Zero down payment car finance: what it really costs
Updated
Saudi Arabia sets no minimum down payment, so zero down is allowed — you finance the whole price. A SAR 100,000 car at an example 6% term cost over 60 months costs SAR 1,933.28 a month with nothing down and SAR 16,572 more than paying cash (APR 6.42%) — SAR 3,314 more than the same car with 20% down. If the offer is based on a higher price than the cash price — say SAR 110,000 — the difference is a hidden cost: then even at 4% the APR against the cash price is 8.55%.
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.
What zero down really costs
With nothing down you pay term cost on the whole price instead of on part of it, so the instalment and the total are higher. That is usually a modest cost. It becomes expensive when the offer is based on a price above the cash price — then you pay term cost on money that never went into the car. The APR measured against the cash price shows both effects in one number.
The rules
- No official minimum down payment for car finance in Saudi Arabia.
- APR in every advert, including every fee you cannot avoid, VAT included.
- At most 60 months; admin fee at most 0.5% or SAR 2,500, whichever is lower, plus VAT.
- Both deals count toward the one-third salary limit together with your credit-card minimums.
One offer in detail: car finance calculator.
Questions people ask
Is zero down payment allowed in Saudi Arabia?
Yes — in Saudi Arabia, no official minimum down payment was found for car finance, so a lender may finance the whole price.
Why does zero down cost more?
In Saudi Arabia, you pay term cost on the whole price instead of on part of it. If the offer is based on a price above the cash price, you also pay term cost on money that never went into the car.
How do I compare offers?
By the APR measured against the cash price, in Saudi Arabia. Adverts must show the APR, which includes every fee you cannot avoid.