How this calculator works
Enter the car price and drag the slider to set your down payment. The calculator subtracts it from the price to get the loan amount, then estimates a fixed monthly payment for the rate you choose. You can also start from the other end: type the monthly payment you can afford and the calculator estimates the car price it buys. The loan length list shows the same loan over every term, so you can see how a shorter loan saves interest. Every figure is an estimate: your bank's offer decides the real numbers.
Car loan payments at a glance
The same sums as the calculator, worked out for common prices and budgets. They follow your down payment and rate above.
Estimated monthly payment by car price
| Car price | 36 months mo | 48 months mo | 60 months mo |
|---|---|---|---|
| AED 50,000 | AED 1,181 | AED 903 | AED 736 |
| AED 75,000 | AED 1,771 | AED 1,354 | AED 1,105 |
| AED 100,000 | AED 2,362 | AED 1,806 | AED 1,473 |
| AED 150,000 | AED 3,542 | AED 2,709 | AED 2,209 |
| AED 200,000 | AED 4,723 | AED 3,612 | AED 2,946 |
| AED 300,000 | AED 7,085 | AED 5,418 | AED 4,419 |
What a monthly budget buys
| Monthly budget | 36 months mo | 48 months mo | 60 months mo |
|---|---|---|---|
| AED 1,000 | AED 42,300 | AED 55,300 | AED 67,800 |
| AED 1,500 | AED 63,500 | AED 83,000 | AED 101,800 |
| AED 2,000 | AED 84,600 | AED 110,700 | AED 135,700 |
| AED 3,000 | AED 127,000 | AED 166,100 | AED 203,600 |
| AED 4,000 | AED 169,300 | AED 221,400 | AED 271,500 |
| AED 5,000 | AED 211,700 | AED 276,800 | AED 339,400 |
Flat rates turned into reducing rates
| Flat rate | 36 months mo | 48 months mo | 60 months mo |
|---|---|---|---|
| 1.99% flat | 3.80% reducing | 3.80% reducing | 3.80% reducing |
| 2.49% flat | 4.74% reducing | 4.73% reducing | 4.72% reducing |
| 2.99% flat | 5.66% reducing | 5.65% reducing | 5.62% reducing |
| 3.49% flat | 6.58% reducing | 6.56% reducing | 6.52% reducing |
| 3.99% flat | 7.49% reducing | 7.46% reducing | 7.40% reducing |
Flat rate or reducing rate?
It's how the bank works out your interest. With a reducing rate you only pay interest on the money you still owe, so it goes down as you pay the loan back. With a flat rate you pay interest on the full amount you borrowed, every year, until the end. Here is your AED 80,000 loan over 5 years at 3.99%, both ways. Each bar is the estimated interest paid that year. It follows the numbers in the calculator above.
Interest falls each year because you owe less.
Interest stays the same every year, worked out on the full AED 80,000.
A real example: what does "3.99%" mean?
Sara wants a car for AED 100,000. She pays 20% down (AED 20,000) and borrows AED 80,000 for 5 years. A bank advert says 3.99%. The monthly payment depends on what kind of rate it is:
Same 3.99%, but flat costs about AED 7,600 more. So always ask the bank: "Is this rate flat or reducing?"
UAE car loan rules to know
These come from the UAE Central Bank's rules for loans to individuals (Regulation No. 29/2011, Article 3 on car loans) and the government guide on getting a car loan. Checked 9 November 2026.
- 20% minimum down payment. Under Central Bank rules a bank can lend at most 80% of the car's value. For some used cars, depending on age and condition, banks ask for more.
- Small loans. Many lenders have a minimum loan, often around AED 15,000 to 20,000, so very cheap cars may be easier to buy outright.
- 60 months at most. Five years is the longest term allowed for a personal car loan. Banks often set shorter terms for older used cars.
- 50% of your salary. All your monthly loan payments together cannot go over half of your monthly income.
- Early settlement. Paying the loan off early costs at most 1% of what you still owe.
Costs the monthly payment leaves out
Budget separately for car insurance (comprehensive cover is usually required while the loan is open), RTA registration and transfer fees, the bank's processing fee, and Salik and parking. If you are buying from a private seller, the bank pays the seller and keeps a mortgage on the car until the loan is cleared. Have the car checked first at a garage near you.
Car loan questions
How much down payment do I need for a car loan in the UAE?
At least 20% of the car's value. Central Bank rules let banks lend up to 80%, so on an AED 100,000 car you pay AED 20,000 or more up front.
What is the longest car loan term in the UAE?
60 months (five years). Many banks set a shorter term for older used cars, so the car is not too old by the time the loan ends.
What is the difference between a flat rate and a reducing rate?
A flat rate charges interest on the full loan amount for the whole term. A reducing rate charges interest only on the balance you still owe. A 2.5% flat rate over five years costs about the same as a 4.7% reducing rate.
How much salary do I need for a car loan?
All your monthly loan payments together cannot go over 50% of your salary, and most banks also set a minimum salary, often AED 5,000 a month or more.
Can I get a loan for a used car bought from a private seller?
Yes. Most UAE banks finance used cars from private sellers. The bank pays the seller, and the car stays mortgaged to the bank until you finish paying.
Can I pay off my car loan early?
Yes. The early settlement fee is capped at 1% of the amount you still owe.
How is a car loan monthly payment calculated?
With a reducing rate, banks use the standard loan formula: payment = loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the yearly rate divided by 12 and n is the number of months. With a flat rate it is (loan + loan × rate × years) ÷ months. On an AED 80,000 loan over 60 months at 3.99%, that is about AED 1,473 a month reducing or AED 1,599 flat.
Can expats get a car loan in the UAE?
Yes. UAE residents with a residence visa, Emirates ID, UAE driving licence and a salary that meets the bank's minimum can apply. The bank also checks your credit report from Al Etihad Credit Bureau.
How old can a used car be for a car loan?
There is no single Central Bank age limit. Each bank sets its own, usually based on how old the car will be when the loan ends, so an older car often gets a shorter loan or needs a bigger down payment. Ask the bank before you agree a price.
What is the profit rate on Islamic car finance?
Islamic banks do not charge interest. They buy the car and sell it to you at a higher price paid in instalments, or lease it to you. The profit rate works like an interest rate, so you can type it into the calculator to estimate the payment. Ask whether it is quoted flat or reducing.