on any other loan, bank charges or fees.
- Many banks have prepayment penalties and may still charge you a part of total interest if you pay early. So be prepared if you intend to settle the loan early and sell the car to pay off the loan.
If you want to buy used cars in Dubai, UAE but don’t have the necessary savings, getting a car loan might be your only option. Before you finalize a car loan, make sure you are aware of the rules and regulations surrounding it since they vary from bank to bank. CarSwitch experts can guide you through the car buying process from A to Z and even about car financing so you can simply sit back and relax. Buy car in Dubai, UAE the easy way, the CarSwitch way!