How Used Car Finance Works in the UAE
DRIVE YOUR DREAM CAR IN THE RIGHT DIRECTION!
Our team can help you check your indicative eligibility and understand what UAE banks typically require.
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:
- The bank decides on each application after its own assessment.
- Repayment terms of up to 60 months, as permitted by UAE Central Bank rules.
- Finance of up to 80% of the vehicle value, as permitted by UAE Central Bank rules; the bank's valuation may differ from the price.
- The rate and fees are set by the bank according to 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 fulfil other eligibility requirements before obtaining a car loan from most banks.
- Income Requirements: You must also meet the lender's minimum income requirement. This online check requires a monthly salary of at least AED 5,000; individual banks set their own minimum, and some set it higher.
- Down Payment: Under UAE Central Bank rules you pay at least 20% of the vehicle value as a down payment, and the bank may finance up to 80%. How much it finances depends on its valuation and assessment; any amount or cost the bank does not finance is paid separately.
- Credit Score: Banks in the UAE check your Al Etihad Credit Bureau (AECB) credit report and score before offering a car loan. They consider it alongside your income and existing commitments, and may decline or limit an application on the basis of your credit history.
To see where you stand, check your eligibility using the form above.