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Looking to buy an installment car in Riyadh? It’s not just about manageable monthly payments, it’s about finding a financing option that aligns with your lifestyle, budget, and long-term needs. Your car impacts your daily comfort and mobility, so choosing the right provider is key.
In this guide, we’ll walk you through the smartest ways to get an installment car in Riyadh, compare financing options, highlight the top showrooms and banks, and explain salary requirements. You’ll also gain essential tips to avoid hidden fees or confusing contracts, so you can buy with full confidence.
What Is the Minimum Salary for a Car Loan in Saudi Arabia?
When planning to get an installment car in Riyadh, one of the first questions that comes to mind is: Is my salary enough to get approved? And what is the minimum monthly income required to apply for a car loan or financing?
In reality, the answer varies depending on the financing provider whether it’s a bank, a financing company, or a dealership offering direct installment plans.
First: Why Is a Minimum Salary Required?
The minimum salary is one of the key criteria used by lenders to assess your ability to commit to monthly installments. The goal is to ensure that the car loan won’t put excessive pressure on your budget or affect your ability to repay on time. It also ensures that owning a car won’t become a financial burden.
Second: What Is the Minimum Salary According to Each Provider?
1. Banks
Most Saudi banks require a minimum salary between SAR 4,000 and SAR 6,000. Some banks, such as Al Rajhi Bank and Al Ahli Bank, require a salary transfer as a mandatory condition. Government sector employees usually get more favorable terms than private sector employees.
2. Financing Companies
Companies like Abdul Latif Jameel or Al Jabr are often more flexible. Their minimum salary requirement may start from SAR 3,000, and they may not require a salary transfer. Some even offer financing without a guarantor or perfect credit history.
However, interest rates are usually higher than those of banks, but the application process is generally simpler.
3. Dealerships Offering Direct Installment Plans
If you decide to buy an installment car in Riyadh directly from a showroom, you might find offers with a minimum salary requirement starting from SAR 2,500. However, in these cases, a larger down payment or a shorter repayment period is often required.
Some dealerships may also ask for a guarantor or additional collateral depending on the car model or monthly installment value.
Third: Does the Minimum Salary Depend on Job Type?
Yes. Some financing providers offer more flexibility to government and semi government employees, due to the stability of their income. On the other hand, private sector employees or freelancers may face stricter conditions or need to pay a higher upfront amount.
Fourth: What Can Improve Your Chances of Getting Approved?
- A clean credit history with no missed payments.
- A low debt to income ratio.
- Paying a higher down payment than required.
- Having a strong financial guarantor (when needed).
These factors can increase your chances of securing the best deal for your installment car in Riyadh.
What Are the Required Documents and Basic Conditions for Car Installment?
If you’re planning to buy an installment car in Riyadh, there are a few simple documents and conditions you’ll need to prepare to complete the application smoothly. While the requirements may slightly vary depending on the provider (bank, financing company, or dealership), they are generally quite similar. Here’s everything you need to know in a clear and straightforward way:
First: Required Documents
For Saudi Citizens:
- A valid copy of the national ID.
- Salary certificate stamped by your employer.
- Bank statement for the last 3 to 6 months.
- Quotation for the car from the dealership or financing provider.
- Sometimes, a certificate from the General Organization for Social Insurance (GOSI) is required to confirm employment.
For Residents (Expats):
- Valid copies of Iqama and passport.
- Salary certificate from your employer.
- Recent bank statement.
- Valid driver’s license.
- Sometimes, a Saudi guarantor or a salary transfer letter may be required.
Second: Basic Conditions
- Monthly Salary:
The minimum salary varies by provider but usually starts from SAR 3,000 to 4,000. - Employment Duration:
You should have spent at least 3 to 6 months in your current job. - Age:
You typically need to be between 21 and 60 years old at the time of applying. - Credit History:
Some providers check your credit report through SIMAH (the Saudi Credit Bureau). If you have previous defaults, your application might be rejected or face higher interest rates. - Down Payment:
Some offers require a 10% to 20% down payment of the car’s total value. Other offers may allow zero down payment, but usually come with additional conditions. - Car Condition (for used cars):
The car should usually be no older than 5 years, and in most cases, must be free of major accidents.
How to Choose Between a New and Used Car on Installment?
If you’re planning to buy an installment car, you’ll be faced with an important decision: should you go for a new car or a used one? Each option comes with its own advantages and disadvantages, and your choice depends largely on your budget and how you plan to use the car.
Here’s a simple comparison to help you decide:
New Car
Pros:
- Everything is brand new and problem free.
- Comes with a long term dealership warranty.
- Requires little to no maintenance in the beginning.
- Greater peace of mind during use.
Cons:
- Higher price, which means higher monthly installments.
- Depreciates quickly after purchase.
- Financing terms may be more strict.
When to choose a new car:
- If you can afford a higher monthly installment.
- If you plan to keep the car for a long time.
- If you want to avoid early maintenance or reliability issues.
Used Car
Pros:
- Costs less than a new car.
- Usually comes with a more affordable monthly installment.
- You can get a higher spec model for a lower price.
Cons:
- May require more maintenance.
- Limited or no warranty in most cases.
- Needs thorough inspection before buying.
When to choose a used car:
- If you’re working with a limited budget.
- If you want the lowest possible monthly payment.
- If you find a reliable used car from a trusted source.
What Are the Top Tips for Getting a Car on Installment?
If you’re planning to buy an installment car in Riyadh, it’s important to make sure you’re making the right decision before you start. While installment plans may seem simple from the outside, they are long-term financial commitments that require proper planning and smart choices. Here are some practical tips to help you get the best deal:
1. Set a Realistic Monthly Budget
Calculate your monthly income and subtract your fixed expenses, then decide how much you can afford to pay without straining your budget.
2. Pay a Down Payment If You Can
The higher your down payment, the lower your monthly installment and the less interest you’ll pay over time.
3. Compare Multiple Offers
Don’t settle for the first offer you receive. Compare plans from banks, financing companies, and car dealerships, and choose the one with the best terms and lowest total cost.
4. Read the Installment Contract Carefully
Make sure you fully understand the monthly installment, loan duration, final payment, additional fees, and any penalties for late payments.
5. Choose a Car That Matches Your Needs
Think of your car as a tool for transportation, not just something that looks good. Choose a car that fits your family size, fuel consumption, and maintenance costs.
6. Inspect the Car Thoroughly if It’s Used
If you opt for a used car on installment, don’t rely on appearance alone. Ask for a full inspection report to make sure the car is in good condition.
7. Check for Free Insurance or Maintenance
Some offers include free insurance or complimentary maintenance. Ask about these extras—they can save you a lot over time.
8. Choose a Car That Holds Its Value
Some cars depreciate quickly, while others remain in demand for years. Think about resale value before you decide.
9. Use a Trusted Platform Like Soum
Soum is a reliable platform that offers used cars in excellent condition with flexible and easy installment plans. No need to visit multiple dealerships or deal with complicated paperwork.
Final Thoughts, getting an installment car in Riyadh is easier than ever, but success depends on choosing the right deal in terms of price, conditions, and after sales support.
If you’re looking for a trusted source that offers certified used cars with simple financing options, Soum is your ideal solution. We offer a wide range of vehicles at competitive prices with a smooth process, so you can buy your next car with confidence and ease.
