Buying a car in Saudi Arabia is an intricate process. It requires detailed knowledge and understanding of car buying procedures, especially for expats who are planning to buy their car for an easy commute. Saudi Arabia is known as a rich country with so much to offer, and its automotive industry is one of the growing fields. The government is continuously expanding its automotive industry by increasing car dealerships and attracting almost all the car manufacturers from around the globe.
There are diverse options in the Saudi automotive market where you can select your desired car based on your driving needs and preferences. In this extensive guide, we will take you through the steps of buying a new car and the essential documents required to complete the registration. We will ensure you get your new car hassle-free with our aim to make the complicated procedure as simple as possible in this guide.
However, before we dive into the comprehensive guide, there are some important terms related to car buying that you need to familiarize yourself with, especially if you are an expat, for a stress-free purchase.
Car Buying Terms Used in KSA
Here are a few terms that you will encounter when you purchase a car. Understanding these terms is essential for a seamless process.
- Fahas: It is a round sticker placed on the car’s windshield. The sticker indicates that the vehicle has passed the MVPI (Motor Vehicle Periodic Inspection) and is safe to drive on Saudi roads.
- Istimirah: The registration card for a vehicle is known as Istimirah. It is obligatory to carry the registration card with you when you drive. Also, make sure to renew registration every three years.
- Muroor: This term refers to a traffic police station that handles all the paperwork related to car buying, whether purchasing or selling a vehicle.
Different Methods for Buying a New Car
When it comes to buying a new car in Saudi Arabia, there are multiple choices available. After doing thorough research, select the option that best suits your convenience.
Car Dealerships
Dealership is the most popular method of buying a new car in Saudi Arabia. Car dealers are increasing in number and becoming the most convenient option. Therefore, most people choose the dealership method for an easy purchase.
The dealerships handle all the processes, from assisting you with paperwork to providing all the information. They help complete the whole car-buying process for you. Not only that, but they also offer car financing options for a smooth car purchase. An English spokesperson is also provided upon request to answer all the expats’ queries.
Showrooms
Looking for a car at showrooms can be an incredible option. Most people prefer buying a vehicle from showrooms as they offer various car models and brands in one place. You can examine the car model you desire in person and get assistance in understanding the features and variants of the chosen car.
Online Car Aggregators
In Saudi Arabia, there are online aggregator websites that offer a range of options and dealerships all in one place. These websites connect the dealer, buyer, and financier, making the car-buying process convenient and hassle-free. One such example is Arabwheels, which offers a variety of car brands to choose from, all from the comfort of your own space.
Although all the methods offer vast options and services to make your purchase seamless, choosing the right one depends on your personal needs, budget, and convenience. Therefore, it’s essential to choose wisely to ensure a successful purchase.
Steps to Buy a New Car in Saudi Arabia
Buying a car is a significant investment, and therefore, it requires careful planning and research to make an excellent deal. Here are some steps to follow to ensure a successful purchase.
Research Your Options
To make an informed decision, you need to start by identifying your needs and preferences. Determine the type of car that would suit your requirements and set a budget accordingly. Once you have a clear understanding of your car needs, conduct thorough research on the automotive market in Saudi Arabia, as it plays a crucial role in making a successful purchase.
Make a list of the cars that you have shortlisted after doing research. Ensure that you list different makes and models and compare their features, prices, maintenance costs, and spare parts availability. Additionally, consider the resale value of the car you intend to buy. This will help you make an informed decision and ensure that you get the best value for your money.
Choose Buying Method
As mentioned above, there are three different options from which you can buy your desired car. You can either opt for a car dealership, which is an excellent option if you are buying for the first time, or you can visit car showrooms in person for self-satisfaction. Moreover, buying from online car sites is also a viable option if you are looking to make an online purchase at your convenience. Hence, make a sound choice when selecting the car buying method according to your situation and needs.
Prepare Documents
Make sure to prepare the following documents to ensure a stress-free car-buying process.
- Saudi Arabia driving license
- Residence visa
- A certificate from an employer
- Proof of income
- Insurance policy
If you are planning to purchase a car through a loan, you will need to provide proof of income and an employer’s certificate. It’s important to note that the employer’s letter must be approved by the Chamber of Commerce in Saudi Arabia, FSC. Once all the required documents are submitted, an Istimirah (registration card) will be issued for your new vehicle.
Finance Your Car
When you’re planning to buy a new car, it’s essential to set a budget that includes a 20% down payment and ensures that you’re financially eligible to apply for a car loan. In Saudi Arabia, banks typically finance up to 80% of a car’s value, so it’s essential to have the remaining 20% available.
If you plan on financing your car, it’s a good idea to apply for a car loan from a bank in advance. This will help you streamline the buying process and ensure you can purchase the car without any delay. Make sure to avoid long-term auto loans and try to negotiate for a lower interest rate. Research different banks to find the best financing deal, as financing terms can vary from one bank to another in Saudi Arabia.
Additionally, don’t be afraid to negotiate and ask for a better deal. Keep an eye out for seasonal offers and deals during certain times of the year in Saudi Arabia, especially during Ramadan, and consider buying around this time of the year.
Some of the famous banks that offer car loans are listed below.
- Riyad Bank
- Car Saib Murabaha Bank
- Alrajhi Bank
- Albilad Bank
- Tajeer Finance
- Saudi National Bank
Conclusion
Saudi Arabia is a country with severe weather conditions, so it is vital to choose a vehicle that is reliable and can withstand intense heat. An additional tip is to select a car with an excellent air conditioning system. By following the steps in the new car buying process, you can ensure a profitable purchase. Further, it is advised to take time and do proper research and planning so you don’t end up regretting your choice. Finally, after purchasing your desired car, jump to vehicle insurance to drive legally on Saudi highways.
Follow Arabwheels for more informational guides and tips to make your car buying experience hassle-free