# Sales tax/Fees for new Car's



## Richdufai (May 25, 2011)

Folks,
I did search, but could not find a straight forward answer. I am planning on buying a new car when I reach Dubai (after getting the Resident Visa and Driver's License of course). Outside of the price of the car, Salik and Insurance which I assume is 5% roughly after reading other posts, what are the one the other one time and recurring fees that have to be paid ?

Thank You,


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## Maz25 (Jul 6, 2008)

You also need to account for servicing. Most dealers will insist that the car is serviced by them in order to maintain your warranty. Some car dealers recommend a service every 5,000km, whilst others 10,000km. Depending on your negotiating skills, you can get the dealer to chuck in a couple of free service and free one year insurance in the deal.

If you travel fairly long distance, you may end up servicing the car every 2 months (as is the case for those of us that drive to Abu Dhabi), hence the cost will quickly add up.

You also need to pay your registration fees once a year. During the first 2 years, the car does not need to be tested but beyond this, you need to allow for the cost retesting the car (minimal cost...unless the car fails its test and you have to change parts)

Re insurance, bear in mind that the cost is higher if you've had your license for less than a year. After a year, provided that you haven't had any accidents, your premium will go down.

Can't think of anything else.


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## Richdufai (May 25, 2011)

Thanks Maz! So there is no Sales Tax when you buy a new car correct? In California, we pay 10% of the price of the new car as sales tax (one time) which is a sizable amount.


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