OnlineCalculatorHow UAE car finance is priced
Two numbers decide your instalment: how much you actually borrow, and whether the rate you were quoted is a flat rate or a reducing rate. Dealers frequently quote flat rates because the number sounds lower, but a 3% flat rate is roughly equivalent to a 5.5% reducing rate over five years. Always ask which one you are being shown.
The Central Bank generally requires a minimum 20% down payment on vehicle finance for residents, and terms are capped at five years. A longer term lowers your monthly figure but increases what you pay in total, sometimes substantially.
What the calculator does not include
- Comprehensive insurance, which is mandatory while the vehicle is financed
- Registration and Salik tag costs
- Early settlement fees, typically capped at 1% of the outstanding balance
- Bank processing fees, usually around 1% of the loan amount
Before you sign
Your total monthly debt obligations, including this instalment, generally cannot exceed 50% of your income under Central Bank debt burden ratio rules. If you are also carrying a mortgage or personal loan, check the combined figure before committing.