: Always ask for the effective annual rate (EAR) . A 2.5% flat rate is approximately equal to a 4.7% to 5.0% reducing rate .
: New cars generally enjoy lower rates (starting around 2.15% flat). Used cars often have higher rates and shorter repayment tenures, especially if the vehicle is more than 5–7 years old .
Automobile financing allows you to purchase a vehicle by borrowing money from a lender and repaying it over a set period, typically between . In the UAE, lenders typically finance up to 80% of a car's value , requiring a minimum 20% down payment in cash. Core Financing Types