UAE Car Lease vs Buy Calculator
Should you lease or finance a car in the UAE? Compares total cost over your ownership period including financing interest, lease deposits, and expected resale value.
Setup
Lease side
Buy side
Lease total
Buy total (net)
How to use
- 1
Enter the car price (drive-away total, not list before tax).
- 2
Set the comparison period — how long you'd realistically keep this car.
- 3
Lease side: monthly quote + refundable deposit.
- 4
Buy side: down payment, APR, finance tenure. Plus annual extras (insurance, Salik, service).
- 5
Depreciation assumption controls the expected sale price at end of period.
Frequently asked questions
Depends on how long you keep the car. Under 24 months: lease usually wins because you avoid the year-1 depreciation hit (12-18% for most brands). 36-48 months: roughly break-even. Over 48 months: buying usually wins because depreciation slows after year 2 while lease payments stay flat.
New cars from approved dealers: 3.5-5% reducing-balance APR for prime borrowers (UAE bank salary transfer, no debt). Used cars: 5-7%. Pre-owned over 5 years old or non-listed brands: 7-10%. Always confirm reducing-balance vs flat — UAE banks sometimes quote flat rates that look lower but cost more.
Yes — add annual insurance to 'ownership extras.' UAE comprehensive insurance runs 2-5% of vehicle value for the first year, drops 10-20% per year with no claims. A AED 120,000 car costs roughly AED 3-5k in year 1 comprehensive, dropping to AED 2-3k by year 4.
Bundle into 'annual extras.' Typical UAE driver: Salik AED 50-150/month depending on commute, parking AED 100-300/month if not provided by employer, RTA registration AED 500-1,000/year, service AED 1,500-3,000/year. Most ownership-extras totals land between AED 4,000 and 8,000 per year.
Most UAE all-inclusive leases (Yelo, Selfdrive, Diamondlease, Hertz Subscription) bundle insurance, maintenance, RTA registration, and roadside assistance. Salik and parking are usually NOT included. Always confirm what's in the monthly figure before comparing.
Reduce the comparison period to your realistic sale horizon. Cars depreciate front-loaded — selling at year 2 instead of year 4 doubles the per-month depreciation cost. The lease usually wins for short horizons because the depreciation risk is on the lessor, not you.
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Source: Standard loan amortisation (reducing balance) + UAE market depreciation averages · Last verified 2026-06. This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.