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Lease-to-own cars in the UAE
Can I trade in a leased car?
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Car Lease in the UAE
Like most car owners, you may also like the idea of leasing a car due to its numerous advantages, including low monthly payments and the option to simply return the vehicle at the end of the lease.
But what happens when you want to exchange your leased car? Knowing this is important as it can help you make the best decisions when the desire to replace your current leased car with something else arises.
If you prefer not to switch cars, make monthly payments, and then return the vehicle, it's worth turning to the specialists at Takeauto. We do not offer short-term or long-term car rentals with subsequent exchanges or returns. We have a leasing-to-own option, which involves purchasing your chosen car in installments. An affordable down payment, comfortable monthly payments, a minimal buyout amount, and full ownership of the vehicle are our offerings for expatriates in Dubai.
But what happens when you want to exchange your leased car? Knowing this is important as it can help you make the best decisions when the desire to replace your current leased car with something else arises.
If you prefer not to switch cars, make monthly payments, and then return the vehicle, it's worth turning to the specialists at Takeauto. We do not offer short-term or long-term car rentals with subsequent exchanges or returns. We have a leasing-to-own option, which involves purchasing your chosen car in installments. An affordable down payment, comfortable monthly payments, a minimal buyout amount, and full ownership of the vehicle are our offerings for expatriates in Dubai.
Leasing-to-own and Installment Purchase - Key Differences
The main difference between leasing-to-own a car and purchasing one is that when you finance the purchase of a car, you are making payments towards ownership, and once the car loan is fully paid, the car becomes yours.
In contrast, leasing involves paying for the use of a car for a limited period, usually ranging from 2 to 4 years. At the end of the lease term, you have several options: you can return the car to the leasing company, buy it at its redemption payment, or trade it in at the dealership where you initially acquired it or at another dealership.
Unforeseen circumstances may arise that require the early termination of a car lease. For instance, losing your job, changing your job, facing financial difficulties, moving to an area with robust public transportation, or realizing that the leased car no longer suits your needs could prompt such a decision.
In such cases, ending the lease is a sensible choice. However, if your motivation for terminating a car lease or trading a leased car is purely based on personal preferences or boredom with the car, it may not be a financially sound justification.
If you plan to exchange your leasing-to-own for another car, it's crucial to have a good understanding of the key terms associated with the trade-in process:
In contrast, leasing involves paying for the use of a car for a limited period, usually ranging from 2 to 4 years. At the end of the lease term, you have several options: you can return the car to the leasing company, buy it at its redemption payment, or trade it in at the dealership where you initially acquired it or at another dealership.
Unforeseen circumstances may arise that require the early termination of a car lease. For instance, losing your job, changing your job, facing financial difficulties, moving to an area with robust public transportation, or realizing that the leased car no longer suits your needs could prompt such a decision.
In such cases, ending the lease is a sensible choice. However, if your motivation for terminating a car lease or trading a leased car is purely based on personal preferences or boredom with the car, it may not be a financially sound justification.
If you plan to exchange your leasing-to-own for another car, it's crucial to have a good understanding of the key terms associated with the trade-in process:
- Penalties and Fees: Early termination of a car leasing-to-own involves significant expenses. The remaining time on the contract directly influences the penalty amount. The leasing company calculates this fee based on the current market value of the car and the remaining lease duration. Additional fees may be imposed if you have exceeded mileage limits or if the car exhibits excessive wear and tear.
- redemption payment: This is the estimated value of the car at the end of the lease term. It also serves as the purchase price if you decide to buy the car at the end of the lease term.
- Lease Equity: This represents the car's value at the end of the lease. If the leasing company initially anticipated a low redemption payment at the start of the lease, and the car is now in high demand due to low availability or its model's popularity, you may likely have positive equity at the end of your lease term.
- Lease Purchase/Buyout Fee: This fee is an additional charge imposed by the leasing company when a lessee chooses to purchase their leased car. Typically, this fee amounts to a few hundred dollars.
Hyundai sonata
FOR 24 MONTHS
Initial fee
Per month from:
Redemption payment:
1000
4.016
15.500
AED
AED MONTHLY
AED
At Takeauto, you cannot exchange or return the car. We only offer leasing-to-own with a buyout option. Therefore, it can be seen as a form of installment purchase. Since the monthly payments are directed towards paying off the total cost of the car, you will own the car at the end of the contract term.
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