In a world where owning a car is far more than just a symbol of mobility, buying one is anything but straight-forward. The United Arab Emirates is famous for its smooth and well-maintained road network – a feature that beckons one to go on long drives whenever possible. Whether it be a brand-new car right from the showroom or a used set of wheels bought from a dealer, the purchase of a car requires a fair amount of capital. And mind you, most everyday cars are still considered as a depreciating asset.
Therefore, it becomes increasingly important to factor in several conditions and know the risks before actually signing on the dotted line. While many car buyers in the UAE are aware of the risks involved, it is always good to know them well. So, here’s 6 mistakes that UAE car buyers make, along with ways on how to avoid making them in the first place.
Mistake 1: Forgetting your budget
As expected, forgetting one’s budget for a car comes up bright and early in this discussion. While this may seem like a folly one would never commit – trust me – it still happens a lot. So, how can you avoid it?
The budget – Before you even leave home, sit down with a calm mind and come up with the maximum budget for your new set of wheels. Check how much you spend on other things in your everyday life – rent, utilities, monthly household expenditures etc. Once this is done, you’ll have a good picture of how much you can actually afford to spend on a car.
Be Sensible – Make sure you’ve given yourself a safe buffer by keeping some of your budget out of consideration. This means that you’ll not be blindsided by any unexpected surprises that may spring up later.
Consider the running costs – Obviously, the purchase of a car isn’t just a one-time expenditure. It requires you to spend on miscellaneous but important things such as vehicle insurance & registration, servicing & maintenance, fuel costs etc. These cannot be avoided and must be taken into consideration as well.
Could you buy a used car – While buying a brand-new car is surely a fantastic feeling, there’s absolutely no reason to not ever consider getting a used one. The used car market in the UAE is expanding constantly, with plenty of options available throughout the vehicle type spectrum. Moreover, considering the depreciation behind most brand-new cars, buying a used one (typically a year or slightly older than that) will save you from the heartache of losing a lot of money while also affording the OEM’s original warranty.
Have an old car? – In case you already own an old car, the smartest thing to do (if you don’t need two cars) is to trade it in for the new car. This will not only free-up some extra cash but will also allow you to get an idea about how much your old vehicle is actually worth in the market.
Mistake 2: Failing to choose a car that matches your lifestyle
Once you’ve your budget in place, the next logical step is choosing your car of choice. By this stage, most buyers would have already shortlisted a few candidates in their minds – not all the options would make complete sense.
Find the best car for your lifestyle – As many of you might be aware, the UAE has more than enough options available for car buyers. Be it makes, models, variants, or types of cars – car buyers in the UAE stand a good chance of finding whatever suits their individual tastes. Luckily, YallaMotor’s new car buyer’s guide is there to help in your decision-making, and it’s a great place to start before choosing the right car.
Read in-depth car reviews – YallaMotor is also an excellent source if you want to watch or read in-depth car reviews by some of the most reliable and trustworthy reviewers in the industry. Having said that, do your own research before arriving at any conclusion.
Crash test ratings – When buying a car, it’s really important for you to know how safe it is. For this purpose, make sure you check the crash test rating of the car you’re planning on buying in advance. This will keep you away from some lemons that are best kept at bay.
Test driving – Buying a car is not a cheap affair. Therefore, take a test drive of all the cars you might have shortlisted before actually buying it. Furthermore, just because you’ve test-driven a car, it does not mean you owe it to the dealership to actually buying it. Remember, do not hesitate to walk away if you’re not thoroughly convinced on putting the money down. At the same time, ensure you’ve a valid insurance before taking the wheel of the demo vehicle.
Mistake 3: Getting pushed into buying the car before you’re ready
While there are those who know exactly how and when to execute their choices, some of us can get flustered once we are actually at the dealership. Having said that, there’s no reason to fret as long as you keep the following simple steps in mind.
Stay calm – This may sound silly, but some buyers tend to lose their collective and calm mindset once they’re at the showroom. For those who know that they’re easily ruffled, it’d be an excellent idea to take someone with a tougher grip on the situation and whom you trust along with you. Moreover, focus more on asking poignant questions to the salesperson – remember, no question is too stupid. At the same time, know that you’re not there to buy a car straight away.
Keep in mind what you came in for – While it’s vital to ask questions, it’s equally important to have conducted at least the basic research work before you even leave home. At the end of the day, whilst sales personnel at the showroom are there to help you, keep in mind that you’re your own best judge.
Use your research – If you’ve done your homework well enough, you’ll have better clarity no matter how much someone’s hounding you or trying to steer you towards something you’re not comfortable with. Moreover, if you’ve done your research thoroughly, it’ll be almost impossible for you to end up with the wrong car or a lemon, as it’s known in the industry.
Extras and add-ons – One of the most common tricks that sales personnel have up their sleeves is to try and get buyers to purchase extras or add-on packages. While some may be useful, most are just fluff and are there to solely drive up the profit margins for dealers. So, keep clear of things you don’t really need or see the use for. And in case, you need any add-ons, you can always buy them at a later stage.
Haggle – Haggling is one of the most common practices in the industry, especially when it comes to everyday mass-production cars. And in case you’re wondering, there’s absolutely no shame in doing that. After all, it’s your hard-earned money that you’re going to part ways with, so there’s understandably some room for haggling. Obviously, if a car is priced at AED 70,000, don’t ask for it to be brought down to AED 50,000 – that’s incredibly aggressive and not practical. But let’s say you’re being practical and the dealership is still not budging, feel free to walk away.
Mistake 4: Buying a car online without seeing it first
In this day and age of modern technological connectivity, it doesn’t come as a surprise that people can now buy cars in the UAE online. While this comes across as nifty and convenient for many, buying a car without even having looked at it in-person and test-driving it can have consequences. The online route poses less risk if you’re buying a brand-new car, though the potential risks involved with buying used cars are much higher.
If you’re getting your car delivered, ask these questions before buying:
- Can I return the car if it has already been shipped?
- Are there any costs involved in transportation?
- How long will it take for the car to arrive?
These questions are really important and need to be asked. If you’ve done your homework, you should’ve no trouble in ticking these boxes. You’ll also find out whether, if needed, you can return your car for less money than you’d bought it for originally.
Mistake 5: Being afraid to walk away
As mentioned earlier, it’s extremely vital to know that, just because you’re at the dealership, you’re not required to buy a car. As I said before, you’re not obliged to buy a car just because you drove it around the block a couple of times or told the salesperson that you’re interested in the vehicle. If you’re not convinced completely, you can back-out of the deal and don’t owe an explanation to the dealership.
One of the biggest mistakes car buyers can make is visiting just one dealership, thus having no further options to fall back upon. Even if you know what kind of car you want to buy, go to several dealerships before arriving at the conclusion. On the same note, one of the biggest boosts you get by visiting multiple dealerships is that you’ve the upper hand when it comes to “price quoted”.
What this means is that the moment you walk into a different dealership, you already have quotes from other locations that may work more in your favor. At the same time, dwindle your options down from multiple car models to just one (ideally). This will make your decision-making journey smoother and less harrowing, while also ensuring that you don’t get confused by whatever a salesperson have to say.
Mistake 6: Forgetting that the “price” isn’t the final price
You need to understand that MSRP or Manufacturer's Suggested Retail Price is just that… It’s a suggested price straight from the OEM that makes the car. It’s definitely not the ultimate price that you’re required to pay at the dealership. However, almost every salesperson is trained to follow the MSRP route, regardless of the options available for buyers and their expected negotiations.
At the end of the day, you’ll never be actually paying the MSRP of the car. This is something that the dealership is well aware of, and all salespersons know this quite well. Therefore, don’t even think twice before haggling on the final cost of purchasing your car, whether it be brand-new or second-hand. You always have some amount of wriggle room built into the deal, so don’t be afraid to take advantage of that. Finally, if the deal still doesn’t feel right, just walk away.
