For many UAE residents, owning a car is essential — but accessing traditional car financing isn’t always straightforward. Expatriates, freelancers, and new arrivals often face obstacles such as large down payments, strict bank lending rules, and fluctuating interest rates.
To address this gap, rent-to-own and lease-to-own car schemes are emerging as a popular alternative, offering customers a way to drive now and pay over time — without a bank loan or deposit.
Unlike traditional rentals, these programmes allow users to eventually own the vehicle after a fixed lease period. Customers pay a fixed monthly fee that includes insurance, registration, and maintenance. At the end of the lease, they can buy the car at a pre-agreed price or return it.
Rahul Singh, Managing Director of Thrifty Car Rental, told Khaleej Times, “A customer who has recently moved to the UAE might find traditional financing challenging due to down payments and rigid loan terms. Our lease-to-own programme offers flexibility and peace of mind with bundled payments.”
Similarly, Marwan Almulla, General Manager of Dollar Car Rental, noted that their model appeals to those deterred by conventional car loan commitments. “Our customers lease a car for up to 60 months and can purchase it by paying a pre-agreed lump sum,” he said.
A key feature of these programmes is transparency around the final purchase value, which is locked in at the start of the lease. This fixed buyout price protects customers from market fluctuations or car depreciation.
Eligibility for rent-to-own is relatively simple. Applicants must show valid proof of income and undergo a credit check via Al Etihad Credit Bureau. However, the criteria are generally more flexible than traditional banking requirements.
“Verifying income helps ensure affordability,” said Singh. “We’re not as rigid as banks. Our goal is flexibility with responsible vetting.”
The model is growing rapidly. Dollar has already allocated a quarter of its fleet to rent-to-own and expects that up to 20% of bank-financed buyers could switch in the next few years. Factors such as rising interest rates, inflation, and tighter lending are driving this shift.
Customers using Thrifty’s service report saving up to 15% annually versus traditional car loans. Singh believes adoption will continue to rise, with more residents seeking bundled benefits and ownership flexibility.
As the UAE’s car market evolves, rent-to-own schemes may become a mainstream choice for residents navigating financial restrictions — and seeking a smoother road to car ownership.