UAE auto finance
calculator
Work out the monthly cost of financing a car in the UAE — and see the difference between a flat rate and a reducing-balance one, which is larger than most people expect.
Monthly payment
AED 1,839
Talk to us about car finance- Amount financed
- AED 96,000
- Down payment
- AED 24,000
- Total interest
- AED 14,352
- Total repayable
- AED 110,352
- Payments
- 60 months
An estimate, not an offer. What a bank will actually lend depends on your income, existing commitments, the property or vehicle, and the rate you are approved for. Deposit minimums follow current UAE lending practice and change from time to time. Talk to us and we will give you real numbers from the banks we work with.
Flat rate or reducing balance?
Car finance in the UAE is usually advertised as a flat rate. That means the interest is worked out on the full amount you borrowed and charged for the whole term, even though your balance is falling every month. A reducing-balance rate charges interest only on what you still owe.
The difference is bigger than it looks. Borrow AED 96,000 over five years and 2.99% flat costs around AED 14,400 in interest, against roughly AED 7,500 on a reducing-balance rate — close to double, for the same advertised number. If you are comparing two banks, check which basis each is quoting before deciding one is cheaper. Switch the toggle above to see it on your own figures.
Deposit and term
Banks here generally finance up to 80% of a vehicle’s value, so plan for a fifth of the price up front, and terms normally run to five years. Your salary and existing commitments decide what you are approved for, since lenders cap total monthly repayments as a share of income.