What makes more sense, buying and selling a car or renting one in Dubai (6Months)?
How does buying and selling a car or renting one in Dubai work? I recently accepted a project in a location I no longer live in that will last for 5–6 months. I'll need to set up temporary housing and buy a car for the time being. Do I engage in long-term leasing? Should I purchase a car and then immediately sell it? Inside are more details.
All of this is situated in the United Arab Emirates, so pricing there will undoubtedly be much higher than elsewhere in the nation. I don't want to spend money on a beater and hope it lasts forever or has to worry about maintaining it. Thus, if I buy it, it will need to be at least five years old and have covered at least 100,000 miles.
Due to the fact that I'll be in the UAE and it is unacceptable to miss work due to inclement weather, a 4x4 SUV or wagon will also be required.
Therefore, I'm estimating a 5-month intermediate SUV rental will cost me about $6000 after looking at all the main rental companies. I'm using 5 months as my base for the calculation.
These are dealer prices, not CPO, but they have been properly examined and are generally reliable. Of course, there will be additional costs for insurance and routine maintenance, which will likely be more.
Is It Worthwhile Selling Your Car in Dubai?
Is it worthwhile to spend money on a car, deal with the trouble of attempting to sell your car later, and possibly save a little money? Or should I just rent and disregard the necessary expense? I'm just trying to make the most of my opportunities since I will be paid a per diem to cover my expenses.
A lease takeover might be the best solution I can offer you.
On this website, you can read all about leasing and lease takeover. Although that website is about selling used, old, damaged cars, it is relevant to all cars. Don't bring up electric vehicles, tax credits, or anything else.
When you want to sell a car for a reasonably short time but don't want to be forced to sell it later, a lease takeover is fantastic. The shortest leases that you can discover might be longer than 6 months, like 10 or 11 months. This, in my opinion, is because banks don't conduct transfers so close to lease expiration.
I've looked into lease takeovers, and you're right—if I can find a short enough lease—it seems like a wonderful fit. The issue I have discovered in my research is that lease sharing can often take several months to complete and that leasing businesses do not particularly appreciate it. Even if it took three weeks, I would need to rent a car during that time as I wouldn't have one, complicating an already difficult situation.
How Renting a Car in Dubai Works?
On a rental, you can do better than that. If you or a family member work for a big business, that is the simplest route. With whichever company or companies they contract with, they will have a friends and family code that gets them their capped/discounted pricing.
Even a regular mini-lease shouldn't run you for 22 weeks. You might be able to find something for per month if you speak with the management at one of the local establishments. Although there is more danger and hassle involved, you can do better by purchasing and reselling the correct old car. If a rental malfunction, you will, at the very least, have to spend thirty minutes getting another one. And if you like, you can switch to another car for a while.
If you want to rent a vehicle, be aware that, depending on the card, the collision damage waiver insurance offered by your credit card is often restricted to rentals lasting no more than two to four weeks. Using numerous cards or frequently returning the automobile and signing fresh rental agreements may allow you to get around this.
However, if it were for a short-term project, I might choose to rent. Including sales tax, you are likely to lose a lot while purchasing and selling.
How Crash Car Buyers Evaluate Your Car?
For the record, a crash car for which I have no responsibility, they generously suspended my account for almost six months. Even though the other driver received a beautiful failure to yield penalty and admitted on the spot that he purposely crashed into me, they still charged me the full deductible up front.
Then they informed me that I couldn't keep my account for an unspecified reason, which made me very sad considering the prepaid credit I had at the time plus they owed me for petrol I had to pay for when their fleet card occasionally didn't function. (And they made their choice despite the fact that I had a spotless driving record, had not received any fines in more than three years, and had never before filed a claim for vehicle insurance.)
Overall, they're fine; all I had to do was submit a few documents and give a description of the incident. However, I wouldn't use them if I had to pay a large upfront fee or in circumstances where I might suddenly find myself unable to use their service.
Check the small print regarding consecutive rentals. To ensure coverage, you might need to change places or businesses, or use different credit cards. In the small print, some of them are rather cunning. To receive more information than what is provided on the internet summary, which often omits limitations for certain vehicle types, you typically need to phone and ask them to send the entire terms.
Having said that, I've heard Sapphire provides decent rental coverage; however, I'm not sure if it qualifies as a primary policy. If you don't have any other coverage that would be applicable, it makes no difference to you. Most credit card insurance policies are secondary, and I only know of one card from one provider (though I can't remember which one, Any form of obligation is covered, according to a brokerage affiliate card I faintly recall having.
Purchasing non-owners insurance that covers comprehensive and collision on rentals is an additional choice. If it's useful for your position, one of NY or NJ (I forget which) permits it. The benefit of taking that path is that you may be able to obtain higher liability coverage.