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Warranty
The range of vehicles available in Kuwait is impressive. Many (but not all) are made to 'Gulf specifications', i.e. their radiators, transmissions, and other hard-working parts have been strengthened to deal with the rigours of the local climate. The most popular vehicles are those best able to withstand the climate and which are easy to maintain with spares readily available. Warranties on new cars are usually for one year.
New cars can be purchased on instalments. The dealer sells the car to a finance company, such as Kuwait Finance House or The Financial Facilities Company, and the buyer pays monthly instalments, over 24, 36, or 48 months, to the finance company. A deposit of 10-15% is usually required. Comprehensive insurance for the first year and third party insurance for the remaining years of the plan may be included in the total price.
Buyers on instalment will need a letter from their employer showing their salary details, a copy of their civil ID, and proof of address (such as tenancy agreement or recent electricity bill). Foreign residents may need a Kuwaiti guarantor, who will be required to submit details of his financial position and any other loans for which he is a guarantor.
Second-hand cars are widely available. Dealers and car hire companies may sell these with a three-month warranty and credit arrangements are possible. Indeed there are plenty of second-hand car dealers in most areas. And in Ardiya industrial area (off the 5th ring road there is used car auctions called Suq Al-Harraj. At the Suq Al-Harraj it is not possible to test drive or otherwise adequately check the cars on offer. Auctioneers, who get a fixed commission from the seller, set a base price and invite bids. The contract, in Arabic, is signed on the spot and a deposit put down, the balance being paid on transfer of ownership. As most used cars are sold for cash, an element of risk is involved, and the best advice is to buy a known car from a friend.
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