Major UAE lenders are refusing to grant loans for customers buying old cars making it very difficult for anyone on a low wage to buy a cheap vehicle.
Several banks are now stating in their conditions that they will not finance the purchase of cars that will be more than 10 years old when the loans mature. With loans typically maturing after four years, the condition rules out cars built more than six years ago.
HSBC Bank Middle East and Abu Dhabi Commercial Bank (ADCB) said the age of the vehicle may not exceed eight years and nine years, respectively, at the maturity of the loan. Some banks also impose a three-year limit, while others extended the limit to 10 years.
