Buy a Car
The instalment is only what the showroom shows you. Add insurance, fuel, Salik, maintenance and depreciation. Here's the true monthly cost — and whether your salary can carry it.
Your numbers
example values — edit to yoursThe showroom's AED 1,379 instalment is only part of it. Add insurance, fuel, Salik, registration and maintenance and the car really costs AED 2,754 a month — that's 100% more than the number you signed for.
The cost nobody mentions: depreciation. This car loses about AED 13,500 in value this year alone — roughly AED 1,125 a month evaporating whether you drive it or not. Counting that, the true economic cost is AED 3,879/month. A newer, pricier car loses more; a sensible used car loses far less.
At 17.2% of income, the running cost is within a sane range. Just remember the flat-rate finance still costs 5.8% in real terms, and a bigger down payment or a used car cuts both the interest and the depreciation.
Basis: UAE car loans are quoted as flat rates; the real APR is the reducing-balance rate (CBUAE requires the EIR to be disclosed). Insurance, fuel, Salik and maintenance are your figures to set. Depreciation is the largest real cost of a new car and is heaviest in the first years — adjust the rate to your model. This is education, not financial advice.
Common questions
What is the real monthly cost of owning a car in the UAE?
The instalment is only part of it. Add insurance (typically 2–3.5% of the car's value per year), fuel, Salik, registration, parking and maintenance — and depreciation of roughly 15–20% a year. The true monthly cost is often 1.5–2× the instalment the showroom quotes.
How much down payment does a car loan need in the UAE?
At least 20% — CBUAE caps auto loans at 80% of the car's value. If a dealer offers "zero down", the difference is being financed somewhere, usually expensively.
Should my car payment fit a rule of thumb?
A common honest ceiling: all car costs (not just the instalment) under 15% of your monthly income. The calculator checks your real number against your salary.