Detailed on the road expenses

Possible Hidden Charges or On-Road Expenses When Buying a Vehicle

When purchasing a vehicle, there are some additional costs or on-road expenses that you may need to consider.

If you are buying a vehicle directly from an individual, the usual process involves vehicle inspection, transfer of ownership, updating the number plate, and taking a new insurance policy. For this, the total expense normally comes to around AED 2,500 to AED 3,500. This is only an approximate amount, as it can vary slightly depending on the situation.

However, if you are purchasing the vehicle through a bank loan, there will be some extra expenses to keep in mind. This includes the valuation certificate fee and the bank’s processing fee, which may together cost around AED 1,500 to AED 2,500. The exact amount can change depending on the loan amount and the value of the vehicle.

So, on average, when we calculate all these expenses together – transfer charges, insurance, registration, number plate, bank processing fee, and valuation – the total will usually come to around AED 5,000 to AED 6,000, or somewhere close to that.

This on-road expense can either be included in the loan itself or, if you prefer, you can pay it directly in cash.

Please note that I am sharing this only as general information. Some people may already know about these charges, while others may not. Also, the actual expenses may vary slightly depending on circumstances.

Possible Charges in a Car Purchase / Loan Process (UAE)

⚠️ Note: All these will not apply to every deal — it depends on the bank, emirate, and type of transaction.

Bank & Loan Related

• Loan Job Insurance Protection Scheme – As per bank policy

• Sukuk Processing Fee – AED 425 or % of loan amount

• Refinance Bank Processing Fee – From AED 525 or 1–2% of loan amount

• Bank Processing Fee – Minimum AED 525 or 1–2% of loan amount

• Service Charge – From AED 525

• Auto Loan Protection Fee – From AED 1,050 (some banks only)

• VAT – Only if applicable (Individual to Individual = no charges; B2C = 5%)

Car Evaluation & Testing

• Car Evaluation Charges – From AED 1000-2500 (depends on bank & value)

• Car Registration Test – From AED 150

• Car Registration Test (Dubai) – AED 170

• Car ID Test – From AED 170

• Car Renewal Test – From AED 170

• Export Test – From AED 120

• Repeat Test (if required) – From AED 150 (depends on emirate)

Ownership / Registration

• Cancelling Registration Card – From AED 350 (depends on emirate)

• ADH Typing Charge – AED 45–150

• Ownership Transfer (possession certificate) – From AED 170

• Ownership Cancellation & Transfer (via reg. card directly) – AED 540

• Ownership Cancellation – AED 120

• Ownership Transfer – AED 170

• Possession Certificate – AED 120

• Transfer of Registration (Sharjah export) – AED 350

• Registration Card Cancellation – From AED 350

• RTA File Opening – AED 200

• Mortgage Add-on Registration Card – AED 170

Other Vehicle-Related Costs

• Recovery (moving car without plate) – From AED 100 (one side)

• Covered Parking (after purchase) – From AED 160

• Insurance (Sedan) – From AED 1,500+

• Insurance (SUV) – From AED 2,000+

• Registration with Number Plate – Depends on RTA rules

• Salik Tag – AED 100

• Car Wash – AED 16

• Advertising (if needed) – AED 350

• Repairs – As per requirement

Agent / Seller / Buyer Related

• If Seller from Our Side – AED 500

• RTA Fine – Must be cleared by seller/buyer before transfer

• Cheque Collection or Account Transfer (from our side) – AED 150

• Mobaya (if seller/buyer not present at RTA) – AED 250