Compare Auto Finance in United Arab Emirates

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19 live offers compared from 15 providers, from 2.49% APR. Updated daily.

Auto finance in the UAE: October 2026 at a glance

Giraffy compares 19 auto finance offers from 15 UAE banks. Listed rates start at 2.49% at Emirates NBD, ADCB, FAB, Mashreq and ADIB, then 2.75% at Dubai Islamic Bank and Emirates Islamic, and 2.99% at the other listed banks. Financing reaches 80% of the car price at Emirates NBD, ADCB, Mashreq and ADIB, and the maximum term is 60 months at every bank.

Most offers are quoted as a flat rate charged on the full amount for the whole term, so 2.49% flat over 60 months is roughly 4.7% on a reducing basis. Islamic banks offer Ijarah (ADIB, Dubai Islamic Bank) or Murabaha (Emirates Islamic). Remember: you will need comprehensive insurance for the whole finance term, so add its cost to the instalment when comparing, and ask about processing and early-settlement fees. See also car insurance and personal finance.

What is auto finance in the UAE?

Auto finance, or a car loan, lets you buy a vehicle by borrowing part of its price and repaying in monthly instalments over an agreed term. In the UAE it is the standard way most residents buy new and used cars, offered by banks in both conventional and Islamic forms, the latter usually structured as Murabaha or Ijara so the purchase can be financed without conventional interest. The loan is secured against the car, and comprehensive insurance is normally required for the duration of the finance.

How the UAE market works

Banks licensed by the Central Bank of the UAE finance up to around 80% of a car's value, with repayment tenors typically running up to 60 months. Rates are usually quoted as a flat rate, which looks lower than the equivalent reducing-balance rate but costs more in reality, so comparing like for like matters. Salary transfer to the lending bank often secures better pricing, and dealers frequently arrange finance directly through partner banks at the point of sale for convenience.

Benefits of auto finance

Spread the cost — Pay for a car over several years in manageable instalments rather than a large upfront sum.

New and used cover — Finance is available for both new and pre-owned vehicles, subject to age limits on used cars.

Islamic options — Murabaha and Ijara structures let you finance a car in a Sharia-compliant way.

How to choose

Compare the reducing-balance rate rather than the flat rate to see the true cost of borrowing, and check the down payment required, the tenor and any processing or early-settlement fees. Weigh conventional finance against Islamic alternatives, confirm the comprehensive insurance requirement and its cost, and make sure the monthly instalment fits comfortably within the 50% debt-burden cap alongside any other loans and card commitments you hold.

Leading providers in the UAE

Emirates NBD, First Abu Dhabi Bank, ADCB, Mashreq, RAKBank and Commercial Bank of Dubai offer conventional car loans, while Dubai Islamic Bank and ADIB provide Sharia-compliant auto finance. Dealer-arranged finance is convenient at the showroom, but it is worth comparing it against direct bank offers, as the rate, fees and total cost can differ meaningfully for the same vehicle.

What it costs

Advertised rates in the UAE start from around 2.49%, though you should always check whether this is a flat or a reducing rate, which changes the real cost considerably. Monthly repayments depend on the amount financed, the rate and the tenor, with loans typically covering up to about 80% of the car's value. Add processing and early-settlement fees to the total when you compare offers.

Protections and regulation

The CBUAE regulates auto lending, caps the debt-burden ratio at 50% of income and limits early-settlement fees, while Islamic auto finance adds Sharia-board oversight. The car itself is used as security for the loan, and comprehensive insurance is generally required throughout. Read the agreement for the reducing-balance rate, any bundled insurance and the settlement terms before signing.

Common questions

How much down payment do I need? — Usually at least 20%, as finance covers up to around 80% of the value.

Flat or reducing rate? — Compare the reducing-balance rate; the flat rate understates the true cost.

Is Islamic auto finance available? — Yes, through Murabaha and Ijara structures from Islamic banks.

Auto Finance in United Arab Emirates — FAQ