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How to buy a car in Dubai as a foreigner: US guide
Dubai's layout and limited public transportation outside metro areas make car ownership not only practical but also pretty much necessary for most people living there.
If you're planning on living or working in Dubai, you likely have questions about how to buy a car there as an American and whether the process is different from what you're used to back home.
If you're not sure what documents you need or how car registration works, or if you have any other questions, this guide will explain how to buy a car in Dubai as a foreigner with all the steps you need to know.
We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.
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Can Americans buy a car in Dubai?
Yes, Americans can buy a car in Dubai. That said, there's an important distinction between buying a vehicle and being able to drive it legally.
Foreign nationals can technically purchase a car in the UAE without residency status. However, you can't register the vehicle in your name or get a UAE driver’s license without a residence visa and an Emirates ID.
This means that you won't be able to use your car until you have the proper documentation to register and insure it.
Most Americans who buy cars in Dubai do so after securing employment visas or other long-term residency status, which usually gives them all the paperwork they need to make their purchase and freely drive their new car.
But if you're a tourist, it's unlikely that you'll be able to buy a car in Dubai and start driving it without complications (or at all).
What are the requirements to buy a car in Dubai as a foreigner?
Dubai's car-buying process will require you to show a few different documents that prove your identity, residency status, and legal right to own and operate a vehicle in the UAE, such as:
- Valid residence visa
- Emirates ID
- UAE driver's license
- US passport
- Proof of address
- Insurance documents
- No Objection Certificate (NOC) for used cars
Americans can typically convert their US driver's license to a UAE license by visiting the Roads and Transport Authority (RTA), which is faster and cheaper than taking driving tests from scratch.¹
You can also get an International Driving Permit.
If you're financing your car, which is sometimes possible for foreigners in Dubai, you'll also need financial documents, such as your bank account statements and a letter from your employer confirming your income.
Types of cars to buy in Dubai
New cars
Many expats choose new vehicles because they plan to stay in Dubai long-term and want the reliability and support that comes with a warranty. New models also have all the latest technology and can be a status symbol.
Dubai's competitive car market often means that new car prices are lower than in the US or Europe, so that's another argument for buying a new car instead of a used one.
Used cars
Used cars in Dubai cost 20–30% less than new vehicles, with prices dropping an additional 15% every year as the car ages.² If you're looking for an affordable option, buying a used car can be a good idea.
You'll find a huge selection of used vehicles, from budget-friendly options to nearly-new luxury cars sold by expats leaving the country.
Where to buy a car in Dubai
You have a few different options for buying a car in Dubai:
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Authorized dealerships: Brand showrooms from manufacturers like Toyota, BMW, and Mercedes sell new cars with full warranties and sometimes financing options for eligible buyers
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Dubai car dealers: Companies selling pre-owned vehicles that can also help you with registration paperwork
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Online marketplaces: If you want to buy a used car in Dubai, you can browse websites like Dubizzle and CarSwitch to compare options
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Private sellers: You can buy a used car from locals or other expats who are leaving Dubai or upgrading their vehicles
Many expats who buy used cars in Dubai start their search online before visiting dealerships or arranging private viewings. There's a large expat community, which means that there's a constant turnover of well-maintained vehicles from people relocating.
How much is a car in Dubai?
The cost of buying a car in Dubai includes the purchase price plus registration fees, insurance, and inspection costs.
That said, you'll often be able to buy a car for cheaper than in the US, especially when it comes to luxury vehicles.
Here's what to expect:
| Expense | Cost³ ⁴ |
|---|---|
| Volkswagen Golf 1.5 (new compact car) | 32,674 USD |
| Toyota Corolla sedan 1.6 (new mid-size car) | 22,674 USD |
| Car insurance (annual) | 1.25% to 3% of vehicle value |
| New/used car registration | 114 USD |
| Ownership transfer fee | 95 USD |
| Vehicle inspection (older cars only) | 46 USD |
| Traffic file setup (first-time buyers) | 60 USD |
You can buy luxury cars in Dubai at relatively low prices if that's something you're interested in. All registration fees are also pretty affordable, especially when compared with many other countries.
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How to buy a car in Dubai: step by step
1. Get your residency documents
Make sure you have your residence visa and Emirates ID before you start shopping. Without these documents, you won't be able to register a vehicle or get insurance, so there's virtually no point in buying a car until your residency is confirmed.
2. Get your UAE driver's license
Visit the RTA to convert your US license to a UAE license. This is usually a pretty quick and easy process, and you don't have to give up your US license.¹
3. Set your budget and explore financing
Decide how much you can spend on the vehicle and ongoing costs like insurance and registration.
If you need financing, UAE banks can offer car loans to residents, but you'll typically need to provide at least a 20% down payment, proof of employment, and bank statements showing that you're in good financial standing.³
4. Search for your car
Depending on whether you're looking to buy a new or used vehicle, you can visit dealerships, search online marketplaces, or arrange for viewings with private sellers.
Dubai has a large selection of cars, so it's a good idea to compare a few different options before committing to anything.
5. Inspect the vehicle
For used cars, arrange a pre-purchase inspection at an authorized testing center. You should also check the car's accident history and verify that there are no outstanding fines or loans against the vehicle.
6. Negotiate and agree on the price
Discuss the final price with the seller and clarify what's included.
For used cars, make sure that the seller will provide the No Objection Certificate and confirm who will handle the registration transfer.
7. Get insurance
You should get comprehensive car insurance from a UAE-licensed provider.
You usually need to have valid insurance before you can register the vehicle, and insurance companies require your Emirates ID, driver's license, and vehicle details.
8. Complete the paperwork
Fill out the sales agreement and transfer documents. The seller should provide the vehicle registration card, and you'll typically need your passport, Emirates ID, insurance certificate, and driver's license.
9. Register the car
You can't drive a car in Dubai without a current UAE registration.
Dealerships typically handle registration for new cars, but for used cars, you'll need to visit the RTA with your insurance certificate, passport or Emirates ID, previous registration card, and inspection certificate for older vehicles.
10. Pay registration fees and receive your plates
Pay the registration fees, ownership transfer fee (for used cars), and any other applicable costs. You'll then get your license plates and registration documents, which you should keep in your car.
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Driving in Dubai: Requirements
Now that you know how to buy a car in Dubai, it's important to understand the UAE's driving culture and strict traffic laws before you get behind the wheel.
Here are some things to keep in mind:
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Speed limits are strictly enforced with radar cameras throughout the city, and fines are automatically sent to the registered vehicle owner
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The UAE has zero tolerance for drinking and driving, with severe penalties including heavy fines and even jail time
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Hazard lights are commonly used to indicate slowing down or stopping, not just for emergencies
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Turn signals are often considered optional by local drivers, so stay alert and don't assume that other vehicles will signal lane changes
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Avoid making hand gestures at other drivers, as even common gestures can be misinterpreted as offensive
Dubai's roads are well maintained and clearly marked, but traffic can be aggressive during peak hours, so it's important to stay focused while driving.
How to import a car from Dubai to the US
It's possible to import a car from Dubai to the US, but you'll have to meet federal safety and emissions standards set by the Department of Transportation and EPA. This can be pretty complicated.
Overall, most Americans sell their Dubai cars before returning home rather than dealing with the import process and costs.
Buying a car in Dubai is relatively easy once you have residency status and your Emirates ID. The process can move quickly, even if you're buying a used car.
However, what many Americans overlook is how much money they lose on international transfers and currency exchange when buying a car or managing finances between the US and Dubai.
Banks often charge high fees for wire transfers and add markups to exchange rates. When you're making a large payment like buying a car, these costs add up to noticeable amounts.
Wise is a better way to handle international money transfers.
With Wise, you can send secure and trackable large amount transfers to 140+ countries worldwide with transparent fees and the fair mid-market exchange rate.
Have a look at the main benefits for using Wise to send large transfers:
- Dedicated support for large transfers
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- Two-factor authentication and real-time notifications
Sources
- Government of Dubai - Apply for a New Driving License or a New Category Based on Exchanging Licenses
- Emirates Estate - How to buy a car in the UAE as a foreigner?
- Lexus - Guide About Buying a Car in Dubai
- Numbeo - Cost of Living in Dubai
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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