Great deals for new wheels PERSONAL FINANCE
If you’re looking to buy a car in the UAE over the next couple of months, these are good times. Not only are we nearing the holy month of Ramadan — traditionally one of the best times for new car deals — but we’ve also seen car dealers around the country offer pretty substantial discounts over the last couple of months.
For example, Jeep Trading Enterprises has been offering substantial down payment contributions on new Jeeps, and Land Rover currently offers 5 per cent cashback on the new Range Rover Sport. Oh, and both of these offers come with a five-year warranty and service package.
And looking ahead to Ramadan, Al Futtaim Motors recently announced that customers buying Toyotas during the holy month can take advantage of a 12-month deferred payment plan. That means that you can buy a new Toyota now, and you’ll only have to start paying next year. Terms and conditions apply, obviously, but there’s no doubting that the dealers are really trying to incentivise UAE residents to buy new cars.
Indeed, from a personal finance perspective, now might be one of those rare times when it makes sense to buy brand new over slightly used. Don’t get me wrong; I’ve bought new cars before, but I know in my heart of hearts that a big chunk of the value of the car is gone as soon as I drive it out of the showroom. Is that value really worth that ‘new car’ feeling? Often, I’d say not. But with the current crop of deals, I think you’d have an easier time justifying it to yourself.
In all likelihood, you won’t be buying your new car in cash — you’ll be getting it on finance. But instead of simply accepting any finance deal that you get offered, it’s worth comparing options. Reducing interest rates range anywhere between 4.6 per cent and 7.23 per cent. And while you may be getting a great deal on the actual price of your car, that will be negated if you end up paying more than you have to on interest when it comes to the auto loan.
Using a comparison site, you can check which car loans offer the lowest interest rate. But it doesn’t always come down to that. For example, some loans are tailored specifically for used cars, while other banks may have arrangements with certain brands, meaning lower interest rates on new cars from those brands.
If you’re in need of some new wheels, you’re spoilt for choice at the moment with a ton of great deals. And while there isn’t as much of a sales bonanza happening when it comes to car loans, by comparing, you can be sure that you’ll be getting a better deal on your car finance.
I know in my heart of hearts that a big chunk of the value of the car is gone as soon as I drive it out of the showroom