Cheapest way of financing a new car??
Dec 29th 2007, 5:16 am
#1
Forum Regular
Thread Starter
Joined: Nov 2007
Posts: 34
Cheapest way of financing a new car??
I'm in the process of buying a new car (maybe brand new or used) and car prices are much cheaper then the UK but finance isn't! When i was in the UK i used to do a bit of stoozing to get free borrowing from balance transfer cards and borrow for almost nothing!
Whereas here i seem to be stuck with either my bank or the car dealers 10+% APR loans which are quoted in stupid, misleading 5% flat rates + arrangement fees, insurance, early repayment fees etc etc
I have considered buying on a UK interest free credit card or doing a super balance transfer on a UK card but with the typical 3% exchange rate comission & strenghtening dhirham its less atractive. Plus the credit crunch is meaning its not nearly as easy as it used to be!
I'm sure there's loads of finacialy savy expats here who may be able to offer some advice?
I'm potential looking to borrow about 100k DHS over about 4 or 5 years but I will be paying it off in full within 12 - 18mths
Thanks in advance!!
Whereas here i seem to be stuck with either my bank or the car dealers 10+% APR loans which are quoted in stupid, misleading 5% flat rates + arrangement fees, insurance, early repayment fees etc etc
I have considered buying on a UK interest free credit card or doing a super balance transfer on a UK card but with the typical 3% exchange rate comission & strenghtening dhirham its less atractive. Plus the credit crunch is meaning its not nearly as easy as it used to be!
I'm sure there's loads of finacialy savy expats here who may be able to offer some advice?
I'm potential looking to borrow about 100k DHS over about 4 or 5 years but I will be paying it off in full within 12 - 18mths
Thanks in advance!!
Dec 29th 2007, 6:30 am
#2
Concierge
Joined: Feb 2007
Posts: 29,625
Re: Cheapest way of financing a new car??
we have always just got a bank loan via HSBC so I am no help 
Dec 29th 2007, 8:43 am
#3
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Joined: Jan 2005
Location: Dubai
Posts: 888
Re: Cheapest way of financing a new car??
You will be facing huge early repayment penalties for giving them the money back early. The cheapest way may well be to take an unsecured personal loan in the UK and bring the money over here. This puts you at the mercy of exchange rates but interest rates seem to be falling in the UK, taking the pound with them.
Loans of any kind in Dubai are a rip off.
Alternatively, and this is a radical concept especially in Dubai, you could (whisper it) save up for a couple of years and use (whisper it again) cash. I think you will find that is the cheapest way by far but don't tell anybody you heard it from me. I don't want to be accused of undermining the Dubai economy.
Loans of any kind in Dubai are a rip off.
Alternatively, and this is a radical concept especially in Dubai, you could (whisper it) save up for a couple of years and use (whisper it again) cash. I think you will find that is the cheapest way by far but don't tell anybody you heard it from me. I don't want to be accused of undermining the Dubai economy.
Dec 29th 2007, 1:16 pm
#4
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Joined: Mar 2007
Location: Abu Dhabi
Posts: 3,968
Re: Cheapest way of financing a new car??
You will be facing huge early repayment penalties for giving them the money back early. The cheapest way may well be to take an unsecured personal loan in the UK and bring the money over here. This puts you at the mercy of exchange rates but interest rates seem to be falling in the UK, taking the pound with them.
Loans of any kind in Dubai are a rip off.
Alternatively, and this is a radical concept especially in Dubai, you could (whisper it) save up for a couple of years and use (whisper it again) cash. I think you will find that is the cheapest way by far but don't tell anybody you heard it from me. I don't want to be accused of undermining the Dubai economy.
Loans of any kind in Dubai are a rip off.
Alternatively, and this is a radical concept especially in Dubai, you could (whisper it) save up for a couple of years and use (whisper it again) cash. I think you will find that is the cheapest way by far but don't tell anybody you heard it from me. I don't want to be accused of undermining the Dubai economy.
Dec 29th 2007, 3:20 pm
#5
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Joined: Jul 2007
Location: Salamat Datang from KL!!
Posts: 829
Re: Cheapest way of financing a new car??
I can keep a secret, ssssssssssssshhhhhhhhhhhhhhhh
Dec 29th 2007, 5:58 pm
#6
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Joined: Dec 2006
Posts: 23,434
Re: Cheapest way of financing a new car??
I'm in the process of buying a new car (maybe brand new or used) and car prices are much cheaper then the UK but finance isn't! When i was in the UK i used to do a bit of stoozing to get free borrowing from balance transfer cards and borrow for almost nothing!
Whereas here i seem to be stuck with either my bank or the car dealers 10+% APR loans which are quoted in stupid, misleading 5% flat rates + arrangement fees, insurance, early repayment fees etc etc
I have considered buying on a UK interest free credit card or doing a super balance transfer on a UK card but with the typical 3% exchange rate comission & strenghtening dhirham its less atractive. Plus the credit crunch is meaning its not nearly as easy as it used to be!
I'm sure there's loads of finacialy savy expats here who may be able to offer some advice?
I'm potential looking to borrow about 100k DHS over about 4 or 5 years but I will be paying it off in full within 12 - 18mths
Thanks in advance!!
Whereas here i seem to be stuck with either my bank or the car dealers 10+% APR loans which are quoted in stupid, misleading 5% flat rates + arrangement fees, insurance, early repayment fees etc etc
I have considered buying on a UK interest free credit card or doing a super balance transfer on a UK card but with the typical 3% exchange rate comission & strenghtening dhirham its less atractive. Plus the credit crunch is meaning its not nearly as easy as it used to be!
I'm sure there's loads of finacialy savy expats here who may be able to offer some advice?
I'm potential looking to borrow about 100k DHS over about 4 or 5 years but I will be paying it off in full within 12 - 18mths
Thanks in advance!!
Dec 30th 2007, 4:48 am
#7
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Cheapest way of financing a new car??
Alternatively, and this is a radical concept especially in Dubai, you could (whisper it) save up for a couple of years and use (whisper it again) cash. I think you will find that is the cheapest way by far but don't tell anybody you heard it from me. I don't want to be accused of undermining the Dubai economy.
To quote a line from yesterday's Times
The notion of living within your means is as archaic as rationing
As far as I am concerned, if you don't have the cash, don't buy it. It really isn't necessary to have the newest TV, latest car etc
Dec 30th 2007, 7:56 am
#8
Lost in BE Cyberspace
Joined: Jun 2007
Location: Dubai
Posts: 13,547
Re: Cheapest way of financing a new car??
very few people are going to save up the amount of money needed for a decent car. also most people on here will get allowances to buy a car as part of their salaries.
Dec 30th 2007, 8:15 am
#9
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Posts: 888
Re: Cheapest way of financing a new car??
The OP was talking about a loan of 100,000Dhs to be paid off in 12-18 months. So presumably by waiting 12-18 months he would be able to pay cash. To me the obvious answer would be to buy a cheaper car, run it for 2 years while saving some money and then buy the 100,000Dhs car for cash. Has to be better than paying out thousands in interest on a depreciating asset. Am I missing something here?
Dec 30th 2007, 8:17 am
#10
Lost in BE Cyberspace
Joined: Jun 2007
Location: Dubai
Posts: 13,547
Re: Cheapest way of financing a new car??
The OP was talking about a loan of 100,000Dhs to be paid off in 12-18 months. So presumably by waiting 12-18 months he would be able to pay cash. To me the obvious answer would be to buy a cheaper car, run it for 2 years while saving some money and then buy the 100,000Dhs car for cash. Has to be better than paying out thousands in interest on a depreciating asset. Am I missing something here?
Dec 30th 2007, 8:17 am
#11
Concierge
Joined: Feb 2007
Posts: 29,625
Re: Cheapest way of financing a new car??
The OP was talking about a loan of 100,000Dhs to be paid off in 12-18 months. So presumably by waiting 12-18 months he would be able to pay cash. To me the obvious answer would be to buy a cheaper car, run it for 2 years while saving some money and then buy the 100,000Dhs car for cash. Has to be better than paying out thousands in interest on a depreciating asset. Am I missing something here?
Dec 30th 2007, 8:54 am
#12
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Cheapest way of financing a new car??
The OP was talking about a loan of 100,000Dhs to be paid off in 12-18 months. So presumably by waiting 12-18 months he would be able to pay cash. To me the obvious answer would be to buy a cheaper car, run it for 2 years while saving some money and then buy the 100,000Dhs car for cash. Has to be better than paying out thousands in interest on a depreciating asset. Am I missing something here?
Dec 30th 2007, 8:59 am
#13
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Joined: Jan 2005
Location: Dubai
Posts: 888
Re: Cheapest way of financing a new car??
) is probably more accurate and helps to explain why a lot of people do their two or three years in Dubai and wonder why they haven't saved any money.As an aside, I wonder if the people who are thinking about the best way to borrow money to buy a car they can't really afford are also they ones complaining about the increase in rents and grocery costs? Just a thought, not getting at anybody in particular.
Dec 30th 2007, 9:37 am
#14
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Location: Dubai
Posts: 13,547
Re: Cheapest way of financing a new car??
But they can't afford to buy it- if they could they wouldn't need a loan! I think Blue Cat's explanation about a lack of willpower (not getting at you BC) is probably more accurate and helps to explain why a lot of people do their two or three years in Dubai and wonder why they haven't saved any money.
As an aside, I wonder if the people who are thinking about the best way to borrow money to buy a car they can't really afford are also they ones complaining about the increase in rents and grocery costs? Just a thought, not getting at anybody in particular.
) is probably more accurate and helps to explain why a lot of people do their two or three years in Dubai and wonder why they haven't saved any money.As an aside, I wonder if the people who are thinking about the best way to borrow money to buy a car they can't really afford are also they ones complaining about the increase in rents and grocery costs? Just a thought, not getting at anybody in particular.
should people who want to buy property wait until they have saved enough money?
Dec 30th 2007, 12:15 pm
#15
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Posts: 888
Re: Cheapest way of financing a new car??
I presume the car allowance is given whether you borrow the money or not, or indeed whether you buy a car or not, so really it is just part of your salary and you could just put the allowance towards your savings for a car.
Property is slightly different as (hopefully!) it goes up in value not down and may even go up by more than the interest on the loan is costing you. Certainly has in Dubai for the last couple of years but I have lost many thousands in depreciation on my cars.
Property is slightly different as (hopefully!) it goes up in value not down and may even go up by more than the interest on the loan is costing you. Certainly has in Dubai for the last couple of years but I have lost many thousands in depreciation on my cars.