How to Secure the Best Deal When Buyinga Brand-New Car in the UAE

A new car is an amazing opportunity to have fun driving in the UAE, but there are so many different makes, models and features for you to consider, that it can feel quite daunting to choose the right one. You have the choice of purchasing anything from small compact city vehicles to large family-sized SUVs, and luxury vehicles – knowing how best to tackle buying a new car will help you achieve the best possible value for your money.

 

• • What Do I Need To Do Before Visiting A Car Dealer?

Preparation is key to getting the best possible values:

 

• • Research prices online: Look at the different makes and models of cars and how much they are selling for in all of their possible trim levels and options.

• • Know the variants: Sometimes the features in the high trim levels will have costs associated with adding to those variants, so you will get a better deal by knowing what is offered as a standard feature.

• • Check for Promotions: Most auto dealers will have seasonal promotions, or limited time offers that will help you get discounts on your purchase.

• • Determine Your Budget: Decide on how much you want to spend including insurance, taxes, and service packages.

Visiting a car dealership is much easier if you have gone in there with all of the information needed to get a better deal through the ability to negotiate with the dealer.

 

• • Is the impact of timing on your car-buying experience?

Timing impacts your price.
You can get a better deal on your car by buying at the end of the month or quarter when dealer salespeople are trying to qualify for bonuses.

During the main holiday seasons, you’re likely to find dealers having special promotions. When a new model is launched, you’ve got a better chance of getting discounts on the dealer’s old used models.
So, if you can plan your car purchase to take advantage of these times, you’ll be able to save money.

 

• • Is it customary to have a discussion rather than just accepting the asking price?

The majority of the time, the listed amount is considered to be the minimum price. There are many other factors aside from how much you will be saving on the price tag when you are negotiating; consider these things when you are negotiating:

 

• • a free maintenance agreement

• • a service package (if applicable)

• • extended warranties

• • discounts on insurance

• • accessories

If you are polite, knowledgeable about your purchase (in case they are less than truthful), and ready to buy a car; you will have negotiating power in your favor.

 

• • What should I do to compare financing options?

If you are going to finance your vehicle purchase, make sure to compare interest rates from banks and dealer financing offers, and look for all fees associated with each alternative.
To make your decision based on total amount you are required to pay back, rather than only on monthly payment amounts, do your due diligence; ask the dealer about:

 

• • total amount you will have to repay;

• • any pre-payment penalties;

• • any hidden fees; and

• • the amount of any balloon payment and whether or not you can afford to pay it.

The best deal for you isn’t necessarily the lowest monthly payment but is actually the lowest amount you are going to have to pay over the life of your loan.

 

• • What are some advantages of purchasing through an authorized dealer?

For example:

 

• • A manufacturer’s warranty.

• • A certified service center.

• • Participation in exclusive promotions.

• • Access to guaranteed after-sale service.

Hence, peace of mind and protection of the investment made.

 

• • Mistakes to avoid?

• • Rushing into your first offer.

• • Not considering total cost of ownership (Insurance | Maintenance | Fuel).

• • Not test-driving the vehicle.

• • Not reading the fine print in financing contracts.

• • Letting emotion dictate your decision.

Taking time instead of just jumping into a deal could save thousands of dirhams.

It is essential to conduct comprehensive Research, Timing, Negotiation and Financial Planning when attempting to go about purchasing a new vehicle in the UAE. You should aim to make an educated decision on which car you will drive home by:

 

• • Comparing your options

• • Being aware of current promotions (e.g., monthly payments)

• • Understanding all aspects of your financing including terms of down payment, monthly payments due date, interest rates, penalty fees, etc.

Purchasing a new car is an enormous investment; if you take a more strategic approach when making this type of purchase then you will enjoy both your new vehicle as well as the overall value you received for it.