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by Barbara Yakimchuk

How To Buy Your First Car In Dubai?

Photo: Alim

Dubai is the kind of place where, sooner or later, you find yourself thinking about getting a car. And it makes sense. Getting around is simply easier on four wheels — often cheaper, far more comfortable, and, honestly, AC in the summer is reason enough.

The other thing is that owning a car here doesn’t really feel like a luxury — it is quite accessible. And the market only makes it easier. According to AutoData, around 157,000 new cars were registered in the first half of 2025 — up about 11% year on year. Overall, it is a space that is becoming more and more buyer-friendly.

So whether it is something you are thinking about now or a little further down the line, chances are you will soon be choosing your first car. And that is where we come in — with a few practical pointers to help you choose something reliable and money-wise — I mean, who are we if not here to think about money?

Rent or buy: what the numbers actually say

Let’s start with the main question — should you rent or buy? It is more straightforward than it sounds, and it all comes down to one simple thing: how long you plan to use the car. A bit of maths helps.

If you rent, a basic setup will cost you around 2,000 AED per month. Over a year, that adds up to: 2,000 × 12 = 24,000 AED.

Now let’s look at buying.

Say you purchase a car for 50,000 AED, and with all the extras it comes to around 55,000 AED. After driving it for a year, you could realistically resell it for about 40,000 AED. So your real cost comes down to 15,000 AED.

Now put that next to renting — 24,000 AED a year — and you are looking at a 9,000 AED difference.

Not bad, right?

This brings us to a simple rule: if you are planning to stay in Dubai for at least a year, buying starts to make more sense financially. Renting, of course, is easier and far more flexible — no commitment, no resale. So it is less about what is better, and more about what fits you: the financial side or the flexibility.

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Photo: Erik Mclean

How to figure out your budget?

Once you decide to buy a car, the most important thing is to understand your budget. Simply scrolling through listings on car salons and Dubizzle and focusing on the price won’t tell you much — it is rarely the final number.

So here is a simple rule — always leave some room. The price you see is rarely the final one, and the extra costs add up quickly. So what are the usual add-ons?

  • Insurance — usually 2–5% of the car’s value per year
  • Registration & RTA fees — around 800–1,000 AED
  • Testing (if the car is used) — ~200 AED
  • Warranty (usually included with new cars, with different coverage periods) — 1,500–4,000 AED
  • Import costs (if buying from outside the UAE, sometimes the case with Dubizzle listings): Customs duty 5% + VAT 5%

Now let’s put that into a real example.

You come across a car on Dubizzle listed at 40,000 AED. Let’s assume it is new — so no testing needed — but it is imported, which means you will need to factor in customs, VAT, warranty, registration, and insurance.

So in reality, that 40,000 AED car ends up looking more like this:

  • Lower end (minimum you are likely to pay): ~47,200 AED
  • Higher end (including enhanced insurance and warranty): ~51,100 AED

An important note: when buying a car, don’t focus only on the price — think about what it might cost if something goes wrong. A flat tyre, a small bump, a scratch in a car park — all of this is more likely than you think, especially with your first car.

It isn't about stretching your budget for, say, a BMW (I do love BMW!) and then hoping nothing happens because you can’t afford to fix it. It is about being realistic. Your first car will almost certainly pick up a scratch or two, and you need to feel comfortable covering those costs when it does.

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Photo: Kelly Sikkema

Where to buy a car in Dubai?

Dubai offers a range of options, each with its own pros and cons depending on what you are looking for. Here is a quick breakdown:

Pros: You get the widest choice — from older budget options to nearly new cars — often at the best prices, with the option to speak directly to the seller and negotiate.

Cons: It is all on you — hidden issues do happen, so a proper inspection isn’t optional.

Pros: The process feels much more structured and easier, with cars already inspected and verified, which removes a lot of uncertainty and saves time.

Cons: You pay slightly more for that convenience, and the range of available cars is more limited compared to open marketplaces.

  • Dealerships / car salons

Pros: This is the most secure option, often including warranty and service packages, with a faster and more predictable buying experience.

Cons: That level of comfort usually comes at a higher price, often around 10–20% more than other options.

Pros: Auctions can be a good way to find a strong deal — sometimes well below market price, if you get it right.

Cons: No warranty, and the condition can vary a lot. Unless you know what you are doing, the risk can easily outweigh the savings.

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Photo: Ahmed

New or used — what makes more sense?

When I was buying a car, I was set on getting a new one. It felt safer — something untouched: no inspections and no sense that I was inheriting someone else’s problem. But once you actually look at the numbers, the decision becomes a little more nuanced. Two things stand out.

  • A new car in the UAE loses around 20–30% of its value in the first year alone. Over three years, that can reach 40–50%. From a purely financial point of view, the advantage clearly sits with a used car — someone else has already absorbed that initial drop.
  • Insurance tells a similar story — a used car is almost always cheaper to insure simply because it is worth less.

But then why do so many people still choose new?

  • Peace of mind plays a big part. Even with proper testing and inspections, you can never be entirely certain about a used car — especially in a market where some issues only reveal themselves months later. Recent flood damage cases are a good example of that. With a new car, there is no previous owner, no hidden history — and far fewer surprises.
  • Then there is the warranty. Most new cars in Dubai come with 3–5 years of coverage, which significantly reduces the risk of unexpected costs and takes a lot of the stress out of ownership.
  • And, of course, lower maintenance. In the first years, a new car usually requires very little beyond the basics. Speaking from experience, it was mostly just annual servicing and oil changes — nothing more.

So in the end, it comes down to a fairly simple choice: do you prioritise financial savings, or peace of mind?

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Photo: Getty Images

What else to keep in mind when buying a car?

One thing people often forget: you aren't just buying a car — you are eventually selling it. And that is where liquidity comes in.

Put simply, some cars in Dubai are much easier to sell than others. Luckily, Dubizzle did the homework for us, publishing its 2025 report — and the ones that move the quickest (strong demand, easy resale) are:

  • Toyota Land Cruiser
  • Nissan Patrol
  • Toyota Prado
  • Toyota Camry
  • Toyota RAV4

The pattern is quite clear: reliable, well-known, family-friendly cars that fit the region.

On the other side, European and American cars tend to be harder to sell once they are out of warranty — buyers start thinking twice about maintenance. Chinese brands are still new, so resale is less predictable. The demand is there, just not as steady.

And then there are niche choices: bright colours, unusual specs, heavily modified cars — they might look great, but your buyer pool shrinks quickly.

Timing also matters. Ideally, sell before a major redesign or before the warranty runs out — that is when demand starts to drop.