Essential Tips for First-Time Car Buyers in Dubai

Introduction

Buying a car for the first time is a big step, especially in a lively city like Dubai. With its modern roads and highways, driving in Dubai is unique.

However, choosing your first car can be confusing because of the many options, rules, and costs involved.

Whether you live in Dubai or are new to the city, knowing what to look for is important for making a smart choice. This blog offers key tips to help you buy your first car in Dubai smoothly and confidently.

Top Tips for First-Time Car Buyers in Dubai

Being aware of the following factors helps you make an informed decision, ensuring that your first car purchase in Dubai is a positive and hassle-free experience.

Understand the Types of Cars Available in Dubai

When buying a car in Dubai for the first time, it is important to understand the variety of cars available to make an informed choice that suits your needs and preferences. Here is an overview of the types of cars you can find in Dubai:

Sedans

Compact to full-size cars with a separate trunk.

Best for: City driving, daily commutes, small families.

SUVs and Crossovers

Sport Utility Vehicles and crossovers offer higher ground clearance and more cargo space.

Best For: Families, off-road driving, longer trips.

Luxury Cars

High-end vehicles with premium features and performance.

Best For: Those looking for comfort, style, and advanced technology.

Hatchbacks

Compact cars with a rear door that swings upward.

Best For: City driving, small families, economical choice.

Sports Cars

High-performance vehicles designed for speed and agility.

Best For: Enthusiasts and those seeking thrilling driving experiences.

Pickup Trucks

Vehicles with an open cargo area and a cabin.

Best For: Heavy-duty work, off-road driving, transporting goods.

Vans and Minivans

Larger vehicles designed for transporting multiple passengers or cargo.

Best For: Large families, businesses requiring cargo space.

Convertibles

 Cars with a roof that can be folded or removed.

Best For: Enjoying Dubai’s weather and scenic drives.

Electric and Hybrid Cars

Vehicles powered by electric motors or a combination of electric and gasoline engines.

Best For: Environmentally conscious drivers, those looking to save on fuel costs.

Set a Realistic Budget

When buying your first car in Dubai, start by assessing your financial situation. Ensure your car payment does not exceed 15% of your monthly income and save for a down payment, typically 20% of the car’s price.

Factor in additional costs such as:

• insurance
• registration fees
• maintenance
• fuel
• parking
• tolls

Use online tools to compare prices and calculate the total cost of ownership.

Research financing options, considering different loan terms and interest rates to find the best deal.

Plan for future costs like depreciation and resale value. Stick to your budget by avoiding impulse decisions and negotiating with dealers. This careful planning will help you make a financially sound decision when buying your first car in Dubai.

Understand the Financing Options

If you are a first-time car buyer in Dubai, understanding the financing options is crucial to making a smart financial decision. Here is what you need to know:

Bank Loans

• Eligibility: Most banks require proof of income, residency, and a good credit history.
• Down Payment: Normally, a 20% down payment is required.
• Interest Rates: Vary between fixed and variable rates. Fixed rates offer stability, while variable rates can fluctuate.
• Loan Term: Common terms range from 1 to 5 years. Longer terms mean lower monthly payments but higher total interest.

Personal Loans

• Flexibility: Can be used for any purpose, including buying a car.
• Interest Rates: Often higher than auto-specific loans.
• Approval Process: Quicker and less stringent on specific car details.

Islamic Financing

• Murabaha: A common form where the bank buys the car and sells it to you at a profit margin. You pay in installments.
• Sharia Compliance: Ensures the financing is compliant with Islamic law, avoiding interest-based transactions.

Dealer Financing

• Convenience: Financing directly through the dealership can be quicker and more convenient.
• Interest Rates: May be higher than bank loans, so it is important to compare.
• Promotions: Dealers often offer promotional interest rates or discounts for first-time buyers.

Consider additional factors

• Interest Rates: Compare rates from multiple sources to find the best deal.
• Loan Term: Balance between monthly payments and total interest paid.
• Down Payment: Higher down payments reduce monthly payments and total interest.
• Fees and Penalties: Be aware of any additional fees or penalties for early repayment.

Negotiate the Best Deal

Negotiating the best deal for your first car in Dubai involves several key steps to ensure you get the best value for your money:

• Do Your Research: Check market prices and current promotions.
• Shop Around: Visit multiple dealerships and use online platforms to compare offers.
• Timing: Buy at the end of the month or when new models are released.
• Be Ready to Walk Away: Show confidence and have alternative options.
• Use Your Research: Leverage market prices to negotiate lower prices and ask for extras.
• Separate Financing: Negotiate the car price and financing terms independently.
• Check for Hidden Costs: Avoid unnecessary add-ons and request a detailed cost breakdown.

Take a Test Drive

When you have found a car, you are interested in, thoroughly inspect it before buying. Even if it looks good on the outside, check under the hood for damage, rust, or fluid leaks.

 Take it for a test drive to assess its handling, acceleration, and braking, and listen for any unusual noises or vibrations. It is wise to have a trusted mechanic check the car for hidden issues that might not be obvious to you.

Take an expert with you

When buying a car, it is easy to miss signs that it might not be the right choice. A skilled salesperson can persuade you that their car is perfect for you. That is why getting a second opinion is crucial.

 Ideally, bring along a mechanic who can thoroughly inspect the car for any problems. They can tell you if there are potential repair costs after you buy it.

If you do not have a mechanic friend, take someone knowledgeable about cars with you, like a family member or a friend who has bought cars before.

This is especially important if you are meeting a private seller at their home. Having someone else there adds safety and ensures you make a more informed decision.

Understand Dubai’s car registration process

follow these steps, then you can navigate Dubai’s registration process smoothly and ensure their vehicle is legally registered.

Required Documents

• Emirates ID and a copy of your residence visa.
• Valid UAE’s Driver’s License
• Proof of car insurance.
• The purchase agreement or sale invoice.
• If buying a used car, you will need the seller’s car registration card (Mulkiya).

Vehicle Testing

• New Cars: Usually exempt from testing.
• Used Cars: Must pass an RTA (Roads and Transport Authority) vehicle inspection.

Visit the RTA

• Service Centers: Go to an RTA service center or an approved testing center.
• Online Option: Some services are available online through the RTA website or app.

Submit Documents and Pay Fees

• Fees: Pay registration fees, which vary depending on the vehicle type.
• Additional Costs: Include knowledge fees and innovation fees.

Receive Registration Card and License Plates

• Mulkiya: You will receive the vehicle registration card.
• Plates: Collect your new license plates if you are registering a new car.

Note:

Annual Renewal: Car registration needs to be renewed every year.

Testing and Insurance: Ensure the car passes the annual vehicle inspection and has valid.

Choose reliable dealership

selecting a reliable dealership is another step of buying a car in Dubai. Here are some tips to help you choose the reliable one:

• Research Dealerships and choose the experienced ones and those who has a good reputation.

• Check RTA Approval: Ensure the dealership is approved by the Roads and Transport Authority (RTA).

• Visit Multiple Dealerships

• Review Inventory: A good dealership will have a wide range of vehicles, including different makes, models, and price ranges.

• Ask About After-Sales Service: Warranty, Service Packages, Support

•  Verify Financing Options like Flexible Financing and Transparency

• Check Return/Exchange Policy

Consider New vs. Used Cars

When purchasing your first car in Dubai, it is important to weigh the pros and cons of new versus used vehicles.

New cars offer warranties, great features, and pristine condition, but they come at a higher price and depreciate quickly.

On the other hand, used cars are more affordable, depreciate at a slower rate, and have lower insurance costs, though they might need more maintenance and may not have a warranty.

 Evaluate your budget, intended use, and the car’s depreciation and resale value. Ensure used cars are thoroughly inspected.

Consider financing options to get a clear picture of the total cost. This approach will help you make a well-informed choice.

Research Car Brands

Researching car brands isn’t just about knowing the names; it’s about finding the right fit for your needs and preferences. You should clearly understand what you want in a car and use that criteria to narrow down your options. This approach ensures that the car you choose aligns perfectly with your lifestyle and requirements:

Your Needs and Preferences

• Usage: Consider your daily commute, family needs, and leisure activities.
• Budget: Determine how much you can spend, including maintenance and fuel costs.
• Size and Space: Determine if you need a compact car, a sedan, an SUV, or a larger vehicle based on your lifestyle and the number of passengers

Fuel Efficiency

• Economy: There are cars with good fuel economy to save on long-term fuel costs.
• Hybrid/Electric Options: Explore eco-friendly options for lower running costs and environmental impact.

Test Drive Multiple Models

• Feel and Comfort: Test drive several cars to see which one feels the best to drive.
• Dealer Visits: Visit different dealerships to compare offers and customer service.

Popular Car Brands in Dubai

• Toyota
• Nissan
• Honda
• Mercedes-Benz and BMW
• Hyundai and Kia

Compare Models  

• Performance: Compare engine power, handling, and driving comfort.
• Features: Look at the technology and convenience features that each model offers.

• Advanced Safety: Ensure the car has essential safety features like airbags, ABS, and stability control.
• Ratings: Check safety ratings from reliable sources like Euro NCAP.

Read Reviews and Testimonials

• Expert Reviews: Look at professional reviews for detailed analysis.
• User Reviews: Check feedback from current owners for real-world insights.

Pre-Purchase Inspection

When buying your first car in Dubai, a thorough pre-purchase inspection is needed to ensure you make a smart investment. Here’s what you should look for:

Interior Inspection

• Dashboard and Controls
• Air Conditioning and Heating
• Seats and Upholstery

Exterior Check

• Lights
• Body
• Paint
• Tires

Under the Hood

• Engine
• Fluids
• Battery

Mechanical and Electrical Systems:

• Brakes
• Suspension
• Steering
• Electrical Systems

Professional Inspection

• Hire a trusted mechanic to perform a detailed inspection.
• A professional mechanic can use diagnostic tools to check for any error codes or hidden problems in the car’s computer system.

Documentation Check

• Service History
• Accident History
• Ownership

Go for a Tasjeel Test

The UAE prioritizes residents’ convenience, and Tasjeel’s vehicle testing service is a testament to this commitment. Partnered with RTA Dubai, Tasjeel operates service centers across the UAE, simplifying vehicle testing and promoting road safety.

The Tasjeel Comprehensive Test is a paid service that includes a detailed inspection and road test to ensure a vehicle’s safety.

For first-time car buyers in Dubai, this test helps identify any issues with the car, aiding in making an informed purchase decision despite the cost.

The importance of Tasjeel Test

• Safety: Ensures vehicles are roadworthy and meet safety standards.
• Environmental Protection: Controls emissions to reduce pollution.
• Legal Requirement: Mandatory for new vehicle registration and renewing existing registrations in Dubai.

Process of the Tasjeel Test

• Booking an Appointment: You can book an appointment online or visit a Tasjeel center directly.
• Vehicle Inspection: Drive your vehicle to the Tasjeel center, where a team of inspectors will conduct the comprehensive check.
• Results and Certificate: If your vehicle passes the test, you will receive a certificate valid for the registration or renewal process. If it fails, you’ll receive a report indicating what needs to be fixed.
• Re-inspection: If your vehicle fails the initial test, you must address the identified issues and return for a re-inspection.

Considering the Cost of Ownership and Maintenance

Many factors affect the total cost of car ownership in the UAE, including fuel economy, maintenance and repair expenses, and depreciation. First-time car purchasers should be aware of these fees and consider them while selecting a vehicle.

Cost of Ownership:

• The car Price: Initial cost of buying the car.
• Registration Fees: Including RTA registration and number plate fees.
• Insurance Premiums: Annual cost varies based on car value, driver’s age, and coverage.
• Depreciation: Cars lose value over time, impacting resale or trade-in value.
• Fuel expenses: Depends on fuel efficiency and current fuel prices.
• Financing Costs: If financed, includes interest rates and loan duration

Maintenance Costs:

• Regular Servicing: Scheduled maintenance for oil changes, filters, and inspections.
• Repairs: Unexpected costs for fixing issues like mechanical failures or wear and tear.
• Tires: Replacement costs vary based on tire type and size.
• Brakes and Suspension: Costs for replacing brake pads, discs, and suspension components.
• Insurance Deductibles: Amount paid out-of-pocket per claim if applicable

Check insurance quotes

To get insurance quotes in Dubai, start by looking into reliable insurance companies.

Visit their official websites or utilize the online tools given by insurers to enter information about yourself, your car, and your driving record.

 After entering the essential information, you will receive quick quotations from many insurers.

Compare these rates carefully, considering coverage options, premiums, deductibles, and any other benefits given.

 If necessary, contact the insurance company directly to ask questions or for clarification. Finally, select the insurance coverage that best fits your demands and budget.

Shop at CARS24 for pre-owned cars

Shopping at CARS24 for a pre-owned car in Dubai offers several advantages:

• Wide Selection: They offer a variety of pre-owned vehicles to suit different needs and budgets.
• Transparency: CARS24 emphasizes transparency in pricing and vehicle condition reports.
• Convenience: Multiple locations in Dubai make it easy to find a car nearby, with possible financing options available.
• Quality Assurance: Vehicles undergo thorough inspections, ensuring reliability.
• Customer Reviews: Check reviews to gauge customer satisfaction and service quality.
• Legal Compliance: Ensure all necessary legal documentation and compliance with Dubai’s regulations.

Final thoughts

In summary, buying your first car in Dubai involves understanding available car types, setting a budget, exploring financing options, and conducting thorough inspections.

 Negotiating wisely, taking test drives, and complying with registration requirements are crucial steps.

Whether choosing new or used, prioritize reliability and consider long-term costs. These steps will help you make a confident and informed purchase decision.

Look for Warranty Options

By carefully evaluating warranty options, you can ensure that you’re protected against unexpected repairs and maintenance costs, making your first car purchase in Dubai a more secure and confident experience.

 follow these steps so you can find the best warranty options for your first car in Dubai:

Understand Types of Warranties

• Manufacturer’s Warranty
• Extended Warranty
• Certified Pre-Owned (CPO) Warranty

Check Coverage

• Parts and labor
• Major components (engine, transmission, etc.)
• Additional benefits (roadside assistance, rental car reimbursement)

Compare Options

• Coverage duration (years and mileage)
• Cost and value for coverage
• Exclusions and limitations

Evaluate Dealer Offers

• Ask detailed questions
• Read the fine print
• Negotiate terms

Consider Third-Party Warranties

• Research reputable providers
• Compare with dealer warranties

Inspect CPO Programs

• Look for warranties in certified pre-owned programs

Seek Recommendations:

• Ask friends and family
• Read online reviews and forums

FAQ