Dubai is literally teeming with the best and most expensive cars in the world. Every person living in the city wants to own a car, but not everybody can afford the luxury car segment. Even for other cars, taking a car loan is often more feasible than trying to make the entire payment from one’s income.
The high prices of sports and luxury car models have spurred a roaring trade in used cars in Dubai. The advantages of buying a used car far outweigh the disadvantages. For instance, the price of a reasonably new-looking luxury car is reduced for almost 50% if it is purchased in the used condition. Also, banks and financial institutions are granting car loans for pre-owned cars in Dubai.
Why take a car loan for used cars?
Whether used or not, most premium car brands available for sale in Dubai are expensive. It is unreasonable to suggest that one should gather the thousands of Dirhams required to buy the car from their salary.
Also, banks offer attractive interest rates on used cars in Dubai. There are good options for used car finance in Dubai, and it makes perfect fiscal sense to explore these options.
Buying a pre-owned car in Dubai
Most used car dealers in Dubai have tie-ups with financing institutions and banks. Hence, when they offer you used car finance in Dubai, they add a percentage commission to the finance option. Instead, you can directly approach your bank for used car finance in Dubai. Not only can you negotiate a better loan, you can also save a lot of money by doing the process yourself.
When you select a car, be prepared to negotiate hard on the price. Survey the same car across dealerships to know what price each is quoting. Every dealer tacks on 20% to 25% on the car’s price as their profit. Set a price about 15% lower than what the dealer is asking for. You can finally settle for only a 5% increase in the price you originally demanded.
Also, do not waver from the price you demand. If the dealer sees signs of hesitation, he will wrest control over the negotiations. If he is adamant over the price, simply walk away and go to another dealer. Once you have an approval for used car finance from your bank, you are in a better position to demand a certain price and stick to it.
Find out the age of the car you want. If it is between 2 and 5 years old, its price should be depreciated by about 50% of its cost price. You can bring the price down further if you see that the car needs some repair or modification work.