The question of whether to buy or rent a car in the UAE is often a dilemma for many expatriates. While each option has its own pros and cons, the decision depends on your individual circumstances. If you are wondering whether you should sell your car in Dubai and start leasing, wecashanycar has some important tips that can help you make the right decision.
Both Car Leasing and Purchase have Benefits
Those who prefer to lease cars in Abu Dhabi or Dubai often quote the hassle-free and cost effective benefits of car rental services. These include vehicle insurance and maintenance services that are usually covered under the lease. Some expats also prefer to rent cars because they can change cars frequently and enjoy the latest models.
On the other hand, many people who buy cars in the UAE will swear by the autonomy that comes with owning their personal vehicles. They get to travel long distances without worrying about mileage limits and they can also sell their cars whenever they wish.
Beware! The Hidden Car Rental Costs
Despite the advantages, both car purchase and leasing options have downsides. While renting a car in the UAE might come at a cheaper monthly cost, you can end up paying hefty penalties for surpassing the stipulated mileage under your leasing agreement.
Another disadvantage is that the insurance offered by some rental companies may not be sufficient to cover every type of accident. Rental companies often charge an administration fee for every fine and this can easily double your monthly rental charges. Most car rental companies in the UAE also charge a few extra dirhams each time you pass through a toll gate and will charge you for terminating the leasing agreement.
But owning a car can be an expensive affair
Most car buyers in the UAE have to pay a 20% down payment and arrange for monthly instalments for the balance. This forces the majority of people to take car loans to finance their car purchases.
Due to the high costs of spare parts and mechanical service charges, car maintenance and repair expenses can also hit the roof especially if you happen to be under insured.
Depending on the car that you own, insurance services can also be quite costly. Given the high depreciation of many cars, you might also face a challenge getting a car buyer, when you decide to sell your car in Abu Dhabi or Dubai.
3 Questions to ask before leasing or buying a car in the UAE
1. How long are you staying in the UAE?
It makes more economic sense to rent a car if you are going to live in the UAE for a short while. This will not only save you some money, but also help you avoid the hassles of selling a car in UAE once you are ready to leave the country. On the other hand, if you intend to live in the country for more than two years, it is more cost-effective to purchase your own car.
2. How much is your car budget?
While both leasing and buying options require you to pay monthly instalments, the rental payments can be much cheaper. On the other hand, even though instalments for buying car are more expensive, you need to consider the fact that, with buying, you will own the car after a while and your down payment and installments will have yielded something. Based on your budget, you can choose the best option. You should factor into consideration payments, such as insurance and repair, as well as servicing your car which can be quite expensive in the long-run.
3. How frequently do you use your car?
Mileage is a big criteria to consider when renting a car because you are charged each time you use your vehicle. If you use your car frequently and drive long distances, then the rental option is out of question. However, if you only use your car for short trips and normal errands, you can look at leasing .
Once you are able to answer these three questions, you will be able to make the right choice. Should you decide to sell your car and start leasing after weighing your options, wecashanycar is your best bet for a hassle free car sale and instant cash.