Budget
Here is a simple calculation for you.
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To better understand this let us take 2 buyers and arrive at their budgets as shown in the attached sheet.
The total cost of your vehicle is not only the tag price, but you also need to account for VAT, Insurance premium, registration fees, and any other optional items, like extended warranties, accessories or add-ons, these should be accounted for as other miscellaneous expenses while arriving at your budget. If you are uncertain on these unexpected other expenses, it is advisable to keep some provisions at this stage.
What gets evident from the budget calculation sheet is that the buyer A should focus on various car options within a budget of AED 37,000, and buyer B around AED 138,000. It is futile to getting attracted to a car which is out of reach. You will be able to save on your time and energy by staying around your budget.
Alternatively if you are on a tight budget, you may even consider buying a used car within as low as AED 10,000 from a host of choices available in UAE. An article by Omar Shariff, Deputy Middle East Editor in Gulf News explains options of 5 most reliable used cars you can buy for Dh10,000 in UAE or even consider opting to choose from Top 5 used luxury cars you can buy for Dh10,000.
Hope this helps you in arriving at your budget for your dream car. If you have a different method to calculate this figure, You are most welcome to share your suggestions or advice for helping fellow buyers to estimate their budgets.
Calculate Your Car Budget by filling in your variables here!
Variables:
Down Payment - The initial payment you plan to make for a finance deal - preferably it should be around 20% of the total cost of the car.
Trade In Car Value - The value of your previously owned vehicle, if you plan to either Trade In with the same dealer or plan to sell yourself elsewhere.
EMI - Your monthly planned installments you are comfortable with, preferably should be around 10% of your gross income.
Tenure - No of months you are planning to pay back your loan, preferably up to 48 months, to save on interest. Lower the better.
Miscellaneous Expenses - Consider any other possible outflow of money in the form of VAT, Bank Interest, Registration Fees, Insurance, Accessory Fitments, Body Paint protection, Glass Tinting etc.
GREAT!!!!
So Now you know your car Budget.
Shall we then move on to the next step and identify your mobility needs............
Still having some doubts. No worries.... leave your comments in the Comment Section at the bottom of this page and let's try addressing them too.......
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