Buying or leasing a car 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 not only reflected in the impressive skyline - but also in the cars that people drive in Dubai. Whether it's a Lamborghini, Porsche, Bentley or BMW, in Dubai a car is always an advantage when it comes to getting from A to B. Therefore, buying or leasing a car is a sensible investment for your life in Dubai. But before you set out to buy a car in Dubai, there are some important points you should consider, which we will discuss in more detail in the following blog post.

Table of contents

The most important facts in brief

Financing a car

Special feature license plate / number plate

What documents do I need to buy a car?

Lease 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

Gasoline

Electricity

Will I be checked in traffic?

Conclusion

FAQ

Can I take my car with me from Germany?

What are the best leasing providers?

The most important facts in brief

• In Dubai, the car is the most popular means of transportation.
• For this reason, there are also many options for getting a car in Dubai - be it 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 terms of registration regulations and the required documents.
• Another advantage of buying a car in Dubai is that you can save a lot of money compared to the DACH region. Be it fuel, customs duties or VAT.

Buying a car in Dubai

In Dubai, the car is the most popular means of transportation and there is a reason for this: 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 are hardly used by Europeans anyway. As Dubai has many places that are not easily accessible by public transport, a car or cab is indispensable for everyday life. This is why the majority of people living in Dubai sooner or later buy a car - which certainly has its advantages. Thanks to the numerous tax benefits, many people can afford luxury cars. A fact that has a particular impact on driving pleasure. But of course there are also non-luxury models available in the UAE that will get you from one place to another just as reliably. 

The advantages of buying a car are also undeniable. This is because you do not pay VAT in Dubai, which significantly minimizes the purchase costs when buying a car. In addition, you can have your dream car imported from another country without having to pay high customs duties. These two factors are invaluable when it comes to buying a car.

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

• Creating a traffic file: 220 AED
• Registration/registration of the car: 420 AED

For a used car additionally:

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

You are also obliged to take out motor vehicle insurance. However, the amount of the premium to be paid varies from insurer to insurer. However, you do not have to pay motor vehicle tax.

Good to know: All cars in Dubai are automatic. Only trucks and buses still have a manual gearbox, but no private cars.

Financing a car

Of course, buying a car is always a costly investment that you don't make every day. To take some of the financial pressure off you, there are various financing options in Dubai that you can take advantage of. Many banks and financial institutions offer attractive credit options at favorable interest rates. This makes it possible for you to afford your dream car without getting into a financial bottleneck.

Special feature license plate

In Dubai, license plates are a status symbol that stands for your wealth. The fewer digits you have on your license plate, the more you have to pay for it. It is therefore not uncommon for your license plate to be more expensive than your car itself.

License plates with 4 digits, for example, cost between €1,000 and €10,000. For 3-digit license plates, prices start at around €70,000 and for 2-digit license plates, the price can even exceed €1,000,000.

What documents do I need to buy a car?

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

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

If it is a used car, additional documents are required on the part of the seller:

• A certificate that certifies that the car is technically sound
• An existing vehicle insurance policy
• A vehicle registration document

Good to know: You will need various vehicle documents in Dubai. These include a road license, which certifies that your car complies with the traffic authority's regulations, as well as a registration certificate. 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 also have the option of leasing a car in Dubai.

Lease a car in Dubai

In Dubai, car leasing is also a popular option for getting 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 then have the option of extending the leasing period or buying the car outright. In both cases, however, you bear less financial risk than with a car purchase.

In addition, you need to provide 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 leasing contract and you can start exploring the city of Dubai in your new car. However, be aware that the number of kilometers you can drive in a given period may be limited. Therefore, read your leasing contract carefully before signing to avoid being surprised with additional costs later on.

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

How can I register my car?

One important thing to keep in mind when buying a car is the fact that it is strictly forbidden to drive a car without a valid registration in Dubai. Therefore, registering your car is also mandatory. However, there are different procedures and different documents required for registration:

New car

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

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

• A rental agreement in your name
• A valid residence visa
• Proof of employment in Dubai

For the vehicle registration itself, you will also need your Emirates ID and traffic file, 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 are having 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 with the vehicle registration certificate (Mulkiya card) along with the license plate number and sticker with expiration date.

Your vehicle registration is valid for one year from this date.

Used cars

The registration process is similar for a used car. However, you will need additional documents. As a rule, you will be helped with this if you buy your car from a car agency or an authorized dealer.

However, before registration can take place, ownership must be transferred to you. This takes place after the vehicle has been technically inspected. You must also pay a service fee. As the new owner, you will then receive the vehicle registration certificate and the expiry sticker.

Where can I refuel my car in Dubai?

The UAE has a large number of petrol stations, e-filling stations and Superchargers, so you are guaranteed not to be left stranded with your car. An employee at the filling station will even take care of refueling your car for you.

But there is another way to refuel your car. In the UAE, for example, it is possible to book a refueling via app. In this case, a tanker will come to you on site to refuel your car. There is no difference in price compared to filling up at a normal petrol station. However, you should be aware that your car must be parked in a parking lot or driveway so that the tanker has easy access.

The toll system in Dubai

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

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The road toll system itself is called Salik. You can buy the necessary sticker online or at any petrol station. Once you have purchased your Salik sticker, you must affix it to the front plate of your car. You must also check the balance of your Salik sticker regularly by calling 800-Salik (80072545) and top it up online via an app if necessary.

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Good to know: If you cross a toll booth without a badge, you will be fined. The same applies if your Salik badge does not have sufficient credit and you do not recharge your card within 5 days of passing the toll booth.

 

Diesel, petrol and electric: an overview of prices

In the UAE, petrol is still the most popular fuel for vehicles. Diesel is also used, but more for heavy vehicles or large trucks. A special feature in the UAE, however, is that alternative fuels such as liquid gas and natural gas are now available at some filling stations. Compared to electric vehicles, however, these fuels are not very widespread. 

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

Diesel

• Germany: 1,69 €/ L
• Switzerland: 1,97 €/ L
• Austria: 1,61 €/ L
• VAE: 0,79 €/ L

Gasoline

• Germany: 1,73 €/ L
• Switzerland: 1,81 €/ L
• Austria: 1,56 €/ L
• VAE: 0,75 €/ L

Electricity

• Germany: 0.49 €/ kWh
• Switzerland: 0.21 €/ kWh
• Austria: 0.43 €/ kWh
• VAE: 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 considerably 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 levies are added. Compared to Germany, however, the final prices are still well below the German level. This is because electricity prices in Germany are so high not only because of the pure energy costs, but also because of the additional levies and taxes. Of course, the Ukraine-Russia conflict has also contributed to the fact that energy prices in Germany and the rest of the DACH region have skyrocketed. Buying an (electric) car therefore pays off in several respects.

What are the things to consider when driving in Dubai?

When driving in Dubai, there are a few differences compared to Europe. For example, traffic signs in Dubai are usually in Arabic or English and sometimes have symbols that you will not find in other countries. It is therefore advisable to familiarize yourself with the local traffic signs and their meanings.

However, there are also some differences to Germany in terms of traffic fines. For example, you have to pay around €200 if you wrongly 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 under the influence of alcohol or drugs), the court alone decides how high the penalty will be.

Good to know: There are so-called "friendly radars" in Dubai. These are speed cameras that are triggered before the maximum speed limit is reached. The aim is to encourage drivers to pay more attention to their speed.

Will I be checked in traffic?

Dubai has the special feature that no traffic controls are carried out. This is not necessary, as regular road traffic is monitored by video. Therefore, there are also no more alcohol checks. However, this does not mean that you get a free pass for drunk driving, as, as previously mentioned, the fines in this case are very high.

Conclusion

The car is the most popular means of transportation in Dubai. This can be explained by the fact that many places in Dubai are difficult to reach by public transportation and a car is therefore indispensable. Therefore, sooner or later you should consider buying or at least leasing a car. However, buying a car is much more attractive, as there are numerous tax advantages and other benefits waiting for you. 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 familiarize yourself with the local traffic regulations and customs so as not to cause an accident and avoid unnecessary costs.

FAQ

Can I take my car with me from Germany?

Yes, you may import your car into the UAE. However, it must meet certain requirements, such as having air conditioning or a steering wheel that is positioned on the right-hand side. You will also need an insurance policy, an export declaration and an inspection report. Your car can then be shipped to the UAE within a month.

What are the best leasing providers?

As car leasing is a lucrative industry in the UAE, you can purchase a car from many companies at good conditions. Some of these include Diamond Lease, Hertz and Sixt. But no matter which provider you choose, you should always get several quotes to find the best option for you.

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