{"id":3334,"date":"2018-02-13T07:55:38","date_gmt":"2018-02-13T07:55:38","guid":{"rendered":"http:\/\/65.1.85.58\/newsroom\/?p=3334"},"modified":"2020-08-30T08:25:12","modified_gmt":"2020-08-30T08:25:12","slug":"rent-hail-buy-car-dubai","status":"publish","type":"post","link":"https:\/\/carswitch.com\/newsroom\/rent-hail-buy-car-dubai\/","title":{"rendered":"To Rent, Buy, or Hail a Car in Dubai?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019ve recently landed in Dubai or are a long time resident feeling the pain of rising costs, you may have compared the advantages of <\/span><a href=\"http:\/\/www.carswitch.com\/uae\/used-cars\/search\"><span style=\"font-weight: 400;\">owning a car<\/span><\/a><span style=\"font-weight: 400;\">, renting or ride-hailing in the UAE, particularly from a financial point of view. Each has its pros and cons, so to understand these purely in financial terms the experts at CarSwitch.com have crunched some numbers to bring to you some insightful findings.<\/span><b><!--more--><\/b><\/p>\n<p><span style=\"font-weight: 400;\">To explore each option, we only considered ride-hailing apps as hailing RTA taxis in Dubai can be challenging depending on where you reside. To keep the comparisons fair and consistent, we used a Lexus ES300 in each option so that similar driving experiences are considered. Finally, we assumed your daily commutes come down to an average of two 30 km trips a day, 6 days a week, so hitting an average of 20,000 km a year with half of them crossing a Salik gate.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-3335\" src=\"http:\/\/65.1.85.58\/newsroom\/wp-content\/uploads\/2018\/02\/To-rent-buy-or-hail-1-208x300.jpg\" alt=\"\" width=\"257\" height=\"371\" srcset=\"https:\/\/carswitch.com\/newsroom\/wp-content\/uploads\/2018\/02\/To-rent-buy-or-hail-1-208x300.jpg 208w, https:\/\/carswitch.com\/newsroom\/wp-content\/uploads\/2018\/02\/To-rent-buy-or-hail-1-1315x1900.jpg 1315w, https:\/\/carswitch.com\/newsroom\/wp-content\/uploads\/2018\/02\/To-rent-buy-or-hail-1.jpg 1667w\" sizes=\"auto, (max-width: 257px) 100vw, 257px\" \/><\/p>\n<p><b>Owning <\/b><span style=\"font-weight: 400;\">a mid-size mass luxury sedan such as a Lexus ES 350 will cost approximately AED 35,000-40,000 per year. We analyzed data of a 1-year-old Lexus to keep it comparable to driving a rental and ride-hailing. The individual costs are: &nbsp;&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 25,000-30,000 in car depreciation as ultimately the car will lose quite a bit of value over its lifetime (<\/span><a href=\"http:\/\/65.1.85.58\/newsroom\/home\"><span style=\"font-weight: 400;\">see further details here<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 3,000-4,000 for comprehensive insurance <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 1,000 in registration related costs such as the annual inspection fees<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 2,750-3,250 for cleaning, service, and maintenance costs <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 4,000-5,000 in Salik and fuel costs assuming January\u2019s ~2 AED per liter and an average consumption of 9 liter \/ 100 km for the Lexus ES350<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It goes without saying that we have assumed you to be a great driver. Which means no traffic or parking fines, or additional fees due to accidents<\/span><\/p>\n<p><b>Renting<\/b><span style=\"font-weight: 400;\"> the same type has less complicated costs primarily because registration, service, and maintenance costs are taken care of for you and it adds up to about AED 60,000-65,000 per year. Namely:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 55,000-60,000 per year in rental cost, as monthly rates are typically AED 5,000-6,000 due to seasonal peaks and slumps and most agencies provide discounts on longer-term commitments<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">AED 4,000-5,000 in Salik and fuel costs which are similar to that of owning a car<\/span><\/li>\n<\/ul>\n<p><b>Ride-hailing<\/b><span style=\"font-weight: 400;\"> is, of course, the simplest in terms of cost calculations and risk factors such as fines or accidents. Its associated costs add up to a grand total of AED 45,000 per year, assuming an average base fare of AED 8 on top of AED 2 per kilometer as the rates vary on time and demand. An added perk is being chauffeured around without the headache of driving yourself, and there is certainly some economic value in clearing those extra emails or expanding your horizons in the latest book you grabbed. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, over the course of the year, it would seem owning a car is the right financial choice. However, for the economics to play out well you would have to keep these key cost drivers in mind:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You need to <\/span><a href=\"http:\/\/www.carswitch.com\/uae\/used-cars\/search\"><span style=\"font-weight: 400;\">buy used car <\/span><\/a><span style=\"font-weight: 400;\">as a new car has a much steeper depreciation in the first year, which is the largest cost associated with owning a car! <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The car you buy must be in good condition to avoid unanticipated repairs which could turn out to be costly<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The timeframe needs to be close to a year or more, as if you only need a car for a few months then owning becomes costlier.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This assessment was conducted by CarSwitch.com which is the UAE\u2019s marketplace for pre-inspected used cars. <a href=\"http:\/\/carswitch.com\/uae\/used-cars\/search\">CarSwitch\u2019s value proposition<\/a> is to tackle the two critical cost advantages of owning a car: it needs to be a <\/span>used car <span style=\"font-weight: 400;\">so that the big initial depreciation can be avoided, and it needs to be in good condition. Accordingly, CarSwitch pre-inspects every car puts the results on their website and adds a warranty to every car so that the economics always play out well.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve recently landed in Dubai or are a long time resident feeling the pain of rising costs, you may have compared the advantages of owning a car, renting or ride-hailing in the UAE, particularly from a financial point of view. Each has its pros and cons, so to understand these purely in financial terms [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":3338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33,4],"tags":[351,287,352,288],"class_list":["post-3334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer-guides","category-home","tag-buy-car","tag-buy-car-in-dubai","tag-hail-car","tag-rent-car"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>To Rent, Buy, or Hail a Car in Dubai? | CarSwitch<\/title>\n<meta name=\"description\" content=\"Dubai residents which option is better? 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