# Buying a vehicle in Abu Dhabi



## princeton (Oct 14, 2015)

Good day all,

We are relocating to Abu Dhabi and have some questions on driving and buying a vehicle in Abu Dhabi. We will be staying there for 3 years and would like to explore the desert, beaches and everything there is to see
1. What would the pay back amount be on a vehicles financed by the bank if the vehicle cost 40 000 AED?
2. What will the insurance be on the vehicle ?
3. Is a Pajero or Jeep 4x4 a good option ?
4. Do I need to apply for a drivers license if from South Africa and if so costs please ?


Thank you
Daniel


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## rsinner (Feb 3, 2009)

princeton said:


> Good day all,
> 
> We are relocating to Abu Dhabi and have some questions on driving and buying a vehicle in Abu Dhabi. We will be staying there for 3 years and would like to explore the desert, beaches and everything there is to see
> 1. What would the pay back amount be on a vehicles financed by the bank if the vehicle cost 40 000 AED?
> ...


1. If you are asking for the EMI: say a 4 year loan of AED 40K, @4% p.a., for 4 years. Total interest in 4 years = 6400. EMI = (40K +6400) / 48 = 966.67 per month. This is how it is calculated here. Generally a new vehicle requires a 20% down payment
2. Insurance = generally 2-5%
3. Pajero seems to be more popular for off roading etc.
4. As a South African you may be able to just get a new license without classes (fee in the 2nd link). https://www.abudhabi.ae/portal/publ...ate=3cfg10bwj_122&_afrLoop=10130751549341583#! 
https://www.abudhabi.ae/portal/publ...ate=3cfg10bwj_122&_afrLoop=10130849478184330#!


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## Racing_Goats (Sep 5, 2015)

3. Pajero isn't the best choice for offroading in desert if that's important to you, but they are plentiful and reasonably priced plus comfortable etc. Nissan xterra may be better for your intended uses (and offroading): jeeps are popular but less reliable, wranglers are overpriced for age and condition..


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## princeton (Oct 14, 2015)

Does this mean a second hand vehicle also needs a 20% down payment or only new ?


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## driftingaway (Mar 8, 2014)

Racing_Goats said:


> jeeps are popular but less reliable, wranglers are overpriced for age and condition..


Wranglers just hold their value better than most - so are a good option if you're only planning on staying 2-3 years and want a good return on investment. I can't comment on reliability - mine's 18 months old (bought new) and no issues


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## rsinner (Feb 3, 2009)

princeton said:


> Does this mean a second hand vehicle also needs a 20% down payment or only new ?


if its a vehicle loan, in general the central bank rule is 20% downpayment. Getting a loan for a second hand car is more difficult if not bought from a [2nd hand car] dealer


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