Buying a used car in Saudi Arabia can save you money compared to purchasing new, but it requires careful planning and thorough checking. As an expatriate, understanding the specific requirements, costs, and processes will help you make an informed decision and avoid costly mistakes. This guide covers everything you need to know before making your purchase.
Residency and Documentation Requirements
Before you can even think about buying a car, you need to have the proper documentation in place. Saudi Arabia has specific requirements for expatriates who want to own vehicles.
Essential Documents:
You’ll need a valid Iqama (residency permit) and a Saudi driver’s license. These are mandatory for all vehicle-related transactions in the Kingdom. Without them, you cannot register a car in your name or complete the ownership transfer.
Ownership Limits:
As an expatriate, you’re limited to owning a maximum of two cars at any time. Saudi nationals don’t face this restriction, but for expats, this is a firm rule enforced by the traffic authorities.
Valid Insurance:
Third-party insurance is legally required before you can complete any car purchase or transfer. You cannot register or renew vehicle registration without valid insurance coverage.
Budget Planning: The Real Cost of Ownership
The purchase price is just the beginning. Factor in all ongoing costs to avoid financial surprises.
Registration Fees (Istimara):
Vehicle registration (Istimara) in Saudi Arabia is valid for three years and must be renewed before expiry.
Starting from 2024, Saudi Arabia charges annual fees for vehicle registration based on:
- For vehicles manufactured in 2016 or later:Â Fuel efficiency rating
- For vehicles manufactured in 2015 or earlier:Â Engine capacity
The annual fee typically ranges from SAR 100 to SAR 400+ depending on your vehicle’s fuel efficiency or engine size. More fuel-efficient vehicles pay lower fees, while vehicles with poor fuel economy or large engines pay higher fees. When buying a used car, check the vehicle’s model year and fuel efficiency to understand your annual registration costs.
Expired Registration Penalty: If you let your Istimara expire, you’ll face a fine of SAR 100 per year after the 60-day grace period.
Vehicle Inspection (Fahas):
Periodic vehicle inspection costs SAR 115 for small vehicles. If your car fails the inspection, you’ll pay SAR 38 for a re-inspection within two weeks. New private cars need their first inspection three years after registration, then annually thereafter. Used cars being purchased typically require a valid inspection certificate.
Insurance Costs:
Third-party insurance is mandatory and covers damages you cause to others up to SAR 10,000,000. Prices for third-party coverage start from a few hundred riyals annually, depending on your driving history, age, and vehicle type.
Comprehensive insurance costs significantly more—typically between SAR 1,500 and SAR 8,000 per year—but covers your own vehicle against accidents, theft, fire, and natural disasters. For used cars with lower value, third-party insurance makes economic sense. For newer or higher-value used cars, comprehensive coverage provides better protection.
Fuel Costs:
As of January 2026, fuel prices in Saudi Arabia are SAR 2.18 per liter for Gasoline 91, SAR 2.33 per liter for Gasoline 95 and SAR 2.88 per liter for Gasoline 98. Diesel costs SAR 1.79 per liter. Calculate your expected monthly fuel consumption based on your daily commute and lifestyle. A fuel-efficient car will save you hundreds of riyals monthly.
Ownership Transfer Fees:
When buying a used car, you’ll pay SAR 150 as the government transfer fee through SADAD, plus an additional SAR 230 Absher processing fee included in the total payment—bringing the total transfer cost to approximately SAR 380.
Depreciation:
Used cars continue to depreciate, though at a slower rate than new vehicles. Popular Japanese brands like Toyota and Honda hold their value better than less common brands, which matters when you eventually sell.
Choosing the Right Car
Not all used cars are created equal. Smart choices save money on maintenance and improve reliability.
Fuel Efficiency Matters:
With daily temperatures exceeding 50°C in summer and long distances between cities, fuel consumption adds up quickly. Look for vehicles with good fuel economy ratings, especially if you have a long commute. Efficient cars also benefit from lower annual registration fees.
Parts Availability and Service Costs:
Stick to brands with strong presence in Saudi Arabia. Toyota, Honda, Nissan, Hyundai, and Kia dominate the market for good reason—their parts are widely available, service centers are everywhere, and mechanics are familiar with them. European and American brands can be more expensive to maintain due to higher parts costs and specialized servicing requirements.
Popular reliable models for the Saudi market include Toyota Camry, Honda Accord, Nissan Altima, Hyundai Sonata, and Kia Optima for sedans. For SUVs, Toyota Land Cruiser, Nissan Patrol, and Hyundai Tucson are proven choices.
Climate Considerations:
Make sure any car you consider has a cooling system designed for extreme heat. Check that the air conditioning works perfectly—in Saudi Arabia, this isn’t a luxury, it’s essential for safety and comfort.
Checking Vehicle History and Condition
Never skip this step. Hidden problems can turn a good deal into an expensive mistake.
Accident History Check:
Use the Absher platform to check accident history. Log in to your Absher account, navigate to Vehicle Services, and select Traffic Accident Inquiry. You’ll need the car’s 8-digit chassis number from the registration card. The system shows registered accidents from the past two years.
Alternatively, services like Mojaz provide comprehensive vehicle history reports that include accident records, number of previous owners, and insurance claims. This costs a small fee but can save you from buying a car with serious hidden damage.
Outstanding Fines:
Check for unpaid traffic violations through Absher before completing the purchase. These fines must be cleared before ownership transfer. The seller should pay these, but verify this yourself to avoid delays.
Physical Inspection is Essential:
Even if the car has a clean history report, thoroughly inspect it yourself or hire a professional. Look for rust underneath (check the chassis carefully), oil or coolant leaks around the engine, uneven paint or panel gaps indicating previous accident repairs, worn tire tread and uneven wear patterns, and signs of water damage in the interior.
Test the Engine:
Listen for unusual noises when the engine is cold and when it’s warm. Check for excessive smoke from the exhaust—white smoke can indicate coolant leaks, blue smoke suggests burning oil, and black smoke means fuel system issues.
Check All Fluids:
Look at engine oil, brake fluid, transmission fluid, and coolant levels. Dark, dirty oil might mean poor maintenance. Low fluid levels could indicate leaks or neglect.
Mileage vs Age: What Matters More?
There’s a common belief that lower mileage is always better. The truth is more nuanced.
Lower mileage generally indicates less wear on engine and transmission components. However, a 5-year-old car with 80,000 km and full service records from authorized dealers is often safer than a 3-year-old car with 30,000 km and zero service history.
Cars that sit unused for long periods can develop problems—seals dry out, fluids degrade, and battery and electrical systems deteriorate. A well-maintained car driven regularly is healthier than one sitting idle most of the time.
What to prioritize: Complete service history from authorized centers, regular oil changes at proper intervals, evidence of preventive maintenance, and consistent use rather than extended idle periods.
Pre-Purchase Professional Inspection
Even if you’re mechanically knowledgeable, consider getting a pre-purchase inspection from a trusted mechanic or authorized inspection center. Many workshops across Saudi Arabia offer this service.
A professional inspector will check the engine and transmission condition, brake system and suspension components, electrical systems and electronics, frame integrity and structural damage, and compliance with Saudi technical specifications.
The inspection typically costs between SAR 200-500 but can save you thousands by identifying problems before you buy.
The Test Drive
Always insist on a proper test drive before making any commitment.
Start with a cold engine to catch starting difficulties. Many problems only show up when the engine hasn’t warmed up yet.
Test at highway speeds on major roads, not just around the neighborhood. The car should accelerate smoothly without hesitation or jerking. Check for unusual vibrations at highway speeds.
Test the brakes thoroughly. They should respond immediately without pulling to one side. Listen for grinding or squeaking sounds.
Try rough surfaces to check the suspension. Any clunking or excessive bouncing indicates worn components.
Run the air conditioning at maximum for at least 10 minutes. In Saudi’s extreme heat, weak AC is a serious problem.
Understanding Car Financing Options
Many buyers finance their used car purchase rather than paying cash upfront.
Bank Financing:
Most major Saudi banks offer car loans (or Murabaha financing for Shariah-compliant options). Typical requirements include minimum age of 21-23 years, minimum salary of SAR 5,000, employment for at least 6 months, and good credit history.
Interest rates for used cars are typically higher than for new cars, ranging from 4% to 8% per year depending on the bank, your credit score, and loan term.
Car Age Restrictions:
Banks typically won’t finance vehicles older than 5-7 years at the time of purchase. Some banks are more flexible than others, so check with multiple lenders.
Required Documents:
You’ll need a valid Iqama, valid driver’s license, salary certificate from employer, bank statements (usually 3-6 months), and car quotation or details from the seller.
Loan Terms:
Most banks offer financing for 1-5 years, with some extending to 6 years for newer used vehicles. Shorter loan terms mean higher monthly payments but less total interest paid. The 20/4/10 rule is a good guideline: 20% down payment, maximum 4-year term, and keep payments within 10% of your monthly income.
Dealer Financing:
Some dealers offer in-house financing without going through banks. This can be faster and require less documentation, but carefully compare the total cost—rates may be higher than traditional bank loans.
Negotiation: Getting the Best Price
Used car prices in Saudi Arabia are almost always negotiable, unlike new car prices which are usually fixed.
Do your market research first. Check similar cars on platforms like Haraj, Syarah, and CarSwitch to understand fair market value. Use the car’s age, mileage, condition, and any needed repairs as negotiation points.
Common negotiation tactics: Point out maintenance items that need attention, reference lower prices you’ve found for similar vehicles, be prepared to walk away if the price isn’t right, and negotiate the total price including transfer fees and any immediate repairs needed.
Timing matters. Sellers may be more flexible at month-end or if they’ve been trying to sell for a while.
Transferring Ownership Through Absher
Saudi Arabia has made vehicle ownership transfer entirely digital through the Absher platform.
The Process:
The seller initiates the transfer request through their Absher account by entering vehicle details, buyer’s Iqama number and date of birth, agreed sale price, and seller’s bank IBAN for payment.
The buyer then logs into their Absher account to accept the request, provides their bank IBAN, and confirms the purchase details.
The buyer makes payment to the government account shown in Absher (not directly to the seller) within 72 hours during banking hours. The total includes the vehicle price plus SAR 230 Absher fee.
After payment confirmation, the seller delivers the vehicle and keys. Once the buyer confirms receipt in Absher, the government releases payment to the seller’s bank account within a few hours.
Collecting Your New Registration (Istimara):
After transfer completion, you can either request home delivery through Saudi Post (Wasel service) by paying around SAR 17.25, or collect in person from the nearest Traffic Department (Muroor) after booking an appointment through Absher.
Critical Requirements for Transfer:
Both parties need active Absher accounts and bank accounts with IBAN. The car must have valid Fahas inspection (within 30 days), and the buyer must have valid insurance in their name before starting the transfer. All outstanding traffic fines must be paid by the seller.
Insurance Transfer and Coverage
You cannot transfer the seller’s existing insurance to your name. You must purchase new insurance in your name before completing the ownership transfer.
Shop Around for Insurance:
Use comparison platforms like Tameeni.com to compare quotes from multiple insurance companies. Prices can vary significantly for the same coverage. Provide accurate information about your driving history, age, and vehicle details to get proper quotes.
Required Coverage:
Minimum legal requirement is third-party insurance covering damages to others. Comprehensive insurance is recommended if your car’s value justifies the additional cost, if you have a car loan (often required by the bank), or if you want protection against theft or total loss.
Payment Safety
Protect yourself during the transaction.
Use the Absher System: The safest method is completing the entire transaction through Absher, where payment goes to a government account and is only released to the seller after you confirm receiving the vehicle.
If Paying Outside Absher: Use bank transfers rather than cash for large amounts, get a signed sales agreement with full car details (make, model, year, VIN, plate number), agreed price, date of sale, and signatures of both parties.
Never pay fully before: Completing a thorough inspection, taking a proper test drive, verifying the accident history, and confirming all documents are genuine.
Legal Compliance Checklist
Before completing the purchase, verify that the car has valid Istimara (registration card) showing correct owner details, valid Fahas inspection certificate, no outstanding fines or violations, no loan liens or legal holds on the vehicle, and compliance with Saudi technical specifications (especially for imported vehicles).
Resale Considerations for the Future
Think about resale value from day one.
Keep All Records: Maintain a complete file of service receipts, repair invoices, insurance renewals, Fahas certificates, and original purchase documents.
Choose Popular Models: Vehicles from Toyota, Honda, Nissan, Hyundai, and Kia have consistent demand among both expatriates and locals, making them easier to resell when the time comes.
Maintain Properly: Regular servicing at authorized centers helps maintain value. Keep the car clean and well-maintained—first impressions matter when you sell.
Common Mistakes to Avoid
Skipping the inspection: Never buy based solely on appearance or seller’s word.
Ignoring service history: A car without maintenance records is a gamble.
Rushing the decision: Take time to inspect properly and think it over.
Forgetting running costs: Budget for insurance, registration, maintenance, and fuel from day one.
Buying the wrong brand: Choosing uncommon brands because they’re cheaper upfront often costs more in maintenance.
Final Thoughts
Buying a used car in Saudi Arabia as an expatriate is straightforward if you follow the proper steps. Start with clear budget planning that includes all ownership costs, choose reliable brands with good parts availability, thoroughly check vehicle history and condition, always take a comprehensive test drive, understand your financing options and requirements, use the Absher system for safe ownership transfer, and keep all documentation for future resale.
The used car market in Saudi Arabia offers good value, but informed buyers get the best deals. Take your time, do your research, and don’t let anyone rush you into a decision. A few extra days of careful checking can save you years of problems and thousands of riyals in unexpected repairs.
This may change as regulations are frequently updated. Always verify current requirements on official government portals including Absher (absher.sa) and Saudi Traffic Department before making your purchase.