New car buying advice: Auto loans for new or used cars

Auto loans for new or used

Processing requires a whole lot of documentation

Like most mortgage transactions, getting an auto loan requires some documentation. Things have become a bit more stringent since the finance and banking sector suffered severe shortfalls in the last global economic recession.

The transaction requires the following documents:

• Salary certificate or evidence of income source

• Bank or credit card statements

• A letter from the employer confirming salary transfer and benefits

• For UAE nationals – copy of valid passport with the last page

• For expats – copy of valid passport and valid UAE residence visa

• Copy of valid driving license

• Copy of DEWA bill for Dubai residents

• Post dated cheques or auto debit instruction

• Security cheque / guarantee

For a new vehicle, a quote from the vehicle dealer is required. For a used vehicle, the bank requires a valuation certificate by an authorized dealer. Once approved, the bank requires a copy of the mortgage letter issued to the Traffic Department.

Some banks offer bundled insurance benefits, complimentary Salik card, up to 80% financing, staggered payment deals and payment tenors of up to 60 months, recharge & RTA fine payment facility and even fixed deposit yield options for your auto loan package.

Handy Hints
Documents required: salary certificate, bank statements, letter from the employer, copy of driving license, security & post dated cheques.

 

Source: Lovely Claire CD, Special to Classifieds, The writer is a freelancer