Key tips for buying a car

Buying a new car can be a daunting process, particularly when you are an expatriate.

Getting the right documentation and paperwork done while trying to figure out what car is best for you can cause a lot of stress. However, if you are equipped with the right information, it can be relatively straightforward.

Follow this step-by-step guide to buying a car in the UAE, and you will find it's not as difficult as you imagine.

Obtain the correct documentation. If, like most people, you are financing your purchase through a bank loan, you can't even begin to think about buying a car before ensuring you have the correct documents.

For any dealership to start processing a sale, they will need to see the following:

• Your original UAE driving licence. If you have a foreign licence (from certain countries), you can convert it to a UAE licence without having to take any lessons or tests.

To process the licence conversion, you will need your driving licence (original and copy), residence permit (original and copy), translation of driving licence (for some countries), letter from the consulate (for Canadians), a passport-size picture, eye test certificate and a no objection letter from our employer.

Go to the Dubai Traffic Department Driving Licence Section in Al Ghusais (7.30am – 2.30pm) with all your documents. You can have your eye test done there for Dh20. They will also translate your documents for Dh20. The licence costs Dh150.
If you are a national from one of the following countries and have a licence, you are eligible for conversion: Australia, Austria, Bahrain, Belgium, Canada, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, South Korea, Kuwait, Luxembourg, Netherlands, New Zealand, Norway, Oman, Poland, Portugal, Qatar, Saudi Arabia, Singapore, Slovakia, South Africa, Spain, Sweden, Switzerland, Turkey, the UK and the US.

All others will need to take the necessary number of lessons and tests in order to obtain a UAE licence. Contact the RTA for more information on approved driving schools.

• The other documents you will need to present to the dealership include a copy of the passport and residence visa. If you're applying for a loan, you will also need a salary certificate from your employer and three months' bank statements.

Determine your budget. If you're not a cash buyer, the relative ease with which you can obtain a car loan in the UAE can tempt you to go for something that is beyond your budget.

So it is best to decide how much you can realistically afford before going shopping for a car. Don't forget to take into consideration the insurance and registration fee – the dealership should be able to tell you how much these will cost.

If you are an expatriate who doesn't plan to stay here long, you need to consider the resale value of the car. Japanese cars are a lot more popular in the UAE; they lose less value each year. White cars also tend to retain more value.

Once you've figured out what type of car you want and your budget, it's worth checking out the Top Gear website (www.topgear.com), which offers reviews of most car models, both new and used.

Another excellent source of information is the Wheels website (www.wheels.ae). From these, you can shortlist no more than three cars you would like to test drive.

Arrange for a test drive. It's worth taking a morning or evening out to do your car shopping. Most dealerships open from 8am to 2pm, and then reopen at 4pm until late. Ring ahead to arrange a test drive to ensure there is a vehicle available for you.

Check with the dealer for money matters. Once you've decided on a car, the dealership will do the rest of the work for you.

Most dealers have arrangements with the UAE banks, so they can sort a loan for you. If you decide to take a loan from your own bank, the process is very straightforward. All you need to do is sign the documentation before you pick your car.

If you decide to take a loan from a different bank, you will need to arrange for cheques from your bank amounting to the number of months you're taking the loan for. The dealership will also arrange for the car's registration and insurance.

These, usually, need to be paid upfront in cash although some banks can finance the insurance costs as well.

Prepare a checklist. When you go to pick up your car, remember to check both inside and out for scratches, damage to the upholstery, etc.

If you fail to see these before you drive away from the dealership, they will have no obligation to fix them free of charge.

Buying a used car

If you have decided to dive into the second-hand market, there are several other factors you need to consider as you will have to transfer ownership of the car and ensure it is properly insured and tested.

Once you've found the car of your choice (www.gnads4u.com/wheels is an excellent source for used cars) and agreed on a price with the owner, you will need to transfer the ownership.

Collect your original passport and a copy, your driving licence, a copy of your residence visa and the car's registration card. The person selling the car to you must go with you to sign the documents to allow the transfer of ownership and they must bring along a copy of the passport and the residence permit.

Ownership is transferred through a vehicle licensing centre or the Traffic Police headquarters.

Once all the documents have been submitted, you have to pay the ownership transfer fee (Dh320) plus an additional fee. Then the new vehicle registration document (credit card-sized) is issued.

For more details contact the Vehicle Licensing Department at the RTA. There are also many used-car dealerships that will handle the process for you.

Whatever you decide to buy, take your time and consider all options before you sign on the dotted line. Happy driving!