Are you planning to buy a car in Saudi Arabia? Owning a car can provide you with the comfort and convenience of exploring the beautiful attractions of the city. However, as an expat, the car-buying process and the required documents can be overwhelming. The Saudi Arabian market offers a wide range of cars in various categories, from hatchbacks to sedans to SUVs. You will also get to witness exotic vehicles roaming around the streets of Saudi Arabia.
To buy a car, you can visit car showrooms and dealerships or explore the physical market in Saudi Arabia known as Hiraaj. However, before visiting the market, it’s essential to have the necessary documents to ensure a hassle-free car-buying experience. In this blog, we will guide you through the crucial documents needed to make the car-buying process easy and stress-free.
Documents Required for Buying a New Car
In Saudi Arabia, dealerships handle all the necessary paperwork to make the car-buying process seamless for buyers. Once you have selected the vehicle from a dealership, bring the documents listed below to the dealership you have chosen.
- Residence permit (Iqama): To be eligible to buy a new car, you must hold a valid Saudi Arabia residence permit.
- Residence ID: Bring a valid residence ID. You should have both the original and a copy of the identification card to apply for a new car.
- Saudi Driver’s License: Make sure that you have a valid driving license in Saudi Arabia. However, if you have a permit from one of the GCC or other accepted states, you can legally drive a car.
- Insurance Policy: To drive legally on Saudi roads, you must also apply for insurance at an authorized company. If you already have insurance, make sure to transfer it to your new vehicle.
Additionally, if you are purchasing a car through bank financing, bring the following documents with you to the dealership. The dealer will also handle financing your vehicle.
- Proof of income: To avail a car loan, you need to provide bank statements of your employment as proof to get approved for a loan from the bank.
- Employer’s letter: Bring a letter stamped and signed by the employer of the company where you are employed. Also, make sure to get the employer’s letter approved by the Chamber of Commerce in Saudi Arabia, since it is a compulsory policy in order to get approved for a bank loan.
Documents Required for Buying a Used Car
In contrast, preparing documents when buying a used car is a little more intricate than buying a new car. It requires a careful understanding of the terms related to car buying in Saudi Arabia, especially for new expats.
- Residence permit (Iqama): To buy a used car in Saudi Arabia, you must hold a valid residence visa. You should bring both the original and a copy of your residence permit.
- Driving License (Rukhsa): You must hold a valid Saudi Arabia driving license. If you already have a license from another country, you can exchange it for a Saudi Arabian license. Bring a copy and your original driving license with you.
- Vehicle insurance documents (Tameen): Make sure to have a valid insurance agreement. You can also renew the insurance for your new pre-owned vehicle.
- Vehicle Inspection Document: In order to buy a used vehicle in Saudi Arabia, you need to provide a vehicle inspection document, also known as Fahas documents, after the inspection at the Local Motor Vehicle Periodic Inspection (MVPI).
- Transfer Ownership Certificate: To transfer ownership, you need to re-register the vehicle in your name with the former owner.
- Registration Card (Istimara): The former owner needs to provide a vehicle registration card. Once the vehicle is re-registered, you will get a vehicle registration card in your name.
Further, you need to provide a bank statement and an employer’s letter if you are financing a used car through a bank loan.
Car Registration Process
If you have prepared all the documents mentioned above, you can easily acquire your brand-new car from a showroom or a dealer. The whole buying process will be handled and executed by the dealer for you. On the other hand, if you are choosing to buy a used car in Saudi Arabia, you will need to manage all the paperwork yourself. To register a used car in your name, you need to apply at the traffic police station (Muroor).
For this, you will need to download the Traffic Police website and fill out the Muroor form. You can also physically visit the traffic department and register the vehicle. Make sure to bring the former owner of the pre-owned vehicle with you.
Additionally, you can create an account on Absher to book an appointment to visit the Muroor office. Absher is an online application that allows Saudi Arabian residents to avail themselves of a variety of government services. This innovation has made it simple for residents to process all vehicle-related paperwork and services.
Costs of Vehicle Registration
It is mandatory to have a registration card to drive in Saudi Arabia. Driving without a registration card or with an expired card will result in a heavy fine from the Muroor police. Therefore, make sure that your registration card is valid. Ensure to renew registration after the first three years and then keep renewing registration every year without any delay.
The cost of registration for a new car is SAR 100. However, if you want to re-register a pre-owned vehicle, you need to pay SAR 150 to the Muroor office. The validity for a pre-owned car is only one year.
Conclusion
No doubt, buying a vehicle, whether new or used, in Saudi Arabia can be challenging. To ensure a successful purchase, it is essential to be aware of all the necessary documents and prepare them beforehand. It is important to note that in Saudi Arabia, having insurance and registration for your vehicle is mandatory for driving legally. In this article, we have tried our best to provide all the necessary information on the paperwork required for a smooth and hassle-free car-buying experience.
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