Should I rent, lease or buy a car in the UAE?

Should I rent, lease or buy a car in the UAE?

If you are living in the UAE or Dubai then you know how costly public transportation can be. Of course, if you have found good accommodation near the metro station and your workplace is also connected by metro then taking the train can be beneficial. However, if that is not the case then spending on cab fares and transportation can increase your cost of livelihood greatly. This is especially true if you are living with your family in Dubai. When you account for the school bus fares, work transportation and miscellaneous transportation charges then you will see it will be much cheaper if you own a car.

UAE is surely a great place to be for car enthusiasts. Not only you can drive your dream car but also the road conditions are marvelous, you also have a tax-free income, getting a car loan is very easy and you will also get access to luxury cars with much more ease. So, owning a car is very appealing for the residents of the UAE. Even if one cannot buy their favourite car, there are several options like renting or leasing a car available.

From luxury cars to low budget ones, you can rent or lease any car as per your budget. Thus, you can choose the right car and save a lot on transportation. Nevertheless, the biggest question is whether you should rent, lease or buy a car if you are living in the UAE? Well, let us have a look.

How beneficial is buying a car?

Of course, buying a car provides you with lots of convenience and benefits. But it is wise to remember that car is an asset and its value depreciates with every passing moment. Not to mention that buying a car comes with several additional costs. When you buy a car, you will have to pay for its regular maintenance and insurance on a yearly basis. Furthermore, you will require spending money on repairing and annual tests.

Plus, you will have to bear the additional cost if any damage is not covered by your car insurance. Also, you will need to make a down payment of at least 20 percent of the total cost of the car at the time of purchasing it. This amount will not be covered in your car loan. Another point of concern is that you will not get the right price if you need to leave UAE for an immediate basis.

Reviewing the benefits of renting a car

There are several car rental services available too in UAE. These companies provide you with the car of your choice of rent on a monthly basis. Of course, by renting a car, you will never have to worry about servicing, maintenance, insurance and registration costs. However, there are some drawbacks. If you drive the car more than 2500km in a month then most rental companies charge you some extra amount for every kilometer you drive above the limit. So, if the costs are compared then it is found that renting a car is actually costlier than buying a car.

What about leasing a car?

Renting a car for a year or more is considered as leasing. It has been observed that this is very costly as well as time-efficient for the residents of the United Arab Emirates. In fact, since you are renting a car for a longer time, the rent is actually much lesser than the previous option.

If a comparison is drawn among buying a car and leasing then it can be seen that you will have to pay nearly the same amount as buying a car without having to bear any extra costs for maintenance, registration or insurance. So, it is like owning a car without any of the liabilities that come with buying a vehicle.

So, whether you should buy, rent or lease a car? Well, we have presented all the facts in front of you. Now, you can compare the benefits and make your decision as per your own requirements.