A Comprehensive Guide to Buying a Car in Dubai: Key Things to Check

Purchasing a car in Dubai can be an exciting experience, but making an informed decision is vital to avoid potential pitfalls. This guide will provide you with the essential steps to follow and the factors to consider when buying a car in Dubai. You can also check out our Security Center for more details on safely buying cars and real estate. 

Start by researching the type of car that suits your needs and preferences. Consider factors like fuel efficiency, maintenance costs, and resale value. Establish a budget based on your financial situation, factoring in insurance, registration, and servicing expenses. For example, a Nissan Sunny has different metrics for fuel economy, resale value, and maintenance cost than a BMW X5. 

When conducting thorough research on the type of car that suits your needs and preferences, take the following factors into account:

a. Purpose: Determine the primary purpose of the car, whether it's for daily commuting (Ex: Toyota Corolla, Honda Civic, or Volkswagen Golf), family use (Ex: Honda CR-V, Toyota RAV4, or Nissan X-Trail and Minivans such as the Honda Odyssey), off-roading (Jeep Wrangler, Toyota Land Cruiser, or Ford F-150 Raptor), or luxury driving (Ex: Mercedes-Benz S-Class, BMW 7 Series, or Audi A8). This will help you narrow down the suitable makes and models. 

b. Fuel Efficiency: Research the fuel consumption of different models, keeping in mind that more fuel-efficient cars will save you money in the long run.

c. Maintenance Costs: Some car brands and models are more expensive to maintain than others. Check for the average cost of spare parts and regular servicing to avoid unexpected expenses. For instance, Nissan cars are generally less expensive to maintain than Mercedes Benz. 

d. Resale Value: Cars with higher resale values are better investments. Research how well various models hold their value over time, as this will impact your potential return when selling the car in the future. Most Japanese cars retain a higher resale value than Chinese or Korean cars. The resale value of a car depends on various factors, including make, model, age, condition, and market demand. In general, Japanese cars have a reputation for being more reliable, fuel-efficient, and having lower maintenance costs than Chinese, Korean, American, or even German cars. As a result, they tend to have higher resale values in many markets. However, this is not a universal rule. Some German car models, especially those from luxury brands like Mercedes-Benz, BMW, and Audi, are known for their engineering, performance, and advanced features, which can contribute to strong resale values as well. It is essential to research specific makes and models when comparing resale values, as individual vehicles can vary greatly.

e. Insurance and Registration: Factor in the cost of insurance and registration when establishing your budget. These costs can vary depending on the car's make, model, and age. If possible, opt for comprehensive insurance and not third-party insurance to protect yourself as well. I learned that the hard way when I got into a car accident and had to personally pay to repair my car (I had third-party insurance). 

f. Reviews and Ratings: Read reviews and ratings from both experts and current owners to gain insights into the performance, reliability, and common issues associated with different models. Check out websites such as Edmunds, Car and Driver, and Motor Trends. 

g. Compare Prices: Use online resources and local classifieds to compare prices of similar cars in the Dubai market. This will help you identify the average market price and avoid overpaying. It goes without saying that you can check out a wide range of options on Yalla Deals. 

h. Financing Options: If you plan to finance your car purchase, research various loan options and interest rates from banks and finance companies. Calculate your monthly payments and ensure they align with your financial situation.

With a comprehensive understanding of these factors, you'll be well-equipped to make an informed decision when buying a car in Dubai, ensuring you find a vehicle that meets your needs and fits your budget.

Inspect the Car's Exterior and Interior

We can't stress this enough. Don't rely on pictures when buying a used car, even a new car, for that matter. New rides might disappoint you if they don't meet your expectations regarding performance or features, especially interior specifications. Personally inspecting a used car means that you thoroughly look for signs of excessive wear, tear, and deterioration. Check if any part is broken, scratched, dented, nicked, suspicious-looking, or in need of a repair.  

When you inspect the car, take a good look at its interior. What is its condition? Does it show signs of graceful aging, or does the interior have grimy, stained, or torn seats with buttons that don't work? Better find a clean car with an interior that has been well taken care of than buying one that has seen better days. Trust your instincts. They're there for a reason.

Examine the car's exterior for signs of damage, rust, or repainting, which may indicate previous accidents. Check the interior for wear and tear, including the seats, dashboard, and controls. Confirm that all features and electronics are functioning correctly. Trust your instincts and don't hesitate to ask the seller any questions if you suspect something. You should test everything, from AC switches to navigation controls, to ensure your potential car is in good working order. For instance, my car currently has a problem with the AC switch (if I turn the knob to hot, it malfunctions). While I would inform a future buyer of this issue, imagine if the person buys my car and later finds out that the AC knob is broken. Of course, I wouldn't want to rip off anyone, but you can't expect every seller to be the same.

Verify Accident History

It's crucial to check the car's accident history before finalizing a purchase. Check out this local website from EVG, which stands for the Emirates Vehicle Gate Electronic Services for all Drivers and Vehicle Owners in the UAE. You can view each vehicle's accident history and manage motor accident claims using the vehicle's chassis number. The website can also generate repair estimates and get online approvals while being able to monitor the repair progress at all times.

Check Service Records

Ask for the car's service records to ensure that it has been well-maintained. Regular oil changes, filter replacements, and scheduled maintenance are signs of a responsible owner. Incomplete or missing records could be a red flag, indicating potential hidden issues.

Go for a Test Drive

Take the car for a test drive to assess its performance, handling, and overall condition. Listen for unusual noises, evaluate the braking system, and ensure that the air conditioning and other features work as expected.

RTA Comprehensive Test

If you're purchasing a used car, we recommend obtaining a Technical Vehicle Status Certificate and a Comprehensive Vehicle Test from an RTA-approved vehicle test center such as Tasjeel. This way, you'll know if the vehicle has any defects and will be able to avoid expensive problems. The test costs about 500 Dhs (you still have to factor in towing costs as you can't drive the car to the garage for testing without a license plate, so that the price would increase to about 1000 Dhs). Although this is an additional cost, it's better to pay a thousand bucks than suffer from unforeseen expensive repairs in your vehicle. 

We don't own nor do we currently certify any car listings on our Yalla Deals site. Third-party sellers own all cars. To view the complete list of RTA-approved testing centers for vehicle inspections, click here.

Check for Outstanding Fines and Loans

Although this step is a no-brainer, you'd be surprised how many people forget to do this crucial step. Make sure there are no fines or circulations on the vehicle. Make sure the car has no outstanding fines or loans. Unpaid traffic fines can be checked on the Dubai Police website using the vehicle's plate number. To verify that there are no outstanding loans, request a clearance certificate from the seller's bank or finance company.

Negotiate the Price

Once you've thoroughly inspected the car and gathered all the necessary information, negotiate the price with the seller. Use your inspection findings and comparisons with similar models to justify your offer.

Purchase the car 

Once you know your financing options with your bank, the next step is to purchase the car. RTA recommends not to pay the entire amount if there is a mortgage on the vehicle before completing all the procedures. Remember that the responsibility of selling or buying cars falls on the contractors only, and RTA holds no liability to third parties. You can buy the car either in cash or through your bank's financing. 

Get Good Insurance

Having good insurance can provide peace of mind. Always have a digital copy of your motor policy schedule. Read the policy handbook to understand your insurance policy and its coverage. Remember this: 

Don't skimp on car insurance. Cheaper doesn't necessarily mean better. 

Many drivers may not realize this: If you don't have proper car insurance, you may suffer in the long run. So whether you're going for comprehensive insurance or third-party car insurance, don't let cheaper insurance rates fool you. Instead, get your car insurance from a reputable insurance company to avoid problems in the future, or at least from a company with good benefits. 

For instance, reputable insurance companies can provide you with 24/7 roadside assistance and recovery services as well as car loss or damage compensation to your vehicle, including personal belongings. Additional benefits may include the option to repair your vehicle at the agency/ dealership or with reputable garages affiliated with the insurance company's network. Some policies also provide replacement cars if your car is being repaired and free pick-up and drop-off when your vehicle is in service. Overall, the systems, processes, and customer service associated with reputable insurance companies will give you peace of mind and convenience whenever you need it. 

Make sure you have all the documents and transfer ownership 

This checklist will help you get ready for the transfer of ownership. Here are RTA's requirements:

For individuals:

From the seller: original Emirates ID (If the Emirates ID is not valid it can be replaced by the passport)

• From the buyer if he is a citizen or a GCC citizen: Original Emirates ID + copy of the valid passport to update the information
• Electronic car insurance
• Adding or redeeming the mortgage electronically at the bank (if the vehicle is under mortgage) 
• Vehicle Technical Inspection Certificate
• Plate numbers to be delivered to the center if the seller desires to keep them
• Report from the police if one or both plates are lost
• For classic vehicles: Vehicles technical inspection at the Automobile Touring Club Technical Center
• Service fees are 350 Dhs + 20 Dhs Knowledge and Innovation Fee for a light vehicle (private/public). 
• Once you have all these documents, you can apply for the service, and RTA will transfer ownership to your name. You'll also get a new license plate and a new Salik tag.  

You can find more details here. 

By following these steps and performing thorough checks, including verifying accident history and completing the RTA test, you can make a well-informed decision when buying a car in Dubai. This will help you secure a safe, reliable, and valuable vehicle that meets your needs and fits your budget.