Car hire and lease/buy decisions
A fully functional car has become a necessity in this day and age, especially for those who need to get to work on time and can’t wait to avail the cheaper public transportation. However, not everyone can buy the car, and not everyone wants to go through the hassle of leasing a car. This decision can be extremely nerve-wrecking; you can never be too sure what will work best. So, to help you make the decision without going through the pain, we have put together a comparison list that highlights the best and worst of both options.
Leasing vs. Buying
- Ownership of the vehicle: With buying, you get to keep the vehicle under your ownership for as long as you want. With leasing, however, you only get to keep and utilize the vehicle as long as it’s on lease.
- Cost: Buying a car usually involves the upfront payment, registration fees and taxes. Lease, on the hand, includes a reasonable monthly payment, security deposit, and other fees.
- Future costs and value: When you buy a vehicle, you have to bear all the associated costs, including maintenance. However, you keep the equity. A car lease does not affect your financials in the near future, but you don’t get any equity in the vehicle.
- Personalization: The car that is bought is yours. So, you do whatever you want to make it look like it belongs to you. With a leased car, you do not have this option because at the end of the lease term, you need to return the car. Your car hire Dubai or car lease company may make some exceptions when it comes to customizing the car, but normally, you won’t have that choice.
- Vehicle return and end of term: When you buy a vehicle, you are done with the payments after the loan period. With leasing, however, after the term ends, you have to return the vehicle or purchase the vehicle, or lease/buy another vehicle.
It’s important to establish here that car lease is a bit different process than car rental Dubai
service. You can choose to rent a car if you only require the vehicle for a short trip. You can opt for leasing a car if you require the vehicle for a long term, but cannot afford to pay the upfront costs involved with the purchase of the vehicle.
The decision of buying and leasing depends entirely on your requirements and the budget. If you think you can afford the upfront costs, then it is recommended that you acquire the car by paying a onetime price. However, in this case, you have to remember that you will have to bear the maintenance and service costs. Most people consider leasing to be a cheaper option, which it is, but only for a shorter period. Due to escalating tax charges, agent costs, and other fees, leasing generally costs more in the long run; however, it can be a convenient option for those who cannot bear the heavy upfront charges involved in buying of the vehicle. To know more about the difference between buying a car vs leasing a car, contact us today.