# Sorting out Auto Loan



## Ukdcham (Oct 22, 2013)

Hi, I am new to this forum and to the idea of getting a car on finance in Dubai. Can you get finance from the garages? Or is it only via the banks?

Also, how negotiable are prices from dealers on new cars and is it worth buying new or second hand over here in Dubai ?

If someone has some pointers for me I would appreciate it greatly...

Thanks
DC


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## geekgirl_5 (Sep 19, 2013)

I'm currently in the process of buying a car. It's only just started, but I'll keep you posted. What I do know is that quite a few dealerships offer financing. The interest rate is slightly higher than the banks but still pretty low (compared to home). There seems to be some debate about the downpayment though, but the guy is contacting me tomorrow. 

Negotiating is not my strong point, but people here seem to haggle over everything, so good luck and have fun. 

Private sellers prices seem to vary quite a bit on the prices, even for vehicles of the same year. There seems to be some pretty decent pre owneds around, due to high Expat turnover I suspect. I Toyota and Honda seem to retain their resale value quite well. 

I'm going the new car route, but I'll let you know what else I hear.


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## Warold (May 30, 2011)

For a new car I know the following.

You basically select your car. You go to the Bank of choice find the finance you want. If they agree you end up signing cheques for the payments. They give you a letter which you then take back to the dealer saying Bank XYZ will pay you guys for the 2014 ABC this much and has been approved.

Dealer takes this and takes insurance money off you and gets the car registered. The car will be registered under you and the bank.

Can take you about 2 days from start to finish. I went with ADIB for my car loan.

Most banks require a 20% down payment on the loan.


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## Yorki (Feb 10, 2013)

If you get a loan for a used car the garage needs 20% deposit also...it's the law here.

Lots of advice on the sticky thread - Cars and Driving Questions.....


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## Mr Rossi (May 16, 2009)

1 - Find a car you like

2 - Salesman will say he can get you a 5% loan from his very good friend, almost brother, that he deals with for all loans and will do special deal just for you.

3 - 5% loan refused, best you can get via garage bank is 12%

4 - Go around all the banks yourself independently and get between 6%-8% 

5 - Return to buy car, salesman will ask about loan and then calls you stupid idiot as his friend would have given you 2% loan with holiday and apartment and gold bar and a years free manakeesh at Zaatar W Zeit. Mafi Muk

6 - Drive car home fairly pleased with your purchase but composing smart arsed internet post about customer service in UAE.


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## AnjulaMalshan (Jul 17, 2013)

geekgirl_5 said:


> I'm currently in the process of buying a car. It's only just started, but I'll keep you posted. What I do know is that quite a few dealerships offer financing. The interest rate is slightly higher than the banks but still pretty low (compared to home). There seems to be some debate about the downpayment though, but the guy is contacting me tomorrow.
> 
> Negotiating is not my strong point, but people here seem to haggle over everything, so good luck and have fun.
> 
> ...


Hi Geek Girl,

Is there any update on this. I am also about to buy a car. So hope your opinion will help me a lot


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