Leasing a used car is one of the most affordable and convenient ways for expatriates in Saudi Arabia to own a vehicle without paying a large amount upfront. Most major banks and finance companies in the Kingdom now offer Shariah-compliant used-car lease programs with flexible terms, low down payments, and options to own the car at the end of the contract.
This guide explains everything you need to know—eligibility, vehicle requirements, payments, 50/50 programs, balloon options, and the key banks offering used-car leasing in Saudi Arabia.
What Is a Used Car Lease in Saudi Arabia?
A used car lease (Ijarah) allows you to choose a pre-owned vehicle and pay for it in monthly installments over 2–5 years. The bank or finance company owns the vehicle during the lease, and you have the option to buy it at the end by paying the remaining balance (balloon payment).
Because it’s Shariah-compliant, the bank earns a fixed profit instead of interest.
For expatriates, leasing is popular because:
- It reduces upfront costs
- It avoids long-term financial commitment
- It provides predictable monthly payments
- It offers an option to own the car later
Who Can Apply? (Eligibility for Expats)
Most banks have similar eligibility rules for expatriates:
Basic Requirements
- Valid Iqama (residency permit)
- Saudi driving license
- Monthly income typically SAR 4,000 minimum
- Age usually 21–65 (some banks allow up to 75 for retirees)
- Employment proof or salary transfer to the bank
Documents Needed
You generally need:
- Iqama copy
- Passport copy
- Saudi driving license
- Salary certificate + employer letter
- Last 3 months’ bank statements (if salary not transferred)
- Vehicle quotation from an approved dealer
Vehicle Requirements: Age, Mileage & Value Limits
Banks and finance companies set strict criteria for used vehicles to qualify for leasing.
Typical Requirements Across Banks
- Car Age: Usually not older than 3–5 years
- Mileage:
- Acceptable range typically below 80,000 km
- Some banks allow up to 50,000 km per year of car age
- Minimum Car Value: Often SAR 30,000+
Why These Limits?
Younger, lower-mileage vehicles:
- Reduce maintenance risk
- Maintain resale value
- Ensure safety and compliance
This also protects expats from leasing cars that may later require expensive repairs.
Down Payment, Balloon Payment & Monthly Installments
Understanding payment structure is crucial.
1. Down Payment
Banks offer:
- 0% down payment for salary-transfer customers (Al Rajhi, Albilad, Alinma)
- 5–15% down payment for others
A higher down payment reduces your monthly installment.
2. Balloon (Final) Payment
Also known as the residual payment, this is the amount you pay at the end of the lease if you want to own the car.
Typical ranges:
- 15% to 50% of the car value
- Al Rajhi and Alinma allow balloon payments up to 25%–60% depending on customer profile
- Some banks (e.g., Albilad) allow plans with no balloon payment
Choosing a balloon payment lowers the monthly installments but requires a larger amount at the end.
Important: If you do not pay the final (balloon) payment at lease maturity and decide not to buy the car, you can usually return it to the bank or leasing company. However, you do not become the owner automatically — ownership only transfers once the final payment is settled. If you fail to pay but continue to keep the car, the bank has the right to repossess it according to the lease terms.
3. Tenure
Most leases range from:
- 24 to 60 months (2–5 years)
Shorter leases mean higher monthly payments but lower total cost.
50/50 Lease Program for Used Cars
Some banks offer a special 50/50 Program, especially attractive for expatriates.
How It Works
- Pay 50% of the vehicle price upfront
- No monthly installments for two years
- Pay the remaining 50% at the end of the period
Offered by banks like Alinma Bank, this is ideal for expats who:
- Have some cash available
- Want to avoid long-term monthly payments
- Prefer short contracts
You may also choose to pay the bank’s profit upfront or spread it.
Leading Banks Offering Used-Car Leasing to Expats
1. Al Rajhi Bank (Used Car Lease)
- 0% – 5% down payment
- Balloon payment up to 25% (salary transfer) or 20%
- Car must be from approved dealer (typically ≤5 years old, ≤80,000 km)
- Lease up to 60 months
- Shariah-compliant Ijarah program
2. Riyad Bank (Used Car Lease)
- 10% down payment (typically)
- 15% balloon payment
- Accepts vehicles with mileage up to 50,000 km per year of age
- Eligibility for expatriates:
- Minimum salary: SAR 4,000 (salary transfer)
- SAR 8,000 (non-salary transfer)
- Flexible 12-36 month terms
Insurance Requirements
Auto lease contracts in Saudi often include:
- Comprehensive insurance (mandatory)
- Coverage must remain active throughout the lease term
Banks may offer their own insurance packages or allow external providers, depending on policy.
Used Car Lease Calculator
Advantages of Leasing a Used Car as an Expat
✔ Lower upfront cost
Ideal if you do not want to commit large cash.
✔ Newer cars with lower payments
Used cars offer lower monthly installments than new cars.
✔ Easy ownership transfer
Simply pay the balloon amount at the end.
✔ Flexible exit options
Return, upgrade, or buy.
✔ Shariah-compliant financing
No interest-based borrowing.
Things to Watch Out For
- Check the car’s inspection report carefully
- Confirm end-of-lease conditions
- Understand early settlement fees
- Make sure insurance coverage is clear
- Verify balloon payment amount before signing
Should You Lease a Used Car in Saudi Arabia?
If you’re an expatriate planning to stay in the Kingdom for 2–5 years and prefer predictable costs with a lower upfront investment, leasing a used car is a smart and practical choice. You enjoy flexibility, manageable monthly payments, and the chance to own the car later—without the risks of buying an older vehicle outright.