With the new Central Bank guidelines on automobile financing requiring that banks cannot exceed 80 percent of the loan value against the earlier 100 percent financing allowed, as well as declaring that an individual’s overall loan commitment should not exceed more than 50 per cent of his or her monthly income, new car sales have substantially dipped throughout the UAE.
Moreover, as the summer months approach and many individuals and families have shifted their disposable income to cover expenses such as vacations and upcoming school fees, many are less inclined to part with the 20 per cent down payment that new car transactions require.
This has created a gap in the market and in order to address the needs of such customers, Thrifty Car Rental - UAE, a franchisee of Dollar Thrifty Automotive Group Inc. has recently launched its ‘Lease Today, Own Tomorrow’ campaign, providing UAE residents with a new and easy solution to own a car.
With no 20 percent down payment required, customers can lease a car for a year and are then given the option to own it at the end of the lease term.
In addition to the sheer financial convenience of this solution, Thrifty also offers all of its usual, widely-renowned leasing benefits - free insurance and registration, free maintenance and a free replacement car in case of a breakdown or accident.
Speaking of the company’s advantageous initiative, General Manager Mr. Rahul Singh explained: “Our latest ‘Lease Today, Own Tomorrow’ campaign is a convenient alternative for UAE residents who do not have the luxury or resources to provide car dealerships with an immediate 20 percent down payment.
“At Thrifty, we give them the option to drive a car of their choice and have an option to own it in a year’s time at a pre-agreed price.
“For someone who just wants to use a vehicle for a year, he can have a Toyota Yaris for as low as AED 1,600 per month on a one-year lease contract which includes maintenance, replacement car when needed, registration etc.
“The paperwork required is minimal, and Thrifty claims that provided all documents are in order, the customer can drive out with the car of his choice within 24 hours.”