Dubai is a city of car enthusiasts and it isn’t unusual to spot a high-end luxury or sports car on the roads. Even Dubai Police uses a fleet of high-end cars such as Bugatti Veyron and Lamborghini. Aside from that, the number of people who can own their dream car is comparatively higher than in other cities in the world. It is because Dubai is quite accommodating to luxury cars and their owners. Tax-free salary, safe road conditions and easy financing are a few factors that contribute. In this guide, we will explore why there are so many luxury cars in Dubai and how so many people can buy them.
Why Are There so Many Luxury Cars in Dubai?
Owning luxurious vehicles such as Bugatti, Ferrari, Lamborghini or Porsche may seem like a dream to some people; but it is easier than you would think in Dubai. In this guide, we will explore why there are so many luxury cars in Dubai and how so many people are able to buy them.
Let’s take a look at some of the factors that make it easy to own a luxury car in Dubai.
Availability of Used Luxury Cars
The used luxury cars price in Dubai is comparatively low than a new one. Brand new luxury cars in the UAE are generally expensive and their value depreciates by 15% to 20 % after the first 12 months of ownership. Therefore, people in Dubai buy used cars at a comparatively low rate and can change their car as per their needs and budget
Car Loans Are Easily and Readily Available
How do people afford supercars in Dubai? The answer is simple. The process of owning a luxury car is quite straightforward. Several banks offer car loans in Dubai at low interest rates along with a convenient payback period of 3 to 5 years. The interest rates for auto loans in Dubai start from as low as 3.2% per annum
Insurance Is Relatively Affordable
Getting third-party car insurance is mandatory yet affordable in Dubai. If you compare it to other countries, the UAE has low insurance rates. However, the insurance of a luxury car in the UAE can be more expensive than a standard SUV.
Tax Rates Are Low
No income tax is applicable in Dubai, as of 2019. The VAT rate in the UAE is also 5%, therefore, people have a higher disposable income.
Abandoned Luxury Cars Are Easily Available
Every year in Dubai about 3,000 supercars are abandoned by their owners which later on are auctioned by the Dubai Police. One of the reasons behind abandoning these vehicles can be different including bankruptcy, impoundment or leaving a country. These abandoned cars are generally auctioned to the dealers who sell them at low rates as compared to used and brand new models.
You can read our guide and find more about how to buy abandoned cars in Dubai.
Fuel Is Affordable
Petrol prices in the UAE are also quite competitive if you compare them to other countries. Therefore, people do not consider it a huge factor when they decide to purchase supercars in Dubai. Also, if you have an electric car then you can charge it for free from DEWA electric charging stations.
Low Percentage of Car Theft or Crime
Strict laws and rules are one of the major reasons for the low car theft and crime rate in Dubai. Therefore, people living in Dubai don’t worry about their luxury cars being stolen or vandalised.
Now you know why there are so many luxury cars in Dubai and how a majority of people can afford them. Once you buy a used luxury car in Dubai don’t forget to renew your car insurance before you take it out on the road. Be it luxury or affordable SUVs, you can buy a variety of used cars in Dubai from dubizzle.
The list of popular luxury cars includes:
- Buy a used Rolls Royce in Dubai
- Used Aston Martin in Dubai
- Buy second hand Ferrari in Dubai
- Used BMW for sale in Dubai
- Buy used Mercedes-Benz cars in Dubai
Stay tuned to UAE’s top auto-related blogs for more updates on luxury cars in the Emirates, driving rules, traffic laws and more.
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