Smart Motor Car Trading

UAE Central Bank regulations currently limit bank car finance to 80% of a vehicle's value, over a maximum of 60 months. Individual lenders may apply stricter limits. "0% down" offers: these do not remove the deposit. The 20% still has to be paid, it is usually covered another way, such as through add-ons, insurance or a service package. Ask the dealer how their offer works.

Lenders price individually. Factors commonly considered include salary, credit history, salary-transfer arrangements, and the vehicle itself.

Lenders generally ask for a valid UAE residence visa, Emirates ID and driving licence. Minimum salary requirements differ by lender and are not set centrally.

Central Bank regulations currently require total monthly debt repayments to stay within 50% of income. How this is assessed varies between lenders.

Many lenders won't finance a vehicle that will be beyond a certain age when the loan ends. Around 10 years is a commonly quoted limit, though some lenders are stricter and others more flexible. An older car may be offered a shorter term, or none at all.

Lending is normally based on the lender's own valuation of the vehicle, which may differ from the advertised price.

Lenders normally require comprehensive cover rather than third-party only, with the lender named as beneficiary and the policy kept in place for the full term. If the vehicle is written off and the payout comes to less than the outstanding balance, the difference is usually owed to the lender.

Insurance, registration and lender fees are not included in this estimate. Amounts vary by vehicle, provider and lender.

Central Bank regulations currently cap early settlement fees at 1% of the outstanding balance or AED 10,000, whichever is lower. Check your agreement for how this applies.