UAE Car Finance (FAQ)

Taking a car finance is hectic task, it is very important to do your homework and take an informative decision. Our car search engine provides you detailed information of the bank offering which you can apply for after comparing minimum salary requirement, finance type and interest rate (profit rate).

Points to Consider before taking final decision

• 1. New/ Used Car

  Either you are buying a used car or a brand-new car, you can go for a car finance. You can filer car finance by selecting used car or new car finance from the search filter.

• 2. Down payment

  Down-payment varies between 20% to 30% of the car value. You can get 0% down-payment offers with various new branded car. Check with your car dealer for the same and apply from our website.

• 3. Minimum Salary Requirement

  There is a minimum salary requirement with each car loan. Before selecting finance make sure that you are applying for the product which has minimum salary requirement less than your monthly salary.

• 4. Salary Transfer

  Banks usually don’t ask for salary transfer for giving car loan. But if you transfer your salary then there is chance of getting a better rate.

• 5. Tenure

  Maximum tenure banks provide is 5 years but for used cars tenure is 4 years.

• 6. Processing Fees

  Bank charges processing fees on the finance amount. Most banks have minimum and maximum limit for processing fees amount. Banks add processing fees in the finance amount which ultimately increases your finance amount.

• 7. Flat Rate Vs Reducing Rate

  One of the crucial factor to select a car finance is Interest rate. There are type of interest rate flat rate and reducing rate. Flat rate is calculated on initial principal amount throughout the tenure of the loan and reducing rate is calculated on the outstanding balance of the loan. Installment calculated by bank is on the reducing rate. So before selecting the loan kindly check which rate is advertised by the bank. You can use our search filter to compare different finance by checking reducing rate and equivalent flat rate.

• 8. Early Settlement/ Prepayment Charge

  If you want to repay your finance before the completion of the finance tenure, then banks charges you an early settlement fees on the outstanding amount. You can check the early settlement fees of each finance in our car finance website page.

• 9. Islamic/Conventional Finance

  Banks in UAE offers both Islamic and conventional car finance. Islamic finance is Sharia-compliant finance. You can choose finance as per your requirement.

• 10. Self-Employed

  If you are self-employed then there are very limited options available for you of higher rates. You can search self-employed car finance from our car finance search filter.