A flexible alternative to car ownership, lease a car in Dubai allows residents to rent a vehicle for an extended period without actually owning it. With increasing costs, paperwork, and maintenance responsibilities, purchasing a car in Dubai has become a hassle for many people. This is why car leasing has emerged as a cost-effective and convenient solution, especially for expats who want the freedom of having a car without long-term commitments.
As a result, leasing a car in Dubai has become a practical and popular option, offering multiple benefits to residents. In this guide, we will explore how to lease a car in Dubai, including the process and required documents, so you can easily drive your preferred car on Dubai’s streets.
Key Insight
1. Flexible & Cost-Effective Option: Car leasing in Dubai allows residents and expats to drive a vehicle without ownership, avoiding high upfront costs, maintenance, and long-term commitments.
2. Clear Eligibility & Documentation: Leasing typically requires age limits (21–60), minimum income, good credit score, security deposit, and essential documents like Emirates ID, visa, and driving license.
3. Structured Leasing Process: The process includes choosing a car, checking eligibility, negotiating terms, submitting documents, paying deposits, and signing the agreement.
4. Multiple Trusted Leasing Providers: Popular car leasing companies in Dubai include Hertz, Sixt, LeasePlan, Diamond Lease, and Renty.ae, offering various plans and models.
What is Car Leasing?
Car leasing refers to the process of renting a car for a specific period of time, typically between 1 to 5 years. This approach allows you to enjoy the flexibility of driving a car without actually owning it. To lease a car, you can choose the vehicle you desire from a dealership and sign a leasing contract for a duration of up to 5 years, making monthly payments. At the end of the lease term, you have the option to either return the car, buy the car, or switch to a newer model.
However, if you need a car for a short period for like a week or a month or even for a day, you can simply rent it. To rent a car, read our other blog explaining the steps to rent a car.
Process of Signing Leasing Agreement
Once you have decided on leasing a car, there are some essential factors to consider before beginning your journey. To ensure a smooth leasing process, take note of these critical factors on how to lease a car in Dubai:
- You need to know the specific mileage restrictions from dealerships before signing an agreement.
- Understand the terms and policies of the lease agreement and acknowledge the penalty fee beforehand.
- Make sure you have the necessary documents with you when signing the lease.
- You are required to pay an upfront payment to the bank when leasing the vehicle.
- You should know the eligibility criteria for leasing a vehicle in Dubai.
Let’s start with the process.
Find Your Car
If you’re planning to lease a car, it’s essential to conduct thorough research beforehand. This will help you find the right dealership that offers favorable leasing rates and conditions. Additionally, you should explore the various car makes and models available for leasing in the market and gather detailed information on the leasing process. By doing so, you can make an informed decision and ensure a successful leasing experience.
Check Eligibility Requirements
The eligibility criteria for leasing vary by company, so it’s essential to review the terms and policies of several dealerships to find one that aligns with your eligibility.
Age
To be eligible for vehicle leasing, you must be at least 21 years old and no older than 60 years of age. This means that if you’re under 21 or over 60, you won’t be able to lease a vehicle in Dubai.
Minimum Income
Some companies also require a minimum income and good credit scores of the lessee. Plus, the monthly lease payment starts from AED 1200 per month.
Security Deposit
You must be able to provide insurance for the car you are leasing by 10% of the car’s value to secure a leasing agreement.
Documents Required
You will need the following documents to complete the car leasing process.
- UAE Identity Card
- Valid Passport
- Resident Visa
- Proof of income
- Bank statements
- Security deposit
- Driving License
Negotiate with the Dealer
Once you have met the eligibility criteria and are ready to proceed, it’s time to negotiate with the dealer to ensure you get the best deal possible. During the negotiation, try to lower the monthly and upfront costs. Still, it’s essential to keep in mind that the duration of the car leasing agreement will also play a crucial role in determining the final price.
Sign the Contract
When you are content with the leasing terms and requirements, it’s time to visit the leasing company. Submit all the necessary documents along with the security deposit and fill out the leasing application form. Finally, sign the leasing agreement, and your dream car will be delivered to you within 10 to 12 working days.
Leasing Companies in Dubai
Car leasing is gaining popularity in the Middle East, with many dealerships offering attractive deals. However, since each dealership has different policies and terms, it’s essential to compare and choose the best option that suits your needs.
- Hertz
- Sixt
- Renty.ae
- Lease Plan
- Diamond Lease
Frequently Asked Questions (FAQs)
Q1. What is the minimum lease period for a car in Dubai?
Most car leases in Dubai start from 1 year and can go up to 5 years, depending on the leasing company.
Q2. Can expats lease a car in Dubai?
Yes, expats can lease a car as long as they have a valid UAE residence visa, driving license, and meet income and age requirements.
Q3. Is maintenance included in car leasing?
In many leasing plans, basic maintenance and servicing are included, but it depends on the leasing agreement. Always check the contract details.
Q4. What happens at the end of the lease term?
At the end of the lease, you can return the car, purchase it at an agreed value, or upgrade to a newer model.
Q5. Is leasing cheaper than buying a car in Dubai?
Leasing can be cheaper in the short to medium term as it avoids depreciation, large down payments, and maintenance costs, making it ideal for temporary residents.
Q6. Can I terminate the lease early?
Early termination is possible but usually involves penalty fees. The exact charges are outlined in the lease agreement.
Conclusion
Leasing a car in Dubai is an excellent option for car enthusiasts who want a newer model from time to time. This option is best if you want to avoid long-term commitments, costly maintenance, and repairs. So, now that you know all the factors and terms of leasing a car, we hope that you make a profound decision that is suitable for you.
Also, read the comparison between leasing and buying a car to find out which option best suits your needs and requirements.
We hope these tips will be helpful if you want to lease a car in Dubai. If you have any more suggestions or questions, let us know in the comments section.
Read more expert guides, car comparisons, and the latest automotive insights on the ArabWheels blog and make the most brilliant move before your next car decision.
