Top factors that drive car choices

Sharon Alvares, 28, Indian

I recently purchased a Toyota Land Cruiser Prado. I had my previous sedan, also a Toyota, for five years and needed a bigger car for security and sturdiness, as I have a little daughter.

Auto loans vary according to the age of the owner and the bank you deal with. For my previous car loan, I dealt with Mashreq. This time around I opted for Emirates NBD, as the entire procedure was quick and it offered a competitive interest rate.

For auto insurance, it’s important to see what your agent offers if you’ve previously dealt with them (better rates for loyal customers and the like), as well as intricate details such as agency repairs or garage and replacement of parts or just repairs of the parts, because these things make a huge difference.

 Sandeep Pillai, 35, Indian

I bought a Toyota Fortuner last year. I am divided between the dream car and the best buy (the one that comes with good resale value and low maintenance costs). As car prices are influenced by the re-export market, sometimes your dream car isn’t the best buy.

All auto insurance companies offer almost similar features — third-party liability, free roadside assistance, coverage for broken glass, natural calamities and the like. Some provide extra coverage for Oman.

One thing I realised is before you know that you have to renew your car, each and every insurance company starts canvassing. Obviously your old insurance company has the renewal date, but sometimes I am surprised by calls from other companies.

 Fatma Abdullah, 25, Sudanese

My last purchase was a 2009 Honda Civic. My friends and family advised me to buy it. I really liked the design. Also, the spare parts are affordable and it copes well with the weather in the UAE. It doesn’t consume much petrol either.

Getting the auto loan was easy, because I purchased a brand-new car from the agency. It suggested a number of banks and discussed various options and loan rates, which helped me decide on the most suitable one.

I learnt that the insurance provided by the agency doesn’t give a very good service and it’s expensive in terms of maintenance. I felt it’s not fair, especially when I want to service my car in other places — if I do so, I would lose the five-year guarantee.

 Saleem Mir, 25, Pakistani

My current car is an FJ Cruiser. Price was the prime factor, others included exterior and interior appearances, mechanical condition, country trend as well as peer pressure.

When selecting your auto loan and insurance, remember to negotiate a monthly payment rather than be distracted by the lower purchase price. Make a wrong choice between cash rebate and a low-interest-rate loan and you’ll regret paying extra throughout your loan period. Do not add the financing cost of add-ons to your loan, because you can purchase them separately.

My experience taught me to do my homework so that you find the appropriate insurance and also avoid discreet prepayment penalties.

 Stanislava Burianek, 27, Russian

I drive a Nissan Qashqai. I really loved the car at first sight and it was not that expensive compared to other good-looking SUVs. However, my final decision was forced by Nissan’s special offer — a five-year unlimited warranty. This with added safety features.

I learnt that the best banks for car loans are Islamic banks because in terms of early settlement you do not pay any interest for the remaining period. I think it is safe to say there is no one perfect bank, but you can always find the one that works for you.

I also learnt that auto insurance is the best thing that can happen to you when you buy a brand-new car. You feel safer when you know your expenses are covered in case of a crash.

 Sanaa Merchant, 29, Pakistani

I replaced my old car in 2008 and bought a Mercedes-Benz. Having limited needs, I was just looking for something comfortable and classic.

I was offered auto loans, but preferred to pay cash as I could afford it and did not want to get into the hassle of monthly instalments and lose money on interest rates.

Auto insurance is important, as it helps to overcome the physical damage of the car.

Although the dealer offered it for its company price, I preferred to purchase it through a third party, as I was not planning to drive much on the highways that present a greater risk of car crashes and damage to the vehicle.

 George Papadopoulos, 44, Greek

I bought a used 2002 Grand Cherokee in cash in 2011. My main consideration was price, followed by reliability and size. US used cars seem to have lower resale value than Japanese or European cars in Dubai, so they represented relatively better value for me, as I was buying on a budget.

I learnt that auto loans were easy to get and competitive, but that banks did not give loans for cars older than four to five years.

I also learnt that auto insurance (third-party liability) in Dubai is cheap compared to Europe and doesn’t change much regardless of car model or insurance company. So using the insurance company inside the RTA office is both cheap and convenient.