# Any eligibilities for car loan



## ritzonthebike (Nov 19, 2015)

Hello, 

I'm the person who're supposed to move to Abu Dhabi by end of the year. 

I'm feeling very confused and embarrassed with the cost of rent and some stuff there.

Anyway, I'm planning to buy a car right after settling down but I don't have a enough money to pay it once. So I should and hope to get a car loan there. 

What are the eligibilities for car loan as an expatriates?

Do I need an banking history from the bank I try for?

Do I need a monthly salary statement?

Actually I'll be a dispatched officer there, and salaries coming from the company of my originated country. furthermore my residence visa will be approved as a public sector like embassy. 

Please help me out for curiosity of encountered problem. 

Thanks.


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## BedouGirl (Sep 15, 2011)

The first thing you need to do is to make sure you can convert your driving license without having to take any lessons or tests. Not all countries are eligible.


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## Chocoholic (Oct 29, 2012)

BedouGirl said:


> The first thing you need to do is to make sure you can convert your driving license without having to take any lessons or tests. Not all countries are eligible.


South Korea is convertible. So that won't be an issue for OP.

OP, it depends on whether you are buying a new or used car. For new cars, the dealers have their preferred banks that they like you to use. You normally have to provide at least 3 months stamped bank statements from the bank your salary goes into, a salary certificate from your company and a no objection letter from your company.

If you're buying a used car, obviously it would probably have to be from your own bank - all the above same documentation is required.


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## gianera (Jun 29, 2015)

I have been looking around too but I can't yet decide which car I want other than for sure a SUV type which I feel would be relatively safer and allows creative parking in Dubai. 

Ford is somewhat stalking me because they really need to get rid of their Edge and Explorer models in stock since the new editions will be delivered soon and they seem to be the least concerned with downpayments - they told me with my salary 7% downpayment would be plenty - and they are heavily discounting these models.

Jeep on the other hand told me they won't consider anyone with less than 3 or 6 months salary transfers I suppose in the case you go with their own bank of choice.

After a look on souqalmal I don't see huge differences in interest rates or downpayments but I think I would rather go with my own bank simply because they know me, hopefully trust me and I feel "more banks more problems".

Until I make my mind up I am renting at a steep AED 3750 a brand new Kia Sportage which isn't bad but fuel consumption isn't amazing and the engine is rather sleepy and the thought with this amount of money I could be paying back a Cayenne.


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## Stevesolar (Dec 21, 2012)

gianera said:


> I have been looking around too but I can't yet decide which car I want other than for sure a SUV type which I feel would be relatively safer and allows creative parking in Dubai.
> 
> Ford is somewhat stalking me because they really need to get rid of their Edge and Explorer models in stock since the new editions will be delivered soon and they seem to be the least concerned with downpayments - they told me with my salary 7% downpayment would be plenty - and they are heavily discounting these models.
> 
> ...


Hi,
There are advantages in not going with your salary transfer bank.
If you ever change jobs - the banks have a habit of freezing your account and demanding immediate payment of loans and credit cards (if they think you are likely to default).
Sometimes therefore better to have these loans and cards with a different bank to your normal accounts.
Plenty of dealers will sell you a new car with no deposit down and there are some great car loans available from some of the banks.
Cheers
Steve


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## gianera (Jun 29, 2015)

Thanks for all the tips Steve! You are definitely the authority in this forum when it comes to all things automobiles and I get all your points.

I don't come from a "credit" culture. It's a fairly new thing in Italy and it looks very scary to me especially because I've read some horror stories of expats drowning in debts in the UAE due to lavish lifestyle and especially because of luxury cars and I don't want to end up like that especially because defaulting here would mean I'm done with all GCC which is where I built all my career and where I like to live therefore probably unlike most people I have willingly locked a considerable amount of money into a fund in my ADCB account to give both myself and the bank some peace of mind also because the bank perceives me as "self employed" since I am a shareholder of the company.


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## ritzonthebike (Nov 19, 2015)

Thanks for your tip. I don't want to have a debt either, but I have to because I don't afford a car with bunch of money. I'm really worrying what will goes on in Abu dhabi.


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## rsinner (Feb 3, 2009)

ritzonthebike said:


> Thanks for your tip. I don't want to have a debt either, but I have to because I don't afford a car with bunch of money. I'm really worrying what will goes on in Abu dhabi.


You can always rent a cheap car while you get settled. Seriously, being able to get a loan to buy a car should not be the first concern you should have. A lot of people even live without cars while they settle in - as long as you live on Abu DHabi island.

for example, there are some seriously decent deals (but with the caveat of a low km cap - you need to prepay to get more) going on for good cars PayPerKay | Pay As You Go


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## TallyHo (Aug 21, 2011)

First of all, you most likely will need at least three months' salary statements before the banks will approve of a car loan. So you will be renting for a few months.

I would not worry too much about renting versus buying. I've been contently hiring a Nissan Tiida for the last three years (!). I can easily afford a car but one reason why I keep putting off buying a car is because the differential between owning a car and renting a car isn't that much.

If I were to buy a new mid-range Japanese car such as a Pajero or a Honda Accord, the cost of owning that car over three to four years works out to around 1200 a month (on average, can be higher depending on any unexpected repairs you might have to pay for). Note that this is the *cost* of ownership, factoring in insurance, servicing, repairs outside the warranty, registration, and of course, depreciation (the differential between original purchase price and reselling price at the end of the ownership period).

My current car hire is 1800 a month through Thrifty. So I'm really only spending 600 a month renting a car if I compare it to owning a mid-range new Japanese model (if I compare it to owning an European car it's about the same!). For me, 600 a month is worth the peace of mind. Should I ever need to leave the UAE quickly I don't have a car to worry about selling. Nor do I need to worry about insurance, registrations or unexpected major car repairs. I once had a flat tire. I called Thrifty and had a replacement within twenty minutes and continued on to work.

I'm also someone who really doesn't care about having a nice car. For many people it's worth it having a nice car. I just can't be bothered 

Frankly, I'd also be very careful about taking out large debts in the UAE when you've just arrived in the country. Quite a few people buy new cars and within a year lose their jobs or decide the country isn't what they want and take out huge losses in reselling their cars (especially European models). Sometimes the loss isn't enough to cover the outstanding loan.


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## BedouGirl (Sep 15, 2011)

TallyHo said:


> First of all, you most likely will need at least three months' salary statements before the banks will approve of a car loan. So you will be renting for a few months. I would not worry too much about renting versus buying. I've been contently hiring a Nissan Tiida for the last three years (!). I can easily afford a car but one reason why I keep putting off buying a car is because the differential between owning a car and renting a car isn't that much. If I were to buy a new mid-range Japanese car such as a Pajero or a Honda Accord, the cost of owning that car over three to four years works out to around 1200 a month (on average, can be higher depending on any unexpected repairs you might have to pay for). Note that this is the *cost* of ownership, factoring in insurance, servicing, repairs outside the warranty, registration, and of course, depreciation (the differential between original purchase price and reselling price at the end of the ownership period). My current car hire is 1800 a month through Thrifty. So I'm really only spending 600 a month renting a car if I compare it to owning a mid-range new Japanese model (if I compare it to owning an European car it's about the same!). For me, 600 a month is worth the peace of mind. Should I ever need to leave the UAE quickly I don't have a car to worry about selling. Nor do I need to worry about insurance, registrations or unexpected major car repairs. I once had a flat tire. I called Thrifty and had a replacement within twenty minutes and continued on to work. I'm also someone who really doesn't care about having a nice car. For many people it's worth it having a nice car. I just can't be bothered  Frankly, I'd also be very careful about taking out large debts in the UAE when you've just arrived in the country. Quite a few people buy new cars and within a year lose their jobs or decide the country isn't what they want and take out huge losses in reselling their cars (especially European models). Sometimes the loss isn't enough to cover the outstanding loan.


I'm 100% with you. The hassle-free factor is worth every fil!


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## Stevesolar (Dec 21, 2012)

BedouGirl said:


> I'm 100% with you. The hassle-free factor is worth every fil!


Hi,
My wife and I simply like cars too much and with her job (consultant in level 1 trauma centre) - we like a bit more control over the power and safety ratings of the cars we drive in the UAE!
For that reason - we bought two powerful but very safe cars.
Got good discounts, good service deals and very low interest rates on the HP.
But at the end of the day - it's all down to personal preference and choice.
Cheers
Steve


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## gianera (Jun 29, 2015)

my monthly rental is 3750 with full insurance with Europcar..If I bought the same car I would pay 1100/month now that way more than 600 AED peace of mind!


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## TallyHo (Aug 21, 2011)

That is your choice.

You could easily rent a 2014 Tiida from a proper agency like Thrifty for half that amount and it would do the job just as easily and is just as safe (and is more fuel economical). But you chose to rent the Sportage.  Don't expect sympathy. 

Thrifty is even offering Volkswagen Jettas for around 2400/month. 



gianera said:


> my monthly rental is 3750 with full insurance with Europcar..If I bought the same car I would pay 1100/month now that way more than 600 AED peace of mind!


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## Racing_Goats (Sep 5, 2015)

gianera said:


> my monthly rental is 3750 with full insurance with Europcar..If I bought the same car I would pay 1100/month now that way more than 600 AED peace of mind!


I think the point made earlier was that if you factor in the total cost of owning the car over 2 or 3 years, including insurance, any servicing/wear and tear maintenance (tyres, brakes, all the things the dealer will tell you aren't covered because...) and depreciation, then hiring costs for the same period isn't that different.

Your kia sportage, for example, could easily cost you in excess of Aed 3000 per month over 2 or 3 years. More with high mileage.


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## gianera (Jun 29, 2015)

How passive aggressive. And egotistical. 
People actually come to this forum to look for your sympathy?

I fail to see how Europcar isn't a "legit" car rental. They were the cheapest one too in this segment. And we are talking of a Kia Sportage that I chose, don't make it sound like I chose a G63. You've never heard anyone saying "I'ma impress JBR with my Sportage". 

It was either this or Ford Edge (same price but old) and it's about room for 4, lots of luggage and relative safety of the vehicle.


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## Tackledummy (Jul 14, 2013)

gianera said:


> How passive aggressive. And egotistical.
> People actually come to this forum to look for your sympathy?
> 
> I fail to see how Europcar isn't a "legit" car rental. They were the cheapest one too in this segment. And we are talking of a Kia Sportage that I chose, don't make it sound like I chose a G63. You've never heard anyone saying "I'ma impress JBR with my Sportage".
> ...


To be fair - your post was really the "passive aggressive" one, so I'd wind your neck back in. The OP was looking for ideas about a car loan, and it was suggested that this isn't a good thing to do in the short term, until he/she is a bit more settled. It is your choice to rent a more expensive model (than the one used to illustrate the point of demonstrating economy), so stop trolling - you are just demonstrating being a douche!


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## Bigjimbo (Oct 28, 2010)

BedouGirl said:


> I'm 100% with you. The hassle-free factor is worth every fil!


Music to my ears as I am now the Leasing manager for Budget rent a car!

(Passive aggressive advertising...)


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## gianera (Jun 29, 2015)

Not really tackledummy. nothing passive aggressive about my reply. It was plain aggressive. intentionally and unashamedly so.

It's puzzling that when someone reacts to condescending or judgmental posts he becomes a "troll" rather than frowning upon that nasty unwelcoming attitude many have here. Or the thousand o/t replies.
If only everyone here replied like Steve Solar.


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## BedouGirl (Sep 15, 2011)

Bigjimbo said:


> Music to my ears as I am now the Leasing manager for Budget rent a car! (Passive aggressive advertising...)


Welcome back young man!


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## Bigjimbo (Oct 28, 2010)

BedouGirl said:


> Welcome back young man!


Not so young nowadays.....

Been lurking in the forum for a while now. Hows things?


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## BedouGirl (Sep 15, 2011)

Bigjimbo said:


> Not so young nowadays..... Been lurking in the forum for a while now. Hows things?


Hahaha! Good to have you back among us. You've missed a few interesting folk along the way  - good luck in your new venture by the way.


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