Purchasing a used car in Qatar presents a practical and cost-effective alternative to investing in new vehicles, especially given the often prohibitive prices of brand-new models. As the demand for second-hand cars rises, various banks in Qatar have developed specialized loan products aimed at facilitating the financing of older vehicles. These tailored loans enable customers to acquire used cars without the burden of a significant upfront payment, making vehicle ownership more accessible.
The Qatar used car market is expected to grow significantly, with estimates projecting a rise from USD 579.34 million in 2024 to USD 837.54 million by 2029. However, challenges such as high bank loan interest rates and the competitive pricing of Chinese vehicles have impacted demand.
As interest rates gradually decrease and financing options expand, the used car market is anticipated to rebound, particularly among consumers with high purchasing power. In this context, banks are stepping up their efforts to provide clear guidelines and structured repayment plans, making it easier for individuals to navigate the road to vehicle ownership. The following sections we will delve into the specific banks in Qatar that offer loans for purchasing used cars and highlight the key features of their offerings.
List of Banks Offering Loans on Purchasing Old Cars in Qatar
Recognizing that affordability and convenience are paramount for consumers, banks in Qatar have introduced a range of competitive financing options. These options feature diverse interest rates, flexible repayment terms, and attractive perks, catering to both Qatari nationals and expatriates.
As a result, customers can choose loan products that best suit their financial circumstances, whether they prioritize lower interest rates, longer repayment periods, or additional benefits like discounted maintenance services.
1. Commercial Bank of Qatar
Website: cbq.qa
Commercial Bank of Qatar offers a convenient solution for individuals seeking to finance the purchase of used cars. With a variable interest rate starting at 7% per annum (3.77% flat rate), the loan is available to customers who transfer their salary to the bank. The vehicle’s age, however, must not exceed seven years by the time the loan reaches maturity.
Customers can enjoy maximum repayment terms of up to 72 months for Qatari nationals and 48 months for expatriates. Additionally, the loan comes with an exclusive offer: during the promotional period from August 11 to November 11, 2024, borrowers will receive a one-time voucher from Titanium, allowing them to save 50% on pearl car polishing services.
Early settlement of the loan is possible, though charges may apply as per the bank’s Tariff of Charges. However, there is no fee for financing against salary. This offer combines flexible repayment options with added benefits, making it an attractive option for those in Qatar looking to purchase a pre-owned vehicle.
Also Read: How to Get a Bank Loan for Your Startup in Qatar?2. Al Jazeera Finance “Tamweel”
Website: aljazeera.com.qa
Al Jazeera Finance’s “Tamweel” vehicle financing service offers a convenient solution for individuals in Qatar looking to purchase a car, whether new or used. This financing option is available to both Qataris and expatriates, making it accessible to a wide audience.
One of the key advantages of this service is its flexible repayment period, allowing customers to choose a plan that suits their financial situation. Additionally, a grace period of up to three months is offered, providing some breathing room before payments begin.
Tamweel also ensures that all deals are Sharia-compliant, adhering to Islamic financial principles. Customers can benefit from competitive offers through selected car agencies. To apply, individuals must provide a bank statement for the last three months, a recent salary certificate, a copy of their Qatari ID, and for expatriates, a copy of their passport. A recent car quotation addressed to Al Jazeera Finance “Tamweel” is also required. This service streamlines the process of car ownership in Qatar with ease and flexibility.
3. First Finance
Website: ffcqatar.com
First Finance offers an easy and convenient solution for purchasing both new and used cars in Qatar. Catering to both Qataris and expatriates, the company provides simple procedures and flexible credit conditions, making the process stress-free. For Qataris, there’s the added benefit of a 0% down payment, while expatriates can enjoy a 10% down payment. Installments are available for up to 72 months for Qataris and 48 months for expats, with a grace period of up to 3 months.
First Finance prides itself on offering competitive profit rates, and the financing is Shari’ah-compliant. Additionally, there are no administrative charges, further easing the financial burden.
Required documents include a copy of a Qatari ID or passport for expatriates, a three-month bank statement, a salary certificate, and quotations from the agency or showroom, which must be issued in the name of First Finance. This reliable and customer-friendly service ensures individuals can finance their dream car with ease.
4. Qatar National Bank Vehicle Loan
Website: qnb.com
QNB offers a comprehensive vehicle loan to help individuals in Qatar purchase new or pre-owned cars. With flexible repayment options ranging from 6 to 72 months, the loan provides up to 100% financing, making it easier to own a car. Applicants need to submit a salary certificate, a vehicle quotation from an approved dealer, and valid identification documents.
The loan is available to both citizens and expatriates, with low interest rates and no management fees. QNB also offers discounted comprehensive insurance and down payment assistance.
The interest rate varies by customer segment, starting from 7.05% for salaries between QAR 2,000 and 14,999, with lower rates for higher salary brackets. Fast approval ensures a smooth process, enabling customers to drive away with their desired vehicle.
5. QIB Car Finance
Website: qib.com.qa
Qatar Islamic Bank (QIB) offers flexible car financing options for both new and used vehicles, providing fully Shari’a-compliant packages. Their car finance comes with competitive profit rates, no administration fees, and requires no guarantor, ensuring quick approvals from the first visit.
Customers enjoy fixed monthly installments, transparent services, and comprehensive car Takaful (insurance). QIB also provides a 24/7 direct sales team and the option for Takaful Finance.
For eligibility, Qatari nationals can finance up to QR 2 million with no down payment, while residents can borrow up to QR 400,000 with a 20% down payment. Monthly installments are capped at 75% of the basic salary for nationals and 50% of the total salary for residents. Age requirements range from 18 to 65 for Qatari nationals and 21 to 60 for residents, with confirmed employment status being essential.
6. Dukhan Bank
Website: dukhanbank.com
Dukhan Bank offers a seamless car financing solution in Qatar, allowing customers to purchase their dream vehicle with ease. The process is Shari’ah-compliant, quick, and hassle-free, eliminating the need for branch visits or tedious paperwork. Customers can get vehicle finance approval in under 24 hours, making it one of the fastest ways to secure car loans in Qatar.
The financing option is available for both Qataris and expatriates, with a minimum salary requirement of QAR 10,000. Qataris can finance up to QAR 2 million for a maximum of six years, while expatriates can finance up to QAR 400,000 for a maximum of four years. The vehicle’s age should not exceed seven years by the time the loan matures.
The loan comes with features such as free life insurance, attractive profit rates, and full transparency with no hidden costs. Customers can apply by contacting the 24-hour Customer Service Centre or visiting any Dukhan Bank branch.
7. Ahli Bank
Website: ahlibank.com.qa
Ahlibank offers auto loans in Qatar for purchasing old cars, with attractive features for both Qataris and expatriates. Qataris can borrow up to QAR 2 million, including interest, with a repayment term of up to 72 months. Expatriates can borrow up to QAR 400,000 with a repayment period of 48 months. Monthly payments are fixed, and competitive insurance rates with free roadside assistance are available.
Eligibility criteria differ based on residency. Qataris must be at least 18 years old, earning a minimum salary of QAR 6,000, with monthly payments not exceeding 75% of their salary. Expatriates must be 21 or older, earning at least QAR 8,000, with a 20% down payment and payments capped at 50% of their salary.
To apply, visit any Ahli Bank branch, complete the application form, and submit the required documents. Approval is swift, typically within 30 minutes, ensuring a fast and convenient process for customers.
Tips for Buying a Car with Financing in Qatar
Buying a car with financing in Qatar can be an exciting yet daunting process. By following these tips, you can navigate the financing process with confidence and secure a vehicle that meets your needs while staying within your budget.
To ensure a smooth experience and make informed decisions, below mentioned are some essential tips to consider:
- Assess Your Budget: Before exploring financing options, evaluate your financial situation. Determine how much you can afford to spend on monthly payments without straining your budget. Remember to factor in additional costs such as insurance, fuel, maintenance, and registration fees.
- Research Loan Options: Various banks in Qatar offer auto loans with different interest rates, repayment terms, and features. Take the time to compare these options to find the best fit for your needs. Look for loans with lower interest rates, flexible repayment periods, and minimal fees.
- Check Your Credit Score: Your credit score plays a significant role in the financing process. A higher score can lead to better loan terms. Obtain a copy of your credit report and address any discrepancies before applying for a loan.
- Understand Loan Terms: Carefully review the terms and conditions of the loan agreement. Pay attention to the interest rate, repayment period, and any penalties for early repayment. Understanding these details will help you avoid unexpected costs.
- Negotiate the Price: When purchasing a car, don’t hesitate to negotiate the price with the dealer. Research the market value of the vehicle to ensure you are getting a fair deal.
- Consider Total Cost of Ownership: Evaluate the total cost of owning the vehicle, including fuel efficiency, maintenance, and resale value. Opt for a car that aligns with your long-term financial goals.
To Conclude
Buying a car with financing in Qatar can be a rewarding experience when approached with careful planning and informed decision-making. By assessing your budget, researching various loan options, and understanding the terms of financing, you empower yourself to make choices that align with your financial goals. Checking your credit score beforehand can enhance your chances of securing favourable loan terms, while negotiating the vehicle’s price ensures you get the best deal possible.
Additionally, considering the total cost of ownership helps you to make a more comprehensive evaluation of the vehicle you wish to purchase. This includes understanding fuel efficiency, maintenance costs, and potential resale value.
Remember to always read the fine print in any loan agreement to avoid unexpected surprises later on. With a proactive approach and a keen awareness of your financial landscape, you can confidently navigate the car financing process in Qatar. Ultimately, this not only allows you to own a vehicle that suits your lifestyle but also ensures that your financial well-being remains intact. By following these guidelines, you set yourself up for a successful car purchase that enhances your mobility and enriches your life in Qatar.
