Why renting a car offers more financial benefits than buying one

Buying a car comes with high upfront costs. Ravindranath K / The National

This year, owning a car is not the default option for many. With costs related to car ownership rocketing globally, an increasing number of people across the UAE are discovering the financial benefits of opting for a car on demand instead.

Vehicle subscription not only saves you money but also offers flexibility and access to modern, high-tech vehicles without the long-term commitment. Here’s why opting for a car subscription makes more sense than buying a vehicle in 2025.

Save money upfront

When you buy a car, the upfront costs can be staggering. But if you opt for a car subscription plan, you are essentially driving a car worth Dh100,000 ($27,229) for only Dh1,500. That’s because vehicle subscription requires far less initial investment – this gives you the financial freedom to use your funds for other priorities.

No long-term financial ties

Owning a car means committing to years of monthly payments, insurance premiums and maintenance bills. It can feel like you’re financially tied down. Vehicle subscription offers the opposite – pay for the car only when you need it. This is especially valuable if you don’t rely on a car every day or travel often. This allows you to scale your needs up or down without the burden of long-term financial commitments.

Avoid depreciation costs

Depreciation is one of the biggest hidden costs of owning a car. In the UAE, a new car can lose up to 30 per cent of its value in the first year alone. So, a car that costs Dh100,000 could lose Dh30,000 in only 12 months. When you opt for a subscription model, you don’t have to worry about this. You can enjoy the use of a new vehicle without worrying about its resale value down the road.

No surprise maintenance bills

Owning a car means dealing with maintenance and repairs, both expected and unexpected. Regular costs including oil changes and tyre replacements add up over time and, if something breaks down, the repair bills can be steep. When you opt for vehicle subscription, you won’t be hit with those additional expenses or stress over breakdowns.

Simplified insurance costs

Car insurance can be a complex, unpredictable expense. Your premiums fluctuate based on the car model, your driving history and even where you live. The average vehicle insurance has gone up by between 10 per cent and 12 per cent year on year. With a car subscription, insurance is often included in the rental fee or is available as an affordable add-on. This means you can drive without the headaches of shopping around for the best rates or dealing with claims.

Flexibility and convenience

Subscriptions allow you to switch vehicles when needed, ensuring you’re never locked into a long-term commitment and making it a highly cost-effective and convenient option for those seeking mobility on their terms.

No registration or licensing fees

Another financial advantage of vehicle subscription is that you avoid the hassle of registration and licensing. In the UAE, car owners need to renew their registration annually, which can incur additional costs and paperwork. Car subscription platforms take care of all the formalities, freeing you from the administrative burden and the associated fees.

The bottom line

With the rising costs of vehicle ownership and related complexities, car subscription is quickly becoming a more practical and affordable choice in 2025. Whether you're looking to avoid depreciation losses, save on maintenance or simply enjoy the freedom to choose your ride based on your needs, renting offers a smart alternative to traditional car ownership in the UAE.

Why renting or leasing a vehicle may not be for you

High mileage for long-distance travel: If you frequently travel long distances and your monthly travel exceeds about 6,430km, rental or subscription services may not be suitable.

Long-term ownership: Renting, leasing or subscribing to a vehicle becomes costly if you plan to keep it for more than four years.

Soham Shah is founder and chief executive of SelfDrive Mobility