When it comes to buying a car in Dubai, there are numerous options available, which can leave expats confused. People who want to buy a car often wonder whether they should purchase it or lease it for an extended period. While financing a car is the most popular choice in the UAE, leasing is also becoming increasingly common due to its convenience and reliability.
However, buying a car is a significant decision, and everyone wants to make the best possible choice. If you’re also unsure which option to go for, it’s essential to consider your needs and priorities before making a decision.
Each option has advantages and disadvantages, and it ultimately depends on what works best for you. We have listed the pros and cons of both leasing and buying a car approach to help you make an informed decision.
Leasing a Car
Leasing a car means renting it for an extended period without actually owning it. You can lease a vehicle by making monthly payments to the dealer for a contract that usually lasts between 1 and 5 years. Once the contract ends, you have the option to either return the car or buy it outright. It’s important to note that leasing a car is different from renting one. Renting a car is only for short periods, whereas leasing is for more extended periods.
Advantages
The advantages of leasing a car in Dubai are as follows.
Lower monthly rates
The advantage of leasing a car is having fixed monthly payments and paying lower costs as compared to financing car loans.
More Options
You can have newer models and a variety of options to choose from whenever your leasing contract ends. Moreover, you can drive your dream car without owning it and enjoy the latest models on a low budget.
Lower Maintenance Costs
You don’t have to worry about maintenance costs and vehicle repairs, as, in most cases, a car is under warranty during the leasing period.
No Commitment
Unlike buying a car, leasing does not require you to pay for the depreciation value of the vehicle. It allows you the flexibility to turn over the car and move on to the next model.
Disadvantages
You should know these disadvantages before leasing a car.
No Ownership
You can’t claim ownership of a vehicle you have leased. Once the lease term ends, you have to return the car to the dealer, or you can extend the lease period. Plus, you can’t make changes in the vehicle as you like.
Limited Mileage
Most dealers limit the mileage per year, and if you exceed the limit, you have to pay extra fees. If your daily commute is longer than usual or you often go on longer trips, then leasing a car is not advisable for you.
Read Here: A Complete Guide to Lease a Car in Dubai
Buying a Car
In Dubai, people often prefer to buy a car as a means of owning an asset. The most common options for purchasing a car in Dubai are either paying the full amount in cash and owning the vehicle outright or taking out a car loan and paying monthly installments to the bank. While paying in cash is the ideal option, it may not be affordable for everyone. Most people, therefore, choose to take out a car loan and make monthly payments. Once all the installments have been paid, they can fully own the car and use it as they please for the long term.
Advantages
Some of the advantages of buying a car are:
Ownership
The most significant advantage of buying a car is that whether you pay in cash or through installments, you ultimately own the vehicle and can keep it as long as you want.
No Restrictions
Another benefit of owning a car is that there are no mileage restrictions, and you don’t have to pay any penalty fees for wear and tear. You are free to drive your vehicle as much as you want.
Customization
You have the freedom to customize your car to suit your preferences. Since it is your car, you can make enhancements and upgrades as you please. You can modify your vehicle in any way you like.
Resale Value
Being the owner of a car gives you the option to sell it whenever you want and buy a new one. You can sell your vehicle at a reasonable price and get a good return on your investment.
Disadvantages
Depreciation
Cars start depreciating the moment you buy one. So, when you resell your vehicle, you may get less resale value in return, especially after its warranty expires.
Higher Cost
Whether you buy a car through cash or a loan, it is quite costly and requires a considerable amount to be paid wholly or as a down payment. Moreover, you have to pay for its maintenance, including all major and minor repairs, after its warranty ends.
Long term commitment
Buying a car is a long-term commitment. You cannot change your vehicle whenever you want. And if you’re going to buy a new car as a replacement, then it requires a lot of hassle and time to sell your vehicle.
To sum up, both leasing and buying a car have their own set of advantages and disadvantages. Therefore, it is essential to consider which option is more beneficial for you. You should weigh the pros and cons of both options and decide which one aligns better with your personal preferences. It is essential to evaluate your circumstances, such as the type of road trips you take, your family’s needs, and your driving habits, to determine the right choice that suits your needs and goals.
Read Here: Steps to Buy a New Car in the UAE
