How the Scheme Works
The program, known as “Rent to Own” or “Lease to Own”, lets customers drive a car by paying a fixed monthly fee. This payment covers insurance, registration, and maintenance costs. There is no interest, no finance charges, and no processing fee. At the end of the lease term, which can range from 12 to 60 months, the customer can either purchase the vehicle for a set price or return it without any penalty.
Difference from Traditional Financing
In standard bank financing, buyers often need to pay around 20% of the vehicle’s price upfront and face 3% to 5% annual interest. The new scheme removes both the down payment and the interest, making it more accessible to those who cannot secure bank loans or prefer flexible options.
Industry Leaders’ Views
Rahol Singh, Managing Director of Third Car Rental, explained: “Many customers, especially those new to the UAE, find it difficult to get bank financing. Our Rent-to-Own model lets them pay one monthly amount that already includes all essential costs.”
Marwan Al Mulla, General Manager of Dollar Car Rental, added: “Unlike traditional loans that require large upfront payments, our plan allows customers to lease a car for a chosen term on their own to buy it or return it.”
Eligibility and Requirements
The scheme is available to both UAE nationals and expatriates. Applicants must provide proof of income and pass a basic credit check to confirm they can afford the monthly payments.
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