What are the conditions for buying a new or used car for residents in the Kingdom?

There is a set of conditions for residents buying new or used cars from accredited and safe showrooms and agencies, which guarantee residents obtaining purchase warranties and periodic maintenance.

Requirements for buying a new car include:

Providing a copy of the resident’s ID, submitting a certified salary introduction from the employer, and providing a bank statement if not purchasing in cash and requesting financing from approved entities. Also, a down payment must be paid in case of installments for the new car, and a formal purchase contract must be signed to ensure obtaining the car.

Buying a new car is characterized by the resident obtaining a warranty ranging from three to five years, a clean car record free of accident history, multiple financing options to choose from, and obtaining free maintenance offers from some trusted showrooms in the Kingdom.

Procedures for buying a used car for residents in Saudi Arabia:

Many resort to this option because it is less expensive than new cars and is considered the appropriate choice. The conditions for buying a car for residents include a valid residency, ensuring the completion of the periodic inspection (Fahas), freedom from any security issues, and payment of all violations if any. One of the most important conditions is completing the ownership transfer stage through the Absher platform or the Traffic Department (Muroor) in the Kingdom.

What are the conditions for buying a car for residents in installments in Saudi Arabia?

Buying a car in installments is very important, especially given the rising prices of modern cars. Bank financing or financing through accredited companies that Carly cooperates with are the most common ways to buy a car. Obtaining financing does not depend on salary alone; there are a set of criteria set by banks and companies to ensure the resident’s ability to pay the installments and the total value.

• Minimum Salary: Ranges between 4,000 to 6,000 SAR. Some banks require higher salaries if the employer is not accredited by them.
• Deduction Percentage: The salary deduction should not exceed 33% of the net monthly salary, reaching 45% in some cases.
• Service Period: Length of service at the current employer should range between three to six months; some entities require a full year if the employer is small or unaccredited.
• Residency Validity: The residency must cover the financing period or most of it. If it expires soon, it must be renewed before approval.
• Credit Record: Checking the credit record through SIMAH. Commitment to paying previous loans increases approval chances, while defaults may lead to rejection.
• Vehicle Age: Financing entities stipulate that the car’s age must not exceed a specific number of years by the end of the financing term.
• Comprehensive Insurance: One of the most important conditions is having comprehensive insurance throughout the financing period; this cost is often included in the installment.