Shipping a car instead of buying or renting a new one?

counselme
Posts: 40
Joined: Mon Dec 09, 2013 9:03 pm

Shipping a car instead of buying or renting a new one?

Post by counselme »

Hi there, has anyone shipped a vehicle and put all ones belongings in it: your school supplies, personal items etc., instead of the regular shipping of items method? My thoughts are Vancouver to Dubai, at this point? I am thinking of staying a long time and don't want to buy a new vehicle in the Middle East when I am happy with what I have. Alternatively, has anyone rented a car out in UAE and what is the going rate for a monthly lease and insurance on a Jeep Cherokee? Are SUVs expensive to buy used out there?
Thanks in advance
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Response

Post by PsyGuy »

The problems you will have with shipping a vehicle to Dubai are:

1) It will go slow cargo container, it will be months before it arrives. This means the vehicle, your school supplies and your personal belongings likely wont arrive until mid year after the first term.

2) You will have to pay import duty on the vehicle and its contents, as you are importing them instead of arriving with them.

3) Petrol in the UAE will wreck havoc with your engine. The engine control computer on your car will not be calibrated for the local petrol which will give you timing and ignition problems, as well as require maintenance of the injectors much more often (they dont add cleaners) in addition without ethanol, your catalytic converter will be working overtime. Its easier to use small engine aircraft fuel available at the airport at the premium price than it is with the constant headache of an imported vehicle.

4) The availability of parts means any repair is going to take weeks to get appropriate parts assuming a generic after market isnt available.

Its relatively easy to rent a car in Dubai, and its economical for at least the short term. Leases are far less common. Its not uncommon for an IS to have some opportunity to secure financing and a loan to get a vehicle. Instead of leasing, you buy the vehicle and when youre ready for a new one, the dealer buys back your previous vehicle at a negotiated price and your loan and loan payment are adjusted. There is a healthy market for used automobiles with relatively low miles on them, but there are less financing options with a used vehicle. There just isnt a demand for used vehicles, anyone that can afford a vehicle buys new, there just isnt status in a used vehicle.

There isnt any market for a Jeep Cherokee, your looking at German and to a lessor degree Japanese models, Mercedes are everywhere as is VW. Insurance is very reasonably affordable, yours will likely be low. SUVs are very common, though its more cost effective to buy new with a warranty than used without one. The environment is very hard on vehicles.
counselme
Posts: 40
Joined: Mon Dec 09, 2013 9:03 pm

Re: Shipping a car instead of buying or renting a new one?

Post by counselme »

Thanks for the detailed response.
shadowjack
Posts: 2138
Joined: Sat Oct 06, 2012 9:49 am

Re: Shipping a car instead of buying or renting a new one?

Post by shadowjack »

I wouldn't ship your car. Takes too long and it's a pain in the behind.

I woudn't worry about the petrol too much. It's unleaded and it works. Since most cars come directly from Japan or Europe or the US, there is no worry about them as such.

However, used cars are relatively cheap. 4x4s (only Americans really call them SUVs) are more expensive depending on the make. If you are planning on desert driving, the top ones in order of preference are Toyota Landcruisers, with Prados below them, Nissan Patrol Safari (the new Patrols are nice, but not really desert vehicles), and Mitsubishi Pajeros. Those are the top 3. There are Mercs (Mercedes) and BMW's out there, but for serious desert drivers, usually it is one of the three mentioned, or for the real aficionados, a Crusader. If you are North American centric, you could go with a Hummer (H3), or a Ford Raptor, which is more of a truck, but which is awesome in the desert. But it is smaller inside and less luxurious than the Land Cruiser. You would want to avoid Explorers, Expeditions, Suburbans, etc, which are OK on the road in general, but suck in the desert itself. If you wanted a European car, Land Rover is there, but if you blow one too many tires, no other cars fit the same tires (or tyres), unless they changed their scheme. They use a 6 bold system where everybody else uses the 5 bold system.

The other thing going for these cars are parts are ALWAYS available. Yes, for North American, too.

Good luck - I drove for many years in the Saudi desert and desert driving is lots of fun!
mathsciencelady
Posts: 5
Joined: Sun Oct 02, 2016 7:47 am

Re: Shipping a car instead of buying or renting a new one?

Post by mathsciencelady »

We live in Al Ain UAE. We bought our 2008 Mitsubishi Pajero 4 years ago and paid about $15,000US. We were able to get a 5 year loan with 20% down. We rented until we had our residency visas at about $500 a month for a VERY small Toyota Yaris! Rentals are VERY expensive here. I know several people that have brought their cars from the states and found it to be economical. The heat and sand here will def mess with your vehicle. New tires are a must every three years.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@SJ

Parts for a Jeep Cherokee will not be readily available.

@mathsciencelady

$500/month is very inexpensive and reasonable buy many western standards. 20% down was still $3K, and thats a 5 year loan meaning you have to pay it off early to leave or stay 5 years.
Glerky
Posts: 86
Joined: Mon Jun 09, 2008 11:09 am
Location: Middle of the East

Re: Shipping a car instead of buying or renting a new one?

Post by Glerky »

In the UAE they use GCC specs which are different then North American specs. This means that the lights are at slightly different angles and brightness, Air cons due to the extreme heat, Radiator capacity due to heat, etc

Right now there have been a lot more people leaving the UAE then entering so it is a buyers market for cars. Don't bring it. I also don't think you'd be allowed to 'fill' it.

I know people who do rent but it adds up... you can rent a Yaris for 1400dirham or buy a newish one for about 30,000dirham... at the end of a 2 year contract if you decide to leave then you can sell it and get some of that investment back. The poor teacher would not approve of the renting.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Discussion

Post by PsyGuy »

The petrol issue has much to do with the quality of filtering at the pump and refinery, an imported vehicle from CAN/USA isnt going to have as high a performing filter and other component systems as part of the fuel system.

I disagree with @Glerky in part, yes you can sell a vehicle at 2 years when you leave but I agree its a buyers market your going to take a significant loss on a two year purchase. It only makes economic sense if you stay for 4 or more years (2 contract cycles). You also need to be concerned with buying a vehicle right away in a region you may not want to stay, what if you get there buy your vehicle then 3 months into the first term of a two year contract you hate the IS and the region. With a rental you just turn in the keys on the way out of the region.

My other issue with @SJ is what are you using the vehicle for? If you plan on off-roading all the time than I can see the value in a 4x4 or SUV, but if your main goal is simply to go shopping and too and from work, and other inner city commute what more do you need than a Yaris or other compact. Smaller vehicle less petrol, easier to park. I get that a lot of Americans need a Hummer to move themselves, iPhone and Starbucks down a paved road, because....reasons, and if thats your thing spend your coin on it.
Glerky
Posts: 86
Joined: Mon Jun 09, 2008 11:09 am
Location: Middle of the East

Re: Shipping a car instead of buying or renting a new one?

Post by Glerky »

Psyguy is obviously not a financial person...

Cost of late model used Yaris with low KMs.... 30,000-35000AED Registration and insurance 1000aed Repairs a year 1000AED

So a two year total is maybe 38000AED and that is high....

Rental of a car for about 10 months a year is 15000 so for two years 30000.

The thing is you can sell the Yaris at the end of two years and get 15000 at a minimum and after 1 year you sell it for 25-30. So buy that Yaris! Don't rent. Don't listen to Psyguy.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@Glerky

We disagree on the resale value. There are other issues as well, if you hate the location you just turn the keys in at the airport, among other advantages.
shadowjack
Posts: 2138
Joined: Sat Oct 06, 2012 9:49 am

Re: Shipping a car instead of buying or renting a new one?

Post by shadowjack »

PsyGuy - if you've ever lived in the ME an extended period of time, you understand perfectly why you would want a 4x4 instead of a small car... whether you go off-road or not. :-)
mathsciencelady
Posts: 5
Joined: Sun Oct 02, 2016 7:47 am

Re: Shipping a car instead of buying or renting a new one?

Post by mathsciencelady »

shadowjack got that right!! Driving here is no joke! You need something big, with a presence! :)
Glerky
Posts: 86
Joined: Mon Jun 09, 2008 11:09 am
Location: Middle of the East

Re: Shipping a car instead of buying or renting a new one?

Post by Glerky »

@Psyguy

I know the resale value of a Yaris as I own one here. I'm on target with the price of a 5-6 year old car in decent shape.

Having a big car/SUV is nice but most teachers don't drive much... work and back. You also have to outlay a lot more cash. Desert driving is something that few do more then a couple of times unless you are really into it. It's hard on a car so I would suggest a safari to try that out.

At my school teachers drive everything from Minis to big 4x4s. It's personal preference.
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Reply

Post by PsyGuy »

@SJ

I have, though my definition of extended time is different from yours, irregardless, I agree with @Glerky its entirely preference and priorities, there are just as many (actually more) small vehicles than there are large ones.

@Glerky

Im sure youve kept up with sales trends despite having the car and having not sold it, I disagree with the position that what you see now as value and price as a trend that you can faithfully predict 2 years from now, and in addition add into those the risk you take for example of having a major catastrophic repair for example. You can debate that the risk offsets the values, and that its a good risk, but those are your metrics. Granted my metrics of convenience, etc.. reflect my preference, and that one risk profile may fit an IT among our readership than the other, but i dont see the conclusivity that ownership is always an advantage, or even a majority of the time.
expatscot
Posts: 307
Joined: Thu Jan 14, 2016 4:26 am

Re: Shipping a car instead of buying or renting a new one?

Post by expatscot »

The biggest issue is really mechanical. The a/c and cooling system in a car bought in North America or Europe is suitable for those climates, while cars sold in the ME have a different, more powerful system (don't ask me for the details, I'm a teacher, not a car mechanic!) Also, I think there's a difference in some of the air filters - less need for pollen, more need for dust/sand.

I'd look at leasing one when you're there - you could always keep the car at home, so when you visit you don't have to rent one.
Post Reply