We all know the jitters that come with planning to buy a new car—excitement mixed with a good dose of nervousness. Honestly, I’ve been there myself, going back and forth between models, budgets, and endless reviews. Put in a few nervous breakdowns, and you’re basically me! Jokes aside, I’ve had countless friends, colleagues, and even family members ask me, “What’s the best way to buy a new car in the UAE?” So much so that I thought—why not write a blog about it and help not just them, but also you, wherever you may be reading this from?
Buying a car in the UAE isn’t just about picking something shiny off the lot. It’s about choosing a vehicle that matches your lifestyle, fits your budget, and aligns with your future plans. And with 2025 bringing in exciting updates, new technologies, and a growing focus on EVs and hybrids, the decision is bigger than ever.
So, in this blog, I’ll walk you step by step through everything you need to know before making that big decision. Whether you’re a first-time buyer or looking to upgrade, this roadmap will help you make a confident and informed choice for your next car.
Step 1: Set Your Budget & Understand Real 2025 Costs
Budgeting isn’t just about the sticker price.
You need to calculate VAT, insurance, registration, and ongoing running costs.
- VAT: 5% on the car price
- Registration: ~AED 420
- Traffic File: ~AED 220
- Inspection (for used): AED 150–170
- Salik Tag: AED 100 + AED 50 credit
- Comprehensive insurance: 1.5–3% of car value annually
From my experience, I once almost fell into a trap. I was eyeing a shiny sedan, but after factoring Salik, registration, and higher insurance, it was way over budget. Planning ahead saved me from months of financial stress.
Tip: Use the 25% rule—don’t let all car expenses exceed 25% of your monthly income.
Step 2: Decide New or Used — Which Is Better in the UAE?
A big question when you want to buy a new car: should you go brand‑new or used?
- New Cars
- Warranty (3–5 years)
- Latest safety and tech features
- Higher upfront price + VAT + higher insurance
- Used Cars
- Lower purchase cost
- Slower depreciation
- Risk of hidden damages—so always do a VIN check
I am a person who enjoys buying used products. To me, they provide better value. Yes, you have to be extra careful when purchasing a used product, but you get used to it. So, whenever someone asks me whether they should go with a new or a used car, my first response is “Go get a used car! You get so much value!” But over time, I have realised that not everyone wants absolute value.
Some people like the feeling and thrill of purchasing a new car. So, there’s your answer: if you want the absolute value of what you pay, get a used car; if not, the new car is right there in the showroom waiting for you. I lean towards new cars for the peace of mind and warranty, especially for EVs.
But I’ve seen friends get incredible deals on used SUVs that felt practically new.
Should I Choose EV, Hybrid or Petrol Car in UAE Today?
With 2025’s growing infrastructure, the choice has never been more important.
- EVs: Quiet, smooth, and low running costs. Ideal if you live near charging stations.
- Hybrids/PHEVs: Flexible—use electric for city drives, petrol for long trips.
- Petrol Cars: Still practical for longer commutes or areas with fewer chargers.
I tried both a hybrid and an EV last year. The EV amazed me with instant acceleration, but the hybrid made more sense for weekend road trips to Fujairah.
If you’re unsure, hybrids are the safe middle ground for most UAE residents in 2025.
Which Chinese Car Brands Offer the Best Value in UAE 2025?
Chinese automakers are redefining value in the UAE.
Here are the standout models this year:
- Jetour X70 Plus – AED 70,000–85,000
- Mid‑size SUV, panoramic sunroof, ADAS, 5‑year warranty
- Jetour Dashing – ~AED 114,000
- Compact SUV with futuristic styling and advanced features
- BYD Song Plus – AED 100,000–120,000
- Hybrid/EV with up to 500 km electric range
- Exeed RX (Omoda C9) – ~AED 120,000+
- Luxury crossover with 261 hp and hybrid option
- Hongqi H9 / E‑HS9 – AED 225,000–530,000
- Full‑size luxury EV with European‑level comfort
When I test drove the BYD Song Plus, I was genuinely surprised.
The build quality felt European, but the price was half.
Step 5: Test Drive, Inspect & Research Vehicle History
Never skip the test drive.
Drive on highways, city roads, and bumps to check comfort, handling, and hidden issues.
For used cars:
- Do a VIN check (~AED 500)
- Check accident and service history
- Ensure GCC‑spec compliance
Once, I nearly bought a car that looked perfect online. But during the test drive, it felt cramped and noisy. That short drive saved me from a mistake.
Step 6: Secure Financing & Negotiate Like a Pro
Banks usually require:
- 20% down payment
- Monthly salary of AED 5,000–8,000
- Loan tenure up to 60 months
EV loans in 2025 often come with reduced APR (~3.99%).
Dealerships also give free insurance or service packages—especially during Ramadan or UAE National Day sales.
During my last purchase, comparing two dealers saved me AED 7,000 plus free first‑year insurance. Always negotiate—it’s expected here.
Step 7: Complete Registration & Insurance Smoothly
Documents you’ll need:
- Emirates ID
- UAE driving license (or traffic file if none)
- Passport copy + residence visa
- Insurance policy
- Inspection certificate (for used cars)
Budget for:
- Registration: AED 420
- Ownership transfer: AED 350
- Traffic file: AED 220
- Salik: AED 100 + AED 50 balance
From my experience, head to the RTA in the morning. When I went late in the afternoon, the queues doubled my wait time.
Step 8: Warranty, Service & Resale Considerations
Always confirm:
- Warranty duration (Chinese brands often offer 3–7 years)
- Free service packages, if included
- Strong dealership support in your emirate
Keep service records—buyers in Dubai pay more for cars with documented history.
I kept every receipt for my last car. The buyer didn’t even haggle after seeing the full file.
FAQs About Buying a New Car in the UAE in 2025
A: Ramadan, summer, and end‑of‑year clearance sales are best. Dealers offer heavy discounts, extended warranties, and free insurance.
A: Yes. With an Emirates ID, you can register a car under your name and hire a driver if needed.
A: Absolutely. A VIN check (~AED 500) and mechanical inspection can save you from buying a car with hidden damage.
A: Yes—brands like Jetour, BYD, Exeed, and Hongqi now have strong resale thanks to dealer support and growing demand.
A: Yes for city driving, especially with Dubai’s expanding charging network. For long drives outside the city, hybrids remain a safe option.
Why Finding the Right Car Matters
Buying the right car shapes your daily life in the UAE.
- Long‑term value: Better resale and fewer headaches
- Running costs: Fuel, insurance, and maintenance impact your budget
- Technology: Safety systems, hybrids, and infotainment are now standard
- Resale & warranty: Dealer support gives peace of mind
When I bought my last car in Dubai, I realized it wasn’t about flashy features. It was comfort, reliability, and affordable upkeep that truly mattered.
What Does a Car Mean for You?
In the UAE, a car is more than transportation—it’s part of your lifestyle.
To buy a new car in 2025 with confidence:
- Budget realistically
- Choose new or used based on your comfort level
- Pick EV, hybrid, or petrol depending on your driving habits
- Always test drive and inspect
- Negotiate financing and look for seasonal deals
- Complete your registration early in the day
- Maintain records for better resale
For me, choosing wisely turned driving into a pleasure instead of a hassle.
If you treat buying a car as an investment in your lifestyle, you’ll never regret your choice.
