Quick answer
- Compare cars using total monthly cost, not instalment alone.
- Depreciation may be the largest cost even though it does not leave your account every month.
- Keep planned maintenance and emergency repairs as separate budget lines.
Example monthly planning budget for a AED 90,000 car
| Cost | Illustrative monthly amount | How to personalise it |
|---|---|---|
| Finance | AED 1,300–1,700 | Use your deposit, term and actual rate |
| Fuel | AED 300–600 | Distance, consumption and current fuel price |
| Insurance | AED 180–350 | Driver, vehicle, cover and claims history |
| Routine maintenance | AED 180–400 | Age, warranty and service schedule |
| Registration/inspection reserve | AED 50–100 | Annualise current official charges |
| Tyres/repairs reserve | AED 150–400 | Tyre size, age and condition |
| Parking and Salik | Your actual use | Home, work and normal routes |
Separate cash flow from economic cost
Finance, fuel and parking affect monthly cash flow. Depreciation is different: it is the value the car may lose between purchase and sale. Both matter when comparing ownership with rental or other transport.
Build your personal estimate
- Use your expected monthly kilometres, not a generic average.
- Request insurance quotes for the exact model and driver profile.
- Read the maintenance schedule and price tyres in the correct size.
- Estimate parking at home and work plus normal Salik crossings.
- Add a repair reserve, especially after warranty expiry.
Common budgeting mistakes
- Treating the down payment as the only upfront cost.
- Comparing a flat rate with a reducing rate by percentage alone.
- Ignoring tyre age and replacement cost.
- Assuming a larger engine changes only the fuel bill.
- Leaving no room for depreciation or unexpected repairs.
Illustration boundary
The example is a planning framework, not a quotation. Fuel prices, official fees, insurance premiums, parking and toll usage change; replace every line with your current figures.
Common questions
Clear answers before you decide
What is usually the biggest car-ownership cost?
For many newer cars, depreciation and finance are major costs. For older cars, repairs and downtime can become more significant.
Should maintenance and repairs be one budget?
Keep them separate. Scheduled service is predictable; unexpected repair risk depends on age, condition, model and warranty.
Does the calculator include depreciation?
The current monthly cash-flow calculator excludes depreciation because future resale is uncertain. Consider it separately when comparing alternatives.
Useful official sources
Always confirm current fees, rules and product terms with the relevant authority or provider.