Dubai is the city of ambition, ambition, and ambition. Whether you are a long-term visitor, a recently arrived expatriate, or an expatriate who is considering his next move, the question arises as to whether he should buy a car or consider a long-term rental car.
Buying a car at first seems to be the easiest way. After all, it’s a one-time cost and it’s yours. However, in a place like Dubai, trends come and go, job contracts fluctuate, and the cost of living fluctuates.
In this article, we take a look at both options in terms of financial viability, flexibility, and hidden costs. By the end of the article, you will understand whether you are an owner or long-term car renter, what works best for you.
Long-term car rental refers to renting a car for a period of at least one month.
What do most long-term car rentals include?
Insurance
Maintenance and service
24-hour roadside assistance
Replace the car for free during service
Salik (toll) tags and payment
No car depreciation
You pay a flat monthly fee, and you may also be able to customize your mileage or switch models over time.
Buying a car in Dubai: the basics
Dubai has a wide range of new and used cars for sale. Buying may seem more cost-effective over time, especially if you plan to stay for a few years. The prices of cars in the UAE are often more competitive than in Europe or North America due to lower import taxes and fuel costs.
However, with ownership comes responsibility.
Things to keep in mind include:
Advance payment or loan payments (interest)
Vehicle registration and renewal
Insurance (mandatory third-party or comprehensive)
Service and maintenance
Repairs and parts
Annual car test (older cars)
Depreciation losses
It is important to understand these recurring costs before you make a purchase.
Comparing the costs: rent or buy
Here is a summary of the costs associated with both sides in a common use case of a mid-range sedan in Dubai for one year.
Long-term rental car
Monthly rental fee: AED 1,800 – AED 2,500
Insurance: Includes
Maintenance: Included
Registration: Not required
Depreciation: Not applicable
Unexpected Repairs: Covered
Cancellation or switching flexibility: Yes
Estimated annual cost: AED 21,600 – AED 30,000
Cost upfront: None or minimum deposit
Buying a car (used AED 40,000)
Purchase price: AED 40,000
Insurance: AED 2,000 – AED 3,500 per year
Maintenance: AED 2,000 – AED 5,000 per year
Registration: AED 400 – AED 700 per year
Annual depreciation: 15-20% (AED 6,000-8,000)
Repairs and other costs: AED 1,000 – AED 3,000
Estimated annual cost (excluding resell value): AED 12,000 – AED 16,000
Cost upfront: AED 40,000 or down payment + loan payment
Pros and cons of long-term car rental
- You have no commitments. Cancel or switch with little notice.
- All-inclusive prices. No need to worry about insurance, maintenance or maintenance.
- Brand new. Often newer models with the latest technology.
- No return issues. You can return the car when you’re done.
- Perfect for expats or temporary residents.
- Too expensive over a long period.
- Little customization or personalization.
- There may be mileage restrictions.
Pros and cons of buying a car
- It is cheaper in the long run (assuming you keep it for a few years).
- You have unlimited mileage. You can drive as much as you want without being charged.
- More model options for special needs or personal preferences.
- High upfront investment.
- Ongoing maintenance and repair costs.
- There is depreciation.
- Selling the car is time-consuming.
Who should choose long-term rental?
1. Recent expats or short-term workers
If you don’t know how long you’ll be in Dubai, renting a car will give you the flexibility to adapt without committing to car ownership.
2. Remote workers and digital nomads
If you’re testing out life in Dubai for a few months, a rental car gives you the freedom to explore without the hassle of the ownership logistics.
3. Business travelers and consultants
Corporate professionals visiting for short-term projects of several weeks or months can avoid taxi fees and keep moving with a rental.
4. Students or interns
Temporary university participants or interns often choose to rent a car instead of going through the hassle of ownership in a foreign country.
Who should buy a car?
1. Long-term residents
If you are planning to stay in Dubai for at least 3-5 years, buying a car is usually more cost-effective.
2. Families
If you need a car with specific features such as 7-seater, space for a stroller or built-in car seats, buying may allow you to customize.
3. Constant driver
If you intend to drive long distances regularly (for example, Dubai to Abu Dhabi every day), mileage restrictions on rentals may not suit your lifestyle.
Depreciation: the hidden cost of buying
Car depreciation is often overlooked. In the competitive market in Dubai, cars (especially luxury cars) can depreciate by 15-25% per year. For example, a car that you bought for AED 100,000 can sell for AED 70,000 two years later.
This depreciation factor can sometimes outweigh the advantages of purchasing. When comparing long-term rental vs. ownership, remember to factor in depreciation.
Maintenance and maintenance: the stumbling block for many
When you own a car in Dubai, you must:
Periodic maintenance (change of oil, filter)
Replace tires
Brake pads
Change the battery
AC issues (common due to the heat)
Bodywork and paint
These costs depend on the model and mileage. On the other hand, long-term rental programs usually include all service and even roadside assistance, sparing you the stress of any technical trouble.
Insurance and paperwork issues
Buying a car means:
Insurance renewal
Registration and review
Fines and traffic tickets (which apply to rental, but handled differently)
Sell the car (can be stressful in a competitive market)
Long-term rental eliminates most of this. Paperwork is simplified, and the rental company handles the process.
The flexibility of lifestyle
Long-term rental car also offers lifestyle flexibility:
Go on vacation? Return the car and avoid paying while you’re gone.
Need an SUV for the summer or a small car for winter city driving? It’s easy to switch.
There’s a job relocation or a termination? No pressure to dispose of a vehicle.
This is especially useful in Dubai, where residence changes, visa status, and employment can occur quickly.
Environmentally friendly considerations
Many long-term rental companies use newer, fuel-efficient, or even hybrid vehicles that comply with the city’s environmental standards. If sustainability is important to you, this can be a key factor.
Buying a used car may require you to give up fuel efficiency or miss out on modern emissions standards.
Conclusion: rent or buy?
There is no single answer. Your decision should be based on your financial situation, how long you stay, how you drive, and how flexible you are.
If you are:
- Want a hassle-free drive without hidden costs
- Love flexibility and short-term commitments
- You are a recent expatriate or do not know your future plans
- You don’t like paperwork, service, and sales
- Long-term resident
- Drive every month
- Want to buy a specific model
- Ready for regular maintenance and depreciation
Conclusion
Dubai offers many ways to get around, but having a car of your own really makes your daily life more comfortable, flexible, and time-efficient. Whether you decide to buy a car or rent a car for a long time, your choice depends on many factors: financial, personal and professional.
For people who value flexibility, easy and affordable spending, and little commitment, long-term rental is usually the smartest and easiest option. It’s especially helpful for expats, students, and short- to mid-term residents who don’t want to commit. On the other hand, permanent residents and frequent drivers may find it more valuable to buy a car and get the most out of it.
So, if you’re weighing your options, take the time to evaluate your needs, understand your lifestyle, and think about hidden costs.