The things you need to know and the advantages of both options.
Whether you have been living in the UAE for a long time or have recently moved to the country, you must have come across the dilemma of either buying a car or renting one. With both car dealers and rental companies offering attractive deals, it is often a tough choice to make; specially when being an expat you are not familiar with the local market. The final decision depends, however, upon many personal factors such as finance, convenience and so on. In order to make your decision easier, we have listed some of the key advantages of both options. It is advisable to weigh up both the options on your suitability scale and make an informed decision.
Why to rent a car.
Involves lower financial constraints - Renting a car will keep you away from all the financial hassles like taking care of a down payment, bank guarantee, insurance. You only need to deal with car rental payments and a credit card security deposit. That’s a pretty easy one!
Return car anytime - Renting a car allows you to return a car anytime you wish. If you are going back home on annual leave or going for a long term on-site project, you do not have any obligations to maintain a rented car in your absence. You can simply return the car and save your money.
No ongoing expenses - The servicing and maintenance of a rented car is the responsibility of the company and not yours. You need not worry even a little about the renewal of registration, insurance and servicing of the vehicle. Isn’t that relaxing?
Change your car model whenever you want - Renting a car simply allows you to drive as many cars you want to drive. You are never stuck with one model and can always rent a new car of your choice. The process of replacing your already rented car with a new model of your choice is pretty simple. According to an expert from Thrifty Car Rental, “Renting a car also immunes you from loss on resale value at the time of selling the car.”
Drive latest models - Car rental companies always keep in their fleet the latest vehicle models. You can often get to drive recent or even sometimes zero mileage cars. According to Thrifty’s expert, “Renting/leasing gives customers the flexibility to drive a new car every few years, with relatively low monthly payments and without any hassles of managing all costs associated with service, repair, insurance and replacement vehicle. Customers can choose from a wide range of brand new or existing vehicles depending on their needs and requirements.”
Renting a car is best suitable for.
According to an expert from Thrifty, “Renting a car makes a lot sense to a large segment of people in UAE however it is apt for people who are new to UAE, like to change their cars frequently and for those who are looking for a hassle free vehicle experience."
Why to buy a car.
Own your dream car - Almost everyone has a luxury car model that they dream of buying one day. In a lot of instances owning and runnig your dream car can be cheaper in the UAE, mainly due to the low cost of fuel, making those car dreams become possible.
Ownership - Once you pay all your car loan instalments to the bank (if financed), it becomes your asset and you can always capitalise on its resell value. Since it is a depreciating asset, it is generally advised to buy a car popular in the second-hand vehicle market. Quick research will help you retain your car’s highest resell value. Qussai Serhan, ACIM, Marketing Business Partner at Al Naboodah Group Enterprises LLC said, “With the right purchase/package, you can actually save money in the long run and finally, for fun, as SUV often love setting off into the desert for camping or dune-bashing.”
Customisation - Owning the car gives you pretty much no restrictions. You can modify your car, engine, accessories and paint it as you wish. Just keep in mind that you are not breaking any law with your car modifications, including window tinting. That’s it!
Trade-in deals - Most car dealers in the UAE offer customers trade-in deals allowing them to purchases their favourite models at a competitive price.
Value-for-money Qussai Serhan at Al Naboodah Group Enterprises LLC said, “It is a very good option in the long run. New cars are easy to finance in the UAE and paying back the finance is cheaper than renting a car, plus when it’s time to move on or change the model, you have capital tied up in the car that you can draw on. If you ensure the car comes with a good warranty and service package you will find that buying a car can actually prove a sound investment. But for this to be the best option, fuel efficiency is also important, as fuel prices are on the increase, and lowering carbon emissions is a key concern worldwide. The new Peugeot 3008 features a 1.6L Turbo, 165hp engine and 6-speed automatic gearbox that give ultra-low consumption with a torque of 240N.m at 1400 rpm saving owners fuel money while not compromising on performance.”
Other things consider when buying a car.
And expert from Thrifty Car Rentals also shed light on key components to bear in mind before investing money into any car deal:
• Frequency of maintenance
• Cost per service
• Warranty inclusion and exclusions
• Cost of the key components of the car which might need replacement due to wear & tear or accident (brakes, tyres, battery, bumper, headlights, etc)
• Location of the service centre
• If the service centre have a pick up and drop service and if so the cost associated with the same
Qussai Serhan at Al Naboodah Group Enterprises LLC said, “You should consider more than just price. You have to consider whether the vehicle fits your needs and meets all your criteria of functionality. What customers also need to consider today is what kind of support does this brand have? Will it have a reliable source of spare parts? Does my local dealership have all the maintenance facilities I need? This is what all car buyers need to consider, not just the retail price. Peugeot models offer the whole package, with a combination of exceptional safety, efficiency, and after-sales support.”