5 Tips To Get Best Used Car Loan Interest Rate In UAE - Check All Details
Things You Will Learn In This Blog
- Get Different Quotations
- Negotiate the Price of Your Car
- Maintain High Credit Score
- Opt for the Right Loan Tenure
- Increase the Down Payment amount
- Popular Used Cars in UAE
- FAQs
When buying a used car in the UAE, a primary concern among buyers is to access the best-used car loan interest rate. May it be your swanky used SUV car in UAE or a used sedan car in UAE, car loan interest rate affects the overall cost of buying a car as well as leads to unnecessary burden on the pocket, if not checked properly. Hence, in our detailed guide below, we have explained the top 5 tips on how to get the best-used car loan interest rate in the UAE. Make sure you go through all of these tips thoroughly.
Also Read: Check Petrol Price In UAE Today
Car Loan Interest Rate In UAE - Tips To Get The Best Rates On Used Cars
Tip 1 - Get Different Quotations
When shopping for a car loan in the UAE, make sure to go through a wide range of vendors. There are various loan lending companies that provide competitive used car loan interest rates in the UAE. Due to the tough competition, lenders tend to reduce the interest rates when you show a lower interest rate quotation from another lender. Hence, using this way can prove beneficial for you. Additionally, getting different quotations from different lenders will also help in learning the process of a used car loan and the difficulties as well as the tricks required to get an easy loan on a used car in the UAE.
If you are already using a private or commercial vehicle in the UAE, try approaching your previous loan lending company if your credit history has been clean and disciplined. Checking your loan credit history and EMI history, there is a high chance that your previous lender will offer a lower interest rate on a new loan.
Tip 2 - Negotiate The Price Of Your Car
A very important aspect related to the used car loan interest rate is the price of the used car. While it is not directly related to the loan, a lower purchase price would automatically lead to a low loan amount requirement. Many used car buyers in the UAE prefer not to explore a lot of options. Make sure to look at multiple options at various used car dealers, for the used car that you have chosen to buy. By this method, you would be able to find a well-priced used car in the UAE. Therefore, the loan amount requirement would be less than expected.
Also Read: Buying a Used Car In UAE - A Complete Detailed Guide
Tip 3 - Maintain High Credit Score
A credit score simply means how much a person is valued in terms of paying his or her debts. A higher credit score means the concerned person is a valuable creditor to the agency, thus, it automatically increases the chances of getting a high loan amount at a lower interest rate. Try to maintain a higher credit score by making timely payments on your ongoing or previous car loan. A credit score of more than 700 is usually considered healthy, while below 700 is not attractive to lenders. If your credit card score is below 700, make sure to start working on it at least a year prior as it takes a long time to increase the credit score.
Tip 4 - Opt For The Right Loan Tenure
Opting for the right loan tenure is another crucial step in getting a low used car loan interest rate. It has been noticed that most car owners opt for long loan tenures of more than 5 years, thinking that lower EMIs would be easy to pay off. However, the compound interest keeps on building over a long tenure, hence, the overall cost paid by the closing of the loan makes the vehicle costlier than expected initially. Therefore, it is necessary to closely study the interest amount, car usage timeline, and the total amount to be paid by the end of the closing of a loan. There are multiple online tools like car loan interest rate calculator, that can help you in choosing the right tenure.
Also Read: See 5 Best Hybrid Cars In UAE 2024 - Check Price, Mileage, Features, Specs, & More
Tips 5 - Increase Down Payment Amount
A down payment is the initial amount of the total payment that needs to be submitted before a loan is credited to a user. Every lender has a minimum down payment amount that is fixed for each vehicle. However, it is on the customer to either pay the minimum down payment and get a higher car loan interest rate, or pay a higher down payment and get a low car loan interest rate. Although, it is completely understandable that a car buyer opting for a loan is already running on a tight budget. But, if you can manage your finances rightly, and pay a higher down payment during the purchase of your new used car in the UAE, it will become easier for you to pay off the loan quickly while keeping the car loan interest rate at the lowest.
Also Read: Nissan Kicks vs Mazda CX-3 Comparison: Check Price, Mileage, Features, Specs, Safety Differences
Popular Used Cars In UAE With CARS24
UAE is a popular hub for used car buyers in the Middle East. This is due to the presence of world-class automotive manufacturers who sell their latest and most popular models in the UAE. Hence, these models are popular in the used car market of the UAE as well. If you are also looking to buy a used car in the UAE, below are some popular brands and their models that we suggest you check out at our different MRL hubs in the UAE.
Used Toyota Cars In UAE
Used Nissan Cars In UAE
Used Mitsubishi Cars In UAE
Our Verdict
Buying a second-hand car in the UAE on a loan is a cost-effective way of owning a car. However, when looking for a low used car loan interest rate, it is necessary to examine different lenders and do thorough research properly. A detailed analysis of different lenders and their schemes can help in saving money during the payment of loan amounts in the long run. Moreover, maintaining a higher credit score can also help you in purchasing a used car at a lower interest rate. Follow the above steps and save a considerable amount of money on your next used car loan in the UAE.
Your Questions, We Answer!
Is it a good decision to buy a used car on loan?
Depending on the loan amount, tenure, and interest rate, a used car on loan can prove beneficial in the long run. However, you must research properly and find a lender with the lowest interest rate possible.
What is the used car loan interest rate in UAE?
Generally, different loan lending companies offer different interest rates on used cars. While the usual loan interest rate in the UAE is between 2% to 7%, it can vary depending on the lender.
What is the car loan interest rate on a new car in the UAE?
If you are buying a new car in the UAE, the loan rate revolves between 1.84% to 5%, depending on the lender.
Can I get a loan on my existing car in the UAE?
Yes, nearly all loan vending agencies provide a used car loan on your existing vehicle. Try approaching your previous loan lender to get a low interest rate on your fresh car loan.
Things You Will Learn In This Blog
- Get Different Quotations
- Negotiate the Price of Your Car
- Maintain High Credit Score
- Opt for the Right Loan Tenure
- Increase the Down Payment amount
- Popular Used Cars in UAE
- FAQs
When buying a used car in the UAE, a primary concern among buyers is to access the best-used car loan interest rate. May it be your swanky used SUV car in UAE or a used sedan car in UAE, car loan interest rate affects the overall cost of buying a car as well as leads to unnecessary burden on the pocket, if not checked properly. Hence, in our detailed guide below, we have explained the top 5 tips on how to get the best-used car loan interest rate in the UAE. Make sure you go through all of these tips thoroughly.
Also Read: Check Petrol Price In UAE Today
Car Loan Interest Rate In UAE - Tips To Get The Best Rates On Used Cars
Tip 1 - Get Different Quotations
When shopping for a car loan in the UAE, make sure to go through a wide range of vendors. There are various loan lending companies that provide competitive used car loan interest rates in the UAE. Due to the tough competition, lenders tend to reduce the interest rates when you show a lower interest rate quotation from another lender. Hence, using this way can prove beneficial for you. Additionally, getting different quotations from different lenders will also help in learning the process of a used car loan and the difficulties as well as the tricks required to get an easy loan on a used car in the UAE.
If you are already using a private or commercial vehicle in the UAE, try approaching your previous loan lending company if your credit history has been clean and disciplined. Checking your loan credit history and EMI history, there is a high chance that your previous lender will offer a lower interest rate on a new loan.
Tip 2 - Negotiate The Price Of Your Car
A very important aspect related to the used car loan interest rate is the price of the used car. While it is not directly related to the loan, a lower purchase price would automatically lead to a low loan amount requirement. Many used car buyers in the UAE prefer not to explore a lot of options. Make sure to look at multiple options at various used car dealers, for the used car that you have chosen to buy. By this method, you would be able to find a well-priced used car in the UAE. Therefore, the loan amount requirement would be less than expected.
Also Read: Buying a Used Car In UAE - A Complete Detailed Guide
Tip 3 - Maintain High Credit Score
A credit score simply means how much a person is valued in terms of paying his or her debts. A higher credit score means the concerned person is a valuable creditor to the agency, thus, it automatically increases the chances of getting a high loan amount at a lower interest rate. Try to maintain a higher credit score by making timely payments on your ongoing or previous car loan. A credit score of more than 700 is usually considered healthy, while below 700 is not attractive to lenders. If your credit card score is below 700, make sure to start working on it at least a year prior as it takes a long time to increase the credit score.
Tip 4 - Opt For The Right Loan Tenure
Opting for the right loan tenure is another crucial step in getting a low used car loan interest rate. It has been noticed that most car owners opt for long loan tenures of more than 5 years, thinking that lower EMIs would be easy to pay off. However, the compound interest keeps on building over a long tenure, hence, the overall cost paid by the closing of the loan makes the vehicle costlier than expected initially. Therefore, it is necessary to closely study the interest amount, car usage timeline, and the total amount to be paid by the end of the closing of a loan. There are multiple online tools like car loan interest rate calculator, that can help you in choosing the right tenure.
Also Read: See 5 Best Hybrid Cars In UAE 2024 - Check Price, Mileage, Features, Specs, & More
Tips 5 - Increase Down Payment Amount
A down payment is the initial amount of the total payment that needs to be submitted before a loan is credited to a user. Every lender has a minimum down payment amount that is fixed for each vehicle. However, it is on the customer to either pay the minimum down payment and get a higher car loan interest rate, or pay a higher down payment and get a low car loan interest rate. Although, it is completely understandable that a car buyer opting for a loan is already running on a tight budget. But, if you can manage your finances rightly, and pay a higher down payment during the purchase of your new used car in the UAE, it will become easier for you to pay off the loan quickly while keeping the car loan interest rate at the lowest.
Also Read: Nissan Kicks vs Mazda CX-3 Comparison: Check Price, Mileage, Features, Specs, Safety Differences
Popular Used Cars In UAE With CARS24
UAE is a popular hub for used car buyers in the Middle East. This is due to the presence of world-class automotive manufacturers who sell their latest and most popular models in the UAE. Hence, these models are popular in the used car market of the UAE as well. If you are also looking to buy a used car in the UAE, below are some popular brands and their models that we suggest you check out at our different MRL hubs in the UAE.
Used Toyota Cars In UAE
Used Nissan Cars In UAE
Used Mitsubishi Cars In UAE
Our Verdict
Buying a second-hand car in the UAE on a loan is a cost-effective way of owning a car. However, when looking for a low used car loan interest rate, it is necessary to examine different lenders and do thorough research properly. A detailed analysis of different lenders and their schemes can help in saving money during the payment of loan amounts in the long run. Moreover, maintaining a higher credit score can also help you in purchasing a used car at a lower interest rate. Follow the above steps and save a considerable amount of money on your next used car loan in the UAE.
Your Questions, We Answer!
Is it a good decision to buy a used car on loan?
Depending on the loan amount, tenure, and interest rate, a used car on loan can prove beneficial in the long run. However, you must research properly and find a lender with the lowest interest rate possible.
What is the used car loan interest rate in UAE?
Generally, different loan lending companies offer different interest rates on used cars. While the usual loan interest rate in the UAE is between 2% to 7%, it can vary depending on the lender.
What is the car loan interest rate on a new car in the UAE?
If you are buying a new car in the UAE, the loan rate revolves between 1.84% to 5%, depending on the lender.
Can I get a loan on my existing car in the UAE?
Yes, nearly all loan vending agencies provide a used car loan on your existing vehicle. Try approaching your previous loan lender to get a low interest rate on your fresh car loan.
