Required Documents for Buying a Car on Installments in Saudi Arabia
Buying a car is an important step that requires careful financial planning, and installment options are among the most common solutions in Saudi Arabia for both citizens and residents. This is due to the flexibility in repayment and the alleviation of financial burdens. It is essential to prepare a set of official documents required by banks or financing companies to ensure the applicant’s eligibility and entitlement to financing. In this article, we will detail all the documents required for purchasing a car through installments in Saudi Arabia for both Saudi citizens and residents within the Kingdom.
Documents Required to Purchase a Car on Installments for Saudi Citizens
When applying for a car purchase on installments in Saudi Arabia, a Saudi citizen must provide a set of documents that prove their identity, employment status, and financial capability to repay the installments. Below are the most important required documents:
Valid National ID
A copy of a valid National ID must be provided to verify the applicant’s identity and match their details with the records of financing entities.
Valid Driving License
It is essential to possess a valid driving license, as it is a prerequisite for completing the installment contract and insuring the vehicle.
Salary Certificate
A salary certificate issued by the employer, certified by the Chamber of Commerce, must be submitted. It should not be older than two months from the date of application, and it is used to determine monthly income and work commitment.
Bank Statement
A bank statement for the last 3 months is necessary to prove the regular deposit of salary and to follow up on the financial behavior of the applicant. The account must match the salary details in the salary certificate.
Recent Printout from Social Insurance
A recent printout from Social Insurance not older than 10 days from the application date is required to verify the employee’s registration and continuity of work.
Salary Transfer and Stabilization Letter (if required)
If the bank requires salary transfer, a letter confirming the transfer and stabilization of salary from the employer to the financing bank must be provided to confirm the regularity of the transfer.
Car Price Offer
A formal car price offer from the showroom or authorized dealer must be submitted, which is used to determine the required financing amount and its conditions.
Work Card for Military Sector Employees
If the applicant works in a military sector, a copy of the military work card is required to prove the employment entity.
Documents Required to Purchase a Car on Installments for Residents
When a resident in Saudi Arabia wishes to purchase a car on installments, they must submit a set of documents that ensure the financing entity of the repayment capability and prove their legal identity and income source. Below are the most important requirements:
Proof of Identity
A valid residence permit or passport must be provided to verify the resident’s identity and legal status within the Kingdom. This document is essential for all applications.
Proof of Income
The resident must provide a salary certificate from the employer indicating the salary amount, job title, and date of joining, or a bank statement for the last 3 months showing regular salary deposits to ensure a steady income can be relied upon for repayment.
Driving License
The resident must have a valid driving license in the Kingdom, as it is one of the basic requirements for installment financing and the legal use of the vehicle.
Car Price Offer
A formal price offer from the showroom or dealer from whom the applicant wishes to purchase must be provided to determine the value of the car and the required financing amount.
Vehicle Insurance
A current insurance document for the vehicle must be provided, as it is a basic requirement to complete the installment contract and protect the rights of both parties in case of accidents.
Proof of Residence
In some cases, additional proof of residence may be requested, such as a recent water or electricity bill bearing the applicant’s name and home address, to support the credibility of the provided information.
Credit History
The financing entity may check the credit history of the resident with local credit offices such as SIMAH to ensure there are no previous financial defaults.
Frequently Asked Questions
Do I need to provide proof of income to purchase a car on installments?
Yes, you need to provide proof of income to purchase a car on installments in Saudi Arabia. Generally, a detailed salary certificate certified by the employer or the Chamber of Commerce is required, in addition to a bank statement for the last 3 months showing salary balances, and sometimes additional income documents reflecting income and banking data.
Does the resident need different documents from citizens to buy a car on installments?
Yes, residents need slightly different documents than citizens when purchasing a car on installments in Saudi Arabia, although the basic requirements, such as having a guarantor (in some cases) and the duration of the employment contract, are similar.
Do I need a guarantor to purchase a car on installments?
No, a guarantor is not required for purchasing a car on installments in Saudi Arabia. Various financing options are available that do not require a personal guarantor, such as Murabaha financing offered by banks or financing companies.
Can I get financing without a guarantor?
Yes, many financing companies offer financing programs without the need for a guarantor, focusing on repayment capability, and some banks also offer car financing without a guarantor, provided certain conditions such as monthly income and work duration are met.
What is the minimum age for an applicant to purchase a car on installments?
The minimum age for an applicant varies by financing entity, as the applicant must be at least 18 years old when purchasing a car on installments in Saudi Arabia, while in some places, the minimum age may be 21 for residents within the Kingdom.
In conclusion, purchasing a car on installments in Saudi Arabia is a common and accessible option for both citizens and residents, provided that the basic requirements are met and the necessary official documents are presented. The documents may slightly differ between the two groups, but the common goal is to ensure financial capability and repayment commitment. It is essential to prepare a valid ID, proof of income, a driving license, and a price offer, in addition to any extra documents as needed. It is always advisable to communicate with the financing entity beforehand to understand the conditions accurately, which facilitates the purchasing process and increases the chances of approval for financing smoothly.
