Buying or leasing cars in Dubai: You should pay attention to these points

Dubai is truly a vibrant metropolis and hub of the Middle East. But above all, the city is known for its luxurious lifestyle, which is reflected not only in the impressive skyline - but also in the cars that people drive in Dubai. But be it a Lamborghini, Porsche, Bentley or BMW, a car is always an advantage to get from A to B in Dubai. Therefore, buying or leasing a car is a wise investment for your life in Dubai. But before you set out to buy a car in Dubai, there are a few important points you should consider, which we will discuss in more detail in the following blog post.

Table of contents

The most important things in brief

Financing a car

Special number plate/number plate

What documents do I need to buy a car?

Leasing a car in Dubai

How can I register my car?

new car

used cars

Where can I refuel my car in Dubai?

The toll system in Dubai

diesel

petrol

stream

Will I be checked in traffic?

conclusion

FAQ

Can I bring my car from Germany?

What are the best leasing providers?

The most important things in brief

• In Dubai, cars are the most popular mode of transportation.
• For this reason, there are also many options for buying a car in Dubai - whether by buying or leasing a car.
• When buying or leasing a car, you can choose between new and used cars. However, you should note that there are significant differences in the admission requirements and the required documents.
• Another advantage of buying a car in Dubai is that you can save yourself a lot of money compared to the DACH region. Be it fuel, customs duties or value added tax.

Buying a car in Dubai

In Dubai, cars are the most popular means of transport and there is a reason for that: The public transport system in the Emirate is not sufficiently developed. Although there is a metro, it only covers around 5% of Dubai. The same applies to buses, which, however, are hardly used by Europeans anyway. Since Dubai has many places that are not easy to reach by public transport, the car or taxi is therefore essential for everyday life. Therefore, the majority of people who live in Dubai buy themselves a car sooner or later - which certainly has advantages. Because thanks to the numerous tax benefits, many people can also afford luxury cars. A fact that has a particular effect on driving pleasure. But of course, models outside the luxury sector are also available in the UAE, which will get you from one place to another just as reliably.

The benefits of buying a car are also undeniable. Because in Dubai, you do not pay VAT, which significantly minimizes the purchase costs when buying a car. You can also have your dream car imported from another country without having to pay high customs fees. These two factors are invaluable when it comes to buying a car.

In this context, you are certainly wondering what general costs you will incur when buying a car in Dubai. Of course, that depends primarily on which model you choose. The good thing about it: In Dubai, the selection of new and used cars is huge. It therefore doesn't matter how big your budget is. Because Dubai has everything from luxurious sports cars to spacious family cars, so you're sure to find what you're looking for. Regardless of this, there are always the following fees when buying a car:

• Filing a traffic record: AED 220
• Registration/registration of the car: 420 AED

In the case of a used car, in addition:

• Technical vehicle inspection: AED 170
• Transfer of ownership: AED 350

You are also required to take out car insurance. However, the amount of the premium to be paid varies from insurer to insurer. The vehicle tax, on the other hand, is waived for you.

Good to know: All cars in Dubai are automatic transmissions. Only trucks and buses now have manual gears, but no private cars.

Financing a car

Of course, buying a car is always a costly investment that you don't make every day. In order to take some of the financial pressure off of you, there are various financing options in Dubai that you can use. For example, many banks and financial institutions offer attractive credit options at low interest rates. This makes it possible for you to afford your dream car without running into financial bottlenecks.

License plate feature

In Dubai, license plates are like a status symbol that represents your prosperity. Because the fewer numbers you have on your license plate, the more you have to pay for it. It is therefore not uncommon that your license plate may be more expensive than your car itself.

Number plates with 4 numbers cost between 1,000€ and 10,000€, for example. For 3-digit license plates, the prices start at around 70,000€ and for 2-digit license plates, the price can even amount to over 1,000,000€.

What documents do I need to buy a car?

As a car buyer, you must be able to provide a number of documents when buying your car:

• Your Emirates ID
• your passport
• Your residence visa
• Your traffic records
• Your UAE driving license or an international driving license

If it is a used car, additional documents are required from the seller:

• A certificate that certifies that the car is technically flawless
• Existing vehicle insurance
• A vehicle registration document

Good to know: In Dubai, you need various vehicle documents. These include road approval, which certifies that your car complies with traffic authority regulations, and a proof of registration. This confirms that your car is registered in your name.

Of course, you don't necessarily have to buy a car if you live in Dubai. Of course, you can also lease a car in Dubai.

Leasing a car in Dubai

In Dubai, car leasing is also a popular option to get from A to B. Especially if you don't plan to spend several hundred thousand euros in one day. With a leasing contract, you lease a car for several years and pay a monthly fee in return. At the end of the term, you are then free to extend the leasing period or buy the car in its entirety. In both cases, however, you bear a lower financial risk than when buying a car.

You also have to present fewer documents when leasing a car. You therefore only need:

• your passport
• Your residence visa
• your driver's license
• Your credit card

Once you have these documents ready, all you have to do is sign the lease agreement and you're ready to explore the city of Dubai with your new car. However, be aware that the number of kilometers you travel in a given period of time may be limited. Therefore, read your leasing contract carefully before signing so as not to be surprised with additional costs later on.

Good to know: If you don't have a residence permit, you can still lease a car in Dubai. All you need to do is present a valid visitor visa and proof of insurance coverage.

How can I register my car?

One important thing to keep in mind when buying a car is the fact that in Dubai it is strictly prohibited to drive a car without a valid registration. It is therefore essential to register your car. However, there are various procedures and different documents required for approval:

new car

If you have bought a new car, you must be able to present a UAE customs card or a certificate of ownership upon registration. However, your dealer will usually take care of the registration formalities for you. Alternatively, you are free to have the approval carried out via an RTA service center or service provider.

In any case, you must be able to present the following documents:

• A rental agreement that runs in your name
• A valid residence visa
• Evidence of employment in Dubai

To register the car yourself, you also need your Emirates ID and traffic record, a copy of your passport, a UAE customs card and vehicle insurance, the physical purchase contract and, optionally, a letter from the bank if you have your vehicle financed. You then submit these documents to an RTA service center or service provider and pay the fees. You will then be issued the vehicle registration document (Mulkiya card), including the license plate and the sticker with the expiration date.

From this point on, your vehicle registration is valid for one year.

used cars

The registration process for a used car is similar. However, you need additional documents. They will usually help you if you buy your car from a car dealership or an authorized dealer.

However, before approval can be granted, ownership must be transferred to you. This is done after the vehicle has been technically inspected. In addition, you must pay a service fee. As the new owner, you will then receive the vehicle registration document and expiry sticker.

Where can I refuel my car in Dubai?

The UAE has a large number of gas stations, e-charging stations and superchargers, so you are guaranteed not to be left behind with your car. A gas station employee will even do the work for you to refuel your car.

But there is another way to refuel your car. In the UAE, for example, it is possible for you to book a tank filling via an app. In this case, a tank truck will come to you on site to refuel your car. In terms of price, there is no difference here as if you would normally refuel at a gas station. However, you should be aware that your car must be parked in a parking lot or in a driveway so that the tank truck has easy access.

The toll system in Dubai

Across the UAE, all vehicles, including taxis, must pay a fee of AED 4 when passing through a toll booth.

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The road toll system itself is referred to as Salik. You can buy the necessary sticker online or at any gas station. After you buy your brand of Salik, you need to stick it on the front plate of your car. You must also regularly check your Salik brand balance by calling 800-Salik (80072545) and, if necessary, top up your Salik brand online via an app.

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Good to know: If you cross a toll booth without a sticker, you will be fined. The same applies if your Salik brand doesn't have enough credit and you don't recharge your card within 5 days of passing through the toll booth.

 

Diesel, gasoline and electric: prices at a glance

In the UAE, gasoline remains the most popular fuel for vehicles. Although diesel is also used, it is more commonly used for heavy vehicles or large trucks. However, a special feature in the UAE is that alternative fuels such as liquefied gas and natural gas are now available in some filling stations. Compared to electric vehicles, however, these fuels are less common.

The following list should therefore give you a rough idea of how fuel prices in Dubai compare to the DACH region. However, keep in mind that these are only approximate guidelines and can change quickly depending on the market situation.

diesel

• Germany: 1.69 €/ L
• Switzerland: 1.97 €/ L
• Austria: 1.61 €/ L
• UAE: €0.79/ L

petrol

• Germany: 1.73 €/ L
• Switzerland: 1.81 €/ L
• Austria: 1.56 €/ L
• UAE: €0.75/ L

stream

• Germany: 0.49 €/kWh
• Switzerland: 0.21 €/ kWh
• Austria: 0.43 €/ kWh
• UAE: 0.075 €/ kWh

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Note: As you can see from the list, electricity prices in the UAE and therefore also in Dubai are significantly cheaper than in the DACH region. However, it should be noted that the prices just mentioned do not yet correspond to the final prices, as taxes and other charges are added. Compared to Germany, however, final prices are still well below the German level. Because in Germany, electricity prices are so high not only because of pure energy costs, but also because of additional duties and taxes. Of course, the Ukraine-Russia conflict has also contributed to rising energy prices in Germany and the rest of the DACH region. Therefore, buying an (e) car also pays off in several ways.

What are the things to consider when driving in Dubai?

When you drive in Dubai, there are a few differences compared to Europe. Road signs in Dubai, for example, are usually written in Arabic or English and sometimes have symbols that you won't find in other countries. It is therefore recommended to familiarise yourself with local road signs and their meanings.

But there are also some differences with Germany in terms of traffic fines. For example, you will have to pay around 200€ if you mistakenly drive in the bus lane. There is a standardized fine for minor traffic violations.

In the case of accidents involving personal injury and serious traffic offenses (e.g. driving while under the influence of alcohol or drugs), the court alone decides how high the fine is set.

Good to know: There are so-called “friendly radars” in Dubai. These are speed cameras that trigger even before the maximum speed is reached. This is intended to make drivers pay more attention to their driving speed.

Will I be checked in traffic?

Dubai has the peculiarity that no traffic checks are carried out. That is also not necessary, as regular road traffic is monitored with videos. As a result, there are no more alcohol controls. However, this does not mean that you get a free pass for drunk driving, as mentioned earlier, the fines in this case are very high.

conclusion

The car is the most popular mode of transportation in Dubai. This is due to the fact that many places in Dubai are difficult to reach by public transport and a car is therefore essential. Therefore, sooner or later, you should consider buying, or at least leasing, a car. However, a purchase is much more attractive, as numerous tax benefits and other benefits await you here. The large selection of new and used cars also allows you to find a suitable vehicle regardless of your budget. But regardless of this, it is crucial that you familiarise yourself with local traffic regulations and practices in order not to cause an accident and, on the other hand, to avoid unnecessary costs.

FAQ

Can I bring my car from Germany?

Yes, you can bring your car into the UAE. However, it must meet certain requirements, such as the presence of air conditioning or a steering wheel that is placed on the right side. You also need an insurance policy, an export declaration and an audit report. Your car can then be shipped to the UAE within a month.

What are the best leasing providers?

Because car leasing is a lucrative industry in the UAE, you can buy a car from many companies on good terms. Some of them include Diamond Lease, Hertz or Sixt. But no matter which provider you choose, you should always obtain several offers to find the best option for you by comparison.

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