# buy-and-lease service



## kirist (Mar 26, 2015)

I know this has been covered in many occasions on the forum, but I can't quite figure out the answer to my specific question: 

Is there any proper buy-and-lease service in Dubai? I mean a company which buys a car to my exact specs and then rents it to me on a long term agreement?

I've seen many businesses _claiming_ they do such service, but I then found out there was a massive marketing element in their claim, where the rental cost would actually depend on how high the request was for that particular model, rather than a simple calculation of the leasing cost versus purchase value. 

So if car A and B both cost 200k to buy, they wouldn't necessarily have the same rental price as A might be considered more fashionable than B.

Has anybody ever come across a "proper" buy-and-lease service here in Dubai?

Thanks!


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## twowheelsgood (Feb 21, 2013)

No.

Because there isnt a demand for such a complex service when cars have a short life here and are driven hard.

By 'proper' you mean 'what we have at home but Johnny Foreigner doesnt understand' ?


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## The Rascal (Aug 6, 2014)

You get 1-5 year personal lease deals from Hertz, I've known many people use them.


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## kirist (Mar 26, 2015)

twowheelsgood said:


> No. Because there isnt a demand for such a complex service when cars have a short life here and are driven hard.


And doesn't that rhyme with long term rental? How can you say there isn't a demand for such glaringly obvious business case?


twowheelsgood said:


> By 'proper' you mean 'what we have at home but Johnny Foreigner doesnt understand' ?


Forget about what _I_ mean, and concentrate on what _it_ means: conventional, established. "Leasing" has a clear and unambiguous contractual meaning.


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## kirist (Mar 26, 2015)

The Rascal said:


> You get 1-5 year personal lease deals from Hertz, I've known many people use them.


Very helpful The Rascal, thanks. Do you happen to have a contact at Hertz who deals with that specifically?


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## Stevesolar (Dec 21, 2012)

kirist said:


> Very helpful The Rascal, thanks. Do you happen to have a contact at Hertz who deals with that specifically?


Hi,
Hertz will offer you a personal lease on their range of cars - normally Toyota, Honda, Lexus. They don't normally offer all manufacturers cars.
Which brand of car were you specifically looking to lease?
Cheers
Stevr


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## The Rascal (Aug 6, 2014)

But they will quote you on any car too Steve, a Range Rover Sport SV is aed11,000 a month though......


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## twowheelsgood (Feb 21, 2013)

kirist said:


> And doesn't that rhyme with long term rental? How can you say there isn't a demand for such glaringly obvious business case? Forget about what I mean, and concentrate on what it means: conventional, established. "Leasing" has a clear and unambiguous contractual meaning.


 The fact that it doesn't exist in Dubai means there is no real demand. Dubai is the sort of place where anything in demand will be provided by someone. Just because you want something doesn't mean there are a lot of people who want something. There is of course long term rental however the prices assume the entire cost will be recovered and resale value is zero - which is exactly the OPs point. You don't get different lease prices for two different vehicles with different resale values, if the retail prices are the same.

I have a long term lease from Hertz and can do the mathematics - ring their 800 number and ask for personal leasing. It's not cheap but it is convenient and speaking for my personal experience, there is a build standard for which you get to choose the colour and that's it. Maybe you can build to your spec but I suspect they don't want the hassle.


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## Stevesolar (Dec 21, 2012)

The Rascal said:


> But they will quote you on any car too Steve, a Range Rover Sport SV is aed11,000 a month though......


Hi,
Agreed - but being owned here by Al Futtaim - they prefer to offer you vehicles from their dealer range.
11,000 for a RR Sport is ridiculously high and as pointed out by twowheels - over here they calculate a lease price by adding up the retail cost of vehicle, plus maintenance, plus tyres etc. plus insurance, plus profit and assume zero retained value at end of lease.
In UK you can lease an equivalent list price prestige car - BMW, Mercedes, Audi for less than a Ford - because it will be worth more at the end of the lease and you don't need to fund the retained value.
This concept does not exist here - so I believe people lease purely for convenience - not as a cost saving method of driving a nice car.
Cheers
Steve


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## kirist (Mar 26, 2015)

Stevesolar said:


> Hi,
> Which brand of car were you specifically looking to lease?


I am relatively flexible, mostly looking for a business where the value of the car is what truly drives (no pun intended) the monthly instalment. I will certainly contact Hertz and see what happens



Stevesolar said:


> This concept does not exist here - so I believe people less purely for convenience - not as a cost saving method of driving a nice car.


Makes sense, thanks Steve


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## Stevesolar (Dec 21, 2012)

kirist said:


> I am relatively flexible, mostly looking for a business where the value of the car is what truly drives (no pun intended) the monthly instalment.


Hi,
Honestly - you won't find that here.
We looked at many lease options before getting our first two cars in Dubai.
In the end, we opted for 5 year hire purchase on cars that came with free first year insurance, inclusive service contract, negotiated low finance rates with the bank and found cars that had a deal where the dealer contributed the 20% deposit - that you normally have to put down here (central bank rules).
We sold one of these cars at just over two years and had enough equity to pay off finance with a few thousand dirhams left over.
The only expenses we had in the two years ownership were tyres and 2nd year insurance.
Because finance rates are so low and we took it out over 60 months - the monthly payments were nearly half what we were being quoted to lease an equivalent car - especially as we needed 30,000 km per year rate.
Don't forget - if you go over the quoted mileage during the lease - the excess mileage charges here are also very high.
The lease company also charge a management fee on Salik charges and any police fines.
By using the above method (after a lot of research) - we got to drive two fully loaded cars that we liked - at an optimum cost.
Cheers
Steve


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## kirist (Mar 26, 2015)

Stevesolar said:


> In the end, we opted for 5 year hire purchase on cars that came with free first year insurance, inclusive service contract, negotiated low finance rates with the bank and found cars that had a deal where the dealer contributed the 20% deposit - that you normally have to put down here (central bank rules).


May I ask who did you get that with? Do all dealers offer hire purchase agreements?


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## rsinner (Feb 3, 2009)

just read about something called payperkay. Dodge/ Jeep/ Chrysler range of cars which are cheaper than usual. Requires a 12/24/36 month commitment. The downside is that the quoted rate is for 1000 km/ month, but the additional km charges are not too bad (can be pre paid it seems).


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## GloballyRelaxed (Nov 5, 2014)

rsinner said:


> just read about something called payperkay. Dodge/ Jeep/ Chrysler range of cars which are cheaper than usual. Requires a 12/24/36 month commitment. The downside is that the quoted rate is for 1000 km/ month, but the additional km charges are not too bad (can be pre paid it seems).


Nice find that one.

Looking over their website PayPerKay | Pay As You Go it seems not too bad a deal on the face of it.

Only thing it does not mention is the insurance component and the liability if the contract needs to be cancelled.

Range of autos supplied does not really fill me with glee either, but its a good start.


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## rsinner (Feb 3, 2009)

GloballyRelaxed said:


> Nice find that one.
> 
> Looking over their website PayPerKay | Pay As You Go it seems not too bad a deal on the face of it.
> 
> ...


Yeah - quiet about these basic issues! But seems interesting.


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