Purchasing a Vehicle

[DurbanSun!!!!]

Hi All

I am currently looking to purchase a vehicle. I need to know what is the procedure and what papers are required.
The dealership that we went to said that they require a blank cheque and salary certificate, however I have friends that purchased cars from the same dealership and didnt have to produce either of these documents.

Is this the necessary procedure when purchasing a vehicle?
What will happen if I deceide to sell the car and do not have the settlement value of the car available in my account?

[dizzyizzy]

I got my car from Automall and the loan with Emirates Bank, and they did ask me for that too (blank cheque and salary certificate and copies of my payslips). I was very upset about the blank cheque and after all my resistance they finally agreed to give me a photocopy of the cheque clearly stating that the cheque was given blank, the date, and signature and name of the person who received it. Also on the loan agreement is written that they have a blank cheque from me. Apparently this is so they can recover any moneys I owe them in case I decide to flee the country or something - not sure how they pretend to do that though as the debit instruction goes exactly to the same account as the cheque, so if the debit doesn't work, the cheque will bounce too...I think is because in this way they can legally have a "bounced" check from me vs a debit instruction that was rejected by the bank, but who knows, rules and procedures in Dubai defy any logic.... Anyways, I found the whole thing very dodgy and upsetting but after checking with a few friends I found out that is the common practice here. I still find it dodgy though, and it was very unsettling to leave a blank cheque behind, but it was the only way to get the loan approved

[mrbig]

we never had to give blank checks, just checks made out for everymonth we would have a payment. So 36 checks per car.

you will need
checks
passport
visa
salary cert
3 months bank statement with bank in uae

[dizzyizzy]

btw by blank I mean that only the amount line was left in blank, the beneficiary was Emirates Bank and they do cross the check so that nobody else can cash it.

[Maz25]

I also had to lsign a blank cheque, on which was written (at the top), "Not to exceed AED xxxxx" , xxxxx being the value of my loan. This is normally required if you obtain the loan from the same bank that you normally bank with, else as Mr Big has said, you will have to sign a ridiculous number of cheques to cover each month's payment. This is merely a security cheque which will be cashed if your standing order should come back unpaid. Obviously, if it bounces, then you will be enjoying jail food for quite some time!

Additionally, if you use a bank other than the one you bank with, 3 months bank statement will also be required. If you've previously had bounced cheques, additional security will be required and your loan may even be turned down. Please be aware that certain banks require you to be earning over 20k a month before they would even consider lending you AED 1!!

[kevinm3104]

What about just buying a second hand car off a local, not like a car dealer, just someone selling a car do you still need documents for that?
Does anyone know where to look for second hand cars as I'm moving over in January and just want a cheap run-around

Cheers

[dizzyizzy]

tons of ads in dubizzle and gulf news classifieds, just make sure you get the car tested before buying it.

not too sure what is needed to register it privately but i think is just copy of your passport, copy of your residency visa and copy of dewa receipt that shows your address. try doing a search here at the forum, i am sure this has been covered in the past.

good luck!

[Maz25]

Originally Posted by kevinm3104

What about just buying a second hand car off a local, not like a car dealer, just someone selling a car do you still need documents for that?
Does anyone know where to look for second hand cars as I'm moving over in January and just want a cheap run-around

Cheers

If you plan to borrow from the bank, then you will need to provide those documents. In that case, bear in mind that there would be a requirement that the car should be less than xx number of years when you finish paying off the loan. The documents are required to grant you a car loan - they have no relationship to the age of the car or who you choose to buy the car from.

As per Izzy's post below, you can check out the places she mentioned for second hand cars. There are also authorised dealers that deal in secondhand car sales. This might be a better option as you are provided with warranty should anything go wrong. If you buy from a private buyer, should anything go wrong and especially if the car is no longer under warranty, then it's your problem. You will also have to register the car yourself - not sure what the process is as the dealer registered my car. Personally, I feel that with private buyers, it's always a gamble - you can test drive the car and it works fine, only for it to break down the next day, costing you a small fortune.

[DurbanSun!!!!]

Thanks to all for the feedback and advice.
I was very worried about the blank cheque issue but I also found out today that this seems to be common practice. My loan will be from the bank I currently bank with, so I hope not to have any problems.

[rj.uk]

Had a curious conversation with my hubby a few months back. He wished that he had rented a 4 x4 instead of buying one. the rental is cheaper as it comes with servicing (which cost him a bomb) and MOT. the value as well of his 4 x 4 has gone down if he wishes to resell.