A lease is essentially a long-term agreement of 12 months or more, offering exclusive use of a car for a set period at a fixed monthly price. It’s already hugely popular, and both individuals and corporate buyers are now considering leasing as an attractive alternative to buying a new car with a bank loan, dealer finance or their company’s financial reserves.
Leasing finances the use of a vehicle whereas buying with a loan finances the purchase of a vehicle. 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 is best value for money given your circumstances, can have a significant impact on the costs of operating a car.
Benefits of Leasing
- This is a simple agreed fixed monthly fee that covers the full vehicle management and associated services
- The leasing company takes on all risks associated with the vehicle including running costs, depreciation and resale
- The customer can request a set budget for the lease period and the leasing company can accordingly provide a tailor made offer
- The leasing company can also provide policy advice and development, a vehicle replacement service, consolidated management reporting, reduced administration management and a full driver support service
- Monthly payments are usually lower than a similar bank loan for a full purchase amount of the vehicle
- New vehicles can be supplied every few years
- It involves fixed cost motoring for a fixed number of months
How Does Leasing work?
A lease payment is calculated based on a combination of factors including vehicle purchase price, anticipated mileage and resale value, maintenance and servicing cost, insurance coverage and replacement vehicle cover.
Thrifty purchase’s hundreds of vehicles from the manufacturers each year, prices are negotiated at a bulk level with cost savings passed on to customers via the lease rates. This principle also applies on servicing and maintenance spend whereby leasing companies proactively manage costs and vehicle downtime
By leasing a car, you always have a fixed monthly payment. Depending on your type of lease, when your lease term is up, you either hand the keys over back to Thrifty and look for another vehicle, or finance the remaining value of the vehicle.
Let one of our Leasing consultants tailor make a lease package for you, based on your specific requirements, mileage and model/specification preferred.
Corporate Leasing
Thrifty Oman is one of the largest and most experienced vehicle rental and lease service provider in the region. We manage 4 branch locations and more than 1,300 vehicles for over 100 satisfied clients across the Sultanate. Our growth can be attributed to the on-going commitment to provide exceptional quality and outstanding service to our clients.
Thrifty Oman, part of the Al Futtaim Group of companies, benefits from a large and diverse group of automotive operations. These include dealerships for Toyota, Honda, Lexus, Volvo, Chrysler, Jeep, and Dodge cars in addition to associated service and maintenance centres. This capacity enables us to offer an exceptional service, including offering outstanding value on popular vehicles, quick procurement of cars, and priority servicing & maintenance.
Alongside this, we have strong relationships with all motor manufacturers and distributors for all brands sold in the Oman.
Thrifty offers the option to lease both commercial and non-commercial lease vehicles. Thrifty also offers the option to lease custom fabricated commercial vehicles with options for chiller and freezers used for food transport etc.
Thrifty cost reduction methodology?
Vehicle Purchasing
As Thrifty, we are able to negotiate at multiple levels with dealers and manufacturers. The buying power and negotiation skills deployed can help achieve significant discounts which are passed on to the lease customer in the form of the monthly lease rate.
Service & Maintenance Management
Managing any volume of vehicles requires technical expertise and a detailed understanding of mechanics. Thrifty has the capability to manage the wide variety of suppliers relating to fleet management including all aspects such as tyres, windows, breakdown service, accident management and insurance.
Administration Management
Purchase of vehicles requires a significant volume of administration surrounding registration, legal paper work and vehicle preparation. Thrifty also manages this on the customer’s behalf.
Finance Management
Running a vehicle fleet through the whole life cycle inevitably results in variables for vehicle related spending such as vehicle purchase, maintenance costs, fine administration, vehicle resale. The invoicing, cash flow management and supplier management for all of these are handled by Thrifty.
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.
Driver Support
Thrifty also provides full operational support and customer service management of all driver queries, vehicle delivery, collections, quotes and order processes.
How BUYING AND LEASING ARE DIFFERENT?
| Buying • You pay for the entire cost of a vehicle, regardless of how many miles are driven or how long the vehicle is kept. • If financed via a loan for the entire cost of the vehicle then monthly payments can be more expensive than a lease • You typically make 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 signing your contract • At a later stage, you may decide to sell or trade the vehicle for its depreciated resale or trade value | Leasing • You pay only a portion of a vehicle’s cost, which is the part that you “use up” during the time you’re driving it • The monthly payments for lease are generally lower than monthly amounts for a fully financed car loan • You may be required to pay three months upfront as a first payment upon signing the contract • At the end of the lease contract, you may either… – return the vehicle with no obligation – extend the current agreement – purchase it for a previously agreed resale value, or – take a lease for a new vehicle |
Reach out to one of our corporate fleet consultants for additional information on how Thrifty can bring cost benefits and reduction to your businesses’ fleet today.
The key benefits of leasing with Thrifty Oman include:
- Vehicle acquisition and funding
- Vehicle registration management
- Vehicle servicing and maintenance
- Vehicle insurance, repair and downtime management
- Fine and road toll administration
- Vehicle disposal
- 24/7 Breakdown and recovery assistance
- Upgrade fleet regularly
- Vehicle depreciation is accounted for
- Choose from new and used cars
Personal Leasing:
Thrifty offers customers lease vehicles based on a brand-new or newly usex vehicle for a lease term and mileage of their choice. The lease offered will include the cost of Service, Maintenance, Registration, Insurance and Emergency Road-side Assistance. Customers may choose to lease a vehicle for 12 to 48 months with a mileage requirement of their choice.
With an all-inclusive fixed monthly cost, customers can enjoy a hassle free driving experience.
Our comprehensive car leasing solutions provide efficient and cost effective vehicle management to corporate fleets across all Oman. Thrifty lease consultants lead the market in providing expert advice in all areas relating to vehicles, ranging from technical specifications, operational capabilities, value for money and optimum contract lengths, to consultative advice, manufacturer developments and support on fleet policy.
Applying for a Lease Contract
- What is the difference between rental and leasing?
Rental is vehicle hire for a period less than 12 months. Any hire period longer than 12 months is considered a lease. With a rental you pick from the existing fleet of vehicles, you can’t choose the specific vehicle you want, and it will likely not be a brand new vehicle. Lease can be offered for brand new and used/Ex Fleet vehicles. A lease can be offered from 12 months up to 48 months. - What documents are required to lease a vehicle?
Passport with visa page, Oman resident ID & driver’s license (vehicles may be leased by Oman residents only), a credit card, salary certificate or bank statement from your salary transfer bank. - What is your policy on additional drivers?
Lease customers may add an additional driver for the term of their contract free of cost, provided the additional driver is legally entitled to drive in the Oman. - What are the lease payments based on?
The lease payments are determined by the selected model, lease term and specific mileage. - What are the additional costs to lease a vehicle?
No additional costs, but you will be asked to provide a security deposit of 3 monthly rentals as guarantee, which will be refunded to you at the end of your lease agreement. - Is Insurance included in the lease?
Yes, fully comprehensive insurance is included in the lease cost. The lease cost also includes Personal Accident Insurance on the leased vehicle. - I don’t have a credit card. Can I use my spouse’s/relative’s/friends card?
No, the lessee will need to provide his/her own credit card to lease a vehicle. In case the lessee does not use credit cards, cheques for the lease payment may be provided for the lease period. - What are the benefits of Leasing?
– Drive a brand new vehicle (any make, model & trim)
– Efficient & cost effective vehicle management solution
– One monthly payment to cover all your vehicle expenses
– Market leading customer service
– 24 hours’ road side assistance and recovery service
– Replacement vehicle coverage for mechanical faults and major service included
– Use of genuine parts, with servicing & repair at Authorized dealer workshops - How soon can I get a lease vehicle?
A brand new lease vehicle can be delivered in 10-12 working days’ subject to vehicle availability in the country. A temporary vehicle can be offered for a reduced price upon request. - What vehicles can I lease?
For a period of 24 – 48 months, you may lease any vehicle currently on offer in the Oman from an authorized dealership.
During my Lease Contract
- How do I pay for my lease?
The monthly lease charges will be invoiced on the 3rd of each month and are automatically charged on the 10th. Ancillary charges such as traffic fines will be communicated by e-mail between the 15th – 22nd of each month and charged automatically between the 23rd – 27th. - How do I manage traffic violations for leased vehicles?
We maintain a file with the ROP (Royal Oman Police) and monitor all traffic fines ascribed to the vehicles weekly. These traffic fines are then invoiced to customers with the relevant details monthly along with an admin charge of 10% per fine. Please note traffic fines cannot be paid directly to the relevant authorities by the customer. - What are the various additional charges?
– Excess mileage charges in the event the car exceeds the maximum allowed mileage
– Early termination fee
– Unacceptable wear and tear charges - What is your policy on additional drivers?
Lease customers may add an additional driver for the term of their contract free of cost, provided the additional driver is legally entitled to drive in Oman. - Can I add Tints to the car?
Yes, window tints may be installed on the vehicle with 30% or 35% darkness when ordered for a one-time charge of OMR 95. - Is Insurance included in the lease?
Yes, fully comprehensive insurance is included in the lease. The lease also includes Personal Accident Insurance on the leased vehicle. The maximum excess or deductible in case of an accident/incident will apply per incident. The option for SCDW or 0 liability insurance can be offered for an additional cost. - What should I do when the vehicle is due for service or preventive maintenance?
Call +968 24510540 to book an appointment with our service centre. Alternatively, email Thrifty Customer Service info@thrifty.om, detailing the service requirement, mention the vehicle number and odometer reading of the vehicle to be serviced. - What should I do when the vehicle breaks down?
In case road side assistance is required, please call 24 510540 from 08:30 to 19:30 7 days a week, to arrange for a recovery. A replacement vehicle will also be provided when the recovery of the immobile vehicle is complete. For road assistance between 19:30 to 08:30 you can call our roadside assistance 24/7 at 24711173 - What should I do when I meet with an accident?
In case you have an accident, dial 9999 and request for a police/incident report.
Once done, email Customer Service info@thrifty.om with a short brief of the incident, with a police report attached and mention the vehicle number. In case road side assistance is required, please call 24711173 to arrange for a recovery as well. - Do you allow your vehicles to be driven off road?
Desert or off-road usage is not permitted and any associated damage is chargeable in full. - Can I drive to UAE?
Yes, insurance for UAE can be offered on a daily, weekly or monthly basis based on the customer’s preference, for an additional cost. The request to cross the border will need to be provided at least 48 hours in advance and insurance needs to be collected from the nearest Thrifty branch. UAE insurance will not cover any roadside assistance in UAE.
*In case of an accident or breakdown in UAE, the Lessee has to arrange for the Lease Vehicle to be brought to Oman border from where Thrifty will arrange for road side assistance to be provided. Any fines incurred in UAE can take up to24 months to be invoiced to the Lessee. - How is yearly registration renewal managed?
Our customer service agent will contact you and schedule an appointment to collect the car for renewal. The vehicle will be dropped off at your location after re-registration. - How is fuel on my vehicle managed through service and replacement?
The permanent leased vehicle is delivered with 2/8 fuel. The vehicle will also need to be returned at the end of the lease contract with a 2/8 petrol. Each replacement is also provided with fuel. The replacement vehicle will also need to be returned back to Thrifty with the same level of fuel. - How do I know a vehicle is service due?
Regular service takes place every 10,000 to 15,000 kms, dependent on the leased vehicle. A service due sticker is placed on the driver side door hinge to indicate the next service due mileage. - How long does service take?
In case of service while you wait, a quick lube or regular service will take 1- 2 hours. A major service can take up to 72 hours, depending on the concerns and service requests raised. - What if I want to change the vehicle or upgrade my vehicle before end of term?
The Thrifty long term lease offering is extremely flexible with a get out clause, pre agreed at the time of signing. The lessee may opt to terminate the lease by paying the pre agreed termination charge and upgrade to a new leased vehicle if required at any point during the lease.
At the end of my Lease Contract
- What happens if I drive over my contractual mileage allowance?
An additional mileage charge mentioned in your Lease Contract is applicable for each additional kilometer. - At the end of the lease, you may:
– return the vehicle with no obligation
– extend the current agreement if vehicle is deemed fit
– purchase it for a previously agreed resale value
– lease a new vehicle - Are there any additional charges at the end of my lease?
There are no additional charges at the end of the lease if the leased vehicle returned back conforms to our Fair Wear & Tear guide (provided with lease contract) - What do you mean by Wear & Tear?
The day to day use of a vehicle causes natural wear and tear and corresponding signs of use. Any wear and tear exceeding such limits will be recorded during the vehicle inspection, evaluated and charged at the end of the lease agreement period. Guidelines will be provided on the wear and tear conditions of what is acceptable and unacceptable before signing the agreement - I need to leave the country / can no longer lease the car. Can I transfer my lease contract to someone?
Yes, the lease can be transferred for the remainder of the lease period to another individual provided they meet the Thrifty credit evaluation criteria. Transfer process will take a minimum of 3-4 working days. - What if I need to terminate my lease early?
The Thrifty long term lease offering is extremely flexible with a get out clause, pre agreed at the time of signing. The lessee may opt to terminate the lease by paying the pre agreed termination charge at any point during the lease.