Buying a car in Dubai is an exciting milestone, especially for expats and luxury car enthusiasts. Whether you’re a first-time luxury car Dubai buyer or aiming to buy a new car in UAE efficiently, navigating the process can be smooth with the right guidance. This guide covers everything from choosing the perfect model to handling documents and driving away confidently.
Why Dubai Is a Great Place to Buy a Car
- Tax Benefits: Enjoy 0% import duties and VAT exemptions for GCC residents.
- Import/Export Hub: Easily access global models and resell internationally.
- Luxury Paradise: Unrivaled selection of brands like Rolls-Royce, Ferrari, and Bentley.
- Cutting-Edge Market: Early access to electric vehicles (Tesla, Lucid) and tech-packed models.
7-Step Checklist for Buying a Car in Dubai
- New or Used?
Weigh lower depreciation (new) vs. upfront savings (used). Luxury certified pre-owned (CPO) offers value. - Set a Realistic Budget
Include purchase price for buying a car in Dubai, insurance (mandatory), registration (AED 420+), Salik tolls, and maintenance. A luxury car Dubai buyer may face higher costs. - Research Trusted Dealerships
- Luxury/New: Al-Futtaim (Toyota/Lexus), AGMC (BMW), Audi Dubai, Swaidan Trading (Mercedes) are where you should buy new car in UAE.
- Used/Platforms: Platforms like Yalla Motor and CarSwitch, and other Certified Pre-Owned programs are perfect for buying a car in Dubai that is used.
- Understand Insurance Requirements
Third-party liability is mandatory. Comprehensive coverage is recommended, especially for luxury cars. Compare quotes instantly on platforms like Lookinsure. - Verify Critical Specs & History
- GCC vs. American/Other: GCC-spec cars are built for desert heat (stronger AC, cooling). Non-GCC may have resale/insurance issues.
- Accident History: Check the chassis number via Emirates Vehicle Gate (EVG) for any accidents or outstanding fines.
- Test Drive & Inspection
Scrutinize performance, tech features, and comfort. For luxury/pre-owned, insist on a dealer or RTA-certified inspection. - Finalize Ownership & Registration
Complete payment, transfer ownership at an RTA center (or via dealership), register the vehicle, and affix plates.
Tips for A Luxury Car Buyer in Dubai
- Find Rare Models: Explore specialist dealers (e.g., The Luxury Closet for classics) or authorized brand boutiques.
- Pre-Purchase Checks: Demand full service history, warranty validation (new/CPO), and paint/body scans. Verify exotic material authenticity.
- Customization: Leverage manufacturer programs (e.g., BMW Individual, Mercedes-AMG) or reputable aftermarket garages (post-registration).
Things To Know When Buying A Car In Dubai
When you want to buy new car in the UAE, there are several factors to keep in mind. Dubai is home to the most popular cars in UAE and all over the globe. Therefore, it might get a bit difficult to choose a car when you get in the process. Let’s take a look at the factors that you must pay attention to:
Types of Cars Available
There are numerous categories when it comes to vehicles. The most common categories are as follows:
Luxury cars
Car brands such as Mercedes-Benz, BMW, Audi, and Rolls-Royce are considered luxury brands. These brands produce high-performance cars with fine designs. Cars from these manufacturers cost more. Luxury brands are so popular in the UAE due to the abundance of luxury car Dubai buyer and their love for expensive and flashy items. Learn more about Mercedes-Benz Car Insurance
SUVs and Crossovers
SUVs and Crossovers are also very common cars in the Emirates and a solid option when buying a car in Dubai. SUVs, especially 4WDs are popular due to UAE’s desert-like climate and landscapes. Plus, off-road driving is a common activity to the extent that all of the best car insurance companies in Dubai provide off-road insurance policies.
Sedans
Sedans are known as classy, everyday cars. These cars are great for an urban lifestyle and popular amongst business owners all around the world. Most manufacturers produce sedans. However, there are plenty of affordable sedan options such as the Toyota Camry and Honda Accord. Learn more about Hyundai Car Insurance
Electric cars
Electric cars have become so popular during the past couple of years. Due to their eco-friendliness and lower maintenance costs, these cars are great options for people who want easy-to-drive cars for everyday purposes. Tesla is the most famous brand to sell electric cars, and models such as Nissan Leaf are gaining popularity among drivers. These cars have become so popular that many insurance providers have dedicated several types of car insurance policies to electric cars.
Factors Driving the Car Market
Many factors influence the car market and those factors affect the cost of buying a car in Dubai. Economic factors, social factors, political factors, and technological factors all go hand in hand to shape the car market. Let’s take a look at the highlight of these influential aspects:
Economic factors
Economic factors include interest rates, disposable income, inflation, gross domestic product, exchange rates, and unemployment rates.
Political Factors
Political factors include the government’s decision regarding which industries to promote and encourage to grow. Now you can learn more about Audi car insurance.
Social factors
Social factors include Changing Consumer Trends, demographic shifts, population growth, and more.
Technological factors
Technology is amongst the most influential factors when it comes to any industry, and the car market is no exception. High-tech products usually become more popular and people try to buy cars that are not dated. One of the tips for buying used cars is checking if the car you’re purchasing is not so dated and is still easy to use considering today’s technologies.
Other factors
Other factors, such as geographical location, natural disasters, and insurance companies, among others.
Key Considerations When Buying a Car in Dubai
When buying a car in Dubai, it is crucial to keep a few things in mind to make a smart purchase. Let’s take a look:
Costs to Expect When Buying a Car in Dubai
- Registration: AED 420+ (based on vehicle weight).
- Insurance: 3-5% of car value annually (higher for luxury/exotic).
- Salik: AED 4 per toll gate; pre-paid tag required.
- Maintenance: Luxury/Performance: AED 5k+/service; Standard Sedan/SUV: AED 1-2k/service.
Financing and BNPL Options
Determining your budget is the first and most important step of How to buy a car in the UAE. When you determine a clear budget, you should consider factors such as the initial price of a car, insurance, registration, and maintenance costs. All of these are inevitable parts of buying a car. If you think that you can skip any of them for later, you are wrong.
- Auto Loans: Competitive rates from UAE banks (Emirates NBD, ADCB, Mashreq). Pre-approval simplifies negotiation.
- BNPL for Costs: Use services like Tabby or Tamara to split insurance premiums or accessories into 0% installments.
Research and Compare
Another important step is research. Research helps you compare options that fall into your budget and take note of what each of their pros and cons are. This way, you can realize whether or not a car is suitable for you and your priorities. By doing so you can sometimes come across vehicles that are newer but priced better.
Test Drives and Inspections
Once you eliminate enough options and make a list including a couple of cars that are among your final decisions, you should do a test drive. Test driving a car helps you see how it truly feels and how comfortable the ride is. Pay attention to all the details and make sure that everything is aligned with your taste. Model types, upgrades, standard features, and the manufacturer’s warranty are among the most important things to pay attention to.
Where to Buy New Car in UAE
There are different places where you can check new car price in Dubai and make your purchase. The variety of these places helps you find what’s best for you. Some of these places even transfer car ownership in UAE, meaning you can get a used car or sell your previous car through some of these platforms. Let’s take a look:
1. Authorized Dealerships
These particular dealerships have been authorized by the manufacturer itself to sell their products. Therefore, they’re safe and have several advantages such as:
Genuine products
Authorized dealerships sell genuine, authentic, and original products
Warranty and support
Since these dealerships are directly linked to manufacturers, they offer official warranties and after-sale services.
Expertise
These dealerships are always offering trained teams of experts and professional services that can give you advice and assistance.
2. Online Platforms
Another popular way of purchasing a new car in today’s world is through online platforms. Make sure to choose a reliable platform to buy new car in UAE online. These platforms usually have the advantage of browsing through different deals at once and choosing the most suitable one. Some of the known online platforms for buying a car in Dubai are as follows:
- DubaiCars
- CarSwitch
- YallaMotor, and more.
3. Car Expos and Events
Another way to buy new car in UAE is through car events and expos. Car expos provide an up-close viewing of the vehicle as well as gathering all of the new models at once place. These events usually offer test drives that help you feel a car when it catches your eye.
Required Documents for Buy New Car in UAE
To buy a new car in Dubai, you must have all your documents ready. Let’s take a look at the necessary documents to make a car purchase:
Purchase and Registration Paperwork
- UAE Residents:
✅ UAE residence visa (original + 2 copies)
✅ Passport with valid residency page
✅ Emirates ID (front/back scanned copy)
✅ Valid UAE driving license - Tourists:
✅ Passport with entry stamp
✅ International Driving Permit (IDP)
✅ Proof of temporary address (hotel booking)
Insurance Requirements
Critical for driving legally from day one
- Mandatory before registration at RTA centers
- Options when buying a new car in Dubai:
• Transfer existing policy (same insurer)
• Purchase new comprehensive coverage - Luxury car Dubai buyer tip: Secure insurance binder 48hrs pre-delivery for:
• Exotic materials coverage (leather/carbon fiber)
• Agreed value protection (for customizations)
• Off-road extension (dune driving included)
Luxury Car Dubai Buyer Additions
- Bank loan pre-approval letter (for purchases >AED 300k)
- Manufacturer build sheet (customized vehicles)
- $1M+ liability certificate (supercar requirement)
- Trade-in documentation (if applicable)
Pro Timeline:
Key Reminder: Driving uninsured in Dubai risks:
- AED 500 fine + 4 black points
- 7-day vehicle impoundment
- Voided dealer warranty
What to Consider After Buying a Car in Dubai
Even after buying a car, there are things to pay attention to. All of these factors influence the new car price in Dubai since the cost of a car does not equal to just its initial price.
Regular Maintenance
All vehicles have maintenance costs. Therefore, it is important to pay attention to a car’s maintenance costs before finalizing your purchase. Let’s take a look at factors that affect a car’s maintenance costs.
Make and model
Different brands and their different models have different maintenance costs. Luxury brands and more expensive models such as high-performance cars have higher maintenance costs.
Age and mileage
In case you buy a used car that has a high mileage, it might require more services and more frequent repairs which affects the maintenance costs compared to a brand-new car. However, a new high-tech car might be higher in maintenance costs due to its expensive features and parts. This might be one of the only disadvantages of buying a car in Dubai.
GCC or non-GCC
GCC cars are vehicles made specifically for Gulf Cooperation Council countries. These countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. GCC specs cars are specially designed for these nations and their particular weather conditions. They usually have better air conditioning systems, engine cooling options, and much more to be more suitable for drivers in the GCC countries. Therefore, buying a non-GCC car is higher in maintenance costs because its parts might not be available in the UAE and might require more professional services that not all garages are prepared for. Plus, Non-GCC car insurance is more expensive due to all of these reasons and more.
Resale Value
A car’s resale value is another important factor. This goes hand in hand with market demand. It means that when you want to sell your car, are people willing to buy it at a fair price or not? So many cars have a low resale value due to their low market demand. This means you will have to sell it for a much lower price, leading to a failed investment. Therefore, make sure to check a car’s resale value before making your purchase.
Buy Insurance for a New Car in Dubai
As we mentioned earlier, insurance is a very important aspect of buying a new car in Dubai. All drivers must have valid car insurance and driving an uninsured car has severe consequences and fines. Here at Lookinsure, we have gathered all of UAE’s best insurance providers to help you find the most suitable insurance policy for your car. Just let us know what type of car you are buying or already own and you’re good to go! We will provide you with all the most suitable options, and you can compare quotes using our website.
Ready for Buying a Car in Dubai?
Dubai offers a unique and exciting car buying experience, from high-end sports cars to budget-friendly new models. Use online insurance platforms to get the best car insurance quotes instantly, including for luxury models. Whether you’re a first-time buyer or a seasoned investor, buying a car in Dubai can be seamless when you follow the right steps.
Frequently Answered Questions
1: Should I buy new or used cars in Dubai?
New cars provide full warranties and latest tech but depreciate 20% in year one. Certified Pre-Owned (CPO) luxury cars offer 40% savings with 2-year warranties (e.g., BMW Premium Selection). For budget buyers, 3-5 year old Japanese models retain best value. Always check Emirates Vehicle Gate history reports.
2: Is it cheaper to buy a car in Dubai than Europe/US?
Typically yes – Dubai offers 10-25% savings on luxury brands due to zero import taxes. A Mercedes S-Class costs AED 550,000 here vs. AED 650,000+ in Europe. Used supercars see even greater discounts (40% off MSRP for 2-year-old Lamborghinis). However, non-GCC specs may incur hidden compliance costs.
3: How much to buy a new car in Dubai?
There are many different car models available in Dubai and the price range is very wide. However, the average cost of a new car in Dubai is known to be around AED 85,000. Many cheaper and more expensive models are also available.
4: Can tourists buy a car in Dubai?
Yes, tourists can purchase vehicles with a valid passport, UAE entry stamp, and International Driving Permit (IDP). You’ll need temporary insurance (minimum 3 months) and must register the car under your name. Note: Vehicles cannot be financed without residency, and registration requires proof of Dubai address (hotel/rental contract). Popular choices include luxury SUVs and sports cars.
5: What’s the best bank for expat car loans?
Emirates NBD leads with 3.49% APR for residents earning AED 25k+/month. For luxury purchases (AED 500k+), Emirates Islamic offers 90% financing at 2.75% APR. Non-residents can use Mashreq’s 30% down payment program with AED 15k minimum salary. Always negotiate processing fee waivers.
6: Which brands are the best for a luxury car Dubai buyer?
Mercedes-Benz (22% market share), BMW (18%), and Lexus (15%) lead sales. Supercar favorites include Lamborghini Urus (most-sold SUV over AED 1M) and Rolls-Royce Cullinan. Emerging trends show 30% growth in luxury EVs – Porsche Taycan and BMW i7 are top performers among affluent buyers.
