Buying a car in Dubai can be a great investment for you and your family. It can make life a lot easier and can decrease stress and save time. However, when you are considering applying for a car loan in Dubai, you may need to take some time to think and do some research. Think about why you need the car and if you can actually afford it. Servicemarket, the UAE’s leading marketplace for home services, in partnership with Souqalmal, has made a list of things you need to consider so you can make the right decision.
Do you really need a car in Dubai?
Before going out and applying for a car loan in Dubai, think about why you are actually buying a car. It can be easy to get caught up in the luxurious lifestyle of Dubai when you first arrive and start making some extra money, but you need to remember that taking out a car loan is a big responsibility. Remember, when you take out a car loan, you are making the commitment to pay it back. Don’t put yourself in a tough spot if you can do without the vehicle. Dubai has a great transit system that allows you to move through the city easily. Think about your reasoning for wanting to buy a car and subsequently taking out the car loan in Dubai. If you feel it is not a need, then reconsider your decision.
Are Second Hand Cars an Option in Dubai?
The simple answer is yes, second-hand cars are a great option to go with in Dubai. Choosing whether or not to buy a used car can be a tedious task. Read more about the pros and cons of new vs used cars in order to make the right decision. What it really comes down to at the end of the day for most people, is whether or not they can afford a new car with the cost of living in Dubai. New cars are more easily insured, easier to receive a car loan on, and have better perks. Older cars are might be cheaper in the short run and perhaps easier to acquire depending on your financial situation. Here are some popular used cars with great resale value in Dubai.
Can You Afford the Down Payment on a Car Loan in Dubai?
Having a down payment ready for your car loan is a great way to save time and money. If you have the ability to save up a little bit of money before you take out a car loan in Dubai, you will be saving yourself from a few more months of interest and you will be able to finish your payments sooner. Remember, you are required to put in some type of down payment on a car before you get the loan so if you cannot afford the down payment, you need to start thinking of other options to get around in the city.
Can You Actually Afford the Car in Dubai?
Living in Dubai can be expensive and requires you to be organized financially. You need to start thinking about whether or not you can afford to stick to your payment schedule for the loan. If you do not make timely payments on your loan, you can end up acquiring even more debt. Remember, buying a car should make your life easier and can be an investment in the long run. If it makes your life more difficult, perhaps it is better to think about alternatives.
Other than the initial payments you are making for your car loan in Dubai, think about how long a payment term is comfortable for you. When you commit to a payment plan, you cannot simply opt out of it if you have the money to finish the payments at once. The interest rate that is added to your car loan is not lost if you chose to close the loan early and charges will apply in order to reimburse the interest amount that you would have paid had you continued with the payment plan.
Finally, you should consider maintenance costs and car insurance costs as well. Maintenance costs may be reduced if you chose to buy a new vehicle due to the condition of and warranty on the vehicle. All car owners are legally required to get their car insured. If you don’t get car insurance in Dubai, you won’t be able to register your car.