How Used Car Finance Works in the UAE
DRIVE YOUR DREAM CAR IN THE RIGHT DIRECTION!
Our team can help you check your eligibility and understand what UAE banks typically require, so financing your dream car stays simple and stress-free.
Used Car Finance Through UAE Banks
First Choice Cars does not provide finance directly. Finance for our used cars is arranged through leading UAE banks and financial institutions, and the bank always sets the interest rate, the terms, and the final approval. What we do is make the process easier: check your indicative eligibility online in minutes, and our team will explain the documents and steps the banks typically require.
When buying a car, most people consider a car loan or auto finance. Advantages of a bank loan for a used vehicle in the UAE include:
- Approval decisions that are typically fast, depending on the bank.
- Flexible repayment plans.
- Financing of up to 80% of the car value, in line with UAE Central Bank rules.
- Competitive rates, depending on the bank and your profile.
Eligibility for Auto Loans in the UAE
In UAE, auto loans are granted to those who meet the minimum eligibility requirements established by the banks. The eligibility requirements for a car loan vary from bank to bank or financial institution. However, the following eligibility requirements for auto loans in the UAE will most likely apply in every case:
- Age Requirements: The minimum age requirement for obtaining a loan in the UAE varies depending on the bank offering the loan. However, most banks require a minimum age of 21. A number of banks also have upper age restrictions (based on a person's employment status) that can go as high as 65 or 70 years old.
- Nationality & Residency: Although the banks in the UAE provide loans to UAE nationals, resident visa holders, and expats, nationality may sometimes limit the amount of loan available. Nevertheless, UAE residents, UAE nationals, and foreigners with long stays can expect to fulfill other eligibility requirements before obtaining a car loan from most banks.
- Income Requirements: You must also meet the minimum income requirements as an applicant. For most car loans, a minimum monthly income of AED 3,000 is required. The income requirements vary depending on which bank and financial institution you apply for the loan.
- Down Payment: As per the UAE Central Bank's guidelines, you need to pay 20% of the car cost in the form of down payment, with the remaining 80% amount being borne by the bank on your behalf.
- Credit Score: Although the credit score criterion is secondary, financial institutions and banks in the UAE often consider your Al Etihad Credit Bureau (AECB) credit score before offering you a car loan. Besides ensuring a higher loan amount, a decent credit score also begets your preferential car loan interest rates. In addition, the banks may also reject or limit your loan application based on your credit score and history.
To see where you stand, check your eligibility using the form above.
