Since the time leasing companies and banks have started issuing cars on lease, almost everyone is interested in new cars. You can drive a new car and you just have to pay few thousand riyals in the beginning. You pay them in installments as you earn money. You get away from the headache of paying repair and maintenance cost of a second-hand car. You don’t have to save money to buy a new car. Today, we shall be discussing the procedure you need to adopt to get a car on lease. We shall not only be covering the legal procedure but also giving some tips to you.
First, you need to decide which car are you going to buy? It should be the first step. Let’s say you have decided to buy Toyota Corolla.
Next step is to check where is it available at cheaper rates? Every bank has different rates. The best way to check and compare the rates is to mention the price of the vehicle to the banks along with the name of the car. You want to buy Toyota Corolla 2015 at worth SR 80,000 cash price on a lease term of 5 years, you would pay an advance of SR 10,000. Present the same scenario to 4, 5 banks and take their schedule of repayment and charges. Obviously, you would go for the one providing car on lease at the cheapest interest and insurance charges. I have heard from my friends that Arab National Bank provides car leasing at the cheapest rates but you should make your research. Ask for the documents required in this regard.
If you don’t have a bank account and you cannot even open it. You can go to other leasing companies. There are several leasing companies in Saudi Arabia dealing leasing of new cars. You can go to Abdul Latif Jameel or Al Yusr or any other one. Again, it is better to do some research before selecting leasing company. Present the same scenario to 3,4 companies and get their quotes. Keep in mind, these leasing companies are always expensive than the banks. Ask for the documents required in this regard.
At the time of comparing the quotes of different banks and leasing companies, you should look at the effective rate of interest. It is a difficult calculation and if you cannot perform it, you should look at the total amount you need to pay in all these years. Some companies charge more interest and fewer insurance charges and other companies charge the opposite way. So, don’t be confused with this.
After deciding the leasing bank or leasing company, you need to go there with the required documents and that’s it. They will start the processes and soon you will be driving your new car.
Final Exit while you have Car on Lease: You must have to transfer the leased car from your name to someone else name before going on final exit. It is very easy to do it as you can search for the intended buyer on Facebook or Expatriates.com and work on the amicable settlement. Banks and leasing companies are only concerned to have someone in your place to pay off the remaining installments. If you go on final exit without paying them or transferring your car to another person, they may register a police complaint about the missing car and unpaid installment. You may have to counter issues if you come back to Saudi Arabia at some later time.
Transfer of Sponsorship while you have Car on Lease: If you have found another better opportunity and want to transfer your sponsorship to another employer, don’t worry about the leased car. Your leased car will not have any impact on the transfer of sponsorship.