Car through Dealership or Bank

Fredrickjones wrote:

Hi all,
I recently moved to Riyadh and not sure as to the system of most convenient means of buying a car. I am interested in buying a car (new or no more than 2/3 years old). Am i better off going to a dealership like Abdul Latif Jameel and using their financing or best to go to a bank and do it through them (either . a bank loan or car leasing with them). Which makes the most of my money?

THanks

Hello,
If you have enough cash then purchase the car on cash. Buying a car on lease looks like a good option but it has drawbacks like:-
a) car will be under the name of financer like a bank
b) bank profit rate is a lot higher and you will buy the car for a lot higher price
c) most of installment plan is for 3-4 years, ensure you will be keeping your job until this time
d) if you had an accident and car is total loss, you will loose all the installment payments and return will be very less. for example, after 2 years of paying installment you will leave with nothing. It depends on insurance and contract terms
e) At the end of the long term your will be priced half of what you paid

if you are low on cash, I suggest you get a personal loan with lower interest rate. Go for a car with go re-sale value and easy to get serviced. Pls let me know if you need to know more.

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