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Sometimes you find someone who wants to sell his car but the problem is that the car is on lease by a bank. No matter you are in Riyadh, Jeddah or Dammam, the car lease transfer process is the same.
Why car lease transfer is a better option?
The lease transfer is always a better option both for the buyer and the seller of the car due to the following reasons;
- If the seller returns the car to the bank, he will have to pay heavy damages for the early termination of the contract.
- The buyer has the assurance that the car was insured all the time, so in case of an accident, it is repaired by the manufacturer’s workshop.
- The buyer pays a lower amount for the lease of the car as compared to the new one.
How to transfer a car lease?
The car lease transfer procedure in Saudi Arabia starts with both the buyer and the seller visiting the bank along with the required documents;
- Iqama of the buyer and seller.
- Driving license of the buyer.
- Copy of the buyer’s passport.
- Print proof of Saudi National Address.
- Salary Certificate of the buyer with Chamber of Commerce attestation.
- Buyer’s Bank Statement for the last 6 months.
- The intent to lease transfer is signed by both the buyer and the seller.
- Minimum Salary: SR 5,000 for expats.
- Minimum Employment Tenure: 6 months.
Approval for the lease transfer
- The bank will send all the documents to its head office for approval which might take a week.
- Once the buyer account is approved, the bank will share the new payment schedule.
- The buyer can deny the car lease transfer if the payment schedule is not acceptable to him.
The payment of processing fee
The next step in the car lease transfer procedure is to make the following payments through SADAD.
- Processing charges (around 1% of the lease amount).
- First 2 Installments in advance.
Soon both the buyer and the seller will receive a message for the transfer of the car lease from Muroor.
- Now the buyer can visit the bank to take the letter of authorization to drive the car.
- The new Istimara will be made available within a week from the bank.
- Here is the customer guide for the NCB car lease service.
Transfer of Car ownership from Bank
At the end of the lease term, you can transfer the car ownership from the bank to your name. You need the following for such a transfer;
- Valid Fahas.
- Buy the Insurance in your name.
- Pay off all the dues to the bank.
- Submit all the above-mentioned required documents for the transfer of car ownership to the bank.
- Pay the transfer fee i.e. around SR 525 to the bank.
Get the Istimara within 2 weeks of submitting the request from the same bank.
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