# Lease BMW & Audi & Mercedes



## ozy

Hi Folks,

Need recommendations about the best '' price & service'' car lease company mainly specialized BMW & Audi & Mercedes type German cars in Dubai.. 

I am looking for a X5,X6,Q7,ML series SUV car for 2 years leasing as of March'12.

Many thanks in advance.


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## Kawasutra

ozy said:


> Hi Folks,
> 
> Need recommendations about the best '' price & service'' car lease company mainly specialized BMW & Audi & Mercedes type German cars in Dubai..
> 
> I am looking for a X5,X6,Q7,ML series SUV car for 2 years leasing as of March'12.
> 
> Many thanks in advance.


The only company that I know for these kind of cars is CarFare in DIP.
Might be expensive, very expensive...!


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## alangs1200

Try Hertz. I leased my wife's Lexus convertible from them on a 3 year lease. They'll lease you pretty much anything.


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## wandabug

Gargash


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## Guest

*how much did you pay for lease?*



alangs1200 said:


> Try Hertz. I leased my wife's Lexus convertible from them on a 3 year lease. They'll lease you pretty much anything.


Hi what did you pay to lease the Lexus for your wife, I'm looking for a car, and my husband is looking on dubizzle, but i'm wary of buying a car, i'd much rather lease it since we don't know how long we are going to be here. Can you give me any additional information about the Hertz leasing division (if there is one) -- i tend to get the run-around here and spend a day looking for the right departments! thanks so much.


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## alangs1200

I took a 3 year lease, 60,000 km, fully maintained and insured where anyone with a UAE licence can drive it and I pay only for fuel and Salik. I pay just over 5,000 / month. I did it through one of their sales team in their lease division called Ferrial who was very helpful.


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## Guest

alangs1200 said:


> I took a 3 year lease, 60,000 km, fully maintained and insured where anyone with a UAE licence can drive it and I pay only for fuel and Salik. I pay just over 5,000 / month. I did it through one of their sales team in their lease division called Ferrial who was very helpful.


THANKS SO MUCH!!!!! YOU have NO idea how helpful this was-- we didnt even know that was an option. As US citizens, we have an additional write off on taxes for leasing -- I appreciate your help so much. TKS


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## ozy

Beside Hertz , do not forget to check BUDGET as well..Offered appx 1.000 AED lower than Hertz for the same car with similar options..Diamondlease is quite OK for Japanese cars such as 4WDs.


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## Felixtoo2

Holy Moley, 5000 per month for 3 years is 180k! You'd have been better buying a new car as the depreciation would never have been that much!


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## fcjb1970

tarin said:


> THANKS SO MUCH!!!!! YOU have NO idea how helpful this was-- we didnt even know that was an option. As US citizens, we have an additional write off on taxes for leasing -- I appreciate your help so much. TKS


I would confirm that one with a tax professional. I have never heard of a write off for leasing a car for personal use. Car lease cannot be claimed as part of housing exclusion on form 2555.


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## Guest

fcjb1970 said:


> I would confirm that one with a tax professional. I have never heard of a write off for leasing a car for personal use. Car lease cannot be claimed as part of housing exclusion on form 2555.


It would be for business use. I was able to write off car and driver for personal use in KSA, but that's bc I was not allowed to drive there. I will double check, I am fairly certain for business use you can write off a leasing a car, however you cannot for buying one. 

BTW, You should check various "hardship" exceptions to the foreign income tax with a tax attorney, or you could just research it on your own -- cheaper 
(I read the case law before claiming my deductions, so I was prepared to be audited and to argue my case- fyi I am a lawyer but I didn't specialize in Tax Law--I did take several tax classes in law school and for my CLE which was helpful in reading the Code.) I claimed several deductions not specified in the code, but addressed in IRS Tax Rulings-- so if you want to put in the work to get these it's worth it., (I was granted all but one.) This area is very gray, but the IRS has worked with us so far. I will definitely check it out, and get back to you if you want> Thanks! (Anything posted here is not legal advice-- and should not be relied upon --- sorry I had to put in the disclaimer


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## Guest

ozy said:


> Beside Hertz , do not forget to check BUDGET as well..Offered appx 1.000 AED lower than Hertz for the same car with similar options..Diamondlease is quite OK for Japanese cars such as 4WDs.


Thanks for the advice, I will check it out this weekend and post what I learned!


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## alangs1200

Felixtoo2 said:


> Holy Moley, 5000 per month for 3 years is 180k! You'd have been better buying a new car as the depreciation would never have been that much!


Easy decision really - when you do the maths properly. No service costs, no maintenance costs, no brake pads, no replacement batteries, no tyre bills, free loan car during service, which is done on a collect and deliver basis, no insurance, no registration costs, no need to invest my own cash. Add in a realistic view of resale - convertibles don't hold their value well in the UAE; No hassle, no risk. When you add it all up it's a reasonable cost for the full cost of the vehicle with a modest on cost for someone else doing all the work and taking the risk. It's always amazed me how people never add up the true cost of motoring.


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## Felixtoo2

I think if you have even the slightest knowledge of cars it would be possible to buy and run one for 3 years and not manage to loose 180,000 dhs doing so. It's a he'll of a price to pay for laziness.

It only becomes remotely worth thinking about if you are driving something which you really can't afford in the first place as with depreciation you'd need to be looking at a list price of over 320,000dhs.


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## alangs1200

I think you only have to do the maths properly to realise it's a very small price to pay for laziness. Most people simply never add up the realities of the costs of car ownership....


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## fcjb1970

alangs1200 said:


> I think you only have to do the maths properly to realise it's a very small price to pay for laziness. Most people simply never add up the realities of the costs of car ownership....


Not to mention that if (when) something happens with your job and you have to flee back to your home country, you do not have a car to sell.


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## Felixtoo2

Except that you may have signed a three year lease contract agreement on the car so you won't be able to leave the Country until you've paid it in full. I can see you've given this a lot of thought lol. 
I'd be genuinely interested to see what figures you use to make giving away 5000 dhs a month for car seem like a good deal.


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## ziokendo

Felixtoo2 said:


> I'd be genuinely interested to see what figures you use to make giving away 5000 dhs a month for car seem like a good deal.


The only thing that can make it seems like a good deal is the price you put on "peace of mind", which is very subjective, especially if you are in a position of not to be really concerned about an extra 1000dhs/month.

On the other hand also the leasing company has to put a price on the fact that leasing a one-of-a-kind car costs more than to lease 5 yaris both money wise and time of employee wise, as they have to buy just that car (not 100 of a kind), setup just one service contract to handle it, have more risk in reselling it, etc. so need to make a better profit out of that.

Apparently in this market these two needs meet at that price of 5000dhs/m ;-)

Honestly, though I perfectly understand and agree your point that it won't make economic sense, is the very same reason why I am thinking of renting my house short term (eg. 3m by 3m) for the first year, let's say, and rent a car rather than buying it for the first 6m/1 year period I am moving here in Dubai.

I understand that at 2000aed/month renting a honda civic is a big waste of money compared to just buying at 30k used one, insuring and servicing it a couple of times, and reselling it at 20k aed one year later, probably I will spend almost double after a year, but until I know better how stuff works here I put a high price on the potential risks and the hassles.



Felixtoo2 said:


> Except that you may have signed a three year lease contract agreement on the car so you won't be able to leave the Country until you've paid it in full.


Is a lease the same of a loan from a legal standpoint ? Do they ask you a blank check as warranty etc ?

Anyway people leaves the country all the time for holidays etc, with open loans and leases etc, so I don't think it would be a big issue to overcome ?


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## Felixtoo2

Sounds like you are preparing to to a runner before you even get started lol!


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## ziokendo

Felixtoo2 said:


> Sounds like you are preparing to to a runner before you even get started lol!


I feel better to always have a "B" plan in place.


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## alangs1200

Maths (all figures approx)
215,000 AED car - funding costs at 5% PA, 3 years =32,000 AED
Resale value - based on current used values of a 3 year old IS300C = 125,000 AED, therefore depreciation around 90,000 AED.
Insurance (on depreciating balance) at approx 6% of vehicle value = 30,000 AED
Service costs - 5k oil changes x 6; 10k minor services x 3; 20k major services x 2 (and we're assuming we'll skip the 60k service) = approx 4,000 AED. Let's add in another 1,000 AED for brake pads and other wear and tear items etc and let's assume 6 tyres (2 replacement sets at the rear and 1 at the front) = around 10,000 AED. Add in a free Lexus loan car at every service with collect and deliver, that's 11 days at, around, 300 AED/ day - 3,000 AED. Total around 170,000 AED. At just over 180,000 AED the lease makes the risk/hassle premium about 6%.

Clearly we don't all have the same view on what risk and hassle is worth, but for me, 6%, for the car that we wanted, for no hassle, was worth it.

What's more fundamental is that when you do the maths that's what the car costs to run taking into account ALL the costs.


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## themash

And if the contract is anything like mine, if I cancel at any point before the end of the 24months agreement I lose my 3month deposit, so exit strategy although it has a financial burden it is hassle free.


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## ziokendo

alangs1200 said:


> Clearly we don't all have the same view on what risk and hassle is worth, but for me, 6%, for the car that we wanted, for no hassle, was worth it.


Just, for the sake of argument, probably if shopping a bit you wouldn't have paid the full list price of the car, or at least they would had thrown up a free service contract and a good rate car loan (ie 3%) with it, and also 10k aed for 6 17" tires to be consumed in 60.000 km seems a bit steep.

But there is a reason why we put a price on "hassle" indeed, and for me up to a 15-20% in 3 years is well worth it: everyone is entitled to his view. After all a car, especially a luxury one, is always a waste of money.

So going trough that route we could all end up debating whether is better to travel with one with a better resale value, a cheaper one, and keeping the discussion going we could all end up debating to go by metro/taxi, living near the work and going on foot, and so on ;-) he he he ...


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## alangs1200

themash said:


> And if the contract is anything like mine, if I cancel at any point before the end of the 24months agreement I lose my 3month deposit, so exit strategy although it has a financial burden it is hassle free.


Exactly the same as mine!


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## alangs1200

ziokendo said:


> Just, for the sake of argument, probably if shopping a bit you wouldn't have paid the full list price of the car, or at least they would had thrown up a free service contract and a good rate car loan (ie 3%) with it, and also 10k aed for 6 17" tires to be consumed in 60.000 km seems a bit steep.
> 
> But there is a reason why we put a price on "hassle" indeed, and for me up to a 15-20% in 3 years is well worth it: everyone is entitled to his view. After all a car, especially a luxury one, is always a waste of money.
> 
> So going trough that route we could all end up debating whether is better to travel with one with a better resale value, a cheaper one, and keeping the discussion going we could all end up debating to go by metro/taxi, living near the work and going on foot, and so on ;-) he he he ...


Precisely. On the one hand I drive a Landcruiser. Great resale, bulletproof, does anything etc etc. But the Lexus is exactly a luxury. And given I already have enough hassle in life, just driving it and having someone else do all the work has a lot to recommend it. . But yes, it's a waste of money. A Yaris would be just as efficient a means of transport!

And tyre wear is a matter of driving style ... Or bad luck. I already had one replaced for a puncture that was unavoidable .... That's a nice bill avoided.


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## craignewcastle

Or you could go down my route, HSBC car loan new C Class coupe 250 185,000 aed 20% deposit and 60% balloon at the end of 24 months works out approx 2000 a month with warranty and no service costs! Can sell and move on in two years


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## despicablesam

Guys,

Pardon me from deviating from the topic here. Can you help me list some cars with amazing resale value? (By amazing I mean really exceptional, such that you use them for 1-3yrs and sell them at cost that would calculate to almost nothing per month on your pocket)
Whatever be the pricerange of the cars 50k-300k. Start listing in Ascending order of cost per month.

Sam


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## despicablesam

Guys,

Pardon me from deviating from the topic here. Can you help me list some cars with amazing resale value? (By amazing I mean really exceptional, such that you use them for 1-3yrs and sell them at cost that would calculate to almost nothing per month on your pocket)
Whatever be the pricerange of the cars 50k-300k. Start listing in Ascending order of cost per month.

Sam


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## Jynxgirl

Sam, there isnt a car like that, that most of are able to buy. The vehicles that will go up in value, would need to be kept in top shape and put in a garage and not used alot. Even so, the value doesnt tend to start going up until after it is 15 to 20 years old.


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## despicablesam

Jynxgirl said:


> Sam, there isnt a car like that, that most of are able to buy. The vehicles that will go up in value, would need to be kept in top shape and put in a garage and not used alot. Even so, the value doesnt tend to start going up until after it is 15 to 20 years old.


You misunderstood. I meant to ask, of cars that depreciate the least! 

i know a few of them.(Eg. C200, corolla, BMW 320 etc ) But wanted to get the list in order with facts and figures.


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## Jynxgirl

despicablesam said:


> You misunderstood. I meant to ask, of cars that depreciate the least!
> 
> i know a few of them.(Eg. C200, corolla, BMW 320 etc ) But wanted to get the list in order with facts and figures.


Sam, am quickly rethinking the salary thing. :ranger:


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## ziokendo

Just look at the sales stats, the best sellers are the most likely to hold value because of the high demand and the affordable maintenance (cause every mechanics know them), really microeconomics is that simple,

Land Cruiser,
Honda Civic,
Corolla,

etc

I don't think the german ones will excel in UAE, unlike in Europe.

What you can't foresee at the time of buying is if that trend will last after 3 years, but there will be always a demand for something like a Civic, so it's not that risky, except of a biggest shock in supply (ie: it becomes compulsory to own an eletric car, or stuff like that, just for the sake of argument).



despicablesam said:


> You misunderstood. I meant to ask, of cars that depreciate the least!
> 
> i know a few of them.(Eg. C200, corolla, BMW 320 etc ) But wanted to get the list in order with facts and figures.


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## Felixtoo2

To make it cheap motoring you have to buy secondhand so you need to be pretty confident you won't buy a lemon. Bought the wife a car a year ago and it's still worth the same as what we paid for it back then. Jynx is right though, buy a classic and it could go up in value. My motorbike is worth about twice what I paid for it.


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## TallyHo

I once met someone who claimed that he bought an used Wrangler for 65K, drove it for two years and sold it for 65K.

This was back during the boom when prices for second hand cars were marginally lower than for newer cars. 

All cars will cost you money. You should only compare the ownership costs to rental costs. Any brand new cars will see a significant drop in value once you drive it off the lot so it's more cost effective to buy an used car, but there are many tradeoffs that come with used cars (lack of warranty/free servicing) that needs to be calculated. All expensive cars will cost you a lot of money one way or another and the absolutely cheapest way to own a car is to buy an used Yaris or Honda Civic for 30K and resell it later for 20K.


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## ccr

themash said:


> And if the contract is anything like mine, if I cancel at any point before the end of the 24months agreement I lose my 3month deposit, so exit strategy although it has a financial burden it is hassle free.


EuroCar is 2 month penalty for breaking contract early, FYI. And their rental rates are lower than Hertz, but don't know if they will lease luxury cars.


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## MattStreet

alangs1200 said:


> Maths (all figures approx)
> 215,000 AED car - funding costs at 5% PA, 3 years =32,000 AED
> Resale value - based on current used values of a 3 year old IS300C = 125,000 AED, therefore depreciation around 90,000 AED.
> Insurance (on depreciating balance) at approx 6% of vehicle value = 30,000 AED
> Service costs - 5k oil changes x 6; 10k minor services x 3; 20k major services x 2 (and we're assuming we'll skip the 60k service) = approx 4,000 AED. Let's add in another 1,000 AED for brake pads and other wear and tear items etc and let's assume 6 tyres (2 replacement sets at the rear and 1 at the front) = around 10,000 AED. Add in a free Lexus loan car at every service with collect and deliver, that's 11 days at, around, 300 AED/ day - 3,000 AED. Total around 170,000 AED. At just over 180,000 AED the lease makes the risk/hassle premium about 6%.
> 
> Clearly we don't all have the same view on what risk and hassle is worth, but for me, 6%, for the car that we wanted, for no hassle, was worth it.
> 
> What's more fundamental is that when you do the maths that's what the car costs to run taking into account ALL the costs.


Your estimates are all very reasonable when compared to buying a new car (which you are getting through leasing - so its a fair comparison). So i agree, for a three year period, compared to buying a new car, leasing is probably worth it.

But - the 90,000 depreciation is why I would never buy a brand new car and its the same reason leasing is expensive. If you ran your calcs again starting with a 3yo old car and the same % depreciation (an overestimate), the saving jumps to 50000AED. Maybe less with increased maintenance, but to me this saving is worth it.

But i'm a cheapskate and not worried about having a new car. ps if you want to offload a car quickly just sell it to a dealer?

Sure you'd lose a bit but thats got to be equally as quick and costly as paying your way out of the lease? -maybe this is naive, if you have to get out quick, would you actually bother, probably not.


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