Why would anyone lease cars in Dubai? The reasons not to lease cars are competent. For one, the new car prices have attractive deals like 0% financing, no down payment and free insurance. Also the used car market has very attractive deals thanks to a global downturn and low oil prices. There are three scenarios where leasing cars is a much better option than buying one in Dubai (and UAE in general):

When should I lease cars in Dubai?

There are three main scenarios where leasing cars makes sense:

When you are new to Dubai

A newbie expat or business set up in Dubai requires a minimum 3 month bank statement to qualify for a car loan. This means if you’ve just arrived from UK or US to Dubai and need a car pronto, leasing is your best bet. Yes it is still possible to get a loan for your car without 3 month bank statement BUT the banks will charge you almost double the interest rate. This is because banks will give you a PERSONAL loan rather than a car loan.

When banks give you grief

The banks in Dubai and Abu Dhabi are much more cautious than Western banks. The year 2017 will be even more cautious as banks will reduce lending to private individuals and companies. This is because of (still) low oil prices and cautionary policies. Furthermore, if you have recently set up your company in Dubai or Abu Dhabi, you might not be a ‘registered’ company in those banks. A registered company is a well established company validated by the banks. In that case, again the car loan will be rejected EVEN if you have been in the country for over 3 months! So you’ll need to fall back on the personal loan which will be costlier.

When you like switching cars

If you like to switch cars every two years, leasing makes more sense. For one, it’s a credit in your accounting statements for corporate leasing. No more depreciation hassles. No more registration, Salik and fine hassles. No more maintenance hassles. You drive a brand new car ever year. You get a replacement car when the accident happens. In terms of monthly payments, you pay almost the same or lower than the monthly EMI on your car loan. No down payment will be required. And no hassles of selling the car after two years. Thanks to depressed used car market, the resale values are not great either. So for someone who likes to change cars frequently, leasing is super convenient.

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For more information on leasing cars, contact us at support@ejarcar.com or Call / Whatsapp at +971506476227.