New and used cars in Dubai can be expensive. Did you just find the right car but it doesn’t fit your budget? You can choose a financing plan to buy your new or used car and clear off the loan through easy installments. As financing can lead to big monthly payments and financing rates can be between 2.25% and 4.99%, some buyers don’t opt for it. But you can follow these 5 tips by the experts at CarSwitch.com and save loads of money on used car financing in Dubai.
1. Buy a recent model: The majority of banks will want you to pay off your loan before the car gets older than 10 years. Hence, older models will have higher monthly payments or the bank may not even approve your loan application. Before applying, make sure that you know the basics of car financing in the UAE.
2. Arrange the down payment: Before you go for financing, make sure you have at least 20% to 30% of the car’s price available in your bank account. Banks do not process your loan without a downpayment.
3. Consider the bank where your salary is deposited: If you have your salary account in the bank, they might give you better financing rate as your monthly pay is transferred to the same bank. You can also benefit by opening a new account in the bank.
4. Better salary results in better rates: Your salary can be an important determining factor in the interest rate. Those individuals who have a higher pay and work as permanent employees with reputable companies are considered low-risk customers by the bank. So, ensure that your salary certificate shows your full compensation which includes, bonuses, allowances etc. Remember that your bank will tally your salary with payments into your bank account.
5. Negotiate the rates: It might sound surprising but banks do slash down finance rates with a little negotiation. Moreover, other fees such as processing fee and early payment penalty can also be reduced if handled correctly and all in all, it can make a pretty good deal. If you’re not used to negotiating, here are 5 tips to negotiate that you can follow to bag an awesome deal on your used car in Dubai.
Looking for an easy and convenient way to buy used cars in Dubai? Visit CarSwitch.com right away and check out some awesome cars for sale.
- We’ll guide you through the paperwork: We’ll help you with your paperwork at the RTA so you can relax. Through our partner banks, you can get a good financing rate.
- No shady middleman: We offer a transparent process for buyers and sellers. You get the same deal that you get straight from the owner.
- Inspected cars: We organize for a specialist to come and inspect your car so you can know its condition. These cars may also come with a 3 month/unlimited kms warranty so you can sleep easy!
Ready to dive into the buying experience? Look out for some amazing dea