There’s no denying that the UAE boasts a long love affair with cars. From the big-tyred dune bashing off-roaders and the sleek gold-plated supercars that make headlines around the world, to the school run SUV and the new breed of electric hybrids, getting from A to Z, via a whole alphabet of fun things to do, has become as much a part of the national lexicon as discussing the weather is in England, or how to put together the perfect braai in South Africa.
But when it comes to getting a car for yourself, what are your options? Do you buy? And if so, is it better to buy new or snap up a pre-owned vehicle? Alternatively, if you don’t want to tie yourself down to one car, what’s the difference between leasing and renting?
We reveal our top tips for deciding what’s right for you, and checked in with a few of our expert pals to drive you in the right direction…
Buying
Invest in a new car
As with buying a house, purchasing a car is a big investment, so the first thing you need to do its work out your budget and whether you’ll be making a one-off payment or paying by monthly instalments. And don’t forget to factor in additional payments such as registration, insurance, Salik and petrol. Next, you should determine what you need. Are you driving long distances to work? Do you need space for your family? Do you want a vehicle you can take off-roading on weekends? Your lifestyle will influence the type of car you should be looking at. You also need to decide if you want a brand new car fresh off the production line, or a pre-owned vehicle.
“Both options have their benefits,” says Sunil Lala, Audi National Pre-Owned Sales Manager at Al Nabooda Automobiles Audi Approved. “It depends on what you are looking for. If you want a car with certain specifications and you are very specific about the exterior and interior colour and you want the latest model, then you should go
for a new car. If you are less worried about specifications and colour, and are looking for a financially more attractive deal, then a pre-owned [car] might be the better choice.”
The Perks Of Pre-Owned
For starters, one of the major benefits of opting for a pre-owned car is the cost, which will be lower than that of a new one. You’ll also avoid the steep depreciation that befalls new cars with each month and mile that passes. You might also find that looking at second-hand cars presents you with a much wider choice, as you go back through the past few years for models suitable for you.
“You should ask about the price, the car history and the option of having extended warranty,” suggests Sunil Lala. “The cars we are selling in our pre-owned showroom come with a minimum 12 month warranty which can be extended for another two years in case certain criteria are met as per
Audi AG.”
Talib Alrubai, owner of Alba Cars says customers should do some due diligence on who and where they buy from, “most people look forward to when the time comes to change their car whether it’s the age of the car or a change in personal circumstances. For some, this excitement is let down when shopping at the wrong used car market or being told you have only 1 or 2 options within your budget when buying new. However, knowing where to go and researching the right places in the more reputed areas and reading the reviews can lead to an extraordinary fun experience. As the car we drive can tell our story we have to make sure we have enough options presented to us to make the right choice”.
Renting
New Lease Of Life
If you’re not quite ready to tie yourself into the responsibility of buying a new car, you can either lease or rent a vehicle. The main differences between the two comes down to time frame, with leasing a longer-term commitment and the method of financing, with leased cars returned to the car company once the final payment of the ‘loan’ is made. Experts also suggest that with leasing there is a greater sense on the customer’s part that they ‘own’ the vehicle for the duration.
“On the surface, leasing can be more appealing than buying. Monthly payments are usually lower because you’re not paying back any principal. Instead, you’re just borrowing and repaying the amount that the car depreciates in the time you have it, plus finance charges,” explains Bijay Sadanadan, Business Development Manager at Budget Car and Van Rental UAE. “[Some of] the major advantages of leasing are that you drive the car during its most trouble-free years, are always driving the latest model vehicle, and one that’s covered by the manufacturer’s warranty and you can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford. Plus you don’t have to worry about fluctuations in the car’s trade-in value or go through the hassle of selling it when it’s time to move on.”
And Sanjay Dsouza, Director of Sales at SEL Car, adds, “In leasing, you have the flexibility to break the contract at any time with a small penalty and opt for a newer model. It also leaves the individual with no burden to any liability during market uncertainty.”
Temporary Transport
Renting is a great option whether you’re looking for a short term solution while you seek out a car to buy, or for long term, as you can renew your contract for as long as you like. You also don’t have to deal with depreciation, and it’s up to the car rental company to take care of maintenance and repairs, meaning you won’t get hit with an unexpectedly huge bill from the garage. Plus, they take care of registration and insurance, so the onus is not on you to remember lots of dates when it comes to renewals. When shopping around for a car rental firm, look for ones which offer loyalty programs, so you can earn points towards future discounts or upgrades, as well as a wide variety of cars on offer in case your circumstances change and you need a different vehicle. Plus, if you’re looking to rent over a long period, speak to your agent and try to negotiate a reduced monthly payment deal.