It’s been nearly three years, but the light is finally appearing at the end of the tunnel – yes, I’m due to make my final car payment in just a few weeks’ time, and I’ll be financially better off, to a noticeable degree unless I choose to go through it all again. I doubt that will happen.
I’ve been doing some sums, as indeed you might when considering the pros and cons of either buying or renting a car, but more on that later. Like many foreigners coming to live in the UAE, I was unsure how long I’d be staying here. Months? Years? Who ever really knows? But one thing that I discovered very early on in my life as an expat was that I’d need a car to get about, especially once I decided to live in a different city to the one that my office is located in.
Hire or buy? Buy or hire? Those are questions that can apply to accommodation as well, but with cars it’s easier to make up your mind. With a regular income at my disposal, the temptation was to throw caution to the wind and buy something madly impractical with the biggest possible engine under its bonnet. But when I considered the distances I was to begin travelling on a daily basis, that was soon banished from the decision process. Hire it was, then.
After three months of driving around in a rented Nissan Tiida saloon, however, I was ready to throw in the towel. After driving a press car for a few days at a time, I would always feel like kicking the thing, so loathsome it was to drive on the daily commute. And it was costing me in the region of Dh2,600 a month, too – and that didn’t take long to wake me up to reality. Surely, I reasoned, I could buy a car – even a nearly new one – that I actually enjoyed driving and save some money in the process.
After scanning Dubizzle’s classifieds for what seemed like an eternity, I finally found an almost-new Volkswagen Scirocco that was financially in reach with the aid of a non-crippling bank loan. I knew, however, that this purchase would commit me to staying here for the next three years while the repayments were being made – that, in its own way, helped me settle and get my head around this strange new life I had chosen.
Deposit paid, loan arranged, papers signed and test certificate granted, I picked up my car after joyously returning the hateful Tiida to its rental company owners. Some colleagues said that I was mad – that hiring a car meant no nasty financial shocks like replacing tyres, servicing or insuring. I was determined, though, that buying made more sense than hiring. And now, as those three years draw to a close, it’s time to face the music and shine a spotlight on the actual costs incurred.
First, there’s the initial purchase price to consider and the loan repayment amounts. In three years, my direct debits, as well as the deposit paid up front, come to a total of Dh85,000. And, being a boring bloke, I’ve kept receipts for everything I’ve spent on it, except for fuel. Replacing the tyres has set me back Dh6,750. Servicing (main dealer) has cost Dh2,640. Other repair work, such as replacing brakes, pads, wiper blades, has totalled Dh3,549. Insurance has relieved me of Dh9,100 and I’ve spent Dh1,290 on testing and fees.
The total bill? That will be Dh108,329. For hiring the Tiida for the same period, my wallet would have been hammered to the tune of Dh93,600 – so, on the face of it, I would have been better off hiring, as I would have saved myself Dh14,729. But here’s the thing: my car is still worth something. If I sold it now, based on adverts I’ve seen, I would reasonably expect it to fetch Dh60,000 – meaning I’d actually be in pocket by more than Dh45,000.
But even if I got nothing for it, I wouldn’t regret buying my car for a second. It’s been a most enjoyable, rewarding companion – and, like living in the UAE, I can see this relationship lasting many years to come.
[ khackett@thenational.ae ]
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