Our weekly "three of the best" feature takes a look at used-car loans.
Pros and cons of used-car loans at RAKBank, Abu Dhabi Islamic Bank and Mashreq
1. RAKBank Used Amal Auto Finance
Benefits With a flat rate of 5.99 per cent a year, this is not one of the lowest interest rates on the market, nor is the maximum loan amount of Dh250,000 one of the highest. But what this loan does offer is flexibility with the option to defer up to two instalments a year and no early settlement fee if you decide to pay the loan off early.
Watch out for There is an upfront fee of 1 per cent, a down payment of 20 per cent and your salary must transfer into RAKBank.
2. Adib Used Car Finance
Benefits With no down payment, a flat rate of 3.99 per cent, no salary transfer demands and open to anyone earning over Dh5,000, this loan is perfect for those with no cash to put down as a deposit. There is a maximum finance amount of Dh500,000, making almost any car potentially within your reach.
Watch out for There is an upfront fee of Dh1,000 and an early settlement fee of 1 per cent.
3. Mashreq Used Car Loan
Benefits With a flat rate of 2.35 per cent, this is one of the lowest rates on the market. No salary transfer is required but you will need a down payment of 20 per cent. There is a maximum loan amount of Dh500,000 and repayments can be made over five years.
Watch out for There is an arrangement fee of 1 per cent of the loan, and a 1 per cent early settlement fee.