Buying or Leasing a Car? Which is the Best Option? The UAE has a vibrant population, people from all over the globe who come to work here for short, medium, and long terms. Mostly seen is the younger age group. Although the country has a very good public transport system, it does not always provide doorstep transport which is why most people prefer their own vehicle. However, there is always a dilemma, to buy or to rent.

Buying a car

There is indeed, a sense of pride associated with owning a car. If it is a new car, this pride increases as you are the first person to drive it. For Tom, buying his first Toyota Corolla was a true moment of joy. Ah, the wonderful smell of a brand-new car.

If you plan to stay in the country for a long period of time, it makes more sense to buy a car. John who used to rent until his job stabilized says that he is much happier since he bought his own Nissan Patrol. Now, he can go on long trips with friends, try off-road driving and share the driving with his mates. All of this would be restricted if he rented a car.

Once the monthly payments on the car are done, you become the owner and have the option to sell the car anytime. It becomes a financial asset.

 

Renting a car

However, there are many people who are of the mindset that renting, or leasing is the best option for them. Tim, who prefers renting a car, says that he is at peace when he rents because he has no headache of maintenance, wear, and tear, etc. All this is taken care of by the rental company. Even insurance is paid for by the rental company.

Sandra loves the fact that renting a car gives her more variety. She can drive a different model or color every time. Also, rental companies have the latest models, so you are assured of the best.

Renting ideally proves very cost-effective in the short run, especially for those who expect to be here for less than two years.

When you rent, you don’t have to incur depreciation losses since you do not own the car.

Kim, whose job location keeps changing every two years, likes the fact that a rental car involves no commitment. You can stop renting whenever you have to leave. Also, you need not pay the rent when you go on vacation, this helps save more.

To summarize, whether to buy or rent a car would depend on the circumstances of the individual. For a short period of less than two years, it makes more sense to rent. However, anything over two years, it is better to buy a car. It is our opinion that buying a used car is better. When buying, do make sure that you buy a popular brand like Nissan or Toyota that has a good resale value. It is much easier to sell such cars.

Discount the depreciation if you buy a used car. Depending on the vehicle, 20% to 40% of its depreciation can occur within the first few years. So when you buy a 2- to 3-year-old-vehicle, you get the advantage of paying a price that reflects a substantial depreciation discount. Also, since it is not that old it will be in good condition, still, be under warranty and have free services. Especially in the UAE, due to its transient population, people who buy new cars often end up paying for depreciation and not utilizing the value of that depreciation till the end.