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Loan calculator Qatar › 0% car finance or the cash discount? (Qatar)

Estimate only — not financial advice. Only your lender's offer is binding.

0% car finance or the cash discount? (Qatar)

Updated

"0% for 4 years" at QAR 100,000 or QAR 8,000 off for cash? With QAR 20,000 down, the 0% offer costs a real yearly rate of 5.26% measured against the cash price of QAR 92,000 — not 0%. A normal car loan on the cash price at 6.10% (the highest rate QCB allows) would cost QAR 101,323 in all against QAR 100,000 for the 0% offer, so here the 0% offer is cheaper.

This page: "0% finance" or a discount for paying cash? If you give up a discount to get 0%, the discount is the interest. This shows how much. Other offers: zero down, one car loan in detail.
Ask for the cash price in writing.
A non-Qatari resident's bank car loan may be at most 80% of the car's cost.
At most 72 months for a Qatari citizen, 48 for a resident.
You are
Leave empty if there are none. QCB (2011): no fees besides the interest on loans against salary.
Prefilled with the highest rate QCB allows (4.60% + 1.5%). Use a real offer for the cash price if you have one.
The "0%" really costs5.26%
Monthly with the 0% offerQAR 1,666.67

    Instalments on this page follow the standard monthly formula on the reducing balance. Your bank counts interest or profit day by day between the actual payment dates and rounds each amount, so its own schedule can differ slightly. Only your signed offer is binding.

    Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

    How the hidden rate is found

    With 0% finance you repay the full offer price in equal instalments. Paying cash would have cost less. The calculator finds the yearly rate on the reducing balance at which receiving only the cash price would give exactly the same payments, fees included. That is what the "0%" really costs. If the offer price equals the cash price and there is no fee, it really is free.

    The rules

    • Adverts: QCB requires bank adverts to state the annual rate on the daily (reducing) balance. We found no official QCB statement on "0%" adverts — so compare on the cash price, in writing.
    • Highest rate on a bank car loan: QCB lending rate + 1.5% (6.10% today), no fees besides the interest.
    • Term: at most 6 years for a Qatari citizen, 4 years for a resident; a resident may borrow at most 80% of the car's cost.

    Related: car loan calculator · zero down payment car loan · personal loan calculator · how much can I borrow? · paying off early · guide: loan limits for citizens and residents.

    Questions people ask

    Is 0% car finance really free?

    In Qatar, only if the 0% price equals the cash price and there is no fee. If you give up a cash discount, the discount is the interest — the calculator shows it as a real yearly rate.

    What must a car loan advert in Qatar show?

    QCB requires bank adverts to state the annual rate on the daily (reducing) balance. We found no official QCB statement on "0%" adverts, so ask for the cash price in writing and compare.

    Which is cheaper: 0% or a car loan on the cash price?

    Compare the totals. The calculator puts the 0% offer next to a normal car loan on the cash price at the rate you enter — prefilled with the highest rate QCB allows.