What New Car Can You Get for Under AED 1,000/Month in the UAE?

Owning a brand-new car is a dream for many, but affordability becomes a key concern with rising expenses. Car financing offers a solution, enabling buyers to spread payments over manageable instalments. In the UAE, where car ownership is often essential, financing can make owning a new vehicle a realistic goal, even for as little as AED 1,000/month. For those exploring their options, it’s worth understanding the difference between car financing and leasing—learn more about it here.

What is Car Financing?

Car financing is purchasing a vehicle through a loan or lease arrangement. Instead of paying the total price upfront, buyers pay an initial down payment and then make regular monthly payments over a specified term, typically ranging from 1 to 5 years. The monthly instalment depends on factors such as the car’s price, loan term, interest rate, Value Added Tax (VAT) and down payment.

Advantages of Car Financing:

• Affordability: Financing helps break the cost into smaller, regular payments, reducing the financial burden. 

• Access to high-end Models: Financing allows buyers to opt for premium models that may be unaffordable with a lump-sum payment.

• Flexible Financing Options: Various banks and dealers offer tailored financing plans which help buyers select an option suitable to their budget.

• Savings: By financing, buyers can retain their savings for emergencies or other investments.

How to Finance a Car in the UAE?

In the UAE, car financing is straightforward, thanks to numerous options provided by banks, dealerships and specialised lenders. Here’s how you can finance a car:

• Down Payment: Banks in the UAE typically finance up to 80% of a car’s value, requiring the borrower to pay the remaining 20% upfront. If purchasing directly from a dealer, this 20% down payment is paid to the dealer. This means if the car costs AED 50,000, you need to pay AED 10,000 upfront. However, some dealers may offer an option for a 0% down payment. 

• Eligibility: Banks or Lenders require proof of age, nationality, credit score and steady income, usually a minimum monthly salary of AED 3,000 to AED 5,000, depending on the financier.

• Loan Terms: Financing periods typically range from 12 to 60 months (1 year to 5 years). Longer terms result in lower monthly payments but increase the total interest paid.

• Bank Interest Rates: Most banks in the UAE offer car loans with competitive interest rates, typically ranging from 1.99% to 2.65% per annum.

• Dealer Financing: Many dealerships collaborate with banks to offer in-house financing plans, which can sometimes include promotional offers such as zero processing fees or maintenance costs.

• Islamic Financing: Sharia-compliant options such as Murabaha from Dubai Islamic Bank are available for buyers seeking interest-free alternatives.

You can also apply through dubizzle for a hassle-free car financing process, which connects you with partnered banks to secure the best auto financing deals. Click the link to get started and complete your financing today.

Cars Under AED 1,000/Month (Including 5% VAT + 2% Interest Rate)

Toyota Raize (AED 870/Month)

The 2024 Toyota Raize is the smallest passenger SUV, measuring less than four meters in length and making parking easier in tight spaces. It is powered by a 1.2-litre 3-cylinder engine with dual-mode (D)-CVT. The SUV delivers 87 horsepower and 113 Nm of torque, offering the best fuel economy at 21.7 km/L.

Standard features include smart keyless entry, an LED rear combination headlight, two foldable seats, a front armrest, an 8-inch multimedia display, Apple Car Play, and Android Auto Ready. Safety features include parking sensors, dual front airbags, an Emergency Call System and ISOFIX.

• Price: AED 61,900
• Tenure: 5 Years
• Down Payment: AED 12,400 (20%)
• Monthly Instalment: AED 870

Changan Eado Plus (AED 884/Month)

The 2025 Changan Eado Plus Trend is a front-wheel-drive (FWD) Chinese compact sedan equipped with a 1.5-litre turbocharged 4-cylinder engine paired with a 7-speed dual-clutch transmission (DCT). Standard features include a power sunroof, 17-inch alloy wheels, leather seats, a 6-way adjustable driver’s seat, a 4-way adjustable passenger seat, a voice control system, a 13.2-inch infotainment screen, a 10.25-inch interactive driver display, Android Auto and Apple CarPlay compatibility, 4 speakers and Bluetooth connectivity.

Safety features comprise ABS with ESP, rear parking sensors, sensors, cruise control, reverse and blind-spot cameras, and driver, passenger and side airbags.

• Price: AED 63,000
• Tenure: 5 Years
• Down Payment: AED 12,600 (20%)
• Monthly Instalment: AED 884

Mitsubishi ASX (AED 982/Month)

The 2025 Mitsubishi ASX GLX is a Japanese FWD subcompact SUV equipped with a 2.0-litre 4-cylinder engine paired with a Continuously Variable Transmission (CVT). It comes with LED headlights, LED front and rear fog lights and a rear spoiler. Inside, it offers rear foldable seats (60:40), a day-and-night rearview mirror, a multi-information display and a four-speaker audio system. Safety features include Active Stability Control (ASC), ABS with EBD, a Hill Start Assist (HSA) system, multiple airbags and a first aid kit.

• Price: AED 70,000
• Tenure: 5 Years
• Down Payment: AED 14,000 (20%)
• Monthly Instalment: AED 982

Nissan Kicks (AED 996/Month)

The 2024 Nissan Kicks S is a FWD subcompact SUV, manufactured in Mexico. It is powered by a 1.6-litre engine mated with a CVT automatic transmission. The standard ‘S’ trim features 16-inch alloy wheels, a rear spoiler, keyless entry, halogen headlights, 60:40 split rear seats, Bluetooth and USB connectivity. Safety features include parking sensors, Hill Start Assist and Vehicle Dynamic Control (VDC).

• Price: AED 71,000
• Tenure: 5 Years
• Down Payment: AED 14,200 (20%)
• Monthly Instalment: AED 996

Mazda 3 (AED 991/Month)

The 2025 Mazda 3 Evolve is a Japanese FWD compact sedan powered by a 2.0-litre 4-cylinder engine paired with a 6-speed automatic transmission. It features LED headlights and 16-inch alloy wheels.

Inside, it offers dual-zone automatic air conditioning, an 8.8-inch centre display screen with commander control, Apple CarPlay, Android Auto, an eight-speaker audio system, keyless entry and a push-start button. Safety features include a rear camera, cruise control, automatic door locks, rear parking sensors, dual front, side, curtain airbags and a driver’s knee airbag.

• Price: AED 86,000
• Tenure: 5 Years
• Down Payment: AED 30,450 (35%)
• Monthly Instalment: AED 991

Toyota Fortuner (AED 1,010/Month)

The 2025 Toyota Fortuner EXR 4WD is a midsize SUV manufactured in Thailand. It features a 2.7-litre 4-cylinder engine paired with a 6-speed automatic transmission. Exterior highlights include 17-inch alloy wheels, front and rear fog lamps, LED headlights, roof rails, a roof spoiler, rear combination lights and a silver radiator grille. The interior is equipped with manual climate control, a 4.2-inch multi-information display, an 8-inch multimedia display, Apple CarPlay and Android Auto compatibility, and a 6-speaker audio system. Safety features include rear parking sensors, a cruise control system, daytime running lights, dual front airbags, Hill-start Assist Control (HAC), a Tyre Pressure Warning System (TPWS) and an Emergency Brake Signal.

• Price: AED 128,000
• Tenure: 5 Years
• Down Payment: AED 70,400 (55%)
• Monthly Instalment: AED 1,010

Mercedes A-Class (AED 1,079/Month)

The 2025 Mercedes-Benz A-Class FWD is a premium German subcompact sedan powered by a 1.3-litre turbocharged 4-cylinder engine paired with a 7-speed dual-clutch transmission. Its exterior highlights include a radiator grille, LED headlights and 17-inch alloy wheels. The interior features a redesigned 3-spoke steering wheel with touch controls, a 10.25-inch media display, black ARTICO man-made leather seats, and 8-way adjustable driver and front passenger seats. It also boasts an advanced MBUX multimedia system and DYNAMIC SELECT driving modes, including Sport, Comfort and ECO. Safety features are comprehensive, with Active Brake Assist, a 360-degree camera, Active Lane Keeping Assist, Blind Spot Assist, and side-impact airbags for rear passengers.

• Price: AED 228,000
• Tenure: 5 Years
• Down Payment: AED 166,440 (73%)
• Monthly Instalment: AED 1,079

Nissan Patrol (AED 1,094/Month)

The 2025 Nissan Patrol XE is a premium Japanese large SUV powered by a 3.8-litre V6 engine paired with a 9-speed automatic transmission and a Four-Wheel Drive (4WD) configuration. Its exterior features include signature double C-shaped LED headlights, 18-inch alloy wheels and an off-road bumper. Inside, the SUV offers a leather-wrapped steering wheel, manual height adjustment, paddle shifters, a 12.3-inch monolith display, an 8-way power-adjustable driver’s seat and a 4-way power-adjustable passenger seat. Safety features are comprehensive, including a rearview camera, front and rear parking sensors, and airbags for the front, side, curtain and driver’s knee.

• Price: AED 240,000
• Tenure: 5 Years
• Down Payment: AED 177,600 (74%)
• Monthly Instalment: AED 1,094

Takeaway:

By comparing options from banks and dealers and considering affordable models, buyers can achieve driving their dream car without straining their finances.

Ok, so we may have gone a tad overboard by adding a Nissan Patrol on the list where you have to give a massive downpayment.

But with the right financing plan, owning a new car for under AED 1,000/month is possible in the UAE. Always ensure to account for additional costs such as insurance and VAT to budget effectively.