# Cost of leasing car



## PM101 (Jan 12, 2011)

Hi,

I am moving to Dubai soon and was wondering as to the interest rates/costs for leasing a car or getting one on hire purchase (or whatever the equivalent is over there).

e.g. what would be the repayments on a 200,000 AED vehicle?

Any advice would be much appreciated.

Thanks.


----------



## rsinner (Feb 3, 2009)

If its a new car, i think the usual rate is 4% - however, funnily enough the interest is not calculated on a reducing balance
So if it is a 200,000 AED car, financed for 5 years, the interest is 200,000 * 4% * 5 = 40,000

EMI = (200,000 + 40,000) / 60 months = 4,000 AED

Just realised you were asking for a "lease" rate. I think this concept is rare or non existent in the UAE. So you either rent a car for the long term (thus enjoying low monthly rates, but it is still a "normal" rental) or buy your own car


----------



## wandabug (Apr 22, 2010)

You can lease a new car, i.e. long term rental, from dhs.1700 a month (including Insurance). That would be for something small like a Honda Jazz. That is paying the first 3 months up front and for a 2 year term. A Honda Civic would be dhs.2200. A Saab Aero would be dhs.3700. These are rough figures.


----------



## indoMLA (Feb 6, 2011)

In order to lease a car, you need to talk to a car rental company (major or minor) and let them know what you are looking for and the term of the lease you are looking for. They will purchase the car and then lease the vehicle to you (mind you they will add the insurance and the financing on to you, thus making leases ridiculously expensive).
I checked with Thrifty (MoE and two smaller rental outfits near the mall and got the following for 2 yr terms (the guys said a 3rd year won't change the price much)
~9.3k AED p/m on a Tahoe - (I damn near laughed at the guy), 
~4.2k AED p/m on a Xterra 
~2.3k AED p/m on a Toyota Corolla
~7.2k AED p/m on a Toyota Prado
I am better off buying the car myself... On a 200k AED car, you are probably looking at a larger p/m charge.


----------

