Buying a car on credit in Morocco
In Morocco, car loans are offered by banks and above all by finance companies such as Wafasalaf, Salafin, Eqdom or Sofac, often directly at the dealership, with a lien recorded on the registration document until the loan is fully repaid.
A car market heavily financed on credit
Dealers in Casablanca, Rabat and Tangier sell a large share of new cars with built-in financing. Models assembled locally by Renault in Tangier and Stellantis in Kenitra frequently come with promotional credit offers negotiated with the finance companies.
Finance companies and banks
Wafasalaf, a subsidiary of Attijariwafa bank, along with Salafin, Eqdom and Sofac handle most car loans arranged in showrooms. Banks such as Banque Populaire or CIH Bank also finance cars, often at a slightly lower rate for employees whose salary they receive.
Standard loan, lease with purchase option or long-term rental
An amortising loan makes the buyer the owner from registration, subject to a lien. Lease with purchase option and long-term rental, covered in the guide to car leasing in Morocco, leave the vehicle with the finance company for the contract's duration.
Car Murabaha at participative banks
Bank Assafa, Umnia Bank or BTI Bank buy the car from the dealer and then sell it to the client with a margin known in advance. Monthly payments are fixed, and Takaful replaces conventional borrower insurance in this arrangement.
Lien, registration document and the role of NARSA
The financed vehicle is registered in the buyer's name, but a lien in favour of the lender is recorded with the National Road Safety Agency. The release issued at the end of the loan is essential for reselling the car.
Usual deposit and loan term
Finance companies often ask for a deposit of 10 to 30% of the price and spread the loan over three to seven years. The longer the term, the higher the total cost, while the car's resale value keeps falling.
Used cars and private sales
For a used vehicle bought from a private seller on Avito or at the souk, finance companies are more cautious. Many buyers then turn to an unsecured personal loan, presented on our dedicated page, or put down a larger deposit.
Third-party and comprehensive cover during the loan
Third-party liability insurance is compulsory, and the lender often requires comprehensive cover for the life of the loan. Wafa Assurance, AXA Assurance Maroc, RMA and Saham Assurance offer these policies, whose premiums weigh on the monthly budget.
Motor show promotions and zero-rate deals
Free-credit offers advertised by brands are in fact funded by the manufacturer or dealer. It is worth checking whether a bigger cash discount is available, and reading the annual percentage rate stated in the prior offer.
Annual vehicle tax and registration fees
The former vignette, now the special annual vehicle tax, and registration fees come on top of the price. For high-end cars, the luxury vehicle tax can push the overall budget to be financed even higher.
Legal framework for car finance
Car loans to individuals fall under Law 31-08: a prior offer, an annual percentage rate below the TMIC and a seven-day cooling-off period. The guide to credit in Morocco explains Bank Al-Maghrib's role in this oversight.
Comparison with car finance in Tunisia
In Tunisia, car loans are subject to financing caps set by the central bank, particularly according to fiscal horsepower. Our guide to the car loan in Tunisia shows how this differs from the Moroccan market.
Financing your car in Morocco step by step
- Choose the model and ask the dealer for the cash price and full details of the financing offered.
- Compare that offer with your own bank's and a participative bank's, on the total cost in dirhams.
- Submit the file, let the lender consult the credit bureau and then receive the written prior offer.
- Sign the contract, pay the deposit and take out the car insurance required by the finance company.
- Collect the registration document carrying the lien, then request the release from NARSA after the final instalment.
Budget for a car loan in Morocco
| Item | Benchmark | Variation factor |
|---|---|---|
| Personal deposit | Often 10 to 30% of the price, indicative | Profile, new or used car |
| Arrangement fees | A few hundred MAD, indicative | Finance company, current promotion |
| Comprehensive insurance | Annual premium required during the loan | Vehicle value, city, driver's age |
| Borrower insurance | Included in the monthly payment | Age and loan term |
| Registration and lien fees | Amounts set by regulation | Fiscal horsepower and vehicle type |
Documents for a Moroccan car loan
- CNIE and driving licence
- Last three payslips or pension certificate
- Salary domiciliation certificate
- Recent bank statements
- Pro forma invoice from the dealer
- Proof of address in Morocco
Car loan pitfalls in Morocco
- Accepting the showroom offer without comparing it with your bank, when an employee paid through that bank can sometimes get a lower rate.
- Stretching the term to seven years to cut the monthly payment, then still owing money once the car has lost much of its value.
- Selling a car that still carries a lien without a release, which blocks the transfer of registration and invites a dispute.
- Paying a deposit to a fake seller on social media offering an imported car financed with no paperwork.
Lenders to contact
- Banque Populaire (Groupe BCP): Moroccan commercial bank offering individuals consumer credit products, including the Moujoud loan and personal car financing options for retail customers.
- BMCI: Moroccan commercial retail bank active in providing financing solutions to individuals and businesses across the Moroccan market.
- Bank Assafa: Moroccan participative bank offering Sharia-compliant accounts and financing, including home Murabaha for individuals wishing to purchase residential property.
Common queries about car finance in Morocco
What is the difference between a car loan and a lease with purchase option in Morocco?
With a loan, the buyer owns the car and it carries a lien. With a lease with purchase option, the finance company remains the owner and rents the vehicle out, and the client can buy it at the end by paying the agreed residual value.
Can a used car be financed in Morocco?
Yes, several finance companies accept recent used vehicles sold by professionals, with a shorter term. For a purchase between private individuals, an unsecured personal loan is often the only bank solution available to the buyer.
Is a zero-rate car deal really free?
The interest is covered by the brand, but the base price is often less negotiable and the insurance still has to be paid. Compare the total cost with the discount the same dealer would grant for a cash payment.
Can a retiree get a car loan in Morocco?
Yes, pensions from the CMR, CNSS or CIMR are accepted by many lenders, with an age limit at the end of the loan set by the insurer. The term is therefore often shorter than for someone still in work.