What is Leasing?

A car lease is essentially a long-term agreement of 12 months or more, offering exclusive use of a vehicle for a set period and at a fixed monthly price. Leasing has become very popular and is a cost-effective  alternative to buying either new or pre-owned vehicles, giving drivers greater flexibility. Both individuals and corporate customers looking for vehicles are now considering long term car lease as an attractive and financially sound option to buying a new car, reducing their financial exposure to bank loans and dealer finances. Leasing also allows corporate customers in particular to future-proof their company’s financial assets from the impact of vehicle depreciation.

However, there are differences between leasing and buying that need to be considered before a final decision is made. At Hertz, we understand these differences, and can help our customers make the right decision that suits both their financial situation, and their day-to-day driving needs.

The key difference between leasing and buying is that leasing finances the use of a vehicle, whereas buying with a loan finances the purchase of a vehicle outright. Each has its own benefits and considerations. When making any important financial decision it pays to be thoroughly prepared. Knowing what form of car finance offers the best value for money given individual circumstances can have a significant impact on the costs of operating a car. This is particularly important if a customer is considering multiple vehicles for fleet use.

Benefits of Leasing

Firstly, let’s take a look at the benefits of leasing, and what advantages this has for customers.

Leasing provides the customer with a simple fixed monthly fee that covers the full vehicle management and associated services, such as maintenance. Rather than the customer taking on all responsibility for the running costs, depreciation, and resale, this is looked after by the leasing company. Customers can ask for a set budget for the duration of the lease period, helping to spread the costs of running a vehicle. There is also the opportunity to take advantage of special offers and customized leases. 

Lease providers can also help with advice on policies and directives from relevant authorities’ development, and work with large businesses to draw up plans for fleet leases so that they can manage and consolidate their requirements. This can save corporate customers a considerable amount of time and money, and reduce administrative costs too. For all lease customers, including both individual and fleet users, a full driver support service is included in the agreement. 

One of the biggest benefits is that monthly payments are usually lower than a similar bank loan for a full purchase amount of a like-for-like vehicle, making the cost of running a car more manageable. New vehicles can be supplied every few years, and leasing often includes fixed cost motoring for a pre agreed period.

How Does Leasing Work?

At Hertz, we try to make the leasing process as simple as possible. A lease payment is calculated based on a combination of factors including the vehicle purchase price, the customer’s anticipated mileage, the eventual resale value, maintenance and servicing costs, insurance coverage and replacement vehicle cover. 

Hertz UAE purchases thousands of vehicles from manufacturers each year, prices are negotiated at a bulk level. That means we can pass on the cost savings to the customer through lower lease rates. This principle also applies to servicing and maintenance costs, where leasing companies proactively manage costs and vehicle downtime. In simple terms, it costs less to maintain a lease car, making the overall motoring experience and vehicle maintenance considerably cheaper for the customer.

By leasing a car, customers always pay a fixed monthly amount. Depending on the type of lease, when the lease term is up, the customer either hands the keys back to us and leases another vehicle or finances the remaining value of the vehicle to purchase it outright.

Our Leasing consultants can create tailor-made lease packages for all customers based on their specific requirements, average annual mileage, and the type of vehicle and model specification required. 

Corporate Leasing

At Hertz UAE we are fortunate to be in a position that enables us to offer corporate customers excellent fleet leasing deals. We are one of the largest and most experienced vehicle rental and lease service providers in the region, managing 14 branch locations across the UAE, and with more than 11,000 vehicles servicing over 3,000 satisfied clients across the Emirates. Our growth can be attributed to the on-going commitment to provide exceptional quality and outstanding service to our clients, as well as our dedication to delivering an all-round leasing package that offers choice and real value for money. 

Hertz UAE, part of the Al-Futtaim Group of companies, benefits from its position within an organization that offers customers a large and diverse group of automotive operations. This allows us to draw on a wide range of skills, expertise and experience, including corporate leasing. Under the Hertz UAE/Al-Futtaim Group umbrella, we have close ties with dealerships of Toyota, Honda, Lexus, Volvo, Hino, Chrysler, Jeep and Dodge vehicles. 

With extensive and dedicated network of dealerships, service and maintenance centers, we have excellent and long-established relationships with vehicle dealerships and distributors for all brands sold in the UAE.

Our comprehensive car leasing solutions provide efficient and cost-effective vehicle management to corporate fleets across UAE. Hertz lease consultants lead the market in providing expert advice on technical specifications, operational capabilities and optimum contract lengths. 

With a track record of supporting our customers with design of new fleet policy, insight on manufacturer developments and TCO reduction (Total Cost of Operation) we are able to offer customized solutions. 

We offer our customers the option to lease both commercial and non-commercial lease vehicles. We can also lease custom fabricated commercial vehicles with options for installation of chillers and freezers used for food transport and perishables haulage, making us the go-to commercial partner for logistics, last mile delivery, commercial tool vehicles and general car lease services.

How Hertz Keeps the Cost of Leasing Down for Customers

Vehicle Purchasing

At Hertz, we negotiate with dealers and manufacturers to secure the best vehicles at the best prices for our customers, whether they are individuals leasing a single car, or corporate managers looking for a new fleet. With our size and our long-established reputation, our buying power is considerable. That means we can negotiate significant discounts and savings, which we can then pass on to our customers through more affordable monthly lease rates. It also means we can offer our customers a greater choice of vehicles.

Service & Maintenance Management

Managing any volume of vehicles requires technical expertise and a detailed understanding of mechanics. At Hertz, we can manage this workload through our contacts with a wide variety of fleet management suppliers and providers, including all aspects such as tires, preventive maintenance, breakdown service, accident management and insurance.

Administration Management

Purchase of vehicles requires a significant volume of administration surrounding registration, legal paperwork and vehicle preparation. We manage this on behalf of the customer.

Finance Management

Running a vehicle fleet through the whole of its life cycle inevitably results in variables for vehicle-related spending such as the initial vehicle purchase, maintenance costs, administration, and vehicle resale. The invoicing, cash flow management, and supplier management for all of these are handled by us, making it easier and more convenient for the customer.

Vehicle Disposals

As leasing companies regularly manage sales of thousands of vehicles per year, there is a considerable level of expertise built in the understanding of vehicle resale channels and the used vehicle market. Rather than the customer having to worry about selling a vehicle on and the subsequent depreciation that comes with it, they simply hand the vehicle back at the end of the lease and let Hertz manage the disposal of the leased vehicle.

Driver Support

We also provide full operational support and customer service management of all driver queries, vehicle delivery, collections, quotes, and order processes.

How are buying and leasing different?


When a customer decides to buy a vehicle, they pay the full price, regardless of how many miles are driven or how long the vehicle is owned. If it is financed via a loan for the entire cost of the vehicle then monthly payments can be more expensive than a lease agreement and can fluctuate according to finance cost and interest rates. 

The customer typically makes a down payment to the dealer for the vehicle. The remaining cost is then financed by a loan with the first repayment made a month after the purchase. Once the financing is paid off in full, the customer owns the vehicle outright.

At a later stage, the customer may decide to sell or trade the vehicle for its depreciated resale or trade value. If there is still outstanding finance on the vehicle, this can make things more difficult.


If a driver takes out a lease, they pay only a portion of a vehicle’s cost, which is the part that they “use up” during the time they are driving it. Once the lease finishes, the payments stop. In general, the monthly payments for a lease are lower than monthly amounts for a fully financed car loan, and are usually fixed for the term of the lease.

While customers may be required to provide a refundable security deposit, they may also have the option for a non-refundable down payment which lowers their monthly payments.

At the end of the lease contract, a customer may either return the vehicle with no obligation, extend the current agreement, purchase it for a previously agreed resale value, or take out a lease for a new vehicle. 

For fleet managers, buying a fleet may mean greater asset value initially, but the running costs and depreciation of the vehicles means that eventually a fleet can represent a net loss. By leasing, the management costs are reduced, and the overall cost may be offset against corporate taxes. Reach out to one of our corporate fleet consultants for additional information on how Hertz can bring cost benefits and reduction to your businesses’ fleet today.

Call or Email Hertz Leasing today to find out more. 

The Key Benefits of Leasing with Hertz UAE 

Leasing a vehicle or fleet with Hertz UAE comes with a host of benefits. We want to make sure that whether our customers are individuals or fleet managers looking for multi-vehicle contracts, we make the process as easy and hassle-free as possible.

Vehicle acquisition and funding is taken care of by us, making it easier for the customer to choose the right vehicle at the right monthly leasing fee. Vehicle registration management, servicing and maintenance are all taken care of, as is vehicle insurance, repair, and downtime management.

Rather than having to worry about daily administration to cover tolls and fines incurred. Once the lease period has expired and the customer opts to return the vehicle, we manage the vehicle disposal rather than the customer having to sell the vehicle themselves as they would with an outright purchase. This protects the customer from the financial cost of vehicle depreciation.

Our lease agreement includes 24/7 breakdown and recovery assistance, and as we update our fleet regularly, our customers can lease brand new vehicles.