Of the many financial decisions as adults we take, one of them certainly is to decide between buying a car and renting a car. You may call it Dubai’s first world problem, however believe it or not with so many attractive offers by rental companies and car dealers plus uncertainty over the duration of your stay in the country indeed make it a significant point of discussion in our financial calls.
We, at Connector, have done our bit to help you with your dilemma and have put forward the benefits of both options to help you in deciding which suit your lifestyle better than others. It is advisable to weigh up both the options on your financial and lifestyle suitability scale and make an informed decision.
Benefits Of Renting A New Car
Fewer Financial Responsibilities
Renting a car involves only one cost that is to pay monthly rental fees to the rental company. They look after all expenses related to car registration, insurance, service, salik top-ups and more. They will add all variable costs arising as per use such as salik, parking fees and fines to the monthly car rental fees and present the bill to you. It frees you from all the paper work formalities and timely payments of all these expenses related to a car. It’s easy and convenient.
No Commitment To Maintain Car In Your Absence
This is crucial to those whose job nature requires them to travel a lot. With a rented car, you can pay on a per day basis or if you are in a long term contract, you can return your car anytime and travel freely.
Whether you are going on vacation or going for a long term on-site project, or leaving the country, you do not have any obligations to maintain a rented car in your absence. You can simply return it and save your hard earned money.
Drive Different Models
You are never stuck with one model. You can always rent different models and pay accordingly. Renting a car gives you the freedom to drive as many car models as you want. The process to replace your car with the new one is quite simple and involves no hassles at all.
Immunity From Depreciation Loss
Renting a car also immunes you from loss on the resale value at the time of selling the car.
Drive Newly Launched Car 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. Renting a car is the most suitable option for those who are new in the UAE, like to drive new cars, have no time to deal with additional financial responsibilities’ and are in the country for a shorter period of time.
Benefits Of Buying A Car
Own Your Dream Car
We all have aspirations and dreams in our lives. For many of us, a dream is being able to buy a certain model of car, and when you buy the car it gives you that sense of gratification and fulfilment. Also, in the UAE, the cars are sold at comparatively cheaper rates, so you can own your dream car for lesser money.
It Costs Less In Long Term
Once you pay all your car loan instalments to the bank (if financed), it becomes your asset. 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.
The longer you keep the car, the lesser the monthly cost and later, 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.
Customisation
Owning the car gives you pretty much no restrictions. You can modify your car, engine, accessories and colour 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 customer’s trade-in deals allowing them to purchases their favourite models at a competitive price.
Buying a car is a suitable option for those who want to own a car for the long term, a minimum of five years and don’t mind managing all formalities on their own. Things To Keep In Mind While Renting A Car
1. Choose a reliable car rental company.
2. It is usually forbidden to use a rental vehicle outside the UAE.
3. The legal age of driving in the UAE is 18 but you must be at least 21 years old to rent a car.
4. In case any defect or damages occur after renting a car in Dubai, the cost will be included in the final payment.
5. A certain amount of money is deposited with the rental company as security.
6. You need to submit copy of your driving license, passport, proof of income and residence to the rental company.
Things To Keep In Mind While Buying A Car
1. Research to determine which car brand and car size is best for you.
2. Compare the offers and deals offered by car dealerships in your range of cars.
3. Research about various finance options, if necessary.
4. Research and compare the insurance costs.
5. Factor in car registration costs
6. Avoid making any impulsive decision.
Here’s What Dubai Residents Say
David, 28, from British, sales manager says, "I prefer buying a car over renting one, because it does not make any sense to me to pay for someone else to have a car. My car is an asset not an expense."
Aashna Verma, 30, from India, teacher says, "I would prefer renting a car. Though, classified as an asset, the value always depreciates. Also, I can drive a new car every month."
Louise, 37, a travel agent says, "It’s a matter of mentality for me. I cannot just think of renting a car. I know, a car is a depreciating asset, yet it gives me assurance and a sense of stability to own one."
Injeel Moti, 28, communications professional says, "I’ve been both a renter and a buyer in the past and would definitely opt for the latter, it is a much more cost effective option in the long run as well as offers flexibility. There are a lot of unaccounted for charges that come in with a rent a car and not a huge fan of the restrictions either. By chance you are in an accident either big or small, the formalities too are a bit hectic in my experience."
Naseer Alam, 27, Managing Director, Expert Properties says, "For the long-term renting might not be convenient, if you consider the cost aspect, buying would be the more viable option. Also if you don’t want to be “stuck” using the same car for a long period of time then leasing could be an option too. It also comes down to your personal use, if you need a car frequently or on a daily basis, then owning a car is the best option, however if your use is minimal, then a rented car would serve the purpose for you."