Leasing vs Renting a Car in Bahrain

Seeing that no other replies have come in, I will narrate my experience and preference.

I bought my vehicle via a bank loan. Costs incurred were the purchase price, bank administration charges, vehicle registration and insurance. In addition, I bear the regular servicing costs and maintenance. Once the loan is fully paid off, the bank gives a release letter for use when you dispose the vehicle. I personally prefer this mode of getting a vehicle.

I know some of my friends prefer to rent a car from a car rental company. This way you are only responsible for the monthly rental and fuel. All other costs are borne by the car rental company.

I do not have too much of experience in leasing of vehicles. But I am sure you should be able to transfer ownership of the vehicle to you at the end of the lease term. At what price this transfer takes place depends on the contract you sign up with the leasing company. In fact what you contractually agree with the lessor would govern all the matters you have referred to above.

Best wishes in your search.

Cheers Farhaz. I am currently in between jobs and I have been renting a car to date. But never totally understood the difference between renting a car and leasing so I want to know more about the difference and some recommended companies and also why should I choose leasing over, say, renting or getting a loan to buy. Currently, I am more inclined to get a loan but I'll see.

Let me know if you go down the "loan and buy" route. I may be able to introduce you to the bank I got my car loan from. Fairly straightforward and reasonable cost. In fact most banks do car loans and the process is fairly straightforward.

Leasing is not too different from car loans of traditional banks, from what I have seen in Bahrain. Fewer rules and slightly more pricey than bank loans.

Good luck with this transition. I was there last year and is quite exciting and messy.

Out here its Lease/Purchase basically what we call Hire Purchase in the UK.

You buy a brand new car pay a deposit and then monthly payments for a fixed term and then a final payment to own it at the end.  You will be responsible for servicing and wear and tear repairs.  Insurance is included but it will be basic so you may need to top it up.

The theory is that after a specific timescale you can hand the car back and pay any shortfall.

Make sure you are very careful about the finance agreement!

Thanks a million to all who took time to reply. Now it's a bit more clear.

I lease here in Bahrain.

I didn't have to pay a deposit, I certainly am not responsible for insurance, repairs or maintenance. I pay a very small amount for a big car for 3 years and then hand it straight back and start again if I want to.

I get a brand new car every 3 years, I get it maintained and repaired as and when needed with a lovely courtesy car given to me. I get all insurance (fully comprehensive) paid for me and all registrations etc are done by the lease company. I personally wouldn't want the hassle of owning my own car here in Bahrain

hi J, who are you leasing through?  I am done renting a car and would like to lease one now

If people can wait a bit I am about to put a tender out for starting the lease again on 10 company vehicles as we are about to hand the others back after a 4 year contract. After I have leant more about this I will post my findings here and on purchasing a car which I have just been through after a fairly long process (6 weeks) and several options new, nearly new with warranty, purchase extra years warranty, cars on various web sites, through agents/road side, and car sales places, checking if cars have been in a crash, websites that give reviews of vehicles sold to the Middle east, give prices etc. Will try and do in the next couple of weeks if I have he time

That would be brilliant Jon. Looking forward to it.

Josnuggles - what, if any, penalty clauses are there if you want to hand the car back before the end of the 3 year term?

In addition to Scottrace's question, does the expat clause apply to car lease contracts the same way it does for property rentals?

In the contract the diplomatic clause is there, you only have to give proof that you are leaving Bahrain and one months notice in writing. No penalties

Thanks for the reply. Really helpful. Are you still using the same company?

Yep. Got the car last October, it had a 1k service which is mandatory (courtesy car provided) this is to iron out any new car niggles. Then you have a service every 10k after that. I'm still on 6.5k after 5.5 months. You get a yearly maximum mileage that you can do but it would be virtually impossible to reach it unless you drove to Kuwait and back twice a week.

Josnuggles, which company are you leasing your car from? I had looked at that option few months back with budget but the amount I was quoted with was almost double the monthly rental price.

Yeah actually share the details of the leasing place here so the others can benefit from it.

I'm pretty sure the company Jo used is national motor company. We are seriously thinking of using them too. They have great customer service and are really easy to deal with by email. They speak great English too.

Thanks Silver.

Sorry guys I've been out of the country with no internet.

Yes we use NMC, speak to Keith Fernandes 00973 17457100 (ext 344), 39875915 who is really good. Lovely guy, really helpful and will ensure that the contract is written to suit your needs. Tell him Joanna Murphy recommended him. He will give you an even better price then 

You need to provide:

Property Lease
CPR
Contract of Employment which they will verify
Cheques post dated for the 3 year lease (makes your wrist ache like mad!!)
Bank statements for the last 3 months (Bahraini bank only)
Driving licence - doesn't have to be Bahraini
Passport

I've hired cars on short terms, I've used U drive and Montreal. The larger the car (engine size) the more it costs.

When i first arrived in Bahrain, i was told by a co-worker, it may be cheaper to buy than lease. You would have to do the sums (lease or buy) on the car you choose. I've heard Toyota's, Nissan and Honda's have a good resale value.

brightonguy -
Did you ever get anywhere with all of this? Curious to hear any updates.
Thanks.

No mate. I am in between jobs at the moment so as soon as I start my new job, I will look into it... But I spoke to a few dealers in Bahrain and basically they all do lease to rent and lease to buy. All you need to do is to go to a gallery (mostly located in Sitra) and ask for the options.

And would you definitely recommend renting or leasing over buying in Bahrain?

Depends on car type. My Toyota is 10 years old now, and after a decade I can still dispose it off for at least a third of what the brand new vehicle cost me back then. Mind you it is an agent maintained, single driver vehicle, but the fact is Toyota and Nissan generally have good resale values.

I am also biased towards buying, because I think it is the more economical option in the long run. However, if your expected tenure in Bahrain is only a few years, then perhaps renting is the better option.

My contract is for two years starting this August - but I would like to stay 3 or 4 years to make it profitable.  After reading up on the time and effort on other sites, I think I will simply be renting a vehicle.  It may cost more in the long run, but I feel like the effort it will save will be worth the extra fees.  If I were planning on staying longer, I would definitely look into purchasing a vehicle.

Good idea.
I too would recommend renting if you plan a 3 to 4 year stint.

Hi, I am moving to Bahrain in September and have been in contact with NMC for a quote to lease a vehicle.  In their quote they offered terms of a 24 month 'lock-in' period then 2 months notice for the remaining 12 months of the contract.  I questioned this and told them that I needed the diplomatic clause in the contract, I explained that whilst it is most likely that I will remain in Bahrain 3 years and hopefully far beyond; there is a chance that my employer could relocate me to UAE within that period.
They came back and advised "lock-in period is a must, revised to 18 months" essentially if I were to break the contract during this period I would be liable for the full balance until the 18 month period was due to expire.

Does anyone else have experience of this?  Has the diplomatic clause been faded out of new lease deals in the region?

Thanks
Shaun

Richards32 wrote:

Hi, I am moving to Bahrain in September and have been in contact with NMC for a quote to lease a vehicle.  In their quote they offered terms of a 24 month 'lock-in' period then 2 months notice for the remaining 12 months of the contract.  I questioned this and told them that I needed the diplomatic clause in the contract, I explained that whilst it is most likely that I will remain in Bahrain 3 years and hopefully far beyond; there is a chance that my employer could relocate me to UAE within that period.
They came back and advised "lock-in period is a must, revised to 18 months" essentially if I were to break the contract during this period I would be liable for the full balance until the 18 month period was due to expire.

Does anyone else have experience of this?  Has the diplomatic clause been faded out of new lease deals in the region?

Thanks
Shaun

Hi Shaun
It does appear so. The diplomatic clause has been quietly sidelined by most car rental companies. But nothing to prevent you from insisting on it, if you feel it will give you the protection you need in case you move out of Bahrain. The only downside to insisting on it would be an increase in the monthly rental.

Other option is to get your vehicle on monthly or quarterly rentals. May be slightly expensive but at least you don't need to pay up if you don't stay here for too long.

Let us know how it goes.

Hi Farhaz,

Thanks for confirming this, I had also received a quote from Kanoo who have a 50% penalty (i.e. of the remaining balance) if you cancel the contract in the first year and 25% penalty if you cancel after one year.

I will take your advice and look at shorter term rentals, at least in the first few months.  After then I will have a much better understanding of the time we will stay in Bahrain (hopefully many years as I have loved the times I have visited).

Other than NMC and Kanoo, would you recommend any other legitimate companies for a rental?  I am looking for an SUV that is very safe as it will be for my wife to drive, and I like to check out the market to ensure I get a good deal.

Thanks
Shaun

I have seen some of the other forum regulars recommending Tooranco at various stages. From what I have understood, their rates appear competitive and customer service satisfactory. I do not have any first hand experience with them, but going but what I have read, they seem to be doing a good job. You may want to check with them too.

Good luck with your move - and, yes, Bahrain is indeed a nice place for a long stay.

I have used Tooranco and I can vouch for what Farhaz says.
However, they have a limited fleet and availability of cars can be an issue.

I have just hired a Tuscon from Toorenco for my wife.  Pick up next week.  The rates are reasonable, however some cars are not the latest model.
I will let you know how this goes.

Michael