So you’ve decided on the new car you want – nice work!
Now comes the tough part – which is the best way to finance it? We’ve written plenty of guides on financing a new car, laying out the different ways to do it. But if you’re settled on the car loan route (as most people are), you’ll want to check out the best car loans available in the UAE right now.
And with interest rates going up, the cost of the loan should be one of your primary considerations. After all, when borrowing money for anything, you’ll want to be paying as little as possible in interest.
That’s why we’ve rounded up six car loans with amazingly low interest rates. If you’re buying a new car, these are the loans that’ll help you finance it cheapest.
RAKBANK RAK Auto Loan
RAKBANK’s RAK Auto Loan is a no-nonsense offering that gives you everything you need at a reasonable price. You don’t need a salary transfer account with the bank, you can borrow up to AED 500,000, and your first installment will only be due after 60 days. Plus, RAKBANK will also provide finance for insurance, rust-proofing and service contracts. Oh, and the interest rate is really good.
Reducing interest rate: From 3.79%
Emirates NBD Featured-Packed Auto Loan
A yallacompare Banking Awards winner, this car loan offers everything you need to get your car on the road. Emirates NBD promises quick approvals, flexible payment options, round-the-clock roadside assistance, and a free bank account and credit card. The interest rate is pretty attractive, too.
Reducing interest rate: From 4.61%
Mashreq Car Loan
Whether you are looking for a new or a pre-owned vehicle, buying from a dealer or a private seller or refinancing your existing car, this product from Mashreq will give you a quick financing solution. It’s the car loan for everyone – and the rates are super-competitive.
Reducing interest rate: From 4.31%
Noor Bank Auto Finance
If you’re looking to finance a new car with an Islamic bank, you won’t find much better rates than with Noor Bank’s Auto Finance product. The best deals do come with brand new, out-of-the-showroom cars, but the bank will also give you pretty good finance deals on used cars, too.
Flat Profit Rate: From 2.49%
HSBC Car Loan
This one makes the list for a couple of reasons. One, right now, HSBC is offering pretty good discounts on its interest rates for new and pre-owned cars. Two, if you’re buying a hybrid or electric car, you’ll also be in for a discount on fees and interest rates. Unfortunately, this loan isn’t for everyone (you’ll need to be earning AED 20,000 a month or more to be eligible), but if you are reasonably well off, this is certainly an attractive option.
Reducing interest rate: From 4.6%
ADCB Car Loan
Another simple, no-nonsense option, ADCB’s Car Loan promises convenient, quick approvals and the ability to borrow up to AED 1.5 million, depending on your salary. Oh, and the interest rate is excellent.
Reducing interest rate: From 4.74%