A flexible alternative to car ownership, leasing allows you to rent a car for an extended period without actually owning a car. Purchasing a vehicle has become a hassle in Dubai. It is very cost-effective, which is why Dubai brought this easy and convenient option, especially for expats who want to own a car while living in Dubai. Thus, leasing a car is a viable option offering different benefits to the residents. Let’s explore how to lease a car in Dubai and understand how we can avail it with the processes and documents required to drive your desired car in Dubai streets.
What is Car Leasing?
Car leasing refers to the process of renting a car for a specific period of time, typically between 1 to 5 years. This approach allows you to enjoy the flexibility of driving a car without actually owning it. To lease a car, you can choose the vehicle you desire from a dealership and sign a leasing contract for a duration of up to 5 years, making monthly payments. At the end of the lease term, you have the option to either return the car, buy the car or switch to a newer model.
Process of Signing Leasing Agreement
Once you have decided on leasing a car, there are some essential factors to consider before beginning your journey. To ensure a smooth leasing process, take note of these critical factors on how to lease a car in Dubai:
- You need to know the specific mileage restrictions from dealerships before signing an agreement.
- Understand the terms and policies of the lease agreement and acknowledge the penalty fee beforehand.
- Make sure you have the necessary documents with you when signing the lease.
- You are required to pay an upfront payment to the bank when leasing the vehicle.
- You should know the eligibility criteria for leasing a vehicle in Dubai.
Let’s start with the process.
Find Your Car
If you’re planning to lease a car, it’s essential to conduct thorough research beforehand. This will help you find the right dealership that offers favorable leasing rates and conditions. Additionally, you should explore the various car makes and models available for leasing in the market and gather detailed information on the leasing process. By doing so, you can make an informed decision and ensure a successful leasing experience.
Check Eligibility Requirements
The eligibility criteria for leasing differ between companies, so it’s essential to review the terms and policies of several dealerships to find one that matches your eligibility.
Age
To be eligible for vehicle leasing, you must be at least 21 years old and no older than 60 years of age. This means that if you’re under 21 or over 60, you won’t be able to lease a vehicle in Dubai.
Minimum Income
Some companies also require the minimum income and good credit scores of the lessee. Plus, the monthly lease payment starts from AED 1200 per month.
Security Deposit
You must be able to provide insurance for the car you are leasing by 10% of the car’s value to secure a leasing agreement.
Documents Required
You will need the following documents to complete the car leasing process.
- UAE Identity Card
- Valid Passport
- Resident Visa
- Proof of income
- Bank statements
- Security deposit
- Driving License
Negotiate with Dealer
Once you have met the eligibility criteria and are ready to proceed, it’s time to negotiate with the dealer to ensure you get the best deal possible. During the negotiation, try to lower the monthly and upfront costs. Still, it’s essential to keep in mind that the duration of the car leasing agreement will also play a crucial role in determining the final price.
Sign the Contract
When you are content with the leasing terms and requirements, it’s time to visit the leasing company. Submit all the necessary documents along with the security deposit and fill out the leasing application form. Finally, sign the leasing agreement, and your dream car will be delivered to you within 10 to 12 working days.
Leasing Companies in Dubai
Car leasing is gaining popularity in the Middle East, with many dealerships offering attractive deals. However, since each dealership has different policies and terms, it’s essential to compare and choose the best option that suits your needs.
- Hertz
- Sixt
- Al Tayer Motors
- Lease Plan
- Diamond Lease
Conclusion
Leasing a car in Dubai is an excellent option for those who are car enthusiasts and desire a newer model now and then. This option is best if you want to avoid binding yourself to long-term commitments, costly maintenance, and repairs. So, now that you know all the factors and terms of leasing a car, we hope that you make a profound decision that is suitable for you.
We hope that these tips will be useful for you if you want to lease a car in Dubai. If you have any more suggestions or questions, tell us in the comments section.
