Buying a car on installments in Saudi Arabia happens through three main routes: bank financing (Al Rajhi, Riyad Bank, Alinma, etc.), specialized finance companies (ALJ Finance, Raya, and others), or flexible-payment services like Tamara (BNPL) for cars up to SAR 50,000. Basic requirements: a minimum salary of SAR 4,000-5,000 monthly, age between 21-65, and a clean credit record at SIMAH. The lowest monthly installment in the market starts from SAR 500, with approval taking anywhere from 30 seconds (Tamara) to 5 business days (banks). Carly brings all three options into one platform, with at least one financing partner suited to almost every situation.

What’s Inside This Guide

1. The three ways to finance cars in Saudi Arabia
2. Eligibility and basic requirements
3. Required documents
4. Calculating your monthly installment
5. SAMA’s 45% rule
6. Bank financing vs fintech
7. Tamara for cars: the new option
8. How to buy a car on installments from Carly in 5 steps
9. Common mistakes to avoid
10. Frequently Asked Questions (FAQ)

1. The Three Ways to Finance Cars in Saudi Arabia

Route 1: Bank Financing

Saudi banks offer car financing with long repayment periods (up to 60 months) and large amounts (up to SAR 800,000+). Major banks include:

• Al Rajhi Bank (Islamic financing/Murabaha)
• Riyad Bank
• Alinma Bank
• Arab National Bank (ANB)
• Emirates NBD
• Saudi National Bank (SNB)

Pros: Lower profit rates, longer terms, larger amounts.

Cons: Salary transfer often required, longer approval (3-5 days), stricter conditions for new expats.

Route 2: Finance Companies (Fintech)

Specialized finance companies, including:

• Abdul Latif Jameel Finance (ALJ Finance)
• Raya Finance
• Al Nayifat Finance
• Al Yusr Finance

Pros: Often no salary transfer required, faster approval (24-48 hours), more flexible terms for expats.

Cons: Profit rates slightly higher than banks.

Route 3: Tamara (BNPL)

Tamara is a new flexible-payment service entering the auto sector. Available for cars up to SAR 50,000:

• Approval: 30-60 seconds
• No salary transfer
• No traditional interest
• Installment period: 3-12 months
• No GOSI or salary certificate required

Pros: Fastest method, simplest documents, ideal for new expats and self-employed.

Cons: SAR 50,000 ceiling, short repayment period (12 months max).

2. Eligibility and Basic Requirements

For Saudis

For Expats

Same conditions plus:

• Valid Iqama: at least 3-6 months remaining
• GOSI certificate: from General Organization for Social Insurance (required by banks)
• Job tenure: 6 months to 1 year (for banks)

Note: Tamara is more flexible with expats, requiring only a valid Iqama, Saudi mobile number, and a bank card.

3. Required Documents

For Bank Financing

• Valid ID/Iqama
• Salary certificate (less than 30 days old)
• Bank statement (3 months)
• GOSI certificate
• Letter from employer (in some cases)
• Valid Saudi driving license

For Finance Companies

• Valid ID/Iqama
• Salary certificate
• Bank statement (3 months)
• Saudi driving license

For Tamara

• Valid ID/Iqama
• Saudi mobile number registered in your name
• Active bank card (Mada or credit card)

Tip: All documents are uploaded digitally through Carly’s platform. You don’t need to visit any bank in person.

4. Calculating Your Monthly Installment

Basic Formula

Monthly Installment = (Financed Amount + Total Profit) ÷ Number of Repayment Months

Practical Example: SAR 120,000 Car

Note: Numbers are approximate and depend on bank profit rate (around 4-7% annually). Actual calculation varies by financing partner and your profile.

Carly’s Instant Calculator

Every car on HalaCarly.com displays the approximate monthly installment directly. The financing calculator on Carly’s finance page lets you test different scenarios.

5. SAMA’s 45% Rule

The Saudi Central Bank (SAMA) caps the sum of all your monthly installments (car loan + personal loans + credit cards + any other commitments) at 45% of your monthly salary.

Example:

• Your salary: SAR 10,000 monthly
• Maximum installments allowed: SAR 4,500 (45%)
• If you have a personal loan installment of: SAR 1,500
• Available installment for the car: SAR 3,000

Carly applies this rule automatically when reviewing your application. If the installment exceeds 45%, banks reject; the solution is to extend the term or increase the down payment.

6. Bank Financing vs Fintech

When to Choose a Bank?

• Your salary is stable and transferred
• You want the lowest profit rate
• You need a large amount
• You’re not in a rush (3-5 days is fine)

When to Choose Fintech?

• You can’t transfer salary
• You want fast approval
• You’re a new expat (less than a year)
• You’re self-employed or freelance

7. Tamara for Cars: The New Option

Tamara changed the game in 2025-2026 by entering the auto sector through its partnership with Carly:

Tamara for Cars Features

• SAR 50,000 ceiling (suits economy cars)
• No traditional interest (Sharia-compliant)
• No salary transfer
• No bank certificates
• Approval in 30-60 seconds
• 3-12 months repayment

Who Suits Tamara?

• New expats (less than a year in Saudi Arabia)
• Self-employed workers (delivery drivers, freelancers)
• Those wanting an economy car (SAR 50,000 or less)
• Those preferring fast and simple financing

How to Use Tamara on Carly?

1. Pick a car under SAR 50,000 on Carly
2. At checkout, choose “Tamara”
3. Enter the OTP from your phone
4. Get instant approval
5. Choose repayment period (3, 6, 9, or 12 months)

8. How to Buy a Car on Installments from Carly in 5 Steps

Step 1: Browse and Set Your Budget

Open HalaCarly.com and use the monthly-installment filter. Carly displays the installment directly for each car.

Step 2: Upload Documents

Upload ID, salary certificate, bank statement, and GOSI certificate. Everything is digital.

Step 3: Receive Offers

Carly submits your application to 12+ financing partners and presents you the best 3-5 offers within 24-48 hours.

Step 4: Pick the Right Offer

Compare offers across: profit rate, down payment, repayment period, and monthly installment.

Step 5: Sign and Receive

Electronic signature through Absher, ownership transfer, and home delivery.

Start financing on Carly →

9. Common Mistakes to Avoid

Mistake 1: Focusing Only on Installment Without Looking at Term

A low monthly installment over 60 months means much higher total interest than a higher installment over 36 months. Calculate the total.

Mistake 2: Ignoring SIMAH Record

Any delay paying a credit card or loan reflects on SIMAH. Check your record before applying.

Mistake 3: Exceeding the 45% Rule

If your current installments + the car installment exceed 45% of salary, banks reject. Reduce other commitments first.

Mistake 4: Not Reading the Contract

Penalty clauses, mandatory insurance, early-payment fees: all matter. Read the full contract.

Mistake 5: Forgetting Insurance

A financed car requires comprehensive insurance, not third-party only. Factor its cost into your budget.

10. Frequently Asked Questions (FAQ)

What’s the lowest monthly installment for a car in Saudi Arabia?

The lowest monthly installment starts from SAR 500 for small economy cars on long terms (60 months) and a 20-30% down payment.

Can I buy a car with no down payment?

Yes, through some finance companies (fintech) or Tamara. But the monthly installment is usually higher.

How long does financing approval take?

• Tamara: 30-60 seconds
• Finance companies: 24-48 hours
• Banks: 3-5 business days

Can expats finance a car?

Yes. Conditions: valid Iqama (3-6 months remaining), GOSI certificate, and sufficient salary. Tamara is the easiest route for new expats.

What’s the difference between Islamic and conventional financing?

Islamic financing (like Murabaha) involves the bank purchasing the car and reselling it to you with a pre-agreed profit margin. Conventional financing uses an annual interest rate. Most Saudi banks offer Islamic financing.

Can I pay off the financing early?

Yes. Early payment is possible but may carry small fees. Read the contract for details.

What happens if I can’t pay an installment?

Late penalty, registration on SIMAH, and in cases of persistent default the car may be reclaimed. Contact your financing provider immediately to request rescheduling.

Is insurance included in the installment?

Usually not. Insurance is separate and paid annually. Carly helps you get competitive insurance quotes.

Which is the best bank for car financing?

Depends on your situation. Al Rajhi has the widest network, Alinma sometimes offers lower rates, and Emirates NBD is flexible with expats. Carly compares 12+ providers and picks the best fit for you.

Can foreigners finance a car?

Yes. Similar conditions to expats, with focus on a valid Iqama and verified salary.

Information updated through April 2026. Numbers are approximate. Approval is subject to financing provider’s evaluation. Carly is a facilitator, not a lender. Official sources: sama.gov.sa, simah.com, gosi.gov.sa.

Carly: Your partner in car financing with the best offers.

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