A Toyota Camry in Dubai. Chris Whiteoak / The National

How to buy a used car in the UAE: 6 top tips for Dubai and Abu Dhabi


Patrick Ryan
  • English
  • Arabic

Buying a used car has traditionally been seen as a cheaper alternative to obtaining a brand new model straight off the production line.

These days, due to the global cost of living crisis and the influx of electric and hybrid vehicles, it is more important than ever to make sure you know what you are getting for your money.

So, if you are in the market to buy a second-hand car, what should you look out for?

The National talked to industry experts about how to buy a used car and what pitfalls to avoid when choosing your next vehicle.

What are the most popular used cars in the UAE?

Nissan Patrols and Toyota Land Cruisers remain among the most popular vehicles on UAE roads, according to Adam Whitnall, chief executive of car price comparison site Drive Ninja.

However, new kids on the block are challenging their position as the most common cars on the emirates' roads.

“Land Cruisers and Patrols are exceptionally popular because they have a certain status in the UAE,” he said.

“They are still selling like hot cakes but we are definitely seeing a shift with increased amounts of people turning to electric and hybrid models. There are more used Chinese cars being bought than before, as well.”

The classified sales website Dubizzle lists both the the most sought-after used petrol cars and electric vehicles over the past year.

Most in-demand petrol cars in UAE for 2023:

  • Mercedes Benz S-class – average price Dh678,200
  • Mercedes Benz C-class – Dh244,900
  • Nissan Patrol – Dh253,500
  • Toyota Landcruiser – Dh327,200
  • Nissan Altima – Dh80,500

Most in-demand electric vehicles in UAE for 2023:

  • Volkswagen ID4 – Average price Dh133,600
  • Tesla Model 3 – Dh224,900
  • Volkswagen ID6 – Dh157,200
  • Tesla Model Y – Dh255,700
  • Tesla Model X – Dh592,700
Dubai Police recently added the new Toyota Land Cruiser to its world-famous fleet of patrol cars. Photo: Al-Futtaim
Dubai Police recently added the new Toyota Land Cruiser to its world-famous fleet of patrol cars. Photo: Al-Futtaim

What to be aware of when choosing a used car

One of the key factors when buying a used car in the UAE is making sure the vehicle is not coming to the end of its journey.

“It’s very difficult to get fully insured in the UAE for a car that is more than seven years old,” said Mr Whitnall.

“That’s because the climate doesn’t lend itself well to cars lasting much longer than that and insurance companies are hesitant to give full insurance on older cars.”

Mr Whitnall also cautioned against buying an imported car without doing your homework into the vehicle’s history.

“A lot of cars that come here, especially from the US, do so because they were written off, flood-damaged or involved in a crash and were not able to be re-registered for the roads over there,” he said.

“They get fixed up and it’s not always easy to spot that.”

However, the solution is simply a case of asking the seller for the vehicle’s vehicle identification number, he said.

“There are various websites where the buyer can check if the car was involved in an accident by entering the VIN,” said Mr Whitnall.

It is also advisable to get a pre-purchase inspection on any car you are considering buying.

These inspections tend to cost about Dh500 and are available from most used car dealerships and reputable garages.

“An inspection is absolutely critical if you are buying a used car, especially if it’s from a private seller rather than a dealership,” he said.

“Some sellers are less reputable than others, so it’s important to be 'buyer beware'.”

He also said there is usually a gentlemen’s agreement that the seller will pick up the cost if anything is found to be wrong with the car during the inspection.

Check the warranty

Buying a car from a dealership tends to come with a guarantee or warranty, but it is important to check the small print, said Mr Whitnall.

“Having a warranty is better than not having one, but you need to be careful about what it covers,” he said.

“There is a common misconception that having a car under warranty means if anything goes wrong, it’s going to be covered.

“It is often the case that certain parts will be covered, while others won’t – for example the engine might be covered by the warranty but the electric windows are not.”

He said this was another example of why a pre-purchase inspection was essential, as it would flag up any possible defects before the buyer completes the purchase.

The Mitsubishi Pajero is seen as one of the more affordable 4x4 vehicles on the market. AFP
The Mitsubishi Pajero is seen as one of the more affordable 4x4 vehicles on the market. AFP

How to negotiate a price

Haggling is a common part of buying a used car, especially from a private seller, said Mr Whitnall.

“This region is known for having a bartering economy. Sellers are expecting you to negotiate on price and how successful you will be often falls along cultural lines,” he said.

“What doesn’t change, though, is the need to be polite and respectful.

“Once you start negotiating, you can expect to meet somewhere in the middle in terms of price.”

How to pay for a used car

Many used car dealerships offer help with proposing a payment plan, which will be sent to the bank for approval.

Banks will then perform a credit check on the applicant before issuing the loan, which tends to be about 80 per cent of the car’s value, said Neeraj Gupta, chief executive of insurance comparison site Policy Bazaar UAE.

How to get insurance

The cost of insurance in the UAE depends on several factors including the age of the car and the driver, driving history and experience and the vehicle type.

“Don’t be hasty and buy the insurance with the lowest premium, instead look for maximum benefits provided by the insurer,” said Mr Gupta.

“Avoid instantly opting for third-party liability cover, a comprehensive insurance plan is the best option as it offers better protection.

“When you receive your policy, make sure to read the terms and conditions carefully to know what’s covered and what’s not.”

The pickup truck is another popular option in the UAE due to wide roads and parking spaces. (Pictured: Chevrolet Silverado)
The pickup truck is another popular option in the UAE due to wide roads and parking spaces. (Pictured: Chevrolet Silverado)

How do I register the car in my name in Abu Dhabi and Dubai?

Registering a car in Abu Dhabi requires you to get the vehicle inspected at an authorised centre first.

Once the vehicle has passed inspection and is clear of all outstanding fines, you can then register it through an approved channel.

These include the websites of Abu Dhabi Police, Emirates Vehicle Gate and Ministry of Interior website and app.

When registration fees, which usually cost Dh400 are paid, you can then collect the vehicle ownership card (Mulkiya), as well as the number plates and expiry date sticker.

Registration lasts for 12 months.

A change of ownership must be registered in Dubai with the Roads and Transport Authority.

Both the seller and buyer must present documentation to the authority to complete the transfer of ownership, which typically costs between Dh350 and Dh800 depending on the size of the vehicle.

Top six tips for buying a used car in the UAE

  • Check the age of the car. Models older than seven years will be difficult or expensive to insure.
  • Do your homework if it is an imported car and check the vehicle has not been in any accidents you are unaware of.
  • Pay for a pre-purchase inspection so that an expert can tell you what is wrong with the car, especially if buying from a private seller.
  • Check the fine print on the warranty, not everything is covered.
  • Negotiate a fair price while remaining courteous and respectful.
  • Opt for the right insurance with a comprehensive plan.

Dubai Police top ten supercars: in pictures

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Past winners of the Abu Dhabi Grand Prix

2016 Lewis Hamilton (Mercedes-GP)

2015 Nico Rosberg (Mercedes-GP)

2014 Lewis Hamilton (Mercedes-GP)

2013 Sebastian Vettel (Red Bull Racing)

2012 Kimi Raikkonen (Lotus)

2011 Lewis Hamilton (McLaren)

2010 Sebastian Vettel (Red Bull Racing)

2009 Sebastian Vettel (Red Bull Racing)

 

'The Ice Road'

Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne

2/5

Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

The specs

Engine: 5.0-litre supercharged V8

Transmission: Eight-speed auto

Power: 575bhp

Torque: 700Nm

Price: Dh554,000

On sale: now

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Racecard
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England Test squad

Joe Root (captain), Moeen Ali, James Anderson, Jonny Bairstow (wicketkeeper), Stuart Broad, Jos Buttler, Alastair Cook, Sam Curran, Keaton Jennings, Dawid Malan, Jamie Porter, Adil Rashid, Ben Stokes.

UK%20record%20temperature
%3Cp%3E38.7C%20(101.7F)%20set%20in%20Cambridge%20in%202019%3C%2Fp%3E%0A
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

SUNDAY'S ABU DHABI T10 MATCHES

Northern Warriors v Team Abu Dhabi, 3.30pm
Bangla Tigers v Karnataka Tuskers, 5.45pm
Qalandars v Maratha Arabians, 8pm

SPECS
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65
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Avengers: Endgame

Directors: Anthony Russo, Joe Russo

Starring: Robert Downey Jr, Chris Evans, Scarlett Johansson, Chris Hemsworth, Josh Brolin

4/5 stars 

UAE currency: the story behind the money in your pockets

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

WORLD'S%2010%20HIGHEST%20MOUNTAINS
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Fixtures

Opening day Premier League fixtures for August 9-11

August 9

Liverpool v Norwich 11pm

August 10

West Ham v Man City 3.30pm

Bournemouth v Sheffield Utd 6pm

Burnley v Southampton 6pm

C Palace v Everton 6pm

Leicester v Wolves 6pm

Watford v Brighton 6pm

Tottenham v Aston Villa 8.30pm

August 11

Newcastle v Arsenal 5pm

Man United v Chelsea 7.30pm

 

The specs: 2019 Mercedes-Benz C200 Coupe


Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km

WITHIN%20SAND
%3Cp%3EDirector%3A%20Moe%20Alatawi%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Ra%E2%80%99ed%20Alshammari%2C%20Adwa%20Fahd%2C%20Muhand%20Alsaleh%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
MATCH INFO

Fixture: Thailand v UAE, Tuesday, 4pm (UAE)

TV: Abu Dhabi Sports

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

MATCH INFO

Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)

Updated: January 29, 2024, 7:01 AM