If you were to imagine an abandoned car, you’d probably think of old jalopies and outdated models. But it is very different in Dubai where thousands of eye-wateringly expensive cars, the likes of Lamborghinis, Ferarris, Maseratis, Bentleys and Rolls-Royces, are left to collect desert dust every year.
These abandoned cars, many of them supercars, are not just found in the desert, but also in parking areas across Dubai and in the airports. While many assume that they have been abandoned by uber wealthy owners who could not be bothered to sell them, this is rarely the case. A lot of it had to do with Dubai being a high-flying society and the laws governing debt.
There are high paying jobs aplenty around here, and zero income tax and very low VAT tax, leaving high-income earners with plenty of spare cash; petrol and insurance are affordable, and car loans are easy to get. This means that a row of expensive cars parked by the sidewalk is not an uncommon sight and you would be easily tempted to get one to keep up with your neighbours.
The problem begins when the economy takes a down turn (for instance, in 2008), businesses fail, layoffs happen or someone simply gets fired. Car owners suddenly find themselves defaulting on loan payments and up until recently, the law governing debt was very strict. Failure to pay debt—including credit card owing and car loans—is a criminal offence and the consequence is jail time of up to three years. Even after serving the time, one is not cleared of debt and is required to pay what is owned or they could be sent back to jail again indefinitely.
Hence, many defaulters prefer to simply flee the country, sometimes leaving the key in the ignition before abandoning the vehicle. There was even a rare Ferrari Enzo that was discovered under a layer of dust.
And if you are thinking, hey, maybe I can buy one of these supercars for cheap, why, yes you can! As a foreigner, you can bid for these cars via agents, but keep in mind that many of them have damages from being neglected; besides hefty repair costs, there are shipping costs, taxes and duties too.
However, things are now changing as new laws allow certain companies to apply for bankruptcy. Locals and expats who are unable to pay their debts no longer have to worry about imprisonment; their debts can be restructured and they are allowed to continue to work so as to be able to afford the payments….or how about not buy an expensive car that you can barely afford.
