How to drive a bargain

In these days of quick and easy auto finance schemes, owning a car is no longer a cherished dream that involves saving up for months. Many financial organisations offer tempting offers for both new and used cars.

Emirates NBD, the banking group resulting from the merger of Emirates Bank and National Bank of Dubai, offers attractive schemes for car loans for new and used cars.

Options include zero down payment, a repayment period that can be extended for up to 60 months, a free account and all associated benefits with no minimum balance required, choice of a credit card with membership fee waived for the first year and convenient account inquiries and transactions through the website.

The Islamic finance scheme, approved by Islamic scholars, is a method of purchasing and selling rather than lending, where the bank buys the preferred new or used car from the dealer or seller and sells it to the buyer with a predetermined agreed profit, and on an installment basis.

Al Islami Auto Finance from Dubai Islamic Bank (DIB) offers you the best finance solutions, whether for cars, buses, trucks, heavy or light machinery, or dealer finance.

The finance options cover private cars, rent-a-cars, dealerships and corporate fleet aside from heavy machinery for construction companies.

Al Islami Car Finance is a leader in the car financing segment in the UAE.

The Sharia-compliant finance solutions from DIB offer attractive profit rates, great features, flexible repayment options and the benefits of easy documentation and a hassle-free approval process.

HSBC, through its subsidiary, HSBC Middle East Finance Company Limited (HSBC MEFCO) offers auto loans that include hire purchase, financial lease as well as Islamic finance.

The Sharia-compliant HSBC MEFCO Amanah Finance scheme allows clients to choose the scheme they want when buying a new or used car.

They receive benefits such as no down payment, free HSBC Prosper Account with minimum balance waiver, free road assistance, deferred payment options and the ability to pay monthly installments through standing instructions.
Flexi options

Intaleq is a Sharia-compliant car finance package from Emirates Islamic Bank. It also allows payment in easy, manageable installments with a fixed and competitive rate plus financing for new and used vehicles combined with flexible payment plans up to six years.

National Bank of Umm Al Quwain (NBQ) offers auto loans to UAE nationals (who can obtain loans up to Dh250,000), with repayment periods up to 60 months for new cars and 48 months for used cars, attractive interest rate, two deferred installments annually and a free family protection plan.

Whether the car is new or used up to six years, whether it's a sedan or a four-wheel drive, whether it's for personal or business purposes, Standard Chartered Auto Loans offer you finance in no time with minimum formalities.

Initial down payments are low and loan tenures can extend up to 48 months with financing offered for rust-proofing too.

The loans come with an exclusive insurance package from AXA Insurance. The bank also offers Islamic financing schemes (that include auto loans) called Saadiq Auto Finance.

Insurance

After car buyers have chosen the financing option best suited for them, they have to buy car insurance, which is mandatory in the UAE.

The standard insurance policy covers accidental collision or overturning, fire, external explosion, lightning, burglary, theft and malicious acts, and while in transit by road, rail, inland waterway, lift or elevator during transportation.

Insurance cover may also be extended to Oman. It may also cover natural disasters, riot, strike, civil commotion, window or windscreen damage up to a particular limit without affecting the no-claim discount (NCD) that is free of excess, agency repair for new cars up to first two years that can be extended to five years with an additional premium, emergency medical expenses up to a limit, extended legal liability to family members, extended third party property damage up to a specified limit and free roadside assistance.

Extra benefits such as personal accident insurance are available for an added premium. Royal & Sunalliance, now known as RSA, offers personal insurance and commercial insurance products that have been specially tailored to suit the region.

RSA is one of the first insurers in the region to offer a complete online service—www.rsadirect.ae—for a wide variety of insurance.

Insurance buyers must visit the website and click on the insurance category that is of interest to them, and then fill out the relevant details requested and what they need the policy to cover.

Paul Holmes, CEO-UAE, RSA, assures policyholders about the sound economic policies of the RSA Group, which has helped the company to remain optimistic even in these turbulent times of financial crisis across the world.

He says, "The recent turmoil in the global financial markets may reduce investment returns available to many insurers. The RSA Group has a prudent investment strategy and a strong balance sheet. Our international credit ratings are also strong and we announced exceptionally good mid-year results. As a group, we will continue to benefit from our strong and diversified portfolio, which will in turn benefit our policyholders."