Many people take car financing for granted until they face serious bottlenecks or the bank rejects their application. There are a number of steps you can take to improve the chances of getting your dream car financed. You can also save money while getting your car financed by learning some tips for the trade. The following guide has been prepared by ServiceMarket and HSBC to get you through the process quickly and easily.
You can get car financing if you are between 21 and 65 years old with a valid UAE residency visa. In addition, you need to satisfy the minimum salary requirement set by the bank.
- Bring along the necessary documents: The required documents may differ slightly depending on the bank, however they typically include your driving license, your passport with a valid UAE visa, a salary certificate, statements of your last three months’ income, your Emirates ID, and a filled in and signed application form.
- Let your salary package make an impression: The higher your salary, the lower risk you would be as a loan customer. Make sure all perks, allowances and bonuses have been mentioned in your salary certificate. Other factors banks take into consideration are whether you work with a reputable company and how long you have worked with them.
- Arrange initial payments: Before you pick a car and apply for financing, make sure you have enough funds in your account to deposit the down payment. You will usually be expected to pay a minimum of 20 percent of the car’s value. You may also need to pay a processing fee, which is usually 1% of the loan amount with a maximum cap of AED 2,500.
- Avoid very old cars: Most banks will ask you to repay your loan before your car turns ten years old, which means that if you get an eight-year-old car, the payments will be spread over two years. In addition, very old cars are less likely to get financed.
- Having a Salary Transfer Account with the same bank can be beneficial: Having a Salary Transfer Account with the same bank will usually allow you to enjoy a better interest rate.
HSBC Car Loan
HSBC offers interest rates starting from 2.49% p.a. for a new car and 3.49% p.a. for a used car. You just need to apply for a car loan online and one of their representatives will call you back within 30 minutes. You can easily get a loan up to AED 918,000 and repay it in 1 to 5 years. In addition, HSBC does not require you to transfer your salary to an account.
Looking to buy a car? We can help. Borrow up to AED 918,000 with an HSBC Car Loan. Terms and Conditions apply.
