Leasing vs Buying: What Works Better for Saudi Professionals?

Saudi Arabia: The largest automotive market in the Middle East, has witnessed several trends as more car buyers experiment with different concepts. Among the major changes shaping the market is the shift in car ownership. Just a few years ago, most Saudis preferred car ownership as the best option for personal mobility; there was nothing better than owning a brand-new car.  This has started to change,  as more people are open to exploring other options besides outright buying a car. Car leasing seems to have caught significant attention, and a rapid surge in the last three years is a clear indication of that. The reason is simple, car leasing comes with many advantages like flexibility, lower monthly payments, and less hassle with resale, which suits a lot of car users.

Whether one chooses to buy a car or lease is often based on several factors like preferred use, budget and long-term plans. If you love driving a new car regularly and don’t want maintenance worries, leasing comes as a natural choice. However, if you value ownership or want to keep the car for the long term, buying would be a great option. We explore what really matters when making this choice.

Leasing vs Buying in Saudi Arabia

Aspect	Leasing	Buying
Monthly Cost	SAR 2,500: insurance & maintenance	SAR 3,450
Duration	2-3 years	More than 5 years due to loan
Ownership	No, return after tenure	Full ownership after loan payoff
Initial price	Far lower upfront	Need substantial down payment
Limits km	15,000-20,000 km/year, penalties for excess	No specific limits
Maintenance & Repairs	Covered by leasing company	Owner responsible
Depreciation R	Borne by leasing company	Borne by owner
Flexibility	High, easy to change vehicles	Low, long-term commitment
Customization	Limited	Full customization allowed
Who It’s Best For	Temporary residents, young professionals	Long-term residents, family buyers

The Market Reality

The Saudi leasing market has been growing rapidly over the last few years, and current trends suggest it is likely to continue to expand. The reason is that many professionals in search of flexibility are moving towards leasing rather than owning a car. Many big companies and corporate customers find leasing far more beneficial as it helps reduce capital expenditure. Also, many young professionals aspire for newer cars to drive but don’t necessarily want to get under the burden of depreciation cost; similarly, temporarily foreign residents value short-term flexibility.

The Buying Argument

Buying a car makes a lot of sense if you wish to use it for the long term, generally more than 5 years. Your monthly cost is a loan payment; after 5-7 years, you own a vehicle outright.  Without any monthly payment, you continue to use the car, and eventually sell it. That final selling price makes a lot of difference.

Also, with your own car, you can control maintenance by spending on the parts, lubricants or servicing parts; the same goes for insurance and other modifications that you may want.

The math: Finance a SAR 150,000 car at 4% interest over 60 months. Your monthly payment is roughly SAR 2,750. Add SAR 300 for insurance. Add SAR 400 for maintenance and fuel on average. That's approximately SAR 3,450 monthly for 5 years. After 5 years, you own a car worth maybe SAR 85,000 to SAR 95,000. Total cost: SAR 207,000 - SAR 207,000 = SAR 112,000 for 60 months of ownership. That's approximately SAR 1,867 per month all-in.

That math improves if you keep the car longer. Year 6, 7, 8? Pure ownership. No payments. Just maintenance and fuel.

The Leasing Argument

Lease if you want a new car every 2-3 years without ownership hassle. Your monthly payment covers everything: car, insurance, maintenance, and roadside assistance. You don't worry about repairs or major failures.

A new car often means the latest one, which comes with advanced technology, features and modern safety, and no fear of breakdown or failure. When your lease ends, your commitment ends. No negotiating to sell it.

For professionals on temporary workers or with no fixed longer-term tenure, leasing offers huge flexibility. 

The math: Lease a similar car for SAR 2,500 monthly for 36 months. That includes insurance and maintenance. Everything is handled. Your total: SAR 90,000 over 3 years. Walk away. Don't own anything. Start a new lease if needed.

Compare this to the buying scenario. In 3 years of ownership with a SAR 150,000 purchase, you've paid approximately SAR 103,500 total (SAR 3,450 × 36 months). You own a car worth roughly SAR 105,000 to SAR 110,000. Your net cost is actually negative or near-zero. You own something.

Practical Factors

Mileage limits matter. Leases typically include 15,000 to 20,000 km annually. Exceeding that means results in higher charges.

Wear and tear costs you. Lease a car, scratch the bumper, ding the door, all of which cost you dearly. Buying means those issues are your own problem to fix or ignore.

No Depreciation when leasing. That SAR 150,000 car might be worth SAR 85,000 after 5 years. That's a SAR 65,000 loss. When leasing, that is not your loss.

Customisation is limited. During the lease of a car, you are not allowed to customise it as per your personal wish. Most of the time, you get to drive a standard car.

Warranty. Since the car is taken care of by the leasing company, any major repair is not your responsibility. This is not the case if you buy a new or used car.

The Numbers Quick Comparison

Aspect	Leasing (3 years)	Buying (5 years finance at 4%)
Monthly Payment	SAR 2,500	SAR 2,750
Total Payments	SAR 90,000	SAR 1,65,000
What You Own at End	Nothing	Car worth SAR 85,000 - SAR 95,000
Net Cost (Total Payment - Resale Value)	SAR 90,000	SAR 70,000 - SAR 80,000
Monthly Net Cost	SAR 2,500	SAR 1,167 - SAR 1,333
Commitment Period	3 years	5 years
Ownership Benefit	None	Full ownership after loan
Depreciation Risk	Borne by leasing company	Borne by owner
Flexibility	High - easy to switch cars	Low - long-term commitment
Ease of Selling	No selling hassle	Must sell or trade-in later

Leasing is growing fastest among young professionals, expatriates, and women. That's the trend. Women now own 45% of new commercial records issued in Q1 2025, as per reports quoted in the media. Many prefer leasing for simplicity. The leasing market is growing 9-11% annually, while traditional car purchases are slower.

That doesn't mean buying is wrong. It means leasing works better for a specific profile: temporary residents, uncertain about long-term plans, young professionals, or people who value simplicity over ownership.

Conclusion

Like anything in life, buying and leasing come with pros and cons, and they are suitable based on the needs of an individual. Anyone who is a long-term resident in KSA and can afford the purchase, buying is financially better. You own an asset, even if it is depreciating, the math favours ownership over 5+ years. If you're uncertain about your timeline, a temporary resident, or value simplicity, lease. The flexibility is worth the higher monthly cost for you.

So, it is quite a personal choice where financial commitment and overall cost matter. So, if you’re a professional who is constantly moving cities or countries, and not sure about your tenure, leasing works in your favour. However, it is worth noting that buying or leasing decisions shouldn’t be based on trends but on needs. 

The right choice is the one that matches your actual situation, not what everyone else is doing.