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To Rent or Buy a Car in the UAE

Having recently moved to Dubai and finally getting all your immigration issues in order, purchasing a car maybe now on the top of your list.   The car market in Dubai is very seasonal with the summer months being an excellent time to grab a bargain as expats depart Dubai.

However, driving around town you will be noticing that many expats in Dubai have stickers of rental car companies on the back of their cars indicating that renting cars is a popular choice for many expats.  So, should you buy or rent a car while in Dubai?  This is a dilemma that most people in the UAE face when they first decide to get a car.

Unfortunately, it does not matter which country you are living in it is hard to determine how secure any job will be nowadays.  Additionally, when moving to any new country time will be required to discover if you and your family will actually enjoy living there and for how long.  For these reasons many expats in Dubai start of by looking at the short-term option rather than taking on the long-term financial commitment of purchasing a car.  It is worth noting that renting in the UAE is relatively cheap compared to renting in the UK or the States.

Renting is also popular as moving to Dubai can be costly and  people just don’t have the deposit to purchase a car.  Not all expats are ‘petrol heads’ and many do not want the hassle of their car breaking down so look for something reliable where they don’t have to worry about the cost of maintenance or oil changes.

When purchasing a car one should factor in the additional costs

  • Monthly finance
  • Servicing (if no service plan – eg a used car)
  • Insurance
  • Breakdown Cover
  • Annual registration / Tasjeel
  • Tyres & other wear & tear

However, buying a car will give you an asset – something that you can sell when you leave.  Renting a car could be seen as a waste of money as your monthly loan would work out around the same of renting a car.  Again, insurance is relatively well priced compared to the UK.

Renting initially may work out for the new arrival until they feel settled in their job and the Dubai life however, after 6-12 months it maybe time to buy your own dream car!

When buying a car it worth considering the make of the car as this can effect the re-sale of the car at a later date.  The most popular makes of car for re-sale include Toyota, BMW, Nissan and Ford.  Cars can be purchased new from dealers or on the second hand market.  At this time of year notice boards and forums are bursting with great bargains but when you go and look at the car take someone with you that knows what they are looking at.  Be extra careful about cars that are imported from abroad.  Click here to see why.

One Response to “To Rent or Buy a Car in the UAE”

  1. More says:

    Awesome, several very logical suggestions! I truly appreciate you crafting this blog post and the rest of your site is perfect!

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