PROCEDURES AND MECHANISMS IN PLACE DURING THE CONTRACT PERIOD
Procedure arises from the delay in receiving the vehicle by the lessee
The lessee undertakes to receive the leased vehicle from the Lessor and sign a written acknowledgment of receipt no later than 30 days from the date defined at the beginning of the Contract. Should the Lessee fail to receive the car vehicle from the Lessor on the agreed date, the Lessee may not recover and claim, for whatsoever reasons, the advance payment referred to in the above preamble, previously paid to the Lessor.
Procedure arises from the delay in the lease payments
The Lessor may repossess the vehicle in case of Lessee's default in respect of any monthly lease payments and other liabilities, according to the following procedures:
- The Lessor shall phone the Lessee, on the phone numbers defined at the beginning of the Contract, one or more times during 15 days from the date of default urging the Lessee to pay the due lease amounts; If the lessee do not respond within 30 days/ following expiration of the period above, the Lessor may repossess and retrieve the vehicle.
- Having repossessed and retrieved the vehicle, the Lessor shall phone the Lessee one or more times within five days of repossessing the vehicle in order to ask the Lessee to pay the due amounts, or terminate the lease contract and purchase the vehicle at the price agreed upon between both parties. Should the Lessee fail to abide by such procedures within the next ten days following the said period, the Lessor may terminate the Contract and dispose of the vehicle in a way that achieves the best interests of the Lessor, whether to sell or re-lease it to a third party.
- The Lessee may not claim any compensations - whatsoever- from the Lessor arising from repossessing and retrieving the vehicle or reselling or re-leasing the same to a third party.
- The Lessor shall be entitled hereby to repossess and retrieve the vehicle from anywhere in case of the Lessee's failure to pay any due liabilities on the specified times.
Procedures of contract termination
You can apply to terminate the contract by visiting one of the finance centers, after paying a fine to terminate the contract, the additional mileage, damage of the vehicle and traffic violations that have been recorded during the period of the leasing. The lessee will be provided with delivery of the vehicle form sealed by the service employee.
Procedures of early settlement and owning the car:
AlAhli Lease Finance program gives you the possibility of early settlement and owning the car at any time during the term of this contract. You can apply for early payment by visiting one of the finance centers and pay the amount of early payment, (the remaining amount of the advance rental payment + an amount equivalent to the profits of three months), the Lessee shall also bear the (Government) costs of ownership transfer and procedures thereof.
Procedures followed in case of lessee death
In the event of Lessee death the legal heirs are entitled to take one of the following options:
- Purchasing the vehicle by the legal heirs. In such case, the Lessor's early repayment procedures shall be applied.
- The agreement of heirs to waive the contract to another person subject to Lessor's approval, in accordance with the terms and conditions adopted by the Lessor, and the applicability of the financing terms to the new client/ lessee.
- Returning the vehicle to the Lessor without imposing any termination fines provided that no outstanding payments are due on the Lessee, and/or there is no any other amounts payable by the Lessee and the vehicle shall be in a good condition.
- The required documents (in case of death):
- The original of the customer's death certificate;
- The original of the inheritance instrument;
- A legitimate power of attorney from all the legal heirs (legitimate representative) and/or the presence of (all the heirs in the event of the lack of legitimate power of attorney including(waiving the Contract and not the car, and clearance ...........)
Procedures followed in the event of total loss of the vehicle:
Insurance company has the right to consider the vehicle as total loss if they felt that the vehicle repair is economically infeasible for the fact that repair of the vehicle value exceeds more than 60% of the insurance value of the vehicle.
Lessee to be notified with a letter of notice from the insurance company that the vehicle has been considered as total loss and the Lessee has to contact telephone banking to find out the account status after 14 days from the date of receipt of the notice.
Compensation mechanism in the event of total loss of the vehicle:
In case of total loss, Saudi Arabia Monetary Authority guidelines for total loss settlement of Auto Lease Contracts apply.
Terms and Conditions should be reviewed and all the contents of the Lease with Promise to Own Contract must be read, fail to do so doesn't relieve from the commitments contained therein.
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