Car Loan in Kuwait | 5 things you should know before getting your car

June 28, 2021

The car loan in Kuwait is made simple with FinFirst app. Using an advanced and fast technology, we have covered your journey from A to Z when considering buying a new car.
The first thing when applying for auto loan is to choose wisely the vehicle that fits your requirements and financial status, so here’s how the buying journey will look like:

1-Which car is right for you?which car is right for you

Are you lost with all these car brands available?

FinFirst app have just about all the information and solution you need to make the experience as easy as possible, including a wide list of vehicles with their features, prices and updated deals. So here are 3 examples of car classes to look at when choosing your vehicle:

1- Shopping for the family

SUVs have a lot to offer in terms of comfort, value and space. We stacked up all the popular models.

2- Shopping for a sport car

These vehicles can be low to the ground, making it more difficult to get in and out, but keep in mind that many sport cars are not only highly entertaining but also practical enough to serve as daily drivers.

3- Shopping for a small and affordable car

Small in size but large in performance and fuel economy, small cars vary widely in reliability and price.

2. Loan approval

 

car loan approval

In traditional ways the approval process can be long. This will impact the time interval between the submission of a request and your access to the money. A faster approval process is better than a slower approval process, getting your loan approved shouldn’t be that complicated in 2021.

With FinFirst Super App, you can say goodbye to personal visits and long application processes, now you can get instant bank approval within a 10 min online process.
Besides auto financing and car insurance, our platform allows easy access to a wide range of financial products, including:
Business loans – Bank accounts – Investment funds – Life insurance – Personal loans.

3- Used Cars vs Brand-new Car

There are numerous choices for consumers when it comes to buying a new car in Kuwait. The biggest question is whether you want to buy a new car or a used one. This will make a huge difference to your finances and qualification in getting the loan.

a. Brand-new Car
Buying a brand-new car certainly has its benefits:

  • New Engine, new Gear and engineering improvements
  • Factory warranty
  • No Scratches or hidden accidents
  • You can choose the color, trim line, and option level

What to keep in mind is that most APRs (annual percentage rate) will be higher for a used car auto loan since used car values can vary greatly depending on the year of production, condition and miles driven.

used vs brand-new car finfirst

b. Second Hand Car

Buying a used car can definitely save you money but has a downside. One of the best strategies is to find a car you like that’s only 2 to 3 years old why?

  • Such a vehicle has already taken its biggest depreciation hit
  • The vehicle will most probably have the majority of its useful life ahead of it

But be careful of any vehicle that has been extensively modified. We strongly recommend taking any used  car to a trusted mechanic for a thorough inspection.

4- Auto Loan vs Personal loan to buy a car

Generally, personal loans are given without any limitation on what the money will be used for.
FinFirst provides you with both type of lending but it is more preferred to apply for an auto loan when buying a vehicle for these simple reasons:

  • The ease of qualification for the loan
  • Interest rate will be lower and you are less likely to have to pay other loan fees

5- Insurance Premium

Will your auto insurance premium rise if you have a car loan?

There are certain things you need to know when applying for car loan. Since there is an insurance premium attached to the new car, the total outflow will increase due to the insurance premium.
An auto loan won’t automatically make your insurance rates go up. However, lenders usually required added riders, like collision and comprehensive, that will increase your premium. Car loans and the impact on insurance rates: what you need to know.

 

Benefits of applying for loans online with FinFirst

from the comfort of your home finfirst

Our fintech solution is noticeably lowering operational costs for many industries and people.
In a changing world the fintech revolution is more rising. The main goal of such technology is to make things faster, cheaper and easier for customers and organizations.

How Fintech Is Revolutionizing Financial Services?

✓ Murabaha structure complying with Shari’a principles

✓ Quick process in just 10 min

✓ Loan amounts up to KD 25,000

Documents required when applying for Car Loan in Kuwait

documents required finfirst

  • Copy of Identity Card
  • Your Business Details
  • Account Statement
  • Salary Certificate
  • Salary Continuation Certificate
  • Passport Copy

You can insert these documents in an easy way through our quick application, Download FinFirst and stop wasting your time.

 

 

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