Found your dream car while checking out new or used cars for sale in Dubai, UAE, but it’s way out of your budget? You can pick a financing solution to buy a new or used car and pay off the loan in easy installments in Dubai. Many car buyers are wary of financing because they know people often end up with large monthly payments and financing rates can vary from 2.25% to 4.99%. Don’t worry. Follow 5 simple tips to save thousands on your used car financing bills in Dubai.
[Compare car loans in the UAE on Souqalmal.com]
- Don’t buy a very old used car: Most banks want you to repay all of your loan before the car is ten years old. If you choose a very old used car, your monthly payments can become unaffordable or the bank may reject your application. Increase your options and check out this cool list of cheapest new cars in the UAE.
- Arrange the down payment: Check your bank balance before you shop for a car. Your bank will process your loan after you have deposited 20-30% of the car’ sale price as down payment. Wondering what all those fancy banking terms on your documents mean? Check out this helpful financing glossary.
- A salary account with the same bank can help: Some banks will give you a much better rate if your monthly salary is transferred to an account with the same bank. It might even be worth opening a new bank account to get this benefit.
- Leverage your salary: Your salary plays a very big role in determining the interest rate. If you have a high salary and work for a reputable company as a permanent employee, your bank will see you as a low-risk customer. Make sure that your salary certificate reflects your full compensation, including bonuses, allowances, etc. Keep in mind that the Bank would tally your salary with payments into your Bank account.
- Shop around and negotiate: You’d be surprised by how many banks are willing to negotiate not just the rate but also other charges like processing fee and early payment penalty, which can really add up. Searching for cheap cars that might fall within your budget? Take a look at these budget-friendly used cars for sale in Dubai, UAE that cost less than AED 50,000.
Looking for a hassle-free way to find and buy used cars for sale in Dubai, UAE? CarSwitch can help!
- We’ve got you covered: We’ll deal with the final paperwork at the RTA and the Bank get it right the first time, so no need to waste your evening! We have built great relationships with local Banks so can get you a great financing rate!
- Say goodbye to shady commission-seeking agents: Check out our switchin’ collection from the comfort of your home. You are buying straight from the owner so you get the same great deal as buying straight from the owner!
- Vetted cars: All cars have undergone the CarSwitch 200pt check, so you’ll know exactly what’s up with the ride you have your eyes on. Every car comes with a 3 month/unlimited Kilometers warranty so you can sleep easy!
Ready for a switchin’ experience? Sit back and browse through our switchin’ cars here.
Happy shopping!
