Whether you drive daily or occasionally, it is no longer essential to buy your vehicle.
Indeed, the purchase and rental of a car now represent two possible and attractive solutions.
Buying or renting a vehicle in the UAE will depend on several personal parameters.
So, what is the calculation to buy or rent a car? We give you the information you need to make your choice.
Renting or Buying a Car: Advantages and Disadvantages
Choosing between renting or buying your car is not an easy decision. Each option has its advantages and disadvantages.
For some, renting a car will allow them to remain flexible by offering the possibility of changing models regularly or opting for a short-term rental. While for others, buying a car is synonymous with freedom.
So buy a car or rent it? Here are the pros and cons:
Advantages of buying a car:
- Wide choice of new or used models.
- Possibility to use the vehicle at any time.
- No worries about the milage.
Disadvantages of buying a car:
- It requires a bank contribution or loan.
- Maintainance costs.
- Changes in car value over time.
Advantages of renting a car:
- No need for a big payment.
- Suitable for occasional or regular driving needs.
- The rent includes maintenance costs.
Disadvantages of renting a car:
- Paying additional cost in the event of damage or exceeding the authorized mileage.
- More limited choice of models.
- Higher total cost
Renting or Buying a Car: How Do You Know?
It is the puzzle of many drivers in UAE: should I rent or buy a car?
This depends above all on the use you want to make of your vehicle and your budget.
So, if you are a “heavy rider” and have sufficient financial resources, buying your vehicle seems a good idea, especially since you have the choice between new or used.
Dubai’s car market is full of options due to a low VAT rate and affordable prices. When buying a car, you can easily say I want to sell my car in Dubai and get a new model.
However, even with a tight budget, it is still possible to become the owner of your car by taking out a loan with small monthly payments.
Buying a car is a good investment for the medium to long term (generally around five years).
On the other hand, if you don’t use a car quite often, or you use it only for business trips or weekends with the family, then renting seems more appropriate.
Indeed, you should know that in any case owning your vehicle is far from being economical: between fuel, maintenance, technical control, and insurance, this represents a hell of a monthly budget!
It is above all up to you to decide according to your budget and your needs. To find out, you can start by making an inventory by asking yourself the right questions:
- Do you have a sufficient budget to buy a car? New or used?
- If using a bank loan, would this be your only monthly payment to repay?
- Do you drive a lot?
- Would you like to drive the same model for more than four years?
- Are you prepared to handle possible repairs and maintenance costs?
- Do you think the discount on the car and the possible depreciation of the resale price are acceptable?
If you answered YES to most of the questions, you seem to be on your way to buying your car!
Note that although the purchase price of a vehicle, whether new or used, is high, the overall amount of monthly payments is often even higher. Renting a car is therefore not intended to save you money.
Dubai is the world capital of luxury and the city of contrasts. The prices in the automobile sector are attractive compared to the prices anywhere else. Not to talk about the endless models of all makes.
Automobile demand is high in UAE, you can find a buyer or a seller to whatever vehicle might come to your mind.
Some people buy a car there, and rent another! This is because there is a lot of extravagance autos that any motorhead will love to drive.
For car enthusiasts, driving the same car every day is boring. Instead, they rent a new one monthly.
Deciding if you should rent or purchase a vehicle relies upon a cautious evaluation of your budgets and driving propensities.
Contemplate the amount you can serenely stand to pay forthright and every month and consider how many miles you spend driving to figure out the most cost-effective way for you.
Author: Sultan Asad from We Buy Cars DXB