Job Discussion Forums

[AirHorn]

I'm in the U.S. and going to Saudi Arabia. I just bought a new car (nothing special) and I can't sell it because I'm upside down on the payment since it is so new. I get a transportation allowance in KSA that would cover the amount it would cost to actually ship the car to Jeddah. But what will I be charged to drive off with it? I assume there is some type of port tax but I can't find what it is. Has anyone else done this? SHOULD i do this? Any insight would be appreciated.

[johnslat]

Dear AirHorn,

MOTOR VEHICLES
Shipments with vehicles in containers are not allowed in Saudi Arabia
Shippers name should match on all documents (i.e. passport, shipping documents and vehicle ownership)
One car allowed per family and must be in accordance with Saudi Arabian standards
Vehicles of model year 1974 or older cannot be imported
Many other restrictions apply to cars of foreign residents
The following information must be furnished to the steamship company for all autos going to Saudi Arabia: make, model, year, color, engine and chassis number, license and serial number, weight, dimensions of auto with bumpers, owners address at origin, date car was last registered in the U.S., Customers destination address, including phone contact overseas
Auto must be registered as soon after clearance as possible
Documents required:
Proof of Ownership (Title)
SASO Certificate
Legalized Purchase Invoice and Certificate of Origin
Proof of insurance
For used cars, Certificate from Interpol, or origin traffic police, showing there is no police case against car
Copy of Passport and Residence Permit (IQAMA)
Letter of Saudi sponsor
Letter of Authorization from consignee to clear car
Customs Fee Declaration
Landing Authorization
Valid Saudi drivers license required for registration


And this link would seem to indicate that the custom fee would be 5%.


http://www.customs.gov.sa/CustomsNew/tariff/tariff_E.aspx?WhereToSearch=GHS&SearchFor=87

All in all, it looks like it would be expensive and an enormous hassle. But if you have no other choice . . . .

Regards,
John

[007]

Well, without Iqama (residence permit), it would be difficult for you to ship the car to the Magic Kingdom.
After getting your Iqama and the Saudi driving license), you can ship your car from the USA to the Magic Kingdom, and you have to pay a charge for changing the registration plates into Saudi ones.
The charge will depend on the make and age of your car.
The process is not easy, you need somebody from inside, like your employer or a friend, to help you in the process!

[Sheikh N Bake]

Don't even think about driving your US-registered car in the Gulf Middle East. Shipping can indeed be affordable, and I've done it twice in the UAE. (Shipped a car from the US in 1997 to Dubai and a different one to Dubai in 2005). Cars in the Gulf should be specially modified for Gulf conditions: extreme heat, dust and humidity that varies greatly in a single day. These conditions cause sensors to fail prematurely and rubber seals to wear out quickly. The second car I thought wouldn't be a problem, because it was a top-of-the-line Infiniti Q45, but within two years I had the knock sensors fail, which causes some loss of power, along with the turbo sensor on the transmission, as well as the temperature gauge sensor and several rubber seals. Furthermore, and this is important, the diagnostic software/hardware used in the States is incompatible with that used in the Gulf Middle East--at least in the UAE. So they couldn't fix the knock sensors because they couldn't diagnose the problem. If your love your car, store it in the US and buy a Camry in Saudi.

[WaegukinYeoJa]

So if one acquires a car in KSA, what's the best way? Buying or leasing?

Could anyone give any details about prices of a standard sedan? Small SUV? I'd be more interested in leasing - any one with experience in this?

Sorry to deviate from your original topic OP, but I hope it will be helpful for you (and me) anyway.

[007]

[Mia Xanthi]

[WaegukinYeoJa]

Yes, I am female, and yes I will have a spouse in tow. We'll both be getting a travel allowance from our school, and of course as a couple buying/leasing a car sounds like the better deal than not doing so.

We're planning to stay beyond one contract, barring anything unexpected. However, more than 3 or 4 years is unlikely. I think we're going to try to lease to save the hassle of selling the car before we leave.

Thanks guys!

[Mia Xanthi]

[Sheikh N Bake]

Leasing for three years is extravagant. Leasing at SR1400 a month means SR 50,400 after three years. You can get a two-year-old Camry for the same amount and sell it for somewhere around, let's say, SR 30,000. So your net cost will have been SR 20,000 plus, shall we say, SR 3,000 in repairs = 23,000...because the car should still be under a three-year warranty. But assuming no warranty, no more than 6,000 in repairs over the three years = SR 26,000 total cost. That's better than 50K in leasing costs. Furthermore, you get to drive a nice Camry rather than a small subcompact. You'll have very few repairs to deal with in a Camry if bought in excellent condition. (Should you opt to buy a small subcompact, you'll save even more money over leasing!) Now if your Saudi sojourn extends beyond 3 years, you are definitely losing money on a lease.

To put all this another way, would you advise paying at least $6,600 for the privilege of not having to sell your car at the end of three years? If so, I'm glad you're not my financial adviser

[johnslat]

I agree with the sheik. If you're planning on staying for three years or more, buying would be a more sensible option that leasing.
But if you can find a good used car - maybe from a colleague - that would be even better.
That's what I did, and, after driving the Daihatsu Charmant for two years, I sold it for what I had bought it for.
Regards,
John

[AirHorn]

So I guess my next question is that if I do leave my car (Kia Rio5) at home and buy something how does credit work in KSA? I wouldn't have any type of credit history there, is my job and a couple of U.S. credit cards enough (assuming that what I buy ends up being more than I can pay cash for).

[Sheikh N Bake]

Yes, leave your car at home. See my earlier post on what the climate in Saudi does to cars not specially modified for the climate.

I don't know about Saudi, because I drove company cars there, but in the UAE it's easy to get a signature loan based on your salary.

There is no credit rating in Arab countries, and your past use of credit cards doesn't mean much.

[Mia Xanthi]

From what I understand, getting credit depends almost entirely on your employer. If the bank is "authorized" to give loans to people from your place of work, you can get a good-sized loan on easy terms with no credit check whatsoever. If your employer is not on the list, you're out of luck.