Post by vpainter on Feb 25, 2012 22:42:02 GMT
How to finance a car?
by Twofeets » Mon Jan 30, 2012 9:17 am
Well, we had hoped to hold off on buying a car, but with the taxi situation getting worse and worse here in RT it looks like we're going to have to start looking.
My question is how do you finance a car here? Ive been told they dont go by the American credit ratings, it was more to do with your income. After that Ive heard various stories... Some say just go to the bank, tell them how much you want, and set your direct deposit into their bank. Others said it was more complicated. A step by step guide for those who have done it would be appreciated.
(Im looking for a new used card, not brand new, if that makes any difference).
Thanks
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by GroveWanderer » Mon Jan 30, 2012 10:40 am
Last time I bought a car here, I just got the money from the bank and paid in cash. Seemed the simplest way to do it.
GroveWanderer
More than 25 posts
Posts: 83
Joined: Sun Apr 10, 2011 2:05 pm
Top
Re: How to finance a car?
by Twofeets » Mon Jan 30, 2012 2:08 pm
Well, the trouble is being new here I dont have the cash on hand to just buy one, so that requires financing. I have no idea how that process works here.
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by Colts18 » Mon Jan 30, 2012 6:05 pm
The following website may help:
www.expatarrivals.com/saudi-arab ... udi-arabia
Btw, have you talked to a local dealer yet? I know Toyota SA has some info on their website. You can try calling the toll free number listed.
www.uis.com.sa/calculator.aspx
Colts18
More than 25 posts
Posts: 31
Joined: Mon Oct 10, 2011 11:48 pm
Top
Re: How to finance a car?
by Carolina » Tue Jan 31, 2012 3:02 am
o Twofeet
I have sent to you an e-mail explaining what we did here to get a car loan.
Carolina
Carolina
More than 25 posts
Posts: 335
Joined: Wed Feb 13, 2008 1:09 pm
Top
Re: How to finance a car?
by vpainter » Tue Jan 31, 2012 3:51 am
new car dealers finance cars.
vpainter
Moderator
Posts: 2384
Joined: Fri Sep 27, 2002 3:36 pm
Top
Re: How to finance a car?
by azraeil » Tue Jan 31, 2012 8:32 am
Two ways
1. The car dealerships usually have an arrangement with the bank to handle your financing needs. The rate will be around 6-7% fixed rate (if you finance for 3 years, the total loan will be xxx amount x 21% etc). The registration card will be under the name of the financing bank and this will make it difficult for you to take the car out to Bahrain (or anywhere outside KSA)
2. Personal loans - The banks here (NCB particularly) offers crazy personal loans deals (1.99 % fixed rate) and the approval process is simple and fast (apply in the morning, money deposited into your NCB account at night). You can apply based on your salary slip. You can then pay cash for the car purchase. The car belongs to you, you can take it out to Bahrain without any problems. The only cons is that ALL your salary must be deposited into the Saudi account.
azraeil
More than 25 posts
Posts: 79
Joined: Mon Jan 18, 2010 11:01 am
Top
Re: How to finance a car?
by Twofeets » Tue Jan 31, 2012 9:48 am
Thank you all, I appreciate the help
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by Richard S » Mon Feb 20, 2012 6:58 pm
Twofeets...note the comments made in azraeil's post...
1) A personal loan involes 100% of your salary going into a Saudi Bank Account, whether it stays in there is another matter....
2)If taking finance from a dealer the ownership is the dealers not yours, this means every 3 months you need a document from the dealer that allows you to travel e.g: to Bahrain until obviously the finance is paid and then it is transfered into your ownership.
Richard S
More than 10 posts
Posts: 12
Joined: Wed Feb 15, 2012 11:08 am
Location: Ras Tanura
Top
Re: How to finance a car?
by Twofeets » Tue Feb 21, 2012 1:07 pm
Well, I ran into another roadblock this morning, Ill be curious to see what happens..
While my experiences with Saudi Hollandi bank have been poor, its the only camp in RT so I went there this morning. I have had a few people tell me they were able to get loans after 6 months with Aramco, Saudi Hollandi told me no, it must be 1 year to get a car loan.
They did offer me a credit card, and this is the part that bothered me. First they said the rate was 1.94%, then 3.xx %, but the paperwork says 24% APR. While I understand Islamic credit is different than the US companies, Ive never seen a credit card with permanent rates under 9%. The 24% on the paperwork is much closer to US rates. No where on the paperwork does it mention the rates they stated.
Its currently lunch time, so Im stucking playing the waiting game, but will probably contact personnel and another bank later for clarification.
by Twofeets » Mon Jan 30, 2012 9:17 am
Well, we had hoped to hold off on buying a car, but with the taxi situation getting worse and worse here in RT it looks like we're going to have to start looking.
My question is how do you finance a car here? Ive been told they dont go by the American credit ratings, it was more to do with your income. After that Ive heard various stories... Some say just go to the bank, tell them how much you want, and set your direct deposit into their bank. Others said it was more complicated. A step by step guide for those who have done it would be appreciated.
(Im looking for a new used card, not brand new, if that makes any difference).
Thanks
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by GroveWanderer » Mon Jan 30, 2012 10:40 am
Last time I bought a car here, I just got the money from the bank and paid in cash. Seemed the simplest way to do it.
GroveWanderer
More than 25 posts
Posts: 83
Joined: Sun Apr 10, 2011 2:05 pm
Top
Re: How to finance a car?
by Twofeets » Mon Jan 30, 2012 2:08 pm
Well, the trouble is being new here I dont have the cash on hand to just buy one, so that requires financing. I have no idea how that process works here.
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by Colts18 » Mon Jan 30, 2012 6:05 pm
The following website may help:
www.expatarrivals.com/saudi-arab ... udi-arabia
Btw, have you talked to a local dealer yet? I know Toyota SA has some info on their website. You can try calling the toll free number listed.
www.uis.com.sa/calculator.aspx
Colts18
More than 25 posts
Posts: 31
Joined: Mon Oct 10, 2011 11:48 pm
Top
Re: How to finance a car?
by Carolina » Tue Jan 31, 2012 3:02 am
o Twofeet
I have sent to you an e-mail explaining what we did here to get a car loan.
Carolina
Carolina
More than 25 posts
Posts: 335
Joined: Wed Feb 13, 2008 1:09 pm
Top
Re: How to finance a car?
by vpainter » Tue Jan 31, 2012 3:51 am
new car dealers finance cars.
vpainter
Moderator
Posts: 2384
Joined: Fri Sep 27, 2002 3:36 pm
Top
Re: How to finance a car?
by azraeil » Tue Jan 31, 2012 8:32 am
Two ways
1. The car dealerships usually have an arrangement with the bank to handle your financing needs. The rate will be around 6-7% fixed rate (if you finance for 3 years, the total loan will be xxx amount x 21% etc). The registration card will be under the name of the financing bank and this will make it difficult for you to take the car out to Bahrain (or anywhere outside KSA)
2. Personal loans - The banks here (NCB particularly) offers crazy personal loans deals (1.99 % fixed rate) and the approval process is simple and fast (apply in the morning, money deposited into your NCB account at night). You can apply based on your salary slip. You can then pay cash for the car purchase. The car belongs to you, you can take it out to Bahrain without any problems. The only cons is that ALL your salary must be deposited into the Saudi account.
azraeil
More than 25 posts
Posts: 79
Joined: Mon Jan 18, 2010 11:01 am
Top
Re: How to finance a car?
by Twofeets » Tue Jan 31, 2012 9:48 am
Thank you all, I appreciate the help
Twofeets
More than 25 posts
Posts: 144
Joined: Thu Jan 13, 2011 12:26 am
Top
Re: How to finance a car?
by Richard S » Mon Feb 20, 2012 6:58 pm
Twofeets...note the comments made in azraeil's post...
1) A personal loan involes 100% of your salary going into a Saudi Bank Account, whether it stays in there is another matter....
2)If taking finance from a dealer the ownership is the dealers not yours, this means every 3 months you need a document from the dealer that allows you to travel e.g: to Bahrain until obviously the finance is paid and then it is transfered into your ownership.
Richard S
More than 10 posts
Posts: 12
Joined: Wed Feb 15, 2012 11:08 am
Location: Ras Tanura
Top
Re: How to finance a car?
by Twofeets » Tue Feb 21, 2012 1:07 pm
Well, I ran into another roadblock this morning, Ill be curious to see what happens..
While my experiences with Saudi Hollandi bank have been poor, its the only camp in RT so I went there this morning. I have had a few people tell me they were able to get loans after 6 months with Aramco, Saudi Hollandi told me no, it must be 1 year to get a car loan.
They did offer me a credit card, and this is the part that bothered me. First they said the rate was 1.94%, then 3.xx %, but the paperwork says 24% APR. While I understand Islamic credit is different than the US companies, Ive never seen a credit card with permanent rates under 9%. The 24% on the paperwork is much closer to US rates. No where on the paperwork does it mention the rates they stated.
Its currently lunch time, so Im stucking playing the waiting game, but will probably contact personnel and another bank later for clarification.