# To lease or To buy?



## 1919 (Oct 16, 2012)

As in the title really.

Currently have just 1 car that the wife and I share (golf plus), but need to sort a 2nd car again soon. We also have a 10 week old baby, so the golf just ain't going to cut it any more so need to change.

At work, I have the option of leasing a car through Lease Plan or Budget but to be honest the cars you get for the money aren't very appealing.

For example, this is just some random quotes I have received based on a 3 year lease. 

Ford Taurus 3.5 SE - 3052pm
Audi A4 1.8 - 4350pm
Toyota Prado 4.0 - 3972pm
Ford Explorer 3.5 XLT - 3940pm
Ford Fusion 2.5 - 2594pm

Money aside, none of the above excite me really but that's just an idea of cost per month. I know a lot of hassle is taken away from it when leasing (maintenance, down payment, etc etc) but for this sort of outlay I could buy some pretty nice cars.

For example I could buy the below for a similar outlay per month, some with 10% down payment and some with 20%. Mercedes do a 2 year star programme with option of balloon payment at the end, handing the car back or replacing for a newer model (i'm sure other manufactures will offer something similar.

Mercedes C200
Mercedes E300
BMW 328i M sport
BMW 335i Sport Line
Audi A4 3.0 Quattro S-Line
Audi A5 3.0 Quattro Sport back

I need to do further research but looking for experience of people having the same dilemma. I am not sure how tied into the lease you are, if you lost your job, decided to move on. So that's something I'll also need to look into.

Cheers


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## uberkoen (Sep 12, 2013)

I've been looking through this as well and was also considering leasing. However, I think leasing in this country is just not worth it. In my opinion, the leasing prices should be more competitive but i've found that buying a car is a better option. 

As you mentioned for the same monthly outlay you are able to get a better car. People may talk about maintenance and servicing but for a new car these costs are almost negligible. Plus, let's not forget you will be able to get some value back when you sell the car.


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## Stevesolar (Dec 21, 2012)

Hi,
In Europe, when you lease a car - you are simply financing the difference between the selling price and the retained value plus a profit element.
On this basis, the German brands are cheap to lease as they retain their value better.
In the UAE, we tried the above route and found that the lease payments over 24 months added up to the total value of the car! - so it seemed really expensive.
We therefore changed tack and decided to get on HP over 5 years (low monthly payments). Got cars with good 5 year warranty & service packages - so only real expenses should be fuel, tyres and maybe brake pads.
After 2 1/2 years cars should be worth roughly what is outstanding on the finance.
Cheers
Steve


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## nite (Apr 11, 2012)

Hi all, 

In my experience it's best just to buy. There's no taxes here, so you can't write it off as a deduction, so leasing is less attractive unless you own a company and need vehicles for your employees. In January when Dubai has it's shopping festival you can get some great deals including free service, insurance, registrations and some freebies. I have a 2014 Mazda 6, I put almost nothing down and pay 1900 a month. To rent anything decent above the compact, small car size (Yaris, Carolla, City, Lancer, Sunny) you will pay upwards of 2700. I was renting an accord for 3k for ages. Not only that, but buying a car in Dubai is NOTHING like buying a car in the west. In the west you have to deal with sharks that are trying to screw you over at every turn. For example, the old "let me talk to my manager" trick, etc. It's impossible to deal with and will drive you insane in the west. You may think you are getting a good deal, but if you purchased a car in the west, someone is screwing you. Either the dealer, the salesman, the bank, the finance co., the insurer, someone! Also, the fees and taxes. If you're buying cat in the west and it's finally priced (after hours of negotiations on price, then hours of negotiation on finance) at 40,000 USD, when you add tax, tag, title, fees, local, city, state, transport, tire, etc, you will be paying close to 50,000 USD. In Dubai, buying a car is like buying a TV at eMax, you walk in, pick one, fill out a one page form, talk to your bank, get a salary letter, bank statements, done! If the car is 130,000 dhs, you pay 130,000 dhs and not a penny more. No taxes, no fees, no shark tank, nothing. It's the easiest automobile transaction I've ever had. In 3 or 4 years your car is paid off and you have an asset to dump when you move on or to trade in when you want to upgrade. You can get something hot like an Audi or Porsche for less than 150k. My advice, don't get the low end of a brand just to have one, i.e. C200, 328, A4, etc, IMHO it's best to go at least one step up i.e E300, A5,A6, 528, etc. But that's just me. Go treat yourself to something and enjoy! Go for it!


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## The Rascal (Aug 6, 2014)

You don't negotiate when buying a new car nite?

Wow, and this is the haggling capital of the world, you must be a salesman's dream!


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## w_man (Apr 16, 2010)

LOL - Yea. I tried negotiating but got very little. 

Plus, I'm not sure if it's all that great buying a car here. I agree, there's very little room for negotiations here - mainly because there's a monopoly when it comes to brands - but I don't think cars are cheaper here compared to Canada. I bought a CRV when I got here and paid almost exactly (if not a little more) than what the car would cost me MSRP + taxes. And i KNOW cars are much cheaper in the US so doubt you're getting a better price for a new car. Plus the financing is way off. I can pay off an auto loan early back home without a penalty. Here? No chance! You are forced the pay the full interest until the end of the term or pay a penalty.

Used cars? I'm sure there are some good deals out there.

Haggle free? Sure - if you are paying the asking price. I'm sure if you walk into a dealership back home and paid the MSRP - you'd be in and out in under 10 minutes.


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## nite (Apr 11, 2012)

The Rascal said:


> You don't negotiate when buying a new car nite?
> 
> Wow, and this is the haggling capital of the world, you must be a salesman's dream!


Lol, that's the beauty of the whole process. I don't have to negotiate. I know how much the car is worth and the dealers cost before I walk in and to be honest, it's not much more than the sticker, so I don't mind paying it. Who cares, let them make a little money, it's peanuts anyways. When you see a promotion for a Porsche Cayman, BMW or Audi for 150k dhs, what can you negotiate? That's 40k USD for a 40k+ USD car, lol. Cars are cheap as hell here and most NEW CAR dealers (the actual brand) that I personally visited don't have a haggle policy, the price is the price and that's the beauty of it. It's already marked up a tiny bit. No sharks. You can negotiate the hell out of re-sellers like Luxury Motors, Exotic Cars, VIP Motors, etc. But at real OEM dealers, not from my experience.


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## Stevesolar (Dec 21, 2012)

w_man said:


> LOL - Yea. I tried negotiating but got very little.
> 
> Plus, I'm not sure if it's all that great buying a car here. I agree, there's very little room for negotiations here - mainly because there's a monopoly when it comes to brands - but I don't think cars are cheaper here compared to Canada. I bought a CRV when I got here and paid almost exactly (if not a little more) than what the car would cost me MSRP + taxes. And i KNOW cars are much cheaper in the US so doubt you're getting a better price for a new car. Plus the financing is way off. I can pay off an auto loan early back home without a penalty. Here? No chance! You are forced the pay the full interest until the end of the term or pay a penalty.
> 
> ...


Hi,
Cars here are in general 30% cheaper than UK - even so, we still haggle.
You can actually pay early and get a discount - it just depends who your loan is with.
Our first car was with Emirates NBD and they want the outstanding interest if you settle early.
Our 2nd car was financed through their Islamic banking arm - Emirates Islamic Bank - and interestingly their rules and calculations work in a different way (i believe it is because of the Islamic nature of their profit/interest structure). If you settle early - youget a discount on the total owing!
Cheers
Steve


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