If you have just moved to Dubai, you might be wondering if it is better to buy a car or just rent one. Both options have their own pros and cons. The experts at ServiceMarket have prepared this handy guide to help you make the smart decision. You should consider the following while choosing between these two options:
Renting a Car: Convenience at a Cost
Renting a car can seem appealing, especially if you are new to Dubai and are not sure how long you will be staying. There is no down payment, and the rental company takes care of maintenance, tires, and other issues. However, while it might offer short-term convenience, it can be more expensive in the long run.
If you plan to rent a 2023 Honda Civic, it could cost between AED 2,400 to AED 3,500 per month. This means your yearly expense would be between AED 28,800 to AED 42,000. Compare that to buying a used 2020 Honda Civic between AED 33,000 to AED 62,000, with annual costs such as:
- Registration: AED 450
- Insurance: AED 1,800
- Maintenance: AED 1,200
- Depreciation: AED 7,000
Your total yearly cost to own the car would be around AED 10,350, which is significantly lower than renting. Clearly, if you need a car for more than six months, buying is the more affordable option.
Depreciation
The amount a car depreciates depends largely on the age and brand of the car. A survey conducted by CarSwitch.com revealed that some cars can retain 75 percent of their value even after three years. Japanese cars such as Nissan Patrol and Honda Accord topped the list of cars that retain the most value.
Commenting on depreciation, Imad Hammad, Co-Founder of CarSwitch.com, said, “Before selecting a car to buy it is a good idea to consider its resale value in the UAE. And considering the highest amount of depreciation is in the first year, it is usually best to buy a used car that can retain its value and is not more than a couple of years old”.
Buying a Car Offers Freedom to Customize Insurance
While most rented cars are insured, you usually do not have a say in what add-ons come with a policy. If you buy a car, you can choose a more comprehensive policy and select add-ons that match your exact needs. For example, if you like off-road adventures, you can include off-road coverage in your car insurance policy.
Alternatives to Long-Term Rentals
If you need a car for a month or two, and you plan to use it frequently during this time, renting might be a good option for you. However, some new services like UDrive, and Ekar have been recently launched in Dubai. These pay-per-hour apps allow you to book a car instantly for short trips in Dubai, saving you thousands. For example, with UDrive, you only pay for the time and distance driven, making it ideal for quick errands or occasional use. It is a flexible solution for those who do not need a car daily.
Renting Limits Your Customization
You do not get much say in terms of customization if you are renting a car. Your choices will be restricted by the cars owned by the car rental company. For example, you might not be able to get a car in a particular color, and they usually only offer basic car models, without the added technology features that you may want in your car.
Verdict: Should You Rent or Buy?
If you plan to stay in the UAE for longer than six months, then it is better to buy a car. Renting a car on a weekly or monthly basis would only make sense if you are planning to use the car frequently, but only for a short amount of time. If you do not plan to use the car often, then pay per hour apps like, UDrive could be more feasible in terms of cost.
If you are looking for a second-hand car, check out CarSwitch.com. Every car is hand checked by a certified mechanic and comes with a report and the CarSwitch warranty. Every tiny detail is a click away, so there will be no surprises! Once you find a car that you love, CarSwitch will help you get a loan (if you need one) and guide you through all the paperwork required to take your ride home.
