It is one of the most common questions people ask about Dubai, and the UAE in general. The cost of cars is said to be lower in the UAE than in most parts of the world. However, the real question is, why are cars so cheap in the UAE?
The automobile market in the UAE is one of the most distinctive in the whole world, in that it allows the purchase of one of the widest varieties of vehicles. These prices give additional interest to this case. Most car buyers in Dubai are actually within closer range of their ideal vehicles than they originally thought due to the decline in the interest rate and the availability of financing options.
An Increase in the Rate of Relocation
With the vivacious and active spirit of the Emirates, traditions are alive in Dubai. Therefore, people travel from every part of the earth because they plan to move to these towns. Over 200 nationalities of expatriates live and work in the United Arab Emirates, and many of them will eventually acquire a car while there.
Some of them stay a few years before returning home, while some live there for several decades. The fact is that a great many foreign expatriates tend to sell a car upon leaving the Emirates. The time frame of expatriation and repatriation in the UAE is very fast, which results in a huge trade of car sales and purchases.
Low Tax Turn Cars Cheap in Dubai
In many parts of the world, a motor vehicle is considered highly ranked good for taxation. In the United States, the maximum car tax rate is 8.25 percent, within the EU the maximum goes to 27 percent! In many countries, taxes are in direct relation to the worth of the car, usually higher on luxury items.
However, since in the UAE you are only subjected to a 5% VAT on the purchase of your car, it is quite cheap to buy one mere five percent. Therefore, whether you are buying a Range Rover Autobiography or a Nissan Tiida, you will only have 5% VAT paid on the selling price.
A Large Number of Abandoned Cars in Dubai
A lot of abandoned cars have probably gotten many a video and photoshoots done shooting some dust across different emirates of the UAE. From past years' financial crisis, a lot of cars from luxury to mundane have been abandoned across the UAE, and for a lot of different reasons. The crisis came to an end, and today the UAE stands firmly in line among some of the wealthiest countries in the world. But some abandoned cars have been picked up and offered for sale on the second-hand market; some appear even at auctions in the UAE, offered as great price bargains that might see you landing the car of your dreams if you gain enough luck. But be sure to inspect your car before purchasing.
Higher Maintenance Costs in Dubai
However, because the United Arab Emirates is a desert country with extremely high summer temperatures, expect some parts of your car to suffer from more wear and tear. The tires are especially vulnerable to wear and tear, meaning you are likely to replace the tires more often than in other countries. This is the only aspect of car ownership in the UAE that matches or hikes up slightly in comparison to other states, thus bringing down car prices.
However, the cars last an enormously long time, given the excellent road infrastructure and high level of serviceability; this is mainly where one can come across the UAE cars with hundreds of thousands of kilometers on the clock that is perfectly functioning.
Low Prices of Fuel Make Cars Cheap in Dubai
Gas prices do not directly affect the price of a car in Dubai, but they influence it indirectly. Cheap vehicles for sale in the UAE do not result from cheap gasoline prices; such gasoline prices result in lower ownership and operating costs as well. The UAE stands at the 18th position among countries in the world in terms of fuel purchase in a way that it gives different rates.
FAQS
How Come Cars Are So Cheap in the UAE?
The cost issue is resolved by the lowest car import tariffs, dealer competition, favorable taxes, and the fact that the UAE is one of the world's leading trading centers; the price of cars is significantly lower in the UAE. Other highlighted reasons are cheaper vehicles as a consequence of a well-established second-hand car market and a high stock turnover rate.
How come instead of high-end cars, Dubai offers the cars at a great sale?
For instance, the luxury tax rate in Dubai is very low, and the imported cars go through loose conditions there, which helps bring the cost down. Moreover, they will offer customers competitive prices for high-end used cars which is an additional factor that decreases the cost of this segment.
Are interest rates in Dubai cheap when buying a car?
When compared to many other nations, Dubai offers comparatively inexpensive interest rates for auto loans. Because rates usually fall between 2% and 6%, auto finance is more widely available. Additionally, some cars can be financed with no interest.
How much tax does Dubai impose on cars?
Although there are no additional sales or import taxes, cars in Dubai are subject to a 5% VAT, which keeps overall car costs cheaper than in many other nations.
