Dubai: Choosing whether to rent a car comes down to one’s priorities or interests. For some drivers, it is purely a matter of money, while for others, it’s more about better terms and non-monetary perks. Regardless of your choice, it’s vital to weigh these commonly mistaken distinctions.
“When considering whether to rent a car, it's essential to ask the right questions to your dealership to ensure you make an informed decision,” explained Atif Asgar, a Dubai-based automotive analyst specialising in retail pricing, financing, and insurance coverages, before listing out a few of them.
“Are you better off owning a depreciating asset like a car than paying the rental on one? Are you willing to take on the tasks of comparing and acquiring the right insurance; renewing the registration annually with either option; or find a maintenance package and take the vehicle for regular maintenance?”
What questions should you ask when renting a car?
1. What is included in the rental price?
Ibrahim Riba, a senior salesman at a car dealership based in Abu Dhabi, explained that aside from much advertised rental price, there are other financial metrics you need to enquire about that are just as important.
“The rental price is often the only advertised or broadcasted figures at car rental agencies. But that doesn’t paint a crystal-clear picture for your finances. Also ask about insurance, maintenance, and any other fees that may be included or added on,” she said, when noting the answer to be expected.
“Rental price typically includes the car's base rate, VAT, and possibly basic insurance coverage. However, it may not cover things like fuel, additional insurance, or extra services (e.g., GPS, child seats). You may be offered optional add-ons for extra costs. Factor those in when you budget for renting a car.”
At the same time, if you get an SUV, there is an applicable 10 per cent discount on premium given by some firms in the first year. The rates depend on the car, your insurance provider, and your driving history.
Insurance is either comprehensive (covers your car, vehicles involved, injuries to yourself and theft) or third-party which covers your injury or death and damage to other vehicles involved. The latter does not cover damage to your car. You can choose to have additional coverage, such as passenger coverage, for an extra amount.
2. How much is the security deposit, and is it refundable?
While it’s a standard practice to be informed about the security deposit, Asgar explained that “just as important it is to find out, inquire about the amount, it is to find out about any conditions for refunding the deposit,” before going on to add the kind of response you can expect.
“In the UAE, the security deposit for car rentals typically ranges between Dh1,000 to Dh5,000 ($270 to $1,360), depending on the type of car and rental duration. For instance, luxury or high-end vehicles may require a higher deposit, and short-term rentals may have a different deposit than long-term rentals.
“While the security deposit is generally refundable at the end of the rental period, provided the car is returned in good condition with no damage, and all terms of the rental agreement are met. If there are any issues, the rental company can deduct those costs from the deposit.”
3. Any mileage limit? If yes, any additional charges for exceeding it?
Asgar and Riba both stressed that when renting a car, an often overlooked factor is whether or not the limits on mileage and the cost of going over have been understood. While the mileage allowance depends on the rental company, the type of vehicle, and the terms of the rental agreement, here are approximates.
“In the UAE, the mileage limit for car rentals typically ranges from 150 to 250 kilometers per day. The limit for weekly rentals is often around 1,000 km to 1,500 km. For long-term rentals, the mileage limit may range from 3,000 to 4,000 km per month,” said Riba.
“This condition also includes whether a different location can be used to drop the car. If applicable, check if one-way rentals are available and if extra fees apply. While they would agree to that, one-way rental fees apply, depending on the locations.”
You need to also enquire what the policy for fuel is, Asgar added. “Clarify if you need to return the car with a full tank or if there are charges for fuel. Most rental companies ask you to return the car with a full tank. If you don’t, they’ll charge you for the fuel plus a refuelling fee (often higher than local prices).”
Another advantage is the ease of getting to try a new vehicle or model with no qualms about long-term expenses or resale value. At the end of the rental period, the car is checked for any damage which could be deducted from the deposit amount, which puts some pressure on the customer. Usually, the car rental monthly is much higher than monthly payments for your own car.
Key takeaway? By asking these key questions, the experts further agree that you’ll not only better understand the total cost and commitment for renting a car, but it will also allow you to make a well-informed largely financial decision based on your circumstances or needs.
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