Financing a car should be quick and simple, but the details matter: the down payment, the rate, insurance, and what you can and cannot do with the car while you are still paying. We help you get a clear offer, compare banks and, where it makes sense, compare car financing with a personal financing option.
How car financing works
- Choose the car: new or used, from a dealer or a private seller, as long as it meets the bank's criteria for age and value.
- Get a quotation: the dealer issues a quotation or proforma invoice with the price and specifications.
- We submit it to the bank: we send the quotation with your documents to suitable partner banks and follow up on approval.
- Pay the down payment and register: once approved, you pay the down payment, the bank pays the seller and the car is registered with a mortgage in the bank's favour.
Down payment, tenor and limits
- Down payment: typically 20–25% of the car's value. Central Bank rules cap car financing at 80% of the value, so at least 20% comes from you.
- Tenor: up to 60 months (5 years). Offers advertising longer periods do not comply with current Central Bank rules.
- Affordability: your total monthly debt repayments cannot exceed 50% of your income.
- Insurance: comprehensive insurance is normally required for the full financing period.
The resale restriction
Because the car is mortgaged to the bank and registered that way with the traffic authority, you cannot sell or transfer it until the financing is fully settled and the bank releases the mortgage. If you plan to change cars often, this is an important point to consider.
Car financing or personal financing?
Sometimes a personal financing option is worth comparing. We look at two things with you:
- Cost: car financing rates are often lower because the car itself secures the loan, while personal financing may carry a higher rate.
- Freedom to dispose of the car: with personal financing the car is usually registered free of any mortgage, so you can sell it whenever you want.
Personal financing is limited to 20 times your monthly salary and 48 months, so it does not suit every purchase. We calculate both options before you decide.
Documents usually requested
- Passport, residence visa, Emirates ID and driving licence.
- A recent salary certificate and three to six months of bank statements.
- The seller's quotation or proforma invoice, and an inspection report for a used car.
Who is it for
- Salaried employees and business owners buying a new or used car.
- Families adding a second vehicle.
- Buyers who want to compare banks rather than accept the dealer's single offer.
How it works with Lugain Global
- We review your income, commitments and the car you have chosen.
- We request offers from several partner banks and compare total cost.
- We submit the selected application and follow up until approval.
- We coordinate with the dealer and the bank until registration and delivery.
Important to know
Banks may set stricter criteria, such as minimum salary, car age limits or a higher down payment. Lugain Global is a financing broker, not a lender, and approval is always at the bank's discretion.