# Opinion on Getting a Car



## rahmanok (Apr 16, 2013)

Hi all,

I have just arrived in Dubai and am now planning to get a driving license here.
As I am only here on a temporary basis of two years with an option to extend for another year, I am thinking of leasing a car for the duration of my stay.

Will this benefit me? Or should I just buy a new car instead?
I am also unsure of the lease rate here.

Thanks for your opinions.


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## dizzyizzy (Mar 30, 2008)

I personally think that leasing only makes sense if you stay for a year or less. Any more than that I think you're better off buying. Many people prefer to lease because they save themselves the hassle of registration, insurance, maintenance, etc. but to be honest is not that bad if you buy brand new, the registration for the first year is done by the dealer and then can be renewed online. As for insurance and maintenance, many dealers offer free insurance for the first year and free maintenance plans for up to 100,000 km. or even more. Moreover, there is a huge second hand car market because expat come and go all the time (although if you buy second hand make sure you do your due diligence and take the car for a full check with a private garage to make sure you're not buying a piece of junk). 

Look at both options and see what makes more sense to you, but I'd definitely recommend you to consider buying.


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## rahmanok (Apr 16, 2013)

dizzyizzy said:


> I personally think that leasing only makes sense if you stay for a year or less. Any more than that I think you're better off buying. Many people prefer to lease because they save themselves the hassle of registration, insurance, maintenance, etc. but to be honest is not that bad if you buy brand new, the registration for the first year is done by the dealer and then can be renewed online. As for insurance and maintenance, many dealers offer free insurance for the first year and free maintenance plans for up to 100,000 km. or even more. Moreover, there is a huge second hand car market because expat come and go all the time (although if you buy second hand make sure you do your due diligence and take the car for a full check with a private garage to make sure you're not buying a piece of junk).
> 
> Look at both options and see what makes more sense to you, but I'd definitely recommend you to consider buying.


Thanks dizzyizzy. I am never fond of buying second hand cars though as I think it is like a lottery, it can be good, bad, or even excellent.


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## Mclovin oo7 (Sep 25, 2012)

dizzyizzy said:


> I personally think that leasing only makes sense if you stay for a year or less. Any more than that I think you're better off buying. Many people prefer to lease because they save themselves the hassle of registration, insurance, maintenance, etc. but to be honest is not that bad if you buy brand new, the registration for the first year is done by the dealer and then can be renewed online. As for insurance and maintenance, many dealers offer free insurance for the first year and free maintenance plans for up to 100,000 km. or even more. Moreover, there is a huge second hand car market because expat come and go all the time (although if you buy second hand make sure you do your due diligence and take the car for a full check with a private garage to make sure you're not buying a piece of junk).
> 
> Look at both options and see what makes more sense to you, but I'd definitely recommend you to consider buying.


/\ this...I was in a very similar situation and I ended up buying a new vehicle.

If you are here for more than a year and if your budget allows, go for buying a car. I am also not very comfortable in buying a second hand car. Resell market is strong here, do some research on the resale value of the car you are interested in.


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## earthworm88 (Jun 14, 2013)

rahmanok said:


> Hi all,
> 
> I have just arrived in Dubai and am now planning to get a driving license here.
> As I am only here on a temporary basis of two years with an option to extend for another year, I am thinking of leasing a car for the duration of my stay.
> ...


I agree with dizzyizzy. It is just a matter of personal choice whether you want to pay a premium for those pesky issues (ie insurance, maintenance, breakdowns, selling the car) to go away 

The average monthly rental of 2000dhs (5000km monthly allowance) will get you a decent medium size sedan rental at Hertz (this does not include Salik, which would be 25%more than if you were using your own registered salik tag, so this will add up depending on how many times you pass the tolls) But if you have the budget and fancy driving a new car, it will make more sense to buy one if you are going to be around for the next 2-3 years. It sure beats buying a new foreign car in Malaysia for sure  I am not familiar with the yearly leasing though. There are plenty of second hand used cars also as previously mentioned, just have to make sure you are not buying somebody else's problems. 

If you do decide to buy a new car, and the dealer offers free insurance for the first year, ask them what the value of the "free insurance" is, and negotiate to have them deduct it from your purchase price  Insurance outside is a lot cheaper than the ones offer by dealers. There are plenty of Ramadan sales now, so a good time to shop around. 

Good luck!


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## fcjb1970 (Apr 30, 2010)

Just to offer the other argument, I am a strong advocate of leasing. Not only do you avoid those hassles dizzy mentioned but when the car does break down you have a loaner there to pick you up in 30 minutes and when it is fixed they bring it back.

But really my main reason is that I am a firm believer in the school of never having debt in this country. So unless you pay in cash I think buying a car is a bad idea. I have seen the dark side here, too much insecurity in even the most secure job that I just cannot imagine ever having debt. Worst case is I eat three months of my lease if something bad happens, I am not sitting on a 80K debt with a car to sell.

(also it is 10% surcharge on Salik for a long term lease - I pay AED 4.40, if monthly lease than AED 5)


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## Mclovin oo7 (Sep 25, 2012)

fcjb1970 said:


> Just to offer the other argument, I am a strong advocate of leasing. Not only do you avoid those hassles dizzy mentioned but when the car does break down you have a loaner there to pick you up in 30 minutes and when it is fixed they bring it back.
> 
> But really my main reason is that I am a firm believer in the school of never having debt in this country. So unless you pay in cash I think buying a car is a bad idea. I have seen the dark side here, too much insecurity in even the most secure job that I just cannot imagine ever having debt. Worst case is I eat three months of my lease if something bad happens, I am not sitting on a 80K debt with a car to sell.
> 
> (also it is 10% surcharge on Salik for a long term lease - I pay AED 4.40, if monthly lease than AED 5)


I find leasing here is too expensive. It would make sense if you are leasing only for few month or maximum a year but more than that, buying makes better sense. However it is limited to buying cars with good resale value. Most of the companies here provide some kind of transportation allowance, so why not use that amount to buy a car. If all goes well, you save some money when you sell the car after two or three years.

With regards to the loan, they always ask you to down payment of 20% of the car cost. There are a lot of banks which are offering 0% interest. Even if you lost your job, chances are that you will end up losing the down payment, thats all.

Brand new cars these days are trouble free. so I would not worry too much about car troubles.


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## IzzyBella (Mar 11, 2013)

We've opted for leasing. We got a brand new Pajero on a 2 year lease for 3.5k/month with Diamond Lease.

It's personal choice. *shrugs*
Pros and cons to both. Depends on how tight your budget is, I guess.


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## looper (Apr 30, 2013)

IzzyBella said:


> We've opted for leasing. We got a brand new Pajero on a 2 year lease for 3.5k/month with Diamond Lease.
> 
> It's personal choice. *shrugs*
> Pros and cons to both. Depends on how tight your budget is, I guess.


Hi Izzy,

just curious: how much do you pay per month?

Thanks!


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## earthworm88 (Jun 14, 2013)

looper said:


> Hi Izzy,
> 
> just curious: how much do you pay per month?
> 
> Thanks!


Eh? She said she has a 2 year lease lockdown with a payment of 3500dhs per month for a brand new Pajero


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## looper (Apr 30, 2013)

earthworm88 said:


> Eh? She said she has a 2 year lease lockdown with a payment of 3500dhs per month for a brand new Pajero


oops sorry - thanks for the...reminder


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## BBmover (Jun 15, 2013)

We too are leasing through Diamond Lease....we've opted for a Mtsibushi ASX, which is roomier than a sedan and called their 'crossover' car, something to do with it being similar shape to 4wd. We are leasing For 2500Dhs pm. We've been here a few months and weighed up buying and leasing and liked the fact tat if anything went wrong we had car assistance and replacement car immediately, also that they collect the car to service etc and drop if off. Also the insurance etc being dealt with....we also opted for additional collision waiver damage. 
We've gone from being car owners back home to the ease and convenience of leasing here. 
Recently, a friend was rear ended and DL were on the scene within 30 minutes to replace the car so they were mobile straight away.


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## twowheelsgood (Feb 21, 2013)

Personally, I got a lease for a Q5 for 3700 Dhs over 3 years.

Life is too short to want to worry about servicing, maintenance, insurance, tax, blah blah. I've learned to avoid wherever possible interacting with any official body unless you can do it automatically online.

I have better things to do, like cycle


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## IzzyBella (Mar 11, 2013)

Not hugely locked down. 2 months' fee to leave within first year. 1 monty's to leave during second. But yes, only 3500dhr per month.


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## saraswat (Apr 28, 2012)

Looking at the numbers being discussed in terms of leasing, it does come across as an expensive option. Crunching the numbers, it seems the outlay over two years is more than the amount of depreciation one would suffer if they were to sell their new car after the same period (from my experience for your average model car would about 15-20K a year, depending on use etc).

Regarding the servicing, an extended warranty / service contract with the dealer can always be negotiated into the sale, which is what my family has always done. That way the the servicing and repairs are covered. 

Having said this though, I agree with the rationale regarding the debt issue, that is something to always think about. I guess in the end it boils down to how comfortable one is with the risk they are assuming ...


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## fcjb1970 (Apr 30, 2010)

There is also the option to not get a normal car, I pay 1700/month for my Civic. I am fully aware of the additional costs of this option, it is a choice. Spend more for greater convenience and less risk (no debt) or spend less and deal with the other hassles of car ownership. I always owned cars in the USA and will purchase one within days of returning. It is not necessarily the cost of things, it is having to deal with it at all. I don't have to go get my oil changed, they come to me and get the car, drop of a loaner and in a few days bring it back.

As to the 'you don't need maintenance' on a new car line. That is until some guy weaving in and out of traffic rear ends you on SZR. 

As Izzy says, it is just personal choice no option is better than the other


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## IzzyBella (Mar 11, 2013)

Pajeros (new) start from 99,000 AED (and we've asked for a few mods/upgrades including a LWB/5 Door so I don't know its "true" price)
We have a 2 year lease for 3,500 AED. Meaning 24*3,500 = 84,000AED
At the end of the lease, we do not own the car.

However, we also don't have to worry about:
1. Debt
2. Servicing
3. Selling if/when we leave 
4. Replacement cars
5. Registration
6. Finding a good mechanic with a fair price (gosh that must be hell here!)
7. Insurance prices
8. Adding non-residents (like me) as an additional driver

The budgeter in me thinks that saving up and buying second hand would have been cheaper but I know that there are many cost behind owning your own and processes in which we don't want to be hassled with. Plus, it's the man's decision not to be in debt and I respect that.

I'd also like to point out that when renting month-to-month, 3,500AED only gets you a mid-range sedan. Like a Honda Civic or a Nissan Altima.


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## alangs1200 (Sep 2, 2010)

I took the lease route for all the reasons outlined above. I've estimated the lease premium over buying to be around 5-6%, plus the added 10% on the Salik. For me that's a reasonable premium for the total lack of hassle and not having any debt in the UAE. If needed I can walk away tomorrow and all I lose are the 3 months up front payment. It's a small price for peace of mind!


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## rahmanok (Apr 16, 2013)

A lot of opinions going around here, appreciate your views. Looks like both options have its pros and cons. I guess it all comes down to cost and convenience. Buy to save cost, lease to save the hassle of owning a car, right?

Well, these views really made me think in a whole different way now. Thanks.


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## Tropicana (Apr 29, 2010)

IzzyBella said:


> I'd also like to point out that when renting month-to-month, 3,500AED only gets you a mid-range sedan. Like a Honda Civic or a Nissan Altima.


I am not sure of that; you can get Altimas and Accords for 2700-2800 and Civics, classed more as a small sedan for 2500


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## fcjb1970 (Apr 30, 2010)

Tropicana said:


> I am not sure of that; you can get Altimas and Accords for 2700-2800 and Civics, classed more as a small sedan for 2500


When I was month to month I believe I was paying AED 2100 for a Civic. That estimate of 3500 is very high for a standard car, even something like a Camry won't cost that much month to month (these are prices with Hertz and Budget)


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## BBmover (Jun 15, 2013)

fcjb1970 said:


> When I was month to month I believe I was paying AED 2100 for a Civic. That estimate of 3500 is very high for a standard car, even something like a Camry won't cost that much month to month (these are prices with Hertz and Budget)


When we were looking we were quoted 1700 for Mitsibushi Lancer to lease.


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## earthworm88 (Jun 14, 2013)

fcjb1970 said:


> When I was month to month I believe I was paying AED 2100 for a Civic. That estimate of 3500 is very high for a standard car, even something like a Camry won't cost that much month to month (these are prices with Hertz and Budget)



Right on! I rented a month to month for an almost brand new Camry (Accord was in same category) at Hertz for 2800dhs just recently.


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## rutebrito (Jun 17, 2013)

BBmover said:


> When we were looking we were quoted 1700 for Mitsibushi Lancer to lease.


I'm paying 1500 for a Lancer right now (month to month lease) but got a Ramadan deal.

I do want to change it to a long term rental. Could I do that with a foreign driver's license?


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## IzzyBella (Mar 11, 2013)

Sorry, I was over-estimating. We've had 2 rentals most months and the cost has always exceeded 5k. I just assumed that the mid-rangers were more expensive. We're spending the same with long-term lease but with a better car than available. 4x4s are 4K+ to rent month-by-month.


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## BBmover (Jun 15, 2013)

rutebrito said:


> I'm paying 1500 for a Lancer right now (month to month lease) but got a Ramadan deal.
> 
> I do want to change it to a long term rental. Could I do that with a foreign driver's license?


We also have a Ramadan deal from Diamond Lease but not a lancer. Our month to month lease s what we will stay with at the promotion price. In our month to month we do not have any termination charges if we break the lease after completion of the first month. 

With foreign drivers license I think you are able to rent on a short term basis but once you have your residency/ID card you need to obtain a UAE license and can have long term lease. Others will be able to correct me on this. 
We needed to produce residency docs, ID card, UAE license, passports for the lease.


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## jerry-2013 (Jul 30, 2013)

I recommend buying a used car, I was a vehicle maintenance man, looks cheap car rental in Dubai, but there are a lot of trouble, such as if you crash and need a lot of money claims, buying a used car in Dubai is very cheap oil is not expensive, so agree with you purchase a used car


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