whatsapp

UAE: Why Many Residents Prefer Leasing Cars Over Buying

  • 0
  • 744
/media/gulf_articles_7_wI9msKJ.webp © Image Copyrights Title

Leasing cars has become an increasingly popular option among UAE residents seeking flexibility and convenience. For many, leasing offers a solution to financial and lifestyle challenges that make buying a car less practical.

Why Choose Leasing?

  1. Easier Approval Than Auto Loans:
    Securing a car lease is often simpler than obtaining a bank loan, especially with rising salary requirements and a decline in overall wages.

    • Ifthikar Aly, CEO of Kandy Cars Trading, explained, "Leasing has become the most viable solution for many people who find it challenging to qualify for loans."
  2. Flexibility for Expats:

    • Mariah Albert, a British expat, chose leasing during her first year in the UAE due to uncertainty about her long-term plans.
    • "Leasing let me focus on my career without worrying about ownership. Plus, I love driving a new car every year without maintenance hassles," she said.
  3. Convenience for Frequent Visitors:

    • Omer Amin, a Sudanese businessman, finds leasing ideal for his frequent trips to the UAE.
    • "A smaller down payment and no concerns about depreciation make it easier to manage my finances. I can return the car at the end of the lease without worrying about resale value," he noted.
  4. Maintenance-Free Driving:
    Leasing agreements typically include maintenance, saving drivers from unexpected repair costs.

Downsides of Leasing

While leasing suits many, it isn't for everyone:

  • Mileage Limits:

    • Fatima S, an Indian expat, found the restrictions frustrating.
    • "I enjoy road trips, and leasing felt too restrictive. Buying my own car turned out to be more practical for me," she shared.
  • Lack of Ownership:

    • At the end of the lease, you must return the car or pay to buy it, which might not appeal to long-term residents.

How Leasing Works

Leasing involves paying a monthly fee to use a vehicle for a specified period (typically six months to four years). At the end of the lease, the driver can return the car or purchase it outright.

Industry Insights

  • Flexible Options:

    • Leasing periods range from a few months to several years, catering to varying needs.
    • According to Boby John of Galadari Rent A Car, leasing has grown steadily, with terms designed to suit all types of clients.
  • Upfront Savings:

    • Leasing usually requires a smaller down payment compared to buying, making it an attractive option for those managing tight budgets.

Conclusion

For UAE residents facing financial uncertainty or seeking a hassle-free driving experience, leasing offers a flexible and convenient alternative to car ownership. However, for those who value unlimited mileage or long-term stability, buying might still be the better choice. As leasing options expand, more residents are finding solutions tailored to their unique needs.

Related Posts
© Saudi Arabia Introduces New Laws on Commercial Register and Trade Names

Saudi Arabia Introduces New Laws on Commercial Register and Trade Names

Saudi Arabia's Ministry of Commerce has announced significant updates to the Kingdom’s commercial regulations, introducing the new Law of Commercial Register and the Law of Trade Names, effective Apri...

  • 197
© Abu Dhabi’s IHC Invests in Indian Snack Giant Haldiram’s

Abu Dhabi’s IHC Invests in Indian Snack Giant Haldiram’s

International Holding Company (IHC), an Abu Dhabi-based conglomerate, has made a strategic investment in Haldiram Snacks Food, India's leading snack and food brand. This investment, made alongside New...

  • 150
© Saudi Arabia’s Jameel Motors Expands into South Africa with Changan Automobile Partnership

Saudi Arabia’s Jameel Motors Expands into South Africa with Changan Automobile Partnership

Saudi Arabia’s Jameel Motors has entered the South African automotive market through a strategic partnership with China's Changan Automobile. The agreement will introduce a range of vehicles—including...

  • 183
© UAE Fuel Prices for April 2025 Announced: Petrol and Diesel Rates See a Decline

UAE Fuel Prices for April 2025 Announced: Petrol and Diesel Rates See a Decline

Abu Dhabi/Dubai – The UAE Fuel Price Committee has officially announced the revised petrol and diesel prices for April 2025, revealing a notable reduction across all categories compared to March....

  • 169
© Saudi Arabia Enforces Taxi Meter Rule: Free Rides for Passengers If Meter Is Off

Saudi Arabia Enforces Taxi Meter Rule: Free Rides for Passengers If Meter Is Off

Riyadh – Passengers across Saudi Arabia are entitled to a free taxi ride if the driver fails to activate the fare meter, the Transport General Authority (TGA) has confirmed. This new regulation aims t...

  • 208
© Trump’s Tariff Bombshell Rattles Asian Automakers — Toyota Braces for Major Blow

Trump’s Tariff Bombshell Rattles Asian Automakers — Toyota Braces for Major Blow

In a move that’s set to reshape global auto trade dynamics, U.S. President Donald Trump has announced a sweeping 25% tariff on all vehicles not manufactured within the United States, triggering market...

  • 202
© Saudi Crown Prince Implements Major Real Estate Reforms to Tame Soaring Land Prices in Riyadh

Saudi Crown Prince Implements Major Real Estate Reforms to Tame Soaring Land Prices in Riyadh

In a significant move to address the soaring land prices and rental costs in Riyadh, Saudi Crown Prince Mohammed bin Salman has approved a set of transformative real estate reforms aimed at stabilisin...

  • 183
© LSG Eye Punjab Kings’ Struggles in Bowler-Friendly Lucknow

LSG Eye Punjab Kings’ Struggles in Bowler-Friendly Lucknow

The Lucknow Super Giants (LSG) will be looking to take down the Punjab Kings (PBKS) in what promises to be a tightly contested IPL 2025 match at the Ekana Cricket Stadium in Lucknow. The match will ta...

  • 171
© Jafza Invests Dhs90 Million to Expand Logistics Park Amid Surging Demand

Jafza Invests Dhs90 Million to Expand Logistics Park Amid Surging Demand

Dubai – The Jebel Ali Free Zone (Jafza) has announced a significant Dhs90 million investment into the second phase of its Logistics Park, expanding its footprint to meet escalating demand for high-qua...

  • 206
© Abu Dhabi’s GDP Grows 3.8% in 2024, Hits Record Dhs1.2 Trillion Driven by Non-Oil Sector

Abu Dhabi’s GDP Grows 3.8% in 2024, Hits Record Dhs1.2 Trillion Driven by Non-Oil Sector

Abu Dhabi’s economy posted a robust 3.8 per cent growth in 2024, with the emirate’s gross domestic product (GDP) reaching an all-time high of Dhs1.2 trillion, according to preliminary figures released...

  • 203
Commnets 0
Leave A Comment