The United Arab Emirates is one of the best countries to own a car. Whether you’re buying a vehicle for the first time or have already changed wheels, you’ll have fun shopping for your new ride with the numerous options you can choose from.
Even if you have a small budget, you can still find the perfect vehicle in the UAE. The used car market is teeming with various brands and models, allowing you to own your dream ride without overextending yourself.
If you want to invest in a luxury vehicle, you can do so without breaking the bank since you can find them at used car dealers. You can even get excellent discounts to save more money on your purchase.
With the money you save on buying a used car, you’ll have a bigger budget for the other expenses that come with purchasing and owning a vehicle. This includes getting insurance and a car accident history or VIN number check in the UAE.
Additional Expenses to Include in Your Budget for a Used Car
Aside from the total cost of the vehicle, below are the other expenses you need to include in your budget for buying a used car:
1. Car accident history
Checking the history of a used car is a crucial part of the purchasing process since it helps you have a complete picture of its current condition and past incidents. The report gives you details about any past accidents the vehicle was involved in so you know if certain parts have been replaced.
This report also includes unpaid fines registered under the vehicle’s number plate or past owner, which you have to pay if you buy it.
Apart from accidents, checking the vehicle’s history may also help you determine if certain parts are original or not.
To check the used car’s accident history, you need its vehicle identification number (VIN) or chassis number. You can get this from the dealer or the car’s registration card.
You can input these details on the Emirates Vehicle Gate or Ministry of Interior websites to check the used vehicle’s accident history. The Abu Dhabi Police, Dubai Police and Roads and Transport Authority can also help you check the report if you provide them with the VIN or chassis number.
Another option is to have a third-party service provider give you a detailed vehicle history report. Simply give them the VIN or chassis number and they will provide you with the information you need.
If you’re interested in more than one car, these service providers can check several VINs and provide you with their vehicle history reports faster. They can also give you the details you need if you don’t have the car’s VIN or chassis number.
Although a vehicle history check report is an additional expense, the information it provides can help you avoid paying for unexpected repairs and fines and make sure you get the ideal car when you get one.
2. Registration fees
After buying a used car, the next step involves registering it under your name. The total cost covers different fees and varies depending on the type of vehicle you purchased and location.
Since you bought a pre-owned car, you need to renew its registration. If you purchased a light vehicle, you need to pay AED 350 for the registration renewal fee.
Other costs you have to prepare for include:
- Vehicle technical inspection
- Short plate or long identity plate fee
- Selling agreement fee
- Knowledge and innovation fee
- Courier fee
The expenses can be higher, especially if the original owner failed to renew the vehicle’s registration. In this situation, you need to pay a late fine.
3. Insurance
All car owners in the UAE are required to have insurance. The total cost varies based on the coverage you choose, your driving history, and the make, model and age of the vehicle.
If you want complete protection, comprehensive insurance covers damages to your car, third-party liability, theft, and other risks. However, this option comes at a higher premium compared to third-party insurance, which only offers limited coverage.
In general, the annual cost of insurance ranges from 1.25% to 3% of the car value. If you are a new driver or have previous claims, you may have to pay a higher premium.
To ensure you get the ideal coverage, request quotes from several providers and consider the coverage details carefully before choosing an insurance plan. Remember that choosing the cheapest insurance might save you money upfront but could cost you more in the event of an accident.
4. Maintenance and repairs
Although the used car you bought may be in its best condition now, it will likely need more maintenance and repairs. Common issues you might encounter include worn-out tires, brake pads, and other parts that require frequent replacements.
You also should consider other regular maintenance requirements, such as oil changes, filter replacements, and brake checks, to keep your car running smoothly.
You have to include the costs for this in your initial budget so you can be prepared to pay for them when needed. Allocating about 10-15% of your car’s value every year for maintenance and repairs is a smart strategy you can consider.
5. Fuel costs
Although the UAE has relatively lower fuel prices than other countries, fuel is a recurring expense that can add up significantly over time. Therefore, you should consider this in your initial and monthly budget.
Since fuel prices fluctuate, consider fuel-efficient vehicles or alternative fuel options to manage this ongoing expense effectively.
If you want to avoid paying too much for your monthly fuel use, prioritize fuel efficiency when shopping for a car. Larger engines and older models typically consume more fuel, so you may want to stay away from them.
With a good-quality pre-owned car, you can have a trusty ride you can take to work and all yourleisure and entertainment activities. You can even save more money and avoid unexpected expenses when you have a well-thought-out budget for your vehicle purchase.
