Buying and selling cars in Dubai, UAE  

Cars - buying and selling, and insurance

It is not advisable to accept a personal cheque as payment when selling your car. There are a number of reports people losing their car and receiving no money as a result of the cheque bouncing.

Buying or selling your precious auto is always a fun process, and you'll enjoy it in Dubai as much as anywhere. Take a few posh cars for a test drive - you'll find second hand dealers a lot more willing to throw you the keys to a Mercedes or BMW than in many other countries. New car dealers are usually pretty good too as long as you look halfway sensible.

What follows are details of where to buy, how to buy, how to sell, how to register, etc. Remember that cars seem to age more quickly in the arid climate in Dubai and look old sooner than you might expect elsewhere. Maintenance tends to be fairly casual too, FSH (Full Service History) usually means the car had a service every now and then, and there's no record of it. At the end are a few suggestions to consider (it's not advice but just a couple of ideas to get you started on your car shopping adventure), and a few tips on what to look out for when shopping for a second hand car (it's not comprehensive, and it's no replacement for a proper test/check up by someone who knows what they're doing).

Selling a New Car

You may wonder about the heading here but it's not completely unheard of for private individuals to sell a new car - quite a few are given away as raffle prizes. You'll be offered a ridiculously low sum of money from a second hand dealer (or even the original dealer), and will probably do much better if you sell it through other means. A difficulty is that you can't test drive it unless you register it - which makes it second hand then.

Buying a New Car

A choice many new arrivals to Dubai shy away from but there are a number of things going for this option.

• New cars are relatively cheap compared to many countries (probably not USA, NZ, or countries in Europe where cars are cheaper - France? Germany?)
• A bank loan is often cheaper than you first expect and usually, most working expats have more disposable cash compared to previous country of residence.
• New cars have some protection with the warranty.
• Some come with service agreements or contracts included (eg 3 years or 100,000 km worth of servicing, not usually transferable when selling car).
• You don't have to wonder if it's been looked after properly or not.
• Usually you can choose your preferred color.
• Often there'll be a good promotion on something close to what you want - especially unsold one year old models just before the new ones come out.
• The downside is the loan (if you've opted for that) and the depreciation (insane, like anywhere).

New Car Dealers

There's usually only one dealer per car manufacturer due to the Sole Agency law in the UAE. So the lack of competition does mean you're stuck with that dealer for servicing if you want your warranty to remain valid. This applies to 2nd hand cars also if they're still under warranty. That law applies on a per emirate basis so you will find some automobile manufacturers with a different agent in different emirates. Some of the bigger car dealers in Dubai are:

• AGMC - BMW
• Al Futtaim - Lexus, Toyota
• Al Ghandi Auto - Chevrolet (Dubai & Ras Al Khaimah, from January 2008, previously was Al Yousef Motors), GMC
• Al Habtoor Motors - Aston Martin, Bentley, Mitsubishi
• Al Majid Motors - Hyundai, Kia
• Al Nabooda Automobiles - Audi, Porsche, Volkswagen
• Al Tayer Motors - Ferrari, Ford, Jaguar, Landrover, Lincoln, Mercury
• Al Yousuf Motors - Chevrolet (changed to Al Ghandi in Dubai & RAK from Jan 2008), Daihatsu, Daewoo
• Arabian Automobiles (Al Rostamani) - Nissan
• Galadari - Mazda (used to have Ford also but Ford paid them a few million dollars to get out of the agency agreement in about 2001 or 2002).
• Gargash - Alfa Romeo, Mercedes, Saab
• Liberty Automobiles - Cadillac, Chevrolet, Hummer, Opel
• Trading Enterprises - Chrysler, Dodge, Honda, Jeep, Volvo

It's possible to buy gray imports - new cars from second hand dealers at cheaper than new prices. Usually come from other Middle Eastern countries, sometimes further afield. Often advertised as "unwanted prizes". The difference is the grey import "unwanted prizes" will have warranty problems with the UAE agent, the real "unwanted prizes" won't.

Bank Loans for cars and automobiles

• Most/all banks have some sort of car loan arrangement, easily set up if you have a regular salary and a residence visa.
• A car loan means the car is owned by the bank - you can't sell it until paid off and get clearance letter from bank.
• A personal loan means the car is owned by you. Interest rate is higher than for a car loan.
• Normally banks will want three to six months bank statements, passport with resident visa, and salary certificate or letter from your company addresses to the bank. If you're getting a car loan then driving license also.

Buying a second hand car or used car

It's impossible to find one in Dubai now - they're all "pre-owned" instead. Makes them sound better than new right?

One thing (of many) to bear in mind is whether or not a car is built to "Middle East or Gulf specifications". A number of older cars have arrived in Dubai from other countries (used Mercedes from Europe for example) and have different specifications to new cars supplied to Gulf dealers. The main concern is the air conditioning and engine cooling system. Avoid if it's not Gulf specification, or at least find out how much it will cost you to upgrade it. This is less of a worry with newer cars. Keep reading for more useful tips...

Magazines

There's a couple of car magazines that have classifieds - Wheels (free, weekly) and Auto Trader (weekly, 5 dhs, sold at service stations).

Auctions

Al Awir used car market in Rashidiya has car auctions a couple of times a week run by Golden Bell Auctions - www.goldenbellauctions.com. Lists prices paid at previous auctions so good to look through and get an idea of car values. Good luck.

Supermarket notice boards

It's somewhat quaint to arrive in Dubai and look for cars on a supermarket noticeboard but it's a popular way to buy and sell used cars. Spinneys and Choitrams (or Choithrams) seem to be the best choices. Take the same precautions as you would anywhere when shopping privately for a used car.

Newspapers - classified advertisements

See next section for links to newspaper classifieds online. See also Dubai newspapers.

• 7 Days - limited
• Emirates Today - replaced by Emirates Business 24-7, limited
• Gulf News - has the largest selection and is probably your best choice.
• Khaleej Times - some.

Online websites for car sales

Note these are listed for reference, that does not mean they are recommendations (unless comment says so).

• www.autodealer.ae - claim to be the largest market place for cars, 4wds (4x4s), and bikes. Maybe. Many entries are often repeated.
• www.automalluae.com - Al Futtaim motors used car site.
• www.autosouk.com - good list on home page of cars for sale/wanted.
• www.autotraderuae.com - online version of magazine of the same name. Clumsy navigation to for sale ads (14 May 2008).
• www.cartrader24.com
• dubai.craigslist.org - just started in the UAE in 2006, very popular overseas.
• www.dubaiautozone.com - network error (14 May 2008)
• www.dubizzle.com - popular online classified ads website
• www.gnads4u.com - Gulf News dedicated classified ads site, not an online reproductive organ outlet
• www.khaleejtimes.com - Khaleej Times classified ads (in alphabetical order)
• www.starauto.com - slow loading
• motors.souq.com - auto section of souq.com
• www.uaemall.com - general auction site with vehicle section. Slow to load (14 May 2008).

Al Awir Used Car Market (or Al Aweer) - Dubai Municipality Used Cars Showroom Complex

Al Awir Used Car Market, Ras Al Khor Industrial Area - a great place to look around and see everything from your most feared POS jalopy to exotic carriages you thought only existed in Jeremy Clarkson's imagination. But take a good dose of salt with everything you hear and Caveat Emptor should be painted on the windshield of every car there. Undoubtedly there are some good cars available but how are you going to recognise them from the questionable imports, the ones that have been clocked, the insurance write-offs welded together again, and so on? The market has a poor reputation and prices don't seem particularly cheap compared to other used car sources. Except for perhaps the auctioned cars.

The complex has over 100 dealers, a car registration department, insurance companies, and a branch of the Middle East Bank so you don't even need your own money.

Opening hours are 7:30 am to 2:00 pm and 4:30 pm to 11:00 pm Saturday to Wednesday, maybe half day only on Thursday, possibly Fri afternoons for dealers. This could change after 01 Sep 2006 when government sector changes weekend for Thu/Fri to Fri/Sat.

See the Al Aweer Used Car Complex page for more information, contact details, location maps ...

Other used car dealers in Dubai

Is there any country in the world where used car dealers don't have a bad reputation? The answer is not Dubai or the UAE. And you have less comeback if there's a problem than you do in countries which have some degree of consumer protection (assume none in the UAE). Look at every car you buy on an "as is, where is" basis. The only exception being ones that still have a manufacturer's warranty. There are second hand car warranties sold by Gulf Warranties which may give you some piece of mind but there's a long list of exceptions in what they cover, and check the fine print for servicing locations and frequency.

If you have an accident and it's attributable to a defect that the dealer should have known about and had rectified, the police may get involved. But that's a bit late if you're laid up in hospital as a result. You'd have a very difficult time getting a successful outcome anyway.

• 4x4 Motors, near Dubai Airport - well known, large, they sell a lot of cars. Everyone seems to have a story about themselves or someone they know getting ripped off by 4x4. Which probably makes it about the same as a used car dealer anywhere else in the world.
• Auto Plus, Sheikh Zayed Road tel +971-4-3395400, Al Wahda St (Sharjah) tel +971-6-5321122, www.autoplusdubai.com.
• House Motors, Sheikh Zayed Road - seems to focus more on luxury cars (and the customers they think belong in them).
• House of Cars - similar to 4x4.
• Jumeirah Motors
• Off Road Motors - similar to 4x4.
• Western Autos - unknown opinion.

Registering a new or second hand car in Dubai

• This procedure is much the same for registering a new car but usually the dealer will do it for you.
• Find an insurance company in Dubai and get the car insured first. You can't register it without insurance documents.
• Go to the traffic department on the desert side of Sheikh Zayed Road, between the Garden Centre and Mall of the Emirates. Both buyer and seller should go at the same time. Bring 500 dhs for registration fees (it should be less than that). The seller should bring extra money to pay for any accumulated fines (even if s/he thinks they've paid them all - sometimes fines seem to get lost in the system but you can count on them being found when changing registration).
• You'll need passport with residence visa, driving licence, insurance documents, and copies of everything.
• If your residence visa is from an emirate other than Dubai, bring your tenancy agreement and a copy to prove you live in Dubai. A telephone (not mobile) or DEWA bill in your name may be enough if the tenancy contract is not in your name.
• The seller will need their passport copy with residence visa and vehicle registration card.
• Tel +971-4-2172221 or +971-4-2172229 for the Vehicle Licensing Department at the Road Traffic Authority.
• Tel +971-4-3331510 for Tasjeel in Al Aweer.

Renewal of car registration in Dubai

• Registration has to be done annually. Insurance is for 13 months which gives you a month's grace period after registration expires to go for renewal. Don't wait more than a day or two after getting new insurance documents if you're into the 13th month - they'll send you back to update the insurance.
• If you're late with registration there may be a fine of 150 dhs or so. It doesn't seem to matter much how late you are though.
• See the previous section for details of which documents you need and where to go. Bring 500 dhs to cover testing fees and registration fees, allow extra for speeding and parking fines. Even if you think you have none, allow for a couple of each. You may not be asked for the passport copy when renewing car registration.
• If the car is two or more years old, get the car tested at the mechanical testing department of the police traffic department first.
• Choose a typist at the typing department there to type out various forms in Arabic (they'll have the correct forms). They'll send you to the next correct counter. Each counter will then send you to the next correct one (if you ask) until you pass Go, collect your 200 dhs and new registration card.
• On second thoughts, it's doubtful they'll give you 200 dhs.
• There's a service at Tasjeel (registration place) which speeds things up nicely. You pay extra money (100-200 dhs), and sit down with a coffee after taking the car for testing while someone else does all the paperwork for you.
• EPPCO (www.eppcouae.com) and Shamil (www.shamil.ae) (from Emarat) have details of locations and times where you can get your car registered or renew car registration.
• Shamil offers a service in Dubai where they'll come and pick up your car, register it, and return it to your home or office for an extra couple of hundred dhs. Tel 800-4559 in the UAE. They won't pick it up from another country.

Tasjeel offices and contact details

• Al Awir tel +971-4-3331510
• Al Barsha tel +971-4-3476620
• Al Ghusais / Qusais tel +971-4-2670290
• Jebal Ali Free Zone (JAFZA) +971-4-8830110
• Sharjah tel +971-6-5487111
• Warsan +971-4-3336470

Registering a new car in Dubai

• Usually the dealer will take care of this for you. You'll still need to supply them with all the relevant documents though - passport with residence visa, insurance papers (unless they're arranging that for you), and driving license. Otherwise, if you are doing it yourself, the procedure is almost the same as registering a used car - see above.

Importing and Exporting cars between emirates

• If you're registering a 2nd hand car in a different emirate, you have to export it from the original emirate (go to traffic department with money, passport, driving licence, copies) and then import it to the emirate where you want to register it (go to traffic department with money, passport, driving licence, insurance, copies).
• Procedure in all emirates is much the same. Start at the typing counter of the Police Traffic Department and tell them you need to export your car, then follow their directions. When you get to the new emirate, start again at the typing counter of the Traffic Department.
• When you export a car, the number plates will be replaced by blue export plates. You have 2 days to get it imported and registered in the next emirate or you get fined each day over that.
• In Dubai you're not supposed to drive a car with export plates - it has to be transported. You will occasionally see people try though. If you try and succeed in getting to the traffic department without penalty, it's unlikely that they'll penalise you on arrival.

Importing cars from overseas

This is possible but a clumsy process, and generally not worth it given that car prices in the UAE are relatively competitive. If you have a rare or unusual car that you are particularly fond of, then it may be worth doing so from an emotional perspective. Export procedure is not detailed here since every country has different rules and procedures for export. Consider the costs of the following before bringing your car to the UAE though:

• Transportation costs (allow several thousand US dollars - of course if you ship a container with household goods, you may be able to fit in a car at no extra cost).
• Insurance costs
• Documentation costs - export certificates, copies of your cats TV license, and so on and so on.
• Modification costs - especially if your car is RH drive (from Asia, UK, Australia, NZ)

Exporting cars from the UAE

As with importing cars, this is possible, and tempting. For many expats, UAE car prices are cheaper than comparable models in their home country, but note that due to depreciation, that difference decreases as time goes on. On the downside, taking that big car home to Europe will drain your wallet every time you fill the tank and quickly negate cost savings on the car's value. Every country has different requirements when importing a car. See the heading about importing cars to the UAE list of cost considerations.

A possible unexpected hiccup may be the requirement for the vehicle owner to have a UAE residence visa and UAE driver licence before they can export a vehicle (unconfirmed).

Car registration in Abu Dhabi (and Al Ain)

• Procedure and costs are much the same as in Dubai.
• Tel +971-2-4195555 for the Abu Dhabi Traffic & Licensing Department.

Car registration in Sharjah

• Similar to Dubai. There's a Tasjeel Auto Village on Emirates Road where you can do everything. Tel +971-6-5487111.
• Sharjah Traffic Department tel is +971-6-5381111.

Car registration in Ras Al Khaimah

• Turn right just after KFC as you come in to RAK from Dubai direction and follow the signs to the Traffic Police Department (there's a U-turn a few hundred meters down the road). This may change to the new Traffic Police building on the main road back towards Dubai.
• Procedure is much the same as Dubai but cheaper - 300 dhs should cover everything and leave you with change.
• One annoyance is that some traffic fines have to be paid at the National Bank of Abu Dhabi. Depends which emirate they're from. You won't know till you get to the Traffic Department. As usual, start with the testing department and go where you're told.

Car registration in Ajman, Umm Al Quwain, Fujairah

• Similar procedures and costs as in Dubai. Find the relevant Traffic Police Department and start there.

Car care and maintenance

• Oil changes can be done quickly and cheaply while you wait at the many oil change places connected to petrol stations. Just check what your warranty obligations are, and make sure you get synthetic oil if that's what your car normally uses. Synthetic oil is expensive but regarded as better for your car although there's not much point in making a change from non-synthetic oil if you have an old car. About 100 dhs for normal oil & filter change, 300-500 for oil filter and synthetic oil change.
• Tyre checking, balancing and wheel alignment can be done at similar places - usually they sell batteries too. You're unlikely to save much by going to a back street tire shop and there are many fake (unsafe) tires around - it's doubtful a shop on the premises of an EPPCO or ENOC petrol station would sell dodgy tyres or batteries.
• Mechanical problems - you can get solved cheaply in one of the auto repair shops along the main road to Al Awir or in Satwa. Expect to get what you pay for. There are better, more expensive places around. If you're not sure, best idea is probably to go to main dealer (not guaranteed to be reliable but less of a risk than Mr-Very-Cheap-Mechanic-With-Only-A-Spanner-And-Two-Screwdrivers), at least until you find a good mechanic through word of mouth. Remember that cars under warranty will normally have to go to the main dealer.
• For cosmetic care, petrol station car washes do a reasonably good job for about 20 dhs. Make sure you fold in the wing mirrors, remove or retract any aerials, and tape up rear window wipers.
• For a good polish and tidy up of your car (eg prior to selling it), places like Sara Auto Care in Al Quoz, and Grand Service Station off Sheikh Zayed Road near Defense Roundabout do a good job for 200-300 dhs (prices estimate may be old).

Suggestions when looking for a car to buy in Dubai

• Buy a light colored automobile - black cars get unbelievably hot in the summer. There's a good reason why there are so many white cars in Dubai.
• If you buy a leather interior and it's a dark colour, expect second-degree burns when it contacts bare flesh after sitting in the summer sun. Burns from pale colors shouldn't scar too much.
• Most driving in Dubai will involve frequent stopping and starting on flat roads in straight lines, except for intersections. Many will say there's little point in getting a manual car. An automatic is less irritating in the traffic jams you'll be bound to get stuck in.
• A large 4wd (often called "4-wheel" instead of a "4-wheel drive" in Dubai) guzzles petrol and doesn't stop. But it's true you'll feel less vulnerable, and there are times it is easier to take a short cut over a bit of sand, or park on a pile of dirt. Parking on curbs and pavements is also possible but you risk being charged 150 dhs by the parking wardens.
• Window tinting is allowed up to 30% for foreigners / expats resident in Dubai. It makes the interior noticeably cooler. Cost is 50 to 500 dhs depending on quality.
• Consider seriously a new or nearly new car (and a loan if you don't have cash). Otherwise go the other extreme and buy something very old and cheap - at least it won't surprise you if (or when) it falls apart although there are sometimes cheap reliable cars around. In order of likelihood of being reliable consider this list for old car purchases (top is most reliable), and remember that car parts for posh cars are still expensive even if the car is old.
  • Toyota
  • Other Japanese
  • Mercedes
  • Hyundai
  • Other Asian
  • Skoda/Volkswagen
  • The rest would rate as poor to very poor in this order: American/other German, British/French/Italian, anything else.

Test driving a car (especially an old banger)

Before you start the engine:

• Look at the dipstick - oil should be clear. If you see any muddy grayish color, engine might have cracked head or blown gasket (both expensive to fix). If solid black or dark brown, it more likely means the owner hasn't it changed for a while (not good but not an immediate expensive repair).
• Look at the water - if it's oily, same problem as above. If it's low - that indicates at least that maintenance is poor, worse could be an external water leak needing moderately expensive cooling system repairs or an internal water leak needing expensive engine and cooling system repairs.
• Check other fluids that they're at correct levels. It won't tell you much about the mechanicals if they're not but it does mean someone's been negligent with maintenance.
• Open and shut all doors gently. If they don't close properly, chassis or body may be bent which would usually mean the car has had a bad accident and/or a bad repair. It could also just mean the doors are out of line. You can't usually tell if the chassis/body is straight just by looking at it. If it does look bent to you, that means it is really really bent and will probably drive like a crab walks. Needless to say, don't buy it unless you just want something to decorate the garden with.
• Look around the car for rust and obvious accident damage. You'll be unlikely to detect a good accident repair. Ask if there's been any crashes though, and be very skeptical if the answer is no - most cars in Dubai have had a ding or two in their lifetime. Look underneath the car for any obvious dents, damage to the chassis.
• Also look at the ground and underneath the car for oil leaks. An oil leak is not necessarily a disaster - many older cars have them - but something to investigate.
• Look at the service history. If it doesn't exist, you may be able to get some information by phoning the main dealer if you have number plate and/or chassis number.
• Look at the tires for wear and damage (check the spare wheel also). Try and find the date - if they're older than 3 years, you probably won't be able to register the car since it's supposed to be illegal to have tyres older than 3 years.
• If the tyres are worn obviously unevenly, there's at least a problem with alignment (easy to fix) and possibly worse.

Start the car but don't drive it yet, just let it idle while you...

• Check the a/c (air-conditioning) on a hot summer day, preferably when the car has sat in the sun for a while. See how long it takes for cool air to come through at idle (and how smoothly car idles while a/c on full load). It's important not to rev up the car - you're trying to strain the system, not make it easy.
• If the a/c doesn't work well, it's expensive to fix. Many older cars may have a leaky a/c system but you can top up the gas cheaply. It will of course leak again over weeks/months/years - or seconds if the leaky component breaks. If you're testing an old car with good a/c, it's quite possible the owner has recently topped up a leaky system unless there are records of repairs. You cannot realistically drive a car without a/c from June to September. Really! Ask someone who lives in the UAE if you don't believe it. It is possible but uncomfortable to drive without a/c in April and October, and tolerable to pleasant from November to March.
• Check every electrical button and switch and control you can find.
• Lift the bonnet and listen to the motor, does it run smoothly? You may not have a clue the first time you do this but after listening to several cars, you will begin to hear occasional rattles and splutters. Secure your long hair, ties and jackets before poking your sticky beak under the bonnet near fan belts and other moving parts. There's also a trick with a big screwdriver that helps here but you'll need to find someone mechanical to show you - there's too much chance of burning or removing fingers to try and explain it here.
• Look at exhaust while someone revs the car a bit (not a lot - it's unnecessary). Any smoke should be white/light grey and minimal. Blueish/gray/black smoke is not good. Put a tissue over the end. If any oil appears, that should worry you.

Drive car (turn the stereo off so you can listen to the car)...

• You're listening for unusual noises (something grinding is much worse than something squeaking), and wobbles. Check while driving in a straight line, and around corners. Make sure you check with steering on full lock - in both directions and while moving. Any clonking sounds are cause for concern.
• Drive in reverse gear for 100m or so to see what visibility is like (and to make sure reverse works smoothly). Back the car into a car park or driveway also to see how comfortable you are manouvering the vehicle.
• Stop the car hard without holding the steering wheel - but be ready to grab it. It should stop in a straight line (check no one is behind you and warn passengers before doing this).
• Don't test the handbrake by trying to drive off with it set - it's possible to snap a driveshaft if it works well.
• Drive the car in all gears and change gears often to get a sense of how smooth it is. Jerky sloppy changes in an automatic are not a good sign. In a manual (think about how much time you'll spend exercising your left leg in Dubai traffic jams before buying a manual), jerky gear changes might indicate a problem with the gearbox, or just the driver trying to adapt to the clutch/gearchange combination - watch closely how the owner copes with it when driving. If the clutch takeup is jerky / sudden, that could be a good sign. It may mean there was a new clutch recently. If the takeup is near the top of the pedal travel and/or so smooth that you think it's an automatic, that's probably not a good sign. Replacement is moderately expensive, adjustment is cheap. Try to find out when it was last replaced. Clutches are good for 100,000+ kms under normal driving. Less than 10,000 kms if used badly or in the desert.
• Similar comments apply to brakes. Soft spongy brakes and long pedal travel may mean the fluid is low, or pads almost worn out. Grabby brakes with little pedal travel are more likely to indicate reasonably new pads. Grinding noises under braking means you've got an expensive pad and disc replacement to do. Squeaking noises are an annoyance but unlikely to be serious - get it checked anyway.

Don't make a decision to buy based just on this checklist, it's not comprehensive or complete. And there's always the occasional devious seller who can disguise problems in such a way the checks above won't pick them up. Hopefully it's enough to get you started though.

Good luck and drive safely!

Last update Sunday 23-Aug-2009

Related pages - Internal Links

• Dubai - FAQ home and index

• Al Awir Used Car Market - one place to buy or sell your car but keep your wits about you
• driving in Dubai
• Dubai car trading forum topic - add comments, corrections, suggestions, questions
• dubai driving licence
• motor vehicle insurance Dubai

Related websites - External Links (open in new window)

• www.assayyarat.com - Arabic portal for car discussion and information.
• www.ducamz.co.ae - Dubai Cars and Automotive Zone free zone set up for re-export of vehicles to Africa and Asia, managed by JAFZA.
• www.evolve.ae - aftermarket performance and styling products and information, has a useful car discussion forum.
• Dubai directory - add your link free

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