Picking your next car is a tough task, there’s more choice than ever. But for many people, the biggest decision is no longer which car to go for, but how to go about getting it.

Check out the pros and cons of each option, and see what’s best for you.

1) Buying in cash

The first and most obvious way to buy a car is to pay for it upfront in cash. This is a great option for people with plenty of money in the bank, but your choices could be limited if your savings are a little light. The best approach here is to work out your budget, then have a browse online to see what you can get for your money. If you want something a bit newer or more fancy than what you can afford, buying in cash probably isn’t for you.

The pros

✅ The car is yours from the moment you sign the contract

✅ You don’t have to pay any interest

✅ You can choose to sell it whenever you want

The cons

❌ You need to have plenty of money in the bank

❌ You lose 25% in depreciation as you drive it out of the showroom

❌ Even without a car loan, you are tied to the car for a number of years as the buying and selling process is tedious.

2) Car loan

Another popular choice when paying upfront is a car loan. This can be a great option to get the finance you need to buy the car of your dreams however, the interest can often be high, so it’s always worth shopping around a little bit first.

The pros

✅ It gives you a bigger budget to play with

✅ The repayments are generally cheaper than other finance options

✅ You can shop around for the best deals

The cons

❌ You need a good or excellent credit rating to get approved

❌ The interest can be high and 20% cash down payment needed.

❌ You’re still liable to repay the loan if something happens to the car

3) Leasing

If you’re more interested in driving a great car than owning it, leasing could be a good option for you. A car lease works in a very similar way to renting a property. First, you choose how long you want to borrow the car for, then you pay an upfront deposit followed by a series of monthly instalments. The amount you pay can vary wildly from car to car, and there’s often a bit of flexibility around how large a deposit you want to pay. 

The pros

✅ You can change your car again after a couple of years

✅ The deposit amount and monthly repayments can be flexible

✅ Insurance & Maintenance Included

The cons

❌ You still have to pay a big deposit at the beginning

❌ You don’t get to keep the car at the end of your agreement

❌ You’re locked into a long term contract with big early termination penalties.

4) Rental

There are plenty of rental agencies where you can rent a car from on a daily, weekly and monthly basis in the UAE. You will have to go to the car rental office, select the car category you would like, supply your passport, Emirates ID & Driving license, pay a deposit on average of AED1,500 and then you can drive off.

The pros

✅ Your rent term can be as low as one day.

✅ Good selection of cars to choose from.

✅ Get your car same day. 

The cons

❌ You have to pay a deposit and getting that money back at the end of the rental period takes minimum 21 days.

❌ High cost compared to other options

❌ Rental agencies are known for their hidden fees and making money from insurance claims. 

5) Car subscription

The latest and most modern way to get a new car is through Carasti with a Car Subscription. This reduces your upfront costs significantly, as we do not take down payments and as long as you can afford the monthly payments you will be approved.  

There are two options to subscribe with Carasti, Monthly Subscriptions & Mini Lease Subscriptions:

Mini Lease Subscriptions are for 12 months and these are brand new cars registered for you. Naturally, the monthly payments are slightly higher than with a finance deal or lease as we include the car, registration, insurance, maintenance and breakdown cover in one fee and there are no major upfront costs.

Monthly subscriptions are on nearly new cars (max 3 years old) giving you the flexibility to extend, cancel or switch your subscription to a different car at any time. 

With Carasti you pay for your car each month in advance, meaning you’re not getting into any debt. 

The pros

✅ The length of your subscription is fully flexible from 1-12 months

✅ Registration, insurance, maintenance and breakdown cover are all included.

✅ No debt taken on and no credit history required

The cons

❌ The low upfront cost makes monthly payments slightly higher

❌ You have to be at least 23 years old

❌ You don’t get to keep the car