: Arranged through the showroom, this is convenient but can include higher administration fees or "balloon payments" (large lump sums due at the end of the term). Eligibility & Requirements (UAE)
: Some lenders offer special lower rates for Electric Vehicles (EVs) or hybrids. automobile financing
: New cars generally enjoy lower rates (starting around 2.15% flat). Used cars often have higher rates and shorter repayment tenures, especially if the vehicle is more than 5–7 years old . : Arranged through the showroom, this is convenient
: These are standard interest-based loans where a bank lends you the purchase amount and you repay it with interest. Your monthly payment is calculated on either a flat rate (interest on the original amount) or a reducing balance basis (interest only on the remaining principal). Used cars often have higher rates and shorter
: Review your credit report for errors before applying to avoid immediate rejection.
: A score of 650 or above from the Al Etihad Credit Bureau (AECB) is generally preferred for smoother approval and better rates. Documents Needed :
: Always ask for the effective annual rate (EAR) . A 2.5% flat rate is approximately equal to a 4.7% to 5.0% reducing rate .