Dubai: Choosing whether to buy a car more or less comes down to one’s priorities or interests. For some drivers, it is purely a matter of money, while for others, it’s more about better terms and non-monetary perks. Regardless of your choice, it’s vital to weigh these commonly mistaken distinctions.
“When considering whether to buy a car, it's essential to ask the right questions to your dealership to ensure you make an informed decision,” explained Atif Asgar, a Dubai-based automotive analyst specialising in retail pricing, financing, and insurance coverages, before listing out a few of them.
“Are you better off owning a depreciating asset like a car than paying rent on one? Are you willing to take on the tasks of comparing and acquiring the right insurance; renewing the registration annually with either option; or find a maintenance package and take the vehicle for regular maintenance?”
What questions should you ask when buying a car?
1. What is the total cost of ownership?
Ibrahim Riba, a senior salesman at a car dealership based in Abu Dhabi, explained that aside from much advertised purchase price, there are other financial metrics you need to enquire about that are just as important.
“The purchase price is often the only advertised or broadcasted figures at car dealerships. But that doesn’t paint a crystal clear picture for your finances. Ask about the car's price, financing options, interest rates, taxes, and additional fees.
“The total cost includes the car’s price, if you're buying outright, sales VAT, title fees, and registration. You’ll also need to account for ongoing costs like insurance, fuel, and maintenance. If financing, the interest and monthly payments are added.”
• All costs and liabilities are on you in all situations
• In case you need to leave suddenly, selling the car at a reasonable price could be a hassle
• You still pay the monthly amounts even if you don’t use the car
• A second-hand car comes with risks that can drive up your service and maintenance costs none of it would be your concern if it was a rental.
2. Any manufacturer or dealer incentives? What are my trade-in options?
While it’s a standard practice to be informed about the down payment and a second nature to anybody looking to buy a car, Asgar noted that it is just as important to enquire about current rebates, discounts, or special offers – which the dealership may choose to “conveniently” forget to mention at the time.
“The answer you can expect is dealerships may offer cash rebates, financing specials, or trade-in bonuses. Manufacturer offers vary but could include low-interest financing or zero-down payment options,” he added.
“Another key incentive among dealerships is that they also typically offer a trade-in value based on the condition, model year, and market demand as part of such offers. So they may give you a higher trade-in value if you're buying a car from them.”
3. What is the warranty coverage and maintenance requirements?
Asgar and Riba both stressed that when buying a car, it’s often-overlooked to enquire the warranty of the new car, which varies with each car. “While basic warranties cover 3 years worldwide, for powertrain or drivetrain, it’s 5 years,” Riba noted, while noting that it stays largely the same in the UAE.
“Some retail car brands worldwide also offer extended warranties or free maintenance for the first few years. When enquiring about maintenance requirements, know that cars typically need an oil change 7,500 kilometres. Other regular maintenance includes tire rotations, brake checks, and fluid top-ups.
“Luxury or higher-end models may have higher upkeep costs. Also, note that some dealerships allow extended test drives, if you're seriously considering a car. You may be able to take the car for half a day or more. So consider asking that too.”
Key takeaway? By asking these key questions, the experts further agree that you’ll not only better understand the total cost and commitment for buying a car, it will allow you to make a well-informed largely-financial decision based on your circumstances or needs.
