UAE Auto Loan Calculator

Calculate your car loan monthly payments, required down payment, and check affordability with our UAE-specific auto loan calculator.

UAE Auto Loan Calculator

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UAE regulations require minimum 20% down payment

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Current UAE auto loan rates typically range from 2.5% to 5%

Maximum term is 60 months (5 years) in the UAE

Affordability Check (Optional)

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Include existing loans, credit cards, etc.

UAE banks require total debt payments (including this loan) to be under 50% of monthly income.

Understanding Auto Loans in the UAE

Car loans in the UAE follow specific regulations set by the Central Bank to ensure financial stability and protect consumers from excessive debt.

Key UAE Auto Loan Regulations

  • Mandatory Down Payment: A minimum of 20% of the vehicle's value must be paid upfront. This means banks can finance a maximum of 80% of the car price.
  • Maximum Loan Term: Auto loans in the UAE are capped at 60 months (5 years) maximum.
  • Debt Burden Ratio (DBR): Your total monthly loan payments (including the car loan) should not exceed 50% of your monthly income.
  • Interest Rate Types: UAE banks may advertise "flat" rates or "reducing balance" rates. A flat rate can be roughly converted to a reducing balance rate by doubling it (e.g., 3% flat ≈ 5.5-6% reducing).

Additional Costs to Consider

When buying a car in the UAE, remember to budget for these additional costs:

  • Car insurance (typically 3-5% of car value annually)
  • Registration and licensing fees
  • Loan processing fees (usually 1% of the loan amount)
  • Maintenance costs

This calculator provides estimates based on the standard reducing balance method used by banks in the UAE. For personalized auto loan offers, we recommend consulting with various banks to find the best rates.