Buying a Car in Dubai

Are you new to the UAE and Dubai? By now, you’ve probably discovered that a car is a necessity in Dubai. But worry not, buying a car in Dubai is cheaper than importing one. Car showrooms and dealerships are plentiful so you wouldn’t find it hard to find a reputable venue selling your dream car.

There are minimal paperwork and approval delays, making the purchase process smoother and less stressful than you’re used to.

This guide will walk you through everything you need to know about how to buy a car in Dubai, used or new, and answer all your questions to help save you time and stress.

What Are the Documents Required to Buy a New Car in Dubai?

If you want to buy a car, you first need to make sure you have all the documents required for buying a car in Dubai.

UAE residency visa (original and copy)
Passport (original and copy)
Emirates ID
A valid UAE driving license – international Driving licenses from specific countries are valid for driving a car in Dubai.
Insurance documents.

Many dealers carry major Japanese and American brands, like Toyota and Ford. Since car prices can be three times less expensive than in the UK, most people get excited when they realize they can easily afford something pretty fancy.

How to Buy a Second-hand Car in Dubai?

Don’t have the budget for a new one? That’s not a problem. You can often find good deals on nearly new cars. There are many different cars available in all conditions, models, and prices.

You can just go to 4×4 Motors on Sheikh Zayed Road for example and check their second-hand stock. You can also consider multi-brand car dealers such as Al-Futtaim Automall or Elite Cars or just head for the Al Awir complex.

However, cquiring a used car in Dubai involves a few specific steps different from buying a new car in Dubai. To ensure a smooth transaction, be prepared with these essential documents:

UAE Residency Visa: A must-have to complete any car purchase.
Emirates ID: This is non-negotiable. If you’re in the process of renewing your ID, wait for the new one before you buy.
Passport Copy: A photocopy is sufficient – no need for the original.
Car Insurance Agreement Copy: It Confirm that your policy is current.
Dubai-Issued Driving License: It must be valid and from the same emirate where you’re registering the car.
Vehicle’s Previous Registration Card: This shows the car’s history and previous ownership.
Authorized Inspection Certificate: Required for cars over 3 years old to ensure roadworthiness. Typically, the dealer provides this, but check to ensure it’s included.

With these documents in hand, you’re set to take the next step towards your used car purchase in Dubai.

What Is the Process of Buying a Car in Dubai?

When you decide which car you want to buy then the car dealership will take most of the hassle out of the whole process for you.

However, if you make up your mind and choose a second-hand one you will need to transfer the ownership of the vehicle. To do so, you and the previous owner have to go to the Traffic Police to fill in an application form and provide the registration card for the car and insurance certificate.

Do You Need Insurance to Buy a Car in Dubai?

Yes, whether you decide to buy a new or used car it is mandatory to have car insurance here. Car insurance in Dubai costs around 1.25% to 3% of the car’s value. And it’s easy to go online and buy a car insurance policy. Some factors will affect your auto insurance rate including your age, credit score, and driving history. By providing this information, you can quickly get quotes from multiple companies and compare rates.

What Are the Fees for Registering a Car in Dubai?

Once the insurance is in place, you can register the vehicle. The new car registration cost will be AED 420. Additionally, you might need to open a traffic file, which will cost an additional AED 220.

The cost of used car registration in Dubai is also AED 420; however, there are other fees associated with the transfer of ownership:

Vehicle Technical Inspection: AED 170
Transfer of Ownership: AED 350
Traffic File: AED 220

You can learn more about these additional charges from the Tasjeel or Shamil centers.

The registration has to be done every year, and for every month you’re late with re-registration, you will be fined AED 25.

Can You Buy a Car in Dubai with No Down Payment?

A down payment is normally mandatory to get a car loan in the UAE and it’s around 20%. However, some UAE banks offer down payment support to their clients through their credit cards. Additionally, a personal loan wouldn’t require a down payment so you could use it for a car purchase.

What Is the Best Time to Buy a Car in Dubai?

There are a few occasions that you would get the best offers and deals on your new car:

Ramadan month is one of the best times to buy a new car in Dubai as the car dealers offer huge discounts and launch campaigns to attract customers.
When it comes to buying a car, national holidays are the best time. Dealers offer huge discounts and special packages like low down payments and free insurance. You would wait for New Year’s Eve and get your dream brand-new car.
Summer is the season when the demand for cars becomes less since most expats travel around this time encouraging the dealers to offer great packages. So it’s your opportunity to get the best offer.
At the end of the year, manufacturers dispose of the old models to introduce new ones to the market. So this is one of the best times to buy a car even though it’s an old model.

Can You Buy a Car in Dubai Without a UAE Residency?

Unfortunately, to buy a car in Dubai, you will need a driving license or an Emirates ID resident card, which can only be obtained with a residency visa.

This guide gets you all caught up. The requirements for buying a car in Dubai whether used or new and the legal process are all elaborated on in detail through this article for ease your move to Dubai.

Are Second-Hand Cars Cheaper in Dubai?

Yes, second-hand cars in Dubai are typically more affordable compared to new vehicles.Moreover, cars in the UAE depreciate rapidly, losing about 20-30% of their value within the first year and an additional 15-20% annually thereafter. going for a pre-owned car can lead to significant savings, making it a budget-friendly choice for many buyers.

How Much Does it Cost to Buy a Car in the UAE?

The cost of buying a car in the UAE can be broken down into the following:

Initial Purchase Price: Expect to spend, on average, around AED 85,000 for a new car. (Prices will vary depending on the car brand and model).
Fuel: AED 1.71 per litre (price subject to change with market rates).
Licensing and Registration: Approximately AED 500 annually.
Insurance: Typically around AED 2,400 per year, but can vary based on the vehicle and driver details