# Buying a Car - New or Used



## indoMLA (Feb 6, 2011)

All, I am currently in the market for a vehicle... looking at some mid-size SUV(s) like the Foretuner, Xterra, Pajero, Explorer and Outlander. (don't care to hear about the comments about why I don't need an SUV, etc. ....not the point of the thread). I would like some help in understanding the system employed in Dubai when it comes to car buying. I tried a variety of searches on the forum and came up with some information, but still need some help....

1. Negotiating: Is there a lot of play in terms of negotiating here? Some of the dealers are running deals for the Pajeros and Xterras, but their prices still seem a bit on the high side. What is the rule of thumb here when negotiating (i.e. start at 20% less than what is being offered, etc.)? 
A. In the US, we can obtain the invoice prices and find out the incentives the banks give the dealership and start from there, but I would assume that this information is not available here. (I guess Dubai hasn't hit the Information-Age and still wants to keep consumers in the dark).

2. Insurance: From the information I gathered (from in/out of the forum), it seems as insurance in paid once a year all at once; Is this correct?
A. Coverage - Some dealers are quoting me prices like insurance for the first year would be free and will cover driver and up to 'a number of passengers.' Is this correct/common? If you buy insurance, it doesn't cover all occupants in the vehicle? 
B. Insurance transferability - I have seen some used car deals where the seller mentions that he/she will throw in the remainder insurance. So is the insurance attached to the person or the vehicle?
C. Cost - How much is insurance typically? Some people have told me that it will be 5% of the vehicle's value.

3. Add-ons: Are things like tint, rust-proofing, etc. really needed here? If they are, can this be done outside the dealer for a lot cheaper. Some dealers make it sound like if I don't do certain services with them, I will void the warranty.
A. Tint - I think Nissan is telling me that for them to tint windows, it would be 850DHS. I think that is a bit high, but I do think I can do this outside the dealer for less. 
B. Rust-proofing - I understand that it is humid here, but is rust-proofing really needed. We got this back home, but that was because of rain and snow. I don't think the humidity here requires the service.
C. Maintenance - On new cars or used cars on warranty, do you have to have the dealer service the vehicle? I would assume that as long as the service was done, that you would be okay. I wouldn't want to lose the warranty, but paying 50-100% so a guy wearing a shirt with a big 'T' touches my car makes little sense to me, but if that is the norm and people do here, then I will go with it... 

4. Banking/Financing: I have read that you can go to any bank you want to get financing. Is this correct? 
A. Rates - I also have been told that the local banks give the best rates versus the international banks. I don't know how to confirm this as the rates a bank gives me for certain services will differ from someone else as I think it all depends if your company works with them and your pay is deposited with them. 
i. I heard that new car rates are around 4% and used cars are 6-9%.
B. Speed - If I wanted to purchase a vehicle tonight, is it possible to get get the bank financing the same night or the next morning? How quickly does stuff here move? I am thinking real slow. Would it be better that I obtain the financing prior to looking for vehicles?

I know I wrote a lot and asked a lot of questions.... but I am really trying to figure out if i want to get a new car vs. used and I really don't want to be taken for a ride.... I will await your responses and thank you ahead of time.


----------



## pamela0810 (Apr 5, 2010)

I will tell you what I know when it comes to cars and I'm not ashamed to admit that it's not much! 

First....seriously....why do you want to buy an SUV? Really!!

Ok...here we go. I always suggest that if a person can afford it, he/she should buy a new car rather than a used one. The reason being, that you could end up paying a hell of a lot of money for parts if they aren't easily available or if it's only the dealer that is selling them. If you buy a new car directly from the dealer, depending on the offer, you can actually get away with a lot of freebies!



indoMLA said:


> 2. Insurance: From the information I gathered (from in/out of the forum), it seems as insurance in paid once a year all at once; Is this correct?
> A. Coverage - Some dealers are quoting me prices like insurance for the first year would be free and will cover driver and up to 'a number of passengers.' Is this correct/common? If you buy insurance, it doesn't cover all occupants in the vehicle? - That is correct. There is also something about sports cars where there is only a "third party" insurance cover and not full insurance. So, make sure you know what you're signing up for. I think full insurance covers the driver and all the passengers in the car.
> B. Insurance transferability - I have seen some used car deals where the seller mentions that he/she will throw in the remainder insurance. So is the insurance attached to the person or the vehicle? - Not sure about this one.
> C. Cost - How much is insurance typically? Some people have told me that it will be 5% of the vehicle's value. - Yes, usually 5% of the vehicle's value. It also depends on the type of car - SUV is usually more I'm guessing
> ...


Good luck and let us know what you end up buying!


----------



## Mr Rossi (May 16, 2009)

indoMLA said:


> What is the rule of thumb here when negotiating


Sit in front of the sales person for hours on end, saying "Best Price" over and over again.


----------



## indoMLA (Feb 6, 2011)

@ Pam - Thanks... I am desi (we went over this) and I guess my 'fellow' desi salesman was still quoting me the white boy price... fawk... shouldn't not have told him where I was from... But I hear ya, loud and clear.... now on, speak in an accent.... (i must practice).
@ Mr Rossi - Yeah, this is what I did back in the states... especially with the test drives... the sales guys are trained to have you back within 10 minutes of you taking the car... I go out for about 30-45 minutes (my longest drive was an hour - dude was not pissed). Then I just sit in their office and do some calculations in my head, on paper, and finally pull out the old computer and load a blank excel sheet and create a spreadsheet from scratch.... The more time they spend with you, the more potential customers they lose... You still did not answer any of the questions I asked.


----------



## pamela0810 (Apr 5, 2010)

Maybe you'd like to go back on that other thread and admit that you are in fact of Indian origin! Boy it feels good to be right!


----------



## jander13 (Mar 12, 2009)

Mr Rossi said:


> Sit in front of the sales person for hours on end, saying "Best Price" over and over again.


the truth! been on the receiving end of it many times but i think i need to start utilizing this weapon.


----------



## cobragb (Mar 15, 2010)

I have found purchasing a car very easy here if you know what kind of car you want. After calling a couple of dealerships for quotes, I went down and asked the little sales woman to show me the model and in two hours I was driving it out the service department door. I already knew the interest rates that my bank charged and had a pre-approved loan setup for my checking account, but the financing partner with the dealership charged less than half of what mine charged. I filled out the application, wrote 48 checks while they were servicing the car and it was done.

The insurance was included in the price of the car for the first year as well as an extended warranty, blah, blah. The following year, I had to shell out a large chunk of dirhams at one time to renew it. Insurance is cheaper here in Dubai for "sports cars" than in the States. Not sure about SUV's....

My 2 pennies.


----------



## PVD04 (Feb 17, 2010)

I decided to go the used car route. For the amount I saved buying used, I could throw the car away and buy another if it dies on me.


----------



## indoMLA (Feb 6, 2011)

cobragb said:


> I have found purchasing a car very easy here if you know what kind of car you want. After calling a couple of dealerships for quotes, I went down and asked the little sales woman to show me the model and in two hours I was driving it out the service department door. I already knew the interest rates that my bank charged and had a pre-approved loan setup for my checking account, but the financing partner with the dealership charged less than half of what mine charged. I filled out the application, wrote 48 checks while they were servicing the car and it was done.
> 
> The insurance was included in the price of the car for the first year as well as an extended warranty, blah, blah. The following year, I had to shell out a large chunk of dirhams at one time to renew it. Insurance is cheaper here in Dubai for "sports cars" than in the States. Not sure about SUV's....
> 
> My 2 pennies.


1. So you did not negotiate? You just bought the vehicle for the price they asked? I wish I was a baller like that, but I am not... (I got bills back home to deal with and am paying off...) 
2. My bank has some awful rates and apparently the dealers know it as they all make sad faces when I tell them who I bank with. I was hoping to just have the dealership deal with the loan from one of their preferred...
3. I am okay with the insurance as it appears to be a lot cheaper than what I was used to paying back in Texas (we are known for high insurance costs).
4. How is the Mustang? I am assuming that is what you got from your name..


----------



## cobragb (Mar 15, 2010)

indoMLA said:


> 1. So you did not negotiate? You just bought the vehicle for the price they asked? I wish I was a baller like that, but I am not... (I got bills back home to deal with and am paying off...)
> 2. My bank has some awful rates and apparently the dealers know it as they all make sad faces when I tell them who I bank with. I was hoping to just have the dealership deal with the loan from one of their preferred...
> 3. I am okay with the insurance as it appears to be a lot cheaper than what I was used to paying back in Texas (we are known for high insurance costs).
> 4. How is the Mustang? I am assuming that is what you got from your name..


1. I didn't negotiate, I showed them the invoice printout from KBB and told them what I would pay. She came back from the office several times with a higher number and I repeated my offer each time. They finally got the hint and conceded.

2. It was the same with my bank as well and when they suggested I discuss financing with the guy sitting at a desk, I agreed. It was a very quick process though.

3. Haha, yes. I love the Mustang (convertible), the best fun for the money!


----------



## ash_ak (Jan 22, 2011)

indoMLA said:


> @ Pam - Thanks... I am desi (we went over this) and I guess my 'fellow' desi salesman was still quoting me the white boy price... fawk... shouldn't not have told him where I was from... But I hear ya, loud and clear.... now on, speak in an accent.... (i must practice).
> @ Mr Rossi - Yeah, this is what I did back in the states... especially with the test drives... the sales guys are trained to have you back within 10 minutes of you taking the car... I go out for about 30-45 minutes (my longest drive was an hour - dude was not pissed). Then I just sit in their office and do some calculations in my head, on paper, and finally pull out the old computer and load a blank excel sheet and create a spreadsheet from scratch.... The more time they spend with you, the more potential customers they lose... You still did not answer any of the questions I asked.


Buying a new car in Dubai is different than the USA, for eg., each car company has only one dealer, so there's not much competition, if you want a Toyota, you can only buy from Al Futtaim, so that reduces your negotiation process. With the negotiation skills, you obviously pride yourself upon, go for a used 1 to 2 yr old suv, you will get a good deal. 

-my 2 fils.


----------



## ash_ak (Jan 22, 2011)

indoMLA said:


> @ Pam - Thanks... I am desi (we went over this).. now on, speak in an accent.... (i must practice).


yup, but u say u r a desi, u must practice how to talk like a desi, unlearn the Texan you learnt for the past few years i guess...just kidding bro, couldnt resist the irony.


----------



## w_man (Apr 16, 2010)

I agree with Ash - We just picked up a Honda in the last couple of weeks from the Honda dealership. We tried going to the different Honda dealerships but they are all owned by Al Futtaim. The maxium I got was 2000 AED off of a brand new car. Now If I convert that into USD - I thought I was getting screwed on the price. We tried the negotiations and back-and-forth stuff but other dealerships gave us even less. Don't think you can get much off of a brand new car here - if you want a deal, used market is full of them. You can low ball even at a used car dealership.


----------



## jagatr (Feb 27, 2011)

cobragb said:


> 1. I didn't negotiate, I showed them the invoice printout from KBB and told them what I would pay. She came back from the office several times with a higher number and I repeated my offer each time. They finally got the hint and conceded.
> 
> 2. It was the same with my bank as well and when they suggested I discuss financing with the guy sitting at a desk, I agreed. It was a very quick process though.
> 
> 3. Haha, yes. I love the Mustang (convertible), the best fun for the money!


Hey - I'm in the market for one of those. Maybe I should approach the same dealership and try the very same tactics...would you mind telling me who they are and where they're located?

And whats KBB???


----------



## indoMLA (Feb 6, 2011)

ash_ak said:


> yup, but u say u r a desi, u must practice how to talk like a desi, unlearn the Texan you learnt for the past few years i guess...just kidding bro, couldnt resist the irony.


Funny thing is, that even though I am born and raised, most people will not think I am from Texas. They think I am from the Northeast, despite not having a New York/Jersey accent.... I guess for most not having a southern accent means you are from the North...

Also, I think true Indian with a real accent will see through the fake accent. 




jagatr said:


> Hey - I'm in the market for one of those. Maybe I should approach the same dealership and try the very same tactics...would you mind telling me who they are and where they're located?
> *
> And whats KBB???*


Kelly Blue Book - LINK - In the US and Canada we utilize this source to know what the car is selling for and also typically what others have purchased the car for. There are other sources as well that share the invoice price (although this can be gained from the dealer directly - he will show you this to show you that he is making no profit), and then there is a source that shows you what the dealer really paid for the car. The last source is the hardest to come by, but can be obtained through paid services and also from people in the industry.


----------



## jagatr (Feb 27, 2011)

indoMLA said:


> Funny thing is, that even though I am born and raised, most people will not think I am from Texas. They think I am from the Northeast, despite not having a New York/Jersey accent.... I guess for most not having a southern accent means you are from the North...
> 
> Also, I think true Indian with a real accent will see through the fake accent.
> 
> ...


Logical next question - is there a KBB equivalent here which can give us the same info?


----------



## indoMLA (Feb 6, 2011)

jagatr said:


> Logical next question - is there a KBB equivalent here which can give us the same info?


That is what I was trying to gather by starting this thread... I don't think there is as everything here is hush, hush and extremely secretive... Dealerships are trying to sell some of the cars here for way over what the MSRP states is should be... 
MSRP - Manufacturer's Suggested Retail Price.

The Nissan dealer here is trying to sell me a car that is $3k (USD) more than what the car is worth, and they have stripped it of a few things... I don't understand the greed here. The Toyota dealer is worse... but I can't really do anything as the car I want is not sold in the states.


----------



## pamela0810 (Apr 5, 2010)

Try Al Tayer - they sell Ford, Jagaurs, Mustangs, Maseratis, Ferraris and Lincolns. I'm sure you'll find something worthwhile.


----------



## Jynxgirl (Nov 27, 2009)

indoMLA said:


> I don't understand the greed here.


You have a big shiny westerner stamp on your forehead.


----------



## pamela0810 (Apr 5, 2010)

I think if the car salesman is Indian, he's probably getting annoyed that another brown person is talking to him in what he presumes to be a "fake" American accent. He obviously doesn't know that Indo is from Texas y'all 

IndoMLA, go to the Indian Sales guys today and tell them how excited you are about the game. You have about an hour


----------



## cobragb (Mar 15, 2010)

pamela0810 said:


> IndoMLA, go to the Indian Sales guys today and tell them how excited you are about the game. You have about an hour


If India looses, he will be in a bad mood for a month!


----------



## pamela0810 (Apr 5, 2010)

cobragb said:


> If India looses, he will be in a bad mood for a month!


That's not gonna happen 

I hope these words don't come back to bite me in the...


----------



## indoMLA (Feb 6, 2011)

I know we are straying off topic.... but



Jynxgirl said:


> You have a big shiny westerner stamp on your forehead.


Sure do... It is like if they know your an expat or if your company is paying, they get the dollar signs in their eyes... like them cartoons....



pamela0810 said:


> IndoMLA, go to the Indian Sales guys today and tell them how excited you are about the game. You have about an hour


No can do... I went to the Ford dealership and as soon as 1230 hit, the floor room was empty (they scattered)... It was me and few Philippino chicks and they were answering phones...


----------



## Cold Flush (Mar 30, 2011)

If there is a car you are considering, you can call any used-cars dealer and give them the specs offering to sell it. See how much they will offer and do the maths. There isn't any fixed system here for re-sell value, etc

Insurance usually is paid upfront for 1 year or even 2 if the car is brand new. I have never heard of insurance for free the first year! Full insurance doesn't necessarily mean all occupants are covered so make sure you check it out before signing the contract. Insurance transfer is possible, you can buy the car with insurance left in it or without it from the owner. It depends what is the deal the seller will offer and what is the insurance duration left! So you compare the annual deal the insurance company will give to u and seller deal and do the maths.

Tinting is good to have if you park your car under the sun. However, make sure the level of tinting is legal. If dark windows annoy you, then you can have the transparent ones, you will definitely need it if you have leather seats. Just take care of your car, wash it well and dry it well and you should not need any rust proofing. Failing to do so will cause rust to appear after a while. For maintenance, warrenty is usually lost if maintenance is done outside the dealer for certain parts of the car. Check the warranty details to be sure what you are not allowed to touch outside the dealer. If the car has no warranty anymore then you should not worry.


Car Finance is a common thing here, it should not take more than a week if all your papers are in place.


----------

