Wednesday, February 06, 2013

Foreigner Trying to Get a Car Loan - The Outcome

Here was my main problem:

If your company utilizes the service of one bank  (to consolidate their banking services/fees), that bank will then transfer salaries into employee accounts (at various banks).  For this reason, your incoming salary on bank statements will appear as a “transfer” (or "hawlat maleeah" in Arabic transliteration) rather than “salary”.

The Central Bank of Kuwait has passed a law stating that your bank can not provide credit with this verbiage on an employee’s bank statement.  This law was probably enstated to combat money laundering and to ensure that banks are repaid their loans.

This issue will cause difficulty in your obtaining loans or credit through your bank; as the bank is not allowed – by law – to give you credit if the statement does not say “salary”.  Even if the company name, and salary amount matches your salary certificate issued by your employer.  Even if you have just obtained your bank statement from the same bank.

Not all bank representatives will understand this law - or know about it.  So, you can sit with someone for several hours and they can try to find a solution (or wastah) and you still won't be able to get the loan.

I wish someone at my company would have told me this in advance, so that I wouldn't have had to waste the time, stress, frustration, and humiliation.  That might have been nice.  I'm sure that other employees at other companies in Kuwait are facing the same difficulties.

The CBK law does not apply to finance companies like Commercial Facilities, Al Manar, Al Soor, etc.

I got a loan in a day from Al Soor and they were extremely kind (although I hated having to sit in an office where everyone is allowed to smoke).  They asked that my employer provide a letter stating that they use one consolidated bank (X) and then transfer my salary to KFH.  No co-signer.  No hassles.

Al Soor (or any finance company) will ask you to go to your bank and have a standing order signed so that they can automatically debit your account for the loan payments.  (In my case, it took KFH an hour and a half to sign it because.... nevermind...)

Outcome:  I got my baby, Mashallah.  (Looks like this.)

And by the way, just incase anyone is interested:  Alghanim has a 2013 Hennessey, HPE700 HP (Corvette engine), Camaro with a manual transmission in dark gray, at the dirt-cheap price of only 27,000KD.


Anonymous said...

Why didn't you go with NBK, don't they have a desk in this showroom?

Desert Girl said...

NBK is a bank: I would face the same problem. Al Soor has the 1st/front desk of finance companies.

Anonymous said...

I am happy it all worked out for you. I faced the same experience where I was screwed by KFH and then ALSoor helped me out with the loan without having to beg a Kuwaiti. Be prepared now to shell out 2 KD to KFH for every standing instruction execution.

TisMe said...

So much Horsepower for desert girl to handle :P congratz!

TisMe said...

Oh you didn't take the hennessey, still, surprising choice"Diffidently not a desert ride":P

Desert Girl said...

TisMe -

So much horsepower? LOL Hmm.... Ok, let's name the sports cars I've owned:

1974 Formula Firebird 450 engine, 1978 Trans Am modified engine 400 hp with racing slicks, Honda CRX ("pocket rocket"), 300ZX Twin Turbo, Dodge Stealth Twin Turbo. In the US, I drive Mercedes (CLS550). I am a sports car girl.

It wasn't until I got into a very bad accident with the Stealth that I started renting Envoys. The boy who hit me was high on drugs (is now in jail for 10 years) chasing a girl. I felt like I needed something bigger and higher (although the side impact bars on the Stealth saved my life). The Camaro is a safe car even though it is a sports car. I feel comfortable in it.

I looked at a modified Camaro SS with 600HP but it was too noisy and really not a standard car; more of a stock racing car. Most of the cars I've owned have been manual transmission also.

I never went forward with my certification, but I took auto mechanics courses for 2 years and I qualified for certification. I've been in and out of Amghara searching parts on my own (mostly for the Stealth) many many times. These days, I'm just too lazy to do my own dirty work. I might break a nail. :)

Desert Girl said...

Anonymous 10:55 - Thanks. Yep. They told me about the fee. No worries as long as I don't need to beg someone for help. Well worth it.

Anonymous said...

don't get between a girl and her Charger

Expat and the City said...

I'll repeat what I Tweeted you.

SEX on Wheels! Love it and congrats DG! :)

Desert Girl said...

Anonymous 3:37 - CAMARO. :)

Yes Expat, it is sex on wheels. LOL. I'm feelin it...

Anonymous said...

I have a Hennessey hpe1000 being built for me right now!
I'll be using it in Saudi where I live but maybe taking it to Q8 for services.
If you see a red Camaro that sounds like an F1 car - that'll be me!