No loan, no interest: The rise of rent-to-own cars in the UAE

Dubai: Owning a car in the UAE is often seen as essential but the path to ownership is evolving.

As more residents prioritise flexibility over long-term financial commitments, a new model is gaining popularity: Rent-to-Own. This approach offers good option of freedom to drive now, with the option to own later, all without the burdens of bank loans, credit checks, or complex paperwork.

Driven by changing consumer behaviour and digital-first preferences, Rent-to-own is emerging as a smarter, more inclusive way to access vehicle ownership in a fast-paced market.

With the launch of its innovative rent-to-own model, SelfDrive Mobility is reshaping how residents in the UAE approach buying a vehicle. The digital car rental platform is addressing a clear behavioural shift among consumers particularly young professionals and mid-income earners, who prefer access over long-term financial commitment.

Simple steps

Traditionally, buying a car in the UAE involves securing a loan, undergoing a credit check, and making a sizeable down payment. For new residents, freelancers, or those without a robust credit history, these barriers can delay or even prevent vehicle ownership.

Commenting on the trend, Soham Shah, CEO and Founder of SelfDrive Mobility, told Gulf News: “We have observed a notable shift in how residents approach car ownership. Many now want the flexibility to use a car without the rigid structure of traditional financing.”

The model, he added, allows users to rent a vehicle and put their monthly payments toward eventual ownership. There are no interest charges, no credit checks, and no hidden fees. All that’s required is a valid Emirates ID and driver’s licence. Crucially, customers can continue with the same vehicle they start with no switch-outs or surprises.

Digital journey

A 2024 Arthur D. Little study revealed that 80% of UAE residents still prefer new cars over used ones, and over half are open to completing the entire purchase process online. SelfDrive Mobility’s rent-to-own offering caters directly to this demand blending the appeal of new vehicles with digital-first convenience and affordability.

What sets the platform apart is its fully digital journey. Users can browse available vehicles, select a plan, and sign a contract all via the SelfDrive app. Traditional paperwork and in-person dealership visits are replaced with a streamlined, app-based experience.

“Our model reflects a broader trend toward convenience and flexibility. People want more control over high-value decisions, and we’re giving them exactly that,” Shah explained.

It is a flexible, low-risk way to “try before you buy” and with the added benefit of full ownership if the customer chooses to proceed.

How it works

• Select a vehicle via the SelfDrive app.

• Start driving with a monthly rental plan, with no need for a loan or bank approval.

• Contribute to ownership: All payments go toward the final cost of the car.

• Decide later: Customers can opt to buy the vehicle outright at any time or return it without penalties.

Benefits at a glance

• No loans or credit checks

• Zero interest or early exit penalties

• All payments contribute to the car’s cost

• Fully digital onboarding and management

• Greater inclusivity for freelancers and expats

Market demand

So far, Shah said, SelfDrive has seen strong traction, particularly from Dubai and Abu Dhabi residents. In the first quarter of launch, rent-to-own inquiries accounted for more than 20% of total user requests. The company expects that figure to triple within the next 12—18 months.

Most customers are opting for entry-level and mid-range vehicles, with growing interest in electric and hybrid models, a nod to the UAE’s increasing sustainability efforts.

A new road ahead

With car subscription models in the GCC projected to grow at 25% annually and surpass $600 million by 2030, Shah believed the timing is ideal for this kind of offering. “We are not just making car ownership more flexible, we are making it more accessible,” he added.