A young man in Ras Al Khaimah was jailed for not paying rent on luxury car rental for two months. The youth rented a luxury SUV and delayed payment for two months, as reported in Khaleej Times. The outstanding amount was 60,000 AED and the young man evaded payment until RAK Police took action.

Can I delay paying rent on my luxury car rental?

EjarCar.com works with hundreds of car rental partners in UAE. At least in Dubai and Abu Dhabi, most car rental companies take the rental amount in advance along with the security deposit. For a luxury car rental like Mercedes-Benz G63 AMG, the daily rent is 1,500 AED and monthly rent is over 30,000 AED. On top of that, the security deposit is at least 3,000 AED if not more. By ensuring advance payment, most car rental companies are able to cover their future liabilities (like fines, evasion, etc) to a certain extent.

Dubai Police rules on renting cars in Dubai

Thanks to Dubai Police vigilance and rules, the cases on non payment are declining, as reported in Gulf News. The RTA requires car rental companies to see the original documents before issuing rental cars. The RTA requires rental companies to pre authorize the security deposit on credit card. The RTA also requires car rental companies to upload the formal contract online on it’s database to keep track of who is renting the car.

Car rental company best practices

Finally the car rental companies here have learnt from experience that renting a car, particularly a luxury car to a person below 25 years of age is asking for trouble! Hence EjarCar.com partners have a strict rule not to give rental cars to customers below 25 years. Legally they can give the rental car to a person below 25 years, however the insurance companies will not cover that person. Below 23 years of age there is virtually no coverage. Between 23 and 25 years the coverage is partial.

Unfortunately you will find some car rental companies particularly in Northern Emirates that have relaxed rules such as accepting delayed payments, cash only transactions, very little documentation, etc. This leads to problems like evasion of payment.