Planning to buy a new car in Saudi Arabia? Whether you’re a Saudi citizen or an expat, getting the paperwork right is the first step toward driving off in your dream car. Don’t worry, the process is more straightforward than it sounds once you know what’s needed.
In this guide, we’ll walk you through all the documents required for a new car purchase, including what’s needed for car registration documents and car ownership papers in Saudi Arabia. Whether you’re paying in cash, financing through a bank, or leasing, here’s everything you need to know.
Buying a Car Outright (Cash Purchase)
Buying your car with cash is the easiest and usually the fastest option. You’ll need to bring a few essential documents required for a new car purchase, including:
- Your National ID (for citizens) or Iqama and passport copy (for expats)
- Valid Saudi driving licence
- Proof of address (National Address printout or Absher QR code)
- Payment receipt or proof of bank transfer
- A car insurance policy, which must be active before registration
Most dealerships handle the entire car registration document process through the TAM or Absher system. Once your payment and insurance are complete, you’ll receive your Istimara (vehicle registration) and number plates.
Arrange your insurance before visiting the dealership to make the registration process smoother.
Buying Through Finance or Installments
If you’re buying through a bank or finance company, expect a few more steps, but nothing overwhelming.
You’ll need your National ID or Iqama, driving licence, and National Address, along with financial documents like a salary certificate, recent bank statements, and pay slips. Some lenders may also request an employment letter or NOC from your employer.
Banks will also run a SIMAH credit check, and you’ll need to provide your IBAN for automatic payments. Comprehensive insurance is usually mandatory before your car can be released.
If your Iqama or work contract is nearing expiry, renew it first; banks prefer contracts with validity extending beyond your repayment period.
Leasing (Ijarah)
Leasing is similar to financing, but the car remains in the lessor’s name until the end of your contract. You’ll need the same documents required for a new vehicle as for financing, plus any additional insurance or payment terms required by the leasing company.
When your lease ends and you decide to purchase the vehicle, the dealer or finance company will transfer the car ownership papers in Saudi Arabia to your name.
Insurance: Don’t Skip This Step
You can’t register a car without insurance. Choose between:
- Third-party liability insurance is the basic legal requirement.
- Comprehensive insurance covers your own vehicle too, and is often mandatory for financed or leased cars.
You’ll need your ID/Iqama, driving licence, and vehicle details (VIN) to activate your policy.
For a deeper look at policies, pricing, and coverage options, explore our blog, Your Complete Guide to Car Insurance in Saudi Arabia.
Trading In Your Old Car
If you plan to trade in your old car, bring the Istimara, keys, and service records if available. Some dealerships might ask for an MVPI (Fahas) inspection for evaluation.
Before handing it over, remove personal belongings and erase any stored data from the infotainment system.
For Company or Fleet Purchases
For corporate or fleet purchases, companies must submit their Commercial Registration (CR), VAT certificate, and an authorisation letter that names the authorised signatory. Some dealers may also require a Chamber of Commerce certificate.
Step-by-Step: From Booking to Handover
Here’s how the process typically unfolds:
- Choose your car and confirm the quote.
- Arrange insurance to speed up registration.
- Submit all documents required for the new vehicle, including ID, licence, address, and payment proof.
- The dealer registers the vehicle through TAM or Absher.
- Collect your car, along with your Istimara and final invoice.
Always keep digital copies of your car registration documents and insurance policy for renewals or future reference.
Common Mistakes to Avoid
A few simple oversights can delay registration:
- Forgetting to renew your driving licence or Iqama can have serious consequences.
- Not arranging insurance early.
- Submitting an outdated National Address.
- Missing bank or salary documents for financed cars.
Conclusion
Buying a new car in Saudi Arabia is a straightforward process once you have the proper paperwork. Bring your ID, license, address proof, insurance, and payment documents. If you’re opting for finance or lease, also include your income and bank records.
Once everything is ready, you’ll have your car ownership papers in Saudi Arabia finalized, and your new car ready to hit the road.
FAQs
1. Can I buy a car without a Saudi licence?
No, you’ll need a valid Saudi driving licence for registration. Some dealers allow booking without it, but you can’t complete ownership until you have one.
2. Do expats need an employer letter?
Only for finance or lease purchases. Cash buyers typically don’t need one.
3. Is comprehensive insurance mandatory?
Not for cash buyers, but it’s required for most finance and lease deals.
4. How long does registration take?
Usually, within one working day if your documents and insurance are ready.
5. Can the dealer deliver my car to me?
Yes, many dealerships now offer home delivery after completing registration.
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