Car Rental or Car Lease: What’s best for you

Does it make more sense to rent a car on monthly basis in Dubai or lease a car (long-term rental)? Companies in Dubai, Sharjah and Abu Dhabi offer countless car rental options to both tourists and local residents. With the variety of options at hand, it can seem difficult to choose especially if it’s your first time renting or leasing a car in the UAE. Before you decide what suits your needs, it’s vital to research thoroughly as every option has its pros and cons. An important tip is to start from the cheapest car hire price list in Dubai and work your way to the most reliable car rental agencies in Dubai. 

In this post, we have covered frequently asked questions about car rental and car lease in Dubai

1. How is renting a car different than leasing it?

The major differences between renting a car and leasing it are the time frame of use and type of provider. A car can be rented on a daily, weekly or monthly basis which is a short term commitment in comparison to leasing a car, for which the time frame of use is more than a year. Also, a rental car is provided by car rental agencies whereas a leased car is usually provided by a car dealership. 

2. What is the price difference between a long-term lease (yearly) and a monthly rental?

In most cases, long term lease customers receive better monthly rates on their cars and are given preferences for new cars. Also, the monthly rate on leased cars decreases as the time frame of the lease increases. For example, a Hyundai Accent will cost you a 1650 AED per month if it is leased for a year whereas leasing it for 3 years will cost you about 1500 AED per month.  

3. What are the terms of payment for renting a car on a monthly basis or a lease basis?

When you hire a car on a monthly basis, you are required to pay the rental cost for the first month + VAT and a security deposit which is refundable after 30 days from the date of return. At the end of the first month, you are to pay the next month’s rent and so on which makes it quite easy to cancel a monthly rental. However, we suggest you to inform the car rental manager in advance as a precautionary measure. 

Car leasing plans vary from agency to agency but in most cases there is no down payment  on car lease plans. All you need to pay is the predetermined security deposit which is refundable after the end of your leasing period. 

4. What are the features you can expect from a rental car?

In Dubai, all rental cars come with an Air-conditioner, FM radio, a USB music player, and a mobile charging port. Although you will need to carry your USB data cable for your mobile phones. Other features like GPS, child seats, or Wi-Fi can be made available upon request but will be subjected to additional charges.  

 If you have more questions, put them in the comments section and we shall answer them for you. For impressive deals on rent a car and car leasing visit OneClickDrive and choose a car from our exclusive network of suppliers.