Buying a car is a very big decision and one should fully take the educated decision rather than shooting in dark by considering only purchase price of the car. Many time we think some car brand is cheaper than other then why not settle with cheaper one and save few thousands in car buying process but eventually we regret our purchase due to expensive insurance, maintenance and fuel mileage. I have bought many cars in Dubai in last 7 years that I feel below checklist and key points is very important for any person to understand, plan and act before buying any new/used car in Dubai and UAE.
- Requirement: Planning a car should definitely start with the need and the real requirement off course. If you require a four-seater car then don't go looking for 7-seater's.
- Allocate budget: Fix your budget first and then decide to spend 90% of the total set budget, as remaining 10% roughly will be required for insurance, registration, tinting and other minor accessories.
- New vs Used: Both have their own pros and cons depending on the budget you decide and you should work around it.
- Insurance: Usually insurance in Dubai and UAE float around 2-5% of the sale value, but it may vary depending on your car segment: Sports and Luxury cars have higher insurance premium. New driver will have higher insurance premium. Old driver can can save on insurance premium by submitting no-claim certificate from their previous insurance company.
- Financing cost: If you bank finance the car then do factor the total interest paid over time, as it will rock the overall budget set for a car. If you looking for new cars then look for few dealers in Dubai offer zero percent interest in during mid-year car sales.
- Registration: Although very small like less than 1000 dirhams for testing, registration, plate number etc. but worth counting.
- Maintenance: Japanese, Koreans and American cars have reasonable maintenance cost as oppose to European and British cars. Super compact cars have higher maintenance than normal sedan or saloon cars. Luxury cars have higher maintenance as oppose to regular cars. Sports car and performance cars have higher maintenance as well.
- Fuel mileage: Smaller the car size and car engine capacity lesser the fuel consumption. Big 4x4, Sports car and performance cars have higher fuel consumption as well.
- Re-sale value: In order of best to worst - Japanese, American, Korean, German, British and French.
Real cost of car ownership = (Cost of the car + Insurance + Registration + Finance cost + Fuel consumption + Maintenance) - Re-sale Value.
Hope it's clear to many new car buyers in making an educated decision.