# Buying a car in Dubai



## rh87 (Dec 8, 2012)

Hi guys,

I'm new here and this is my first post, I really appreciate if you share info/experience as it will help me a lot.

Well, to make it short, I really want to buy a Honda Accord Coupe, a used one, not more than 30,000 KM (so it's kinda as new). My question is that do I need to pay a down payment? 

My case is: I don't have a down payment, I want to take a bank loan, my salary is 16K. And I really want this Coupe.

Thanks in advance.


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## xchaos777 (Dec 15, 2010)

You need to talk to a bank for the loan.


Hate to say it, but I am pretty sure you won't get it. They will require a down payment for sure.

Good luck.


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## rh87 (Dec 8, 2012)

Thanks for your reply.

I have been told so, but just couldn't believe it maybe and I wanted to make sure by asking here.
I'll go with renting a car then till I have the down payment ;s !


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## Bigjimbo (Oct 28, 2010)

Alternatively you can come and buy a brand new Toyota 86 off me, and I will fund your downpayment. Great little car for 95k!


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## Mr.DubaiGov (May 26, 2012)

Dear u can contact Mr. Mohd and he will help u in finding u the loan as well do the tricky way of getting the down payment. His email is makrahhal @hotmail com


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## rh87 (Dec 8, 2012)

Bigjimbo said:


> Alternatively you can come and buy a brand new Toyota 86 off me, and I will fund your downpayment. Great little car for 95k!


Thanks for your reply.

I'm not a fan of Toyota plus I don't want to buy a brand new car, as once engine is on a 20K minimum will be cut from its price.

But it's good to know that Toyota has thing like this, I mean buying without a down payment.

Thanks again


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## rh87 (Dec 8, 2012)

Mr.DubaiGov said:


> Dear u can contact Mr. Mohd and he will help u in finding u the loan as well do the tricky way of getting the down payment. His email is makrahhal @hotmail com


Thanks a lot, will contact him as soon as possible and I hope he can help me with this.


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## Bigjimbo (Oct 28, 2010)

rh87 said:


> Thanks for your reply.
> 
> I'm not a fan of Toyota plus I don't want to buy a brand new car, as once engine is on a 20K minimum will be cut from its price.
> 
> ...


20k minimum? I think you don't understand how Toyota works in Dubai! This particular car will not cut 20% for 2 years!

Still if you prefer to get a loan and advice from somebody with a Gmail account then best of luck!


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## xchaos777 (Dec 15, 2010)

Bigjimbo, you mean to tell me that Toyota will guarantee...and buy back...at 20% residual of the price paid for the car after 2 years? I understand your point, and some cars hold value well...but there are no guarantees of any such thing in a straight forward sale.

I once had a real estate agent in the US tell me that if I bought this house now at price X, that it already had equity because the houses being built like it are going to sale for Y when finished in 3 months. I asked her if she would put that in writing that I was guaranteed 10% equity from the builder when I sold it...of course not because what he was saying was actually illegal to even imply. I cringed at the thought of how many people this lady had shared her "pearls of wisdom" as she called it. No wonder the financial collapse... (but this was after that...so maybe another will be coming).

I whole heartily agree that some funky loan offered by a guy using a gmail account, especially in this country, is a complete recipe for disaster!

I would highly recommend going to Toyota, Honda, or your bank...way before I did anything like that! Do yourself a favor...


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## Bigjimbo (Oct 28, 2010)

xchaos777 said:


> Bigjimbo, you mean to tell me that Toyota will guarantee...and buy back...at 20% residual of the price paid for the car after 2 years? I understand your point, and some cars hold value well...but there are no guarantees of any such thing in a straight forward sale.
> 
> I once had a real estate agent in the US tell me that if I bought this house now at price X, that it already had equity because the houses being built like it are going to sale for Y when finished in 3 months. I asked her if she would put that in writing that I was guaranteed 10% equity from the builder when I sold it...of course not because what he was saying was actually illegal to even imply. I cringed at the thought of how many people this lady had shared her "pearls of wisdom" as she called it. No wonder the financial collapse... (but this was after that...so maybe another will be coming).
> 
> ...


Point taken on gaurunteeing a price but in the "real world" of Toyota pricing using the FJ, Landcruiser, Prado as a guide these cars have an amazing value retention, and don't instantly shed value as they do in other parts of the world.

I did do a real world example earlier for a customer on the 86. The car price is 95k, and the minimum future value was set at 58k in two years, meaning that the monthly payment after the deposit was only 1250AED! Even when funding the deposit the combined payment was 2650! Anything over 58k in two years the customer would have kept, and "personally" speaking I think that car will sell for 75-80k! Tell me a better deal then that!


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## ziokendo (Jan 7, 2012)

Bigjimbo said:


> as a guide these cars have an amazing value retention, and don't instantly shed value as they do in other parts of the world.


I have noticed this as well, you are right in the fact that some cars keep amazingly their value here in Dubai compared to other parts of the world.

I believe this is for two main reasons :
1) No taxes on your purchase, so the original price is already very low compared to other countries where you pay like 20% of VAT and then of course you are losing it basically as soon as you drive out of the dealer
2) Very bullish market, because of the economic growth, the enormous influx of always "new" people, and the fact that you basically cannot live without a car.

But is not sure that you will readily "extract" this promised value when you need it, first reason because one thing is the price the dealer is asking for second hand cars, one other thing what actually a regular person will make to sell cash the same car.
Second reason because the bullish outlook on car market is not guaranteed to be there in 2 or 3 years, see what happened in 2008 ( I am not implying that this will happen again, just that is a risk), or the volatility of the regulatory environment (maybe in 3 years they decide to put a huge tax on big engines, or decide that everyone should run on CNG, etc etc ... it's of course unlikely, but not impossible).


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## Bigjimbo (Oct 28, 2010)

ziokendo said:


> I have noticed this as well, you are right in the fact that some cars keep amazingly their value here in Dubai compared to other parts of the world.
> 
> I believe this is for two main reasons :
> 1) No taxes on your purchase, so the original price is already very low compared to other countries where you pay like 20% of VAT and then of course you are losing it basically as soon as you drive out of the dealer
> ...


Even in 2008 at the height of the crash the value of used Toyota's didn't really come under pressure as the historic demand is an ever present. Huge tax is not a danger as we live in a tax free country! And even if this was brought in under the name of something else, it will not affect the reasons why people continue to buy Japanese cars here, as it would apply to all manufactorers! And in this case the 86 only has a 2 litre 4 cylinder engine. Win Win!


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## zed_kid (Sep 25, 2012)

Bigjimbo said:


> Alternatively you can come and buy a brand new Toyota 86 off me, and I will fund your downpayment. Great little car for 95k!


hey jimbo, super interested in this. is that price for the manual? which dealership are you at?

cheers


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## Bigjimbo (Oct 28, 2010)

zed_kid said:


> hey jimbo, super interested in this. is that price for the manual? which dealership are you at?
> 
> cheers


Festival City Toyota. Just over from business bay crossing. My email should be on the link below but if not my number is 050 seven nine 89 one seven eight!


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## zed_kid (Sep 25, 2012)

Bigjimbo said:


> Festival City Toyota. Just over from business bay crossing. My email should be on the link below but if not my number is 050 seven nine 89 one seven eight!


Brilliant I work in DAFZ so will be around for a test drive soon, just gotta get my aussie license switched to uae one.

cheers


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## is200mine (Jul 23, 2012)

ziokendo said:


> 1) No taxes on your purchase, so the original price is already very low compared to other countries where you pay like 20% of VAT and then of course you are losing it basically as soon as you drive out of the dealer


Which country are we comparing the prices to? EU? US? India? I know the prices are cheaper here than in the EU or India, but they are most definitely more expensive than in the US. 

Yes, we live in a "tax-free" country, but we do live in a country that has greedy dealers selling us cars. For instance, AGMC offers 20% discount to Etisalat customers on their BMWs. I am sure they still make a profit even with the discount. Can you imagine how much profit they make from non-Etisalat employees?

Same thing goes for other dealers. They reduce the option list and then sell it for the same price as in the US. Which is why you find more and more people importing cars from the US to the UAE.


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## andriaa (Dec 9, 2012)

You can contact the same showroom which you are planning to buy the car.They can easily solve this issue.


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## ziokendo (Jan 7, 2012)

is200mine said:


> Which country are we comparing the prices to? EU?


Yeah, I was comparing to EU ... I am not familiar with the US market, but you need to factor in for duties & freight cost, as for example my Honda Accord is made in the USA, so no wonder it could cost less there.



> I am sure they still make a profit even with the discount.


Companies usually offer to employees on average 15-20% discount as well (I have a friend working at a big car maker in the EU) and still make a profit, yes, so I believe the gross margin for the dealer to be in the region of a healthy 30%... but I imagine this being the same in Europe (before taxes).

Here you also have the single dealership concept that drives the price up for sure, being a mono/oligopoly, so they can manage to maximize the profit rather than the sales if they want so. I believe that German cars here - seeing how expensive they are both to buy and to mantain - have that strategy.


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## x40 (Feb 19, 2013)

Apologies for resurrecting an older thread but the Toyota GT86 is getting very good reviews in the motoring press and I am intruigued.

Are these deals described earlier in the thread still on? Are there any in stock or is there a waiting list and how long is it? Thanks.


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## Bigjimbo (Oct 28, 2010)

x40 said:


> Apologies for resurrecting an older thread but the Toyota GT86 is getting very good reviews in the motoring press and I am intruigued.
> 
> Are these deals described earlier in the thread still on? Are there any in stock or is there a waiting list and how long is it? Thanks.


Yes this deal is still on. We do have stock. I work in Festival centre Toyota across from Business Bay. Come down and test drive one. My email and phone should be below...


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## saraswat (Apr 28, 2012)

x40 said:


> Apologies for resurrecting an older thread but the Toyota GT86 is getting very good reviews in the motoring press and I am intruigued.
> 
> Are these deals described earlier in the thread still on? Are there any in stock or is there a waiting list and how long is it? Thanks.


get in touch with the premium member that has posted in this thread.. consequently you can check out his post in the classifieds section for some recent deals he has put up ...


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## x40 (Feb 19, 2013)

Excellent.

James, I will drop you a quick mail when I get a few minute later today.


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## Felixtoo2 (Jan 16, 2009)

Maybe also worth looking at The Ford Focus ST. Although its front wheel drive its 5 door, 265bhp and around 95k here.


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## liSTo (Jan 13, 2013)

Hi, apologies for hijacking your thread. I'm moving to Dubai next month from South Africa. I would like to buy a Ford Fiesta 1.4 Titanium 3dr when I get there. is this car available over there? If yes, approximately how much is it? I was browsing through the net and I only found 5dr Ford Fiesta's there.

Thanks.

Sent from my iPad using ExpatForum


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## lxinuk (Mar 18, 2012)

liSTo said:


> Hi, apologies for hijacking your thread. I'm moving to Dubai next month from South Africa. I would like to buy a Ford Fiesta 1.4 Titanium 3dr when I get there. is this car available over there? If yes, approximately how much is it? I was browsing through the net and I only found 5dr Ford Fiesta's there.
> 
> Thanks.
> 
> Sent from my iPad using ExpatForum


You might want to see the roads before you buy a little car! I would not feel particularly unsquashable in a Fiesta!!!


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## Bigjimbo (Oct 28, 2010)

lxinuk said:


> You might want to see the roads before you buy a little car! I would not feel particularly unsquashable in a Fiesta!!!


Given the dimensions you mentioned in another thread it might not be suitable.....lol


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## lxinuk (Mar 18, 2012)

Bigjimbo said:


> Given the dimensions you mentioned in another thread it might not be suitable.....lol


You'd be right there esp with 3 kids - two of whom are 6ft'ers at 13 and 14!!!


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## 1919 (Oct 16, 2012)

Bigjimbo said:


> Yes this deal is still on. We do have stock. I work in Festival centre Toyota across from Business Bay. Come down and test drive one. My email and phone should be below...


I'm also pretty interested to be honest.

Whats the stock availability like on a Manual GT86?

Thanks


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## Bigjimbo (Oct 28, 2010)

1919 said:


> I'm also pretty interested to be honest.
> 
> Whats the stock availability like on a Manual GT86?
> 
> Thanks


Either PM me or hit the link to email me. Or call/text me for more info....


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## adolf320i (Feb 20, 2013)

Hey y'all!...Pilipinas represent! bimmer owner here in the haus !



pardon the introduction..newbie ^_^


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