Just got your license in Dubai?
You might be thinking about purchasing your first car, and for most expats moving to Dubai, one of the first things that quickly becomes clear is that owning a car isn’t just a luxury; it’s a convenience that makes life in the city smoother.
But buying a car in Dubai as an expat can feel overwhelming at first. Between choosing new vs. used, understanding the paperwork, and learning about financing options, it’s easy to get lost in the details. This guide will walk you through everything you need to know in 2025 to make the process easier, smoother, and stress-free.
Step 1: Decide Between New and Used Cars
The first big decision is whether to go for a brand-new car or a used one.
New cars in Dubai come with warranties, lower maintenance in the early years, and peace of mind since you’re the first owner. Brands like Toyota, Nissan, BMW, and Mercedes all have strong dealership presence here. However, they depreciate fast — expect a 20–30% drop in value within the first year.
Used cars can save you a lot up front. Dubai’s expat-heavy population means that many people sell their cars when they leave the country, resulting in a secondhand market that is packed with options. Platforms like Dubizzle, CarSwitch, and certified pre-owned programs from dealerships are good starting points.
Step 2: Understand the Costs
The car price is just the start; here are the main costs you’ll want to budget for:
Insurance: Mandatory in Dubai. Rates depend on the value of your car, your driving history, and even your age. For a mid-range sedan, expect between AED 2,000–5,000 per year.
Registration and renewal: You’ll need to register your car with the Roads and Transport Authority (RTA). Initial registration costs around AED 400–500, and annual renewal is about the same.
Salik (Toll): Dubai’s toll system is fully electronic. Each time you pass under a Salik gate, AED 4 is deducted.
Fuel: The good news is petrol in Dubai is much cheaper than in Europe or the UK. In 2025, expect around AED 3 per litre.
Servicing: Service costs vary depending on whether you’re at the dealership or a third-party garage. Many expats choose independent garages for affordable, quality maintenance.
Step 3: Financing Your Car
If you don’t want to buy outright, financing is straightforward in Dubai. Most banks and dealerships offer car loans to expats, but you’ll need:
Loan terms usually go up to 5 years, and interest rates in 2025 are hovering around 3–4%.
Step 4: Paperwork and Process
Once you’ve picked your car and agreed on payment, here’s how the process typically works:
Car Inspection: If you’re buying used, always get a full inspection either through the RTA or a trusted garage.
Insurance: Secure your insurance policy before you can register the car.
Registration at RTA: The seller (if used) and you will need to visit an RTA branch. The car’s registration will be transferred into your name once the fees are paid and documents are approved.
Number Plate: You’ll receive your Dubai number plate on the spot.
Step 5: Driving as an Expat in Dubai
Once you’re on the road, there are a few things worth knowing:
Driving License: If you hold a license from certain countries (UK, US, most EU nations, Australia, etc.), you can exchange it for a UAE license. Others may need to take driving lessons and a test.
Traffic Fines: Dubai is strict with traffic rules. Speed cameras are everywhere, and fines can add up fast. Download the RTA Dubai app to stay on top of payments.
Parking: Residential areas usually have allocated parking, but if you’re driving around the city, be prepared to pay for public parking through the RTA app or SMS.
Pro Tips for Expats in 2025
Resale value: Popular brands like Toyota, Nissan, and Lexus tend to hold their value better in Dubai.
Check for loans: When buying used, always make sure the seller has cleared any outstanding car loan on the vehicle, you can verify this at the RTA.
Don’t skip insurance comparison: Rates vary widely, so shop around online before committing.
Explore leasing: If you’re unsure how long you’ll be in Dubai, leasing a car can be a smarter option than buying.
Thinking about moving to Dubai?
If you are making the move, you would like to take a look at our properties for sale in Dubai.
As a truly customer-centric real estate agency, we offer a range of related services that are designed to make your property journey stress-free and successful from start to end.
