According to the metrics released by the Roads and Transport Authority, in Dubai, there are roughly 540 cars per one thousand people. This staggering figure is the highest in the region and one of the highest in the world.
Renting a car in Dubai is the most viable option, no matter whether you have just landed in the city or a long-term resident. Some of the other options available are buying a new or an old car and using car services like Uber, Careem, etc.
While it’s true that owning a car gives you a sense of security, it’s not financially smarter to buy a new car in Dubai.
Buying a car in Dubai
The Toyota Corolla is the most popular car in Dubai. If we assume that you buy a Corolla 2018, run it 30 km a day, and 6 days a week, you’ll end up consuming almost AED 21,000 at the end of the year. While numbers can vary a bit, it’s roughly the same for most users. If we include the downpayment of AED 70,900 for the new Toyota Corolla 2018, we’re left with a staggering figure.
Total yearly cost: AED 91900 (including the downpayment)
However, there are some benefits of owning a new car in Dubai.
- Paying monthly loans is easier than paying monthly rent payments, at least psychologically. If you keep on paying your loans, you’re able to drive your own car after you’ve cleared the payments.
- You can sell your car anytime to pay when you’re stuck financially. You have an asset that you can sell to balance your liabilities.
- You do not have to keep it in perfect condition. You can keep on using it without paying much attention to appearance. On the other hand, if you rent a car, you have to perform regular maintenance and keep it in its original position. If you fail to do so or the car gets damaged, you’ll have to pay for the damage.
- If you buy a used car, you have to pay less because of the depreciation discount. Because 20% to 40% of a car’s original price is gone after a few years, you can get more value in little money.
Hailing a car in Dubai
Many chauffeured ride services are available in Dubai, including Uber and Careem. If we assume that you ordered a cab for AED 50 oneway and paid an extra AED 50 for the return trip, you would spend AED 100 at the end of the day. If we also assume that you order a chauffeured ride five days a week, you spend AED 2500 at the end of the month.
Total yearly cost: AED 24,000
There are some benefits of chauffeured rides. Costs are simple to calculate and there are no risk factors involved, such as fines and accidents. Moreover, you can enjoy the perk of not driving yourself.
Renting a car in Dubai
Renting a car in Dubai comes with its own benefits and has less complicated costs than the other two options. Costs are less complicated because registration, maintenance, and service costs are taken care of. In our case study, we used an economy sedan, Toyota Corolla 2018.
The monthly payment for an economy sedan such as this is about AED 2,000. However, many companies such as al emad give discounts on longer-term commitments.
If you’re renting a car in Dubai, you’ll have to pay for the fuel and parking costs yourself. Fines and damage compensation costs (if any) are also to be paid by the client.
Total yearly cost: AED 30,000 to AED 40,500
Benefits of renting a car in Dubai
There are several benefits of renting a car. I have discussed a few of the following:
- There are no depreciation costs if you rent a car in Dubai. If you buy a car instead, you have to bear depreciation losses as well as pay a hefty amount as the down payment.
- You don’t require extra insurance if you already have one. Most insurance policies will extend to car rentals without any additional fees.
- You can enjoy the benefits of fewer commitments. Anytime you feel you have to travel abroad or when you don’t need to commute, you can stop the rental and save a considerable amount of money. Moreover, you don’t have to worry about where to park the car and related chores.
- You can easily change the model of your car. You can try different available options. If you’re a person who gets bored easily, renting a car is the best option for you in a city like Dubai.
What is the best option?
In our opinion, renting a car in Dubai is the more feasible option than the other two. No matter whether you’re a permanent settler in Dubai or a tourist, renting a car is more lucrative than buying it in Dubai. Hailing a car using services like Uber and Careem is cost-effective but you do not get the potential benefits of using a car.
So the bottom line is that you can always rent a car whenever you’re in Dubai. Al emad offers some of the best deals when it comes to renting a car in Dubai.