# leasing a car in Dubai?



## HannuK (Sep 17, 2010)

Hello, second thread on the same day (did search tho) :tongue1:

I will bring my car to Dubai as it is brand new and expensive and my missus wants to keep it.

However I will still need a new car for myself in Dubai and have been thinking about getting a Range Rover or a Land Cruiser or maybe even a Hummer H2 or H3 to boost my male ego a bit  (I am also planning on taking the desert driving course).

I have a 950USD "car allowance" per month and wondered if it would be better to lease a car as you normally do in Europe or if I can buy one with a bank loan directly?

I would probably prefer to lease one initially to be able to replace it with another car if I am not happy after the leasing period (here that period is about 3-4 years)


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## Maz25 (Jul 6, 2008)

I would personally not lease a car for 3-4 years. In this case, you should look at buying; depending on your monthly repayment, you could very easily have paid off the car by then and if you hate that much, just sell it and put the money towards a new one. 

As far as I know, you do not have the option to lease the car for 3 - 4 years here and then make a final payment to own it. Over here, if you lease a car, then it's money down the drain - I may be wrong but have never come across hire purchase here. Either you hire or you purchase. If you will be here for a few years, then buy the car.

To answer your other question, yes you can get a car loan and buy a car if you so wish. As you have an idea of the cars that you would like to have, you should test drive these cars and then make your decision. Note that you will need to have sorted out a UAE driving license before you can buy, register and insure a private car.


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## HannuK (Sep 17, 2010)

Maz25 said:


> I would personally not lease a car for 3-4 years. In this case, you should look at buying; depending on your monthly repayment, you could very easily have paid off the car by then and if you hate that much, just sell it and put the money towards a new one.
> 
> As far as I know, you do not have the option to lease the car for 3 - 4 years here and then make a final payment to own it. Over here, if you lease a car, then it's money down the drain - I may be wrong but have never come across hire purchase here. Either you hire or you purchase. If you will be here for a few years, then buy the car.


Thanks for your answer which I guess makes sense.

Is it difficult to get a personal loan to buy a car today post-credit crash for a expat being new to the country?


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## Maz25 (Jul 6, 2008)

HannuK said:


> Thanks for your answer which I guess makes sense.
> 
> Is it difficult to get a personal loan to buy a car today post-credit crash for a expat being new to the country?


Yes and No. If you earn a decent salary and your company is on the local banks lists*, then it's not a problem. It takes about a week for all the paperwork to be completed before you can collect the car.

*Due to the recession, the banks have created a list of companies which according to them are quite stable and therefore have a higher credit rating. Employees of these companies do not generally have any problems getting credit from the banks.
If your company has been here for a few years, then they should be on that list.

However, if your company is newly-established, it may be a problem getting credit. Either way, your company either commits to paying your salary into the account to which the loan is tied or you sign a whole bunch of cheques for your month payments. The banks also ask for a security cheque, which they cash as soon as you miss a payment or if they catch wind of the fact that you've lost your job.


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## HannuK (Sep 17, 2010)

Maz25 said:


> Yes and No. If you earn a decent salary and your company is on the local banks lists*, then it's not a problem. It takes about a week for all the paperwork to be completed before you can collect the car.
> 
> *Due to the recession, the banks have created a list of companies which according to them are quite stable and therefore have a higher credit rating. Employees of these companies do not generally have any problems getting credit from the banks.
> If your company has been here for a few years, then they should be on that list.
> ...


Ah is this the famous "bouncing cheque" scheme where it all ends up with me sitting in a concrete box in the desert for 7 years? 

I guess it makes sense what you are saying, and it makes me happy that it might be highly possible that I can purchase a car swiftly.

Will look for cars as soon as I land, thanks again for your good answer.


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## Maz25 (Jul 6, 2008)

HannuK said:


> Ah is this the famous "bouncing cheque" scheme where it all ends up with me sitting in a concrete box in the desert for 7 years?


Lol, you cracked me up with that one. 
That's the one! The bank would normally have to register a case with the police though before they supply you with "free accommodation" for a couple of months or years or even days, depending on how quickly you can get someone to pay off the debt for you.

On that note, when taking out insurance, make sure you take out cover to protect your passengers and jaywalkers - if you are unlucky enough (God forbid) to accidently run over and kill someone, you'll feel better knowing that the insurance will pay out and get you released from "police accommodation".


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## MetalMeo (Sep 7, 2010)

I also have the same question  slightly different situation.....
I also have car allowance from the company, planning to be there from 18 to 24 months max. 
Not looking for any fancy, something quick and less hassle... 

I'm thinking to buy instead of lease. But getting loan is somewhat time consuming. Will i be able to get something few year old but decent with USD 15k (UAD 55k)??


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## Maz25 (Jul 6, 2008)

There is a wide range of cars available on the market and you will most certainly find something for that price. Why not go down to one of the used car dealers and see what they have available? This will give you an idea of the type of cars that you can get for your money and also the type of cars that you would like to drive.

You will however get a better deal from a private seller, who will most likely be more open to negotiations and offering a discount on the asking price. You can also search Dubizzle and Gulf News for details of private cars on sale.


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