Should I rent a car in Dubai or buy? How can I save cost? What`s the best option for me?
These are some common question expats think of when they freshly move to UAE. We will expound a detailed comparative analysis between the both and help you reach a conclusion whether to rent a car or buy one.
A key factor in reaching a decision will fractionally depend upon your personal preferences and situation but the subsequent points mentioned can be helpful for anyone to make a decision.
Owning a car could be quite hectic and expensive. You may not be able to afford it at the first place or even if you can it can still make a huge dent in your pocket. You will need to register the car initially which will result in extra cost and time. There is a recurring cost of insurance also which you will need to pay on yearly basis for every year. You will need to bear the cost of regular repair and maintenance.
Obviously, if you go for the option of rental then you would`t have to pay these charges at all. No registration, no insurance cost will apply. You also don’t need to pay for any repair & maintenance or servicing charges. The car rental company will even pay Salik & traffic fines on your behalf.
If you choose to go for a loan to buy the car, You will still need to make a down payment of at least 20% which could be quite expansive. You will also need to bear interest charges on the loan as well.
On the other hand, because of the high competition between car rental companies, You can rent or lease any car at a very economical price. In face, in some cases the monthly rental price is less than half of your monthly installment if you purchase. It would be also a difficult task to get a loan from the bank because of the stringent credit control requirements.
If you go for owning a car, it will loose it`s value as soon as you leave the lot. Because of the rapid developing nature of UAE car market, the cars lose an average of 25% of it’s value per annum.
This money that you lose in value reduction can be used to rent a car of your choice and without a worry regarding the reduction in price.
Diversity of options & no commitment:
You have the option to choose from a vast variety of cars to rent. Select a car depending upon your preference (cost, fuel usage, comfort, luxury etc.). You can always change your car to another one anytime you want. It may be an upgrade, downgrade or the same category. There is always a replacement car offered in case your car broke down or experience any issues. A replacement is given even if your car goes to servicing or regular maintenance.
The car rental companies usually offer promotions and sometimes upgrade to higher category cars if your requested car is`t available. E.g. You may experience driving an Audi A6 in the price of a Honda Accord. Yeah, miracles happen in Dubai.
In summary, It all comes to your own choice but generally renting a car in Dubai is much more suitable and cost saving than owning one.
Not all rental companies provide up to the mark service so make your decision wisely. Download our mobile application now and rent a car of your choice.