Buying and Owning a Car in the UAE: The Complete 2025 Guide for Expats and Residents
- Radu Lupescu
- May 29, 2025
- 4 min read
Whether you’ve just moved to the UAE or you’re upgrading your ride, buying and owning a car is one of the most common—and practical—choices for residents. With sprawling cities, luxury highways, affordable fuel, and year-round driving weather, the UAE is built for personal vehicle ownership.
But the process involves more than just picking a car. From where to buy (hello, Sharjah!) to navigating registration, inter-emirate transfers, insurance, and ownership laws, this 2025 guide covers everything you need to know about buying and owning a car in the UAE.
Should You Own a Car in the UAE?
While major cities like Dubai and Abu Dhabi offer excellent public transport, owning a car is ideal if:
You live outside metro zones or in suburban communities
You commute across emirates
You travel frequently or enjoy road trips
You want convenience, independence, or luxury
Many expats find that car ownership becomes more cost-effective than relying on taxis or ride-hailing long-term.
Buying a Car in the UAE: New vs. Used
Buying New
Sold by authorized dealerships such as Al-Futtaim (Toyota), Al Tayer (Ford), Galadari (Mazda)
Benefits:
Manufacturer warranty (up to 5 years)
Optional service packages
Latest safety and tech features
Financing available through banks or dealer programs
Buying Used
Highly popular among expats—more affordable and accessible
Sources:
Showrooms in Sharjah, especially along Sheikh Mohammed Bin Zayed Road (Auto Market)
Online platforms: Dubizzle, CarSwitch, YallaMotor
Private sellers
Check for:
RTA-approved inspection
Accident and service history
Chassis number reports (through Emirates Vehicle Gate or RTA)
Sharjah: The UAE’s Used Car Hub
Sharjah is considered the unofficial capital of used cars in the UAE. The Sharjah Auto Market hosts hundreds of showrooms offering local, GCC-spec, and imported vehicles at competitive prices.
Why Buy in Sharjah?
Lower prices than in Dubai or Abu Dhabi
Bulk imports from Japan, USA, and Europe
Wide range of certified pre-owned vehicles
Better deals for export and wholesale buyers
Important: If you buy a car in Sharjah but live in another emirate, you may need to transfer the vehicle and pay inter-emirate transfer fees.
Car Registration in the UAE (2025)
You cannot legally drive a car in the UAE without registering it in your emirate of residence.
Required Documents
Emirates ID
UAE driving license
Vehicle purchase invoice or ownership certificate
Valid car insurance
Technical inspection report (for used vehicles)
Registration Fees
Service | Fee (AED) |
Vehicle registration | AED 350 – AED 500 |
Vehicle inspection | AED 170 – AED 250 |
Number plates (standard) | AED 35 – AED 50 |
Traffic file (if new buyer) | AED 220 – AED 270 |
Inter-emirate transfer clearance | AED 100 – AED 300 |
Registration is valid for one year and must be renewed annually.
Inter-Emirate Transfer: Buying in Sharjah, Living in Dubai?
If you buy a car in one emirate and live in another, here’s what you need to do:
Cancel registration in the seller’s emirate (e.g., Sharjah)
Obtain a transfer certificate from the Traffic Department
Conduct a technical test in your emirate
Pay any outstanding fines and transfer clearance fees
Register the vehicle in your emirate (e.g., Dubai RTA or Abu Dhabi ITC)
You’ll need to provide proof of residence in the target emirate (e.g., Ejari in Dubai or Tawtheeq in Abu Dhabi).
Cost Breakdown of Buying a Car in the UAE (2025)
Category | Estimated Cost (AED) |
New car (entry-level) | 55,000 – 95,000 |
Used car (5–7 years old) | 15,000 – 50,000 |
Registration & testing | 500 – 800 |
Inter-emirate transfer | 100 – 300 |
Insurance (comprehensive) | 1,500 – 6,000/year |
Fuel (monthly average) | 300 – 600 |
Parking fees | AED 2 – 10/hour in major cities |
Car Insurance in the UAE
Types:
Third-Party Liability (mandatory, cheaper)
Comprehensive Insurance (covers damage to your vehicle too)
Cost Factors:
Age of car and driver
Driving history
Emirate of registration
Vehicle type and engine size
Top Providers in 2025:
Orient Insurance
AXA Gulf
RSA Insurance
Tokio Marine
Watania Takaful
Compare quotes via Policybazaar.ae or InsuranceMarket.ae for the best rates.
Annual Maintenance & Servicing
Service intervals: every 5,000–10,000 km depending on the car
Service cost: AED 500 – AED 1,500 per visit
Premium/luxury cars can cost AED 3,000+ annually
Authorized dealerships provide free servicing packages for the first 3–5 years on new cars.
Electric Vehicles and Hybrid Cars in the UAE
As of 2025, EV adoption is growing steadily.
Benefits:
Free parking in designated zones (Dubai/Abu Dhabi)
Free Salik tags and reduced tolls (subject to RTA policies)
Green plate benefits
Charging infrastructure is expanding through:
DEWA EV Green Charger network
Tesla Superchargers
Noor Energy, Etihad Water & Electricity
Should You Lease Instead?
If you’re staying short-term or unsure about owning:
Leasing Pros | Leasing Cons |
No registration hassle | Limited mileage |
Insurance often included | Less long-term value |
Monthly flexibility | Must return in good condition |
Rental services like Hertz, Thrifty, SelfDrive.ae, and Udrive are popular for short- and medium-term car use.
Essential Apps for Car Owners
App | Purpose |
RTA Dubai | Registration, fines, parking |
Darb Abu Dhabi | Vehicle management, payments |
Salik or Dubai Drive | Toll recharge & monitoring |
Dubizzle, CarSwitch | Used car browsing & comparisons |
Policybazaar UAE & Shory | Compare car insurance options |
Final Thoughts
Owning a car in the UAE in 2025 offers a seamless blend of luxury, practicality, and affordability—especially with access to the nationwide road network, cheap fuel, and low annual taxes.
Whether you’re buying a new sedan from a Dubai showroom or hunting for a great deal at the Sharjah Auto Market, understanding the registration process, inter-emirate fees, and ongoing costs ensures a smooth and confident ownership experience.