Step-by-step guide to buying a new car

In the market for a new car? Chances are you’ll have heard all sorts of well-meaning advice from friends — whether you should buy privately or from a dealer, if there’s a particular colour that’s best, or what’s the best deal if you’re looking for finance. But what’s fact and what’s fiction? Here are some top tips to give you a head start before you hit the showrooms.

Cars of particular colours have a higher resale value

This can be true, says Sajjad Bhanji of Dubai-based used car dealer Deals On Wheels, so it’s something you may want to consider if you’re planning to resell the car further down the line. Although many buyers think an unusual colour makes the car more unique and therefore easier to sell, in fact the opposite is often the case. “Some colours are more popular than others and as a result they sell faster,” Bhanji explains. “White tends to be a favourite in the UAE.” So, if a higher resale value is important to you, go for a popular colour and you’ll find yourself with a wider pool of buyers when the time comes to sell.

Wait for annual sales or holiday seasons to get the best deals

Don’t take the first deal you’re offered. You can always negotiate

If you’re looking to buy a used car, chance your arm and see if the salesman is willing to haggle with you; Bhanji says, dealers in the UAE will often entertain negotiation.

If you’re buying a car with finance, you’ll need to make a 20 per cent down payment

Auto loan financing rules are decided by the UAE’s Central Bank, so this one’s currently true for all banks offering auto loans. But this doesn’t mean auto loan deals will necessarily be the same at each and every bank. The 20 per cent down-payment and maximum five years tenor will be similar, but eligibility criteria and pricing will vary from bank to bank. Moreover, there are added benefits the customer can obtain such as a free current account until loan maturity, a free credit card and insurance finance.

You can take a loan from any bank — not just the one where you have a salary account

Although you’ll need to find your 20 per cent deposit whichever bank you choose to finance with, you won’t necessarily have to take the auto loan with your own bank if you find another bank offering a better deal. A quick scan of various lenders in the UAE reveals many offer auto loans without salary transfer, meaning you can shop around and ensure you’re getting the best loan product for your needs.

You’re better off buying a used car privately so you pay less

A car with full options keeps its value better

Leather seating? In-car entertainment with built-in DVD players? Xenon lights? Of course, your budget will normally dictate the options you can choose from when buying a new car, but for some models, you may end up with an even higher resale value if you’ve gone for top-of-the-range to start with. Bhanji says in certain sectors of the market, the more you can afford the better when it comes to reselling.

“Depending on the type of car, options can play a big part in the resale value,” he explains. “This is particularly true for luxury or high-performance cars.”