Many people struggle to purchase a used car because of high upfront costs, but installment plans in Saudi Arabia have made the process easier by removing the need to pay the full amount at once. Banks, finance companies, dealerships, and online platforms all offer flexible solutions to fit different budgets and requirements. Below, we review the key financing channels, their rates, and terms to help you choose the optimal payment plan.
Secured Bank Financing and Interest Rates
Saudi banks such as Al Ahli, Al Bilad, and Al Jazira provide financing plans for purchasing used cars, requiring down payments of 10% to 30% of the vehicle’s value. Borrowers may spread the remaining balance over terms ranging from 12 to 60 months, based on their repayment capacity.
Al Ahli sets its annual interest rates from 4%, while Al Jazira’s rates hover around 6%. Al Bilad’s rates vary according to each applicant’s credit profile. Approval requires a stable monthly income of at least 5,000 SAR and submission of bank statements for the past three months. These criteria ensure a secure process and transparent lending standards.
Quick Car Financing Companies with Flexible Procedures
Many buyers turn to specialized car financing providers such as Abdul Latif Jameel and Alyusr for rapid approval. These companies require a down payment starting at 20% and deliver the financing contract within hours.
Customers can select a repayment term between 12 and 50 months, with interest rates ranging from 7% to 9% per annum, depending on the vehicle’s age and model. This arrangement ensures fast access to financing without lengthy banking procedures.
Installment Plans through Used Car Dealerships
Many used car dealerships in Riyadh, Jeddah, and Al Khobar partner with banks and financing companies to offer direct installment plans. These arrangements feature interest rate discounts or complimentary maintenance services for a limited time and allow customers to inspect and test drive the vehicle before signing the contract.
The minimum down payment typically starts at 15%, and interest rates vary according to the promotional period and the dealership’s location. This approach provides reassurance by including ongoing maintenance support and after sales service from the dealership.
Online Platforms: Shopping Comfortably at Home
The digital revolution has introduced apps such as Mstaml and Haraj Plus, allowing users to apply for vehicle purchase installment plans directly from their smartphones. These platforms require a down payment of around 20% and offer repayment periods between 12 and 45 months. They automatically calculate the annual interest rate, typically between 6% and 8%, based on the car’s model and year of manufacture. This approach saves both time and effort, since buyers can complete every step without visiting a physical office.
Choosing the Best Financing Method
Clients who value security opt for banks that offer low interest rates starting at 4% annually, provided they demonstrate a stable income and strong creditworthiness. Those who prioritize speed turn to specialized finance companies that charge higher rates of 7% to 9% annually but complete approval within hours.
Dealership installment plans let buyers test drive their chosen vehicle and enjoy maintenance packages as well as complimentary gifts. Meanwhile, customers seeking digital convenience use online platforms that combine a wide selection with streamlined applications, offering moderate rates of 6% to 8% annually.
Tips Before Signing an Installment Contract
It is highly recommended to have the vehicle thoroughly inspected by a qualified expert to assess the condition of the engine, bodywork, and tires before committing to any financing agreement. Comparing various offers from banks, financing companies, dealerships, and online platforms can help secure the lowest down payment and most favorable interest rate.
Make sure to calculate the total cost, including interest, to avoid unexpected expenses. Look for contracts that allow early repayment without penalties, as this can significantly reduce the overall financial burden. Opting for a larger down payment can lower your monthly installments, making long term payments more manageable.
Recommended Apps for Car Installments
The Mstaml app is a great option for browsing thousands of used cars across different regions in Saudi Arabia with just a few clicks. It offers instant financing approvals, clearly outlining the down payment, repayment period, and interest rate within minutes.
Another recommended app is Haraj Plus, which enables users to reach direct agreements with sellers and complete procedures remotely. This makes owning a used car more accessible, especially for young buyers and Gulf families working with limited budgets.
My passion for cars began long before my journey into automotive journalism in 2015. Even though I'm originally a pharmacist, the thrill of speed, elegant designs, and roaring engines has always had my heart. Today, I channel this passion by exploring the newest cars and sharing my experiences with fellow car enthusiasts across the GCC.
