Selling Your Financed Car In The UAE: A Comprehensive Guide

Selling a financed car in the UAE may seem like a daunting task, but with proper planning and knowledge, it can be a straightforward process. Whether you’re looking to upgrade your vehicle, relocate, or simply want to get out of your current car loan, we’ve got you covered with this comprehensive guide on selling your financed car in the UAE. Let’s dive in!

Used Car Evaluation

Before you proceed with selling the car it is better to know the current market value of the car. Several brands have a car inspection service along with an offer to buy the car at that value. However, often such processes will lack transparency and you might end up getting less value for your used car.

Instead, you can choose independent car valuation services. Such tools offer transparent evaluation and quote the true value that your vehicle deserves. For a transparent and true car valuation, you can check DubiCars’ free online valuation tool to know the best possible offer price for your car.

Another option is an offline test center like Tasjeel. Several Tasjeel centers offer a detailed car valuation certificate which can be good for price negotiations. Here is your complete guide to Tasjeel centers in the UAE

Option 1: Find A Cash Buyer

Once you determine the true value of the car, you can go about selling your financed car in several ways. Finding a cash buyer is one of the options. Contact your bank to get an accurate payoff amount, including any early settlement fees. 

  • Inform the buyer about the existing loan status on your vehicle and discuss the outstanding balance.
  • Reach an agreement on the sale amount and create a sale agreement that outlines the terms and conditions.
  • The buyer accompanies you to the bank to settle the remaining amount of the auto loan.
  • Keep in mind that early loan closure might incur an early settlement fee, typically around 1% of the remaining loan amount.
  • After settling the loan, the bank informs the authorities at the Road & Transport Association about the loan closure on the vehicle.
  • With the loan cleared, both the buyer and seller can proceed to the vehicle ownership transfer process at the RTA.
  • The RTA (Road & Transport Authority) recently announced a new online service for vehicle transfer in the UAE — here are more details for the free online service.

Option 2: Find A Finance Buyer

If you can’t clear the debt, no worries! Look for a buyer who wants to purchase your car through a bank loan and is willing to go with the same bank that holds the car loan. Something to note before you take up this process is only a number of banks offer loan transfer policies. Make sure to check if your bank falls into this category before proceeding.

Again in this process too, the seller must find out the remaining loan amount to inform the buyer. Once you and the buyer agree to the vehicle pricing and the procedure, the seller needs to inform the bank.

  • The buyer must apply for a loan and get it approved by your bank. A car valuation certificate will be required to justify the loan amount.
  • If the selling price and outstanding debt amount differ, your bank can settle it using the buyer’s loan.
  • Be prepared for an early settlement fee, usually around 1% of the loan amount.
  • Now, it’s time to transfer the ownership of the vehicle to the new buyer. Head to an RTA or Tasjeel center for this step.
  • The buyer must provide the new registration card and a copy of comprehensive insurance to the bank. These serve as proof of ownership and are necessary to close the loan.

Remember, this process might seem overwhelming, but it’s a fantastic way to sell your car on loan and find a willing finance buyer. Just make sure to follow these steps, and you’ll be cruising through the process with ease.

Selling Your Car Online

The biggest hurdle in both the above options is finding a suitable buyer. That is where DubiCars can help you to list your car and find a buyer in a short span. You can head over to DubiCars’ Sell My Car section. The listing is free, easy to set up, and does not include any additional fee.

However, if you’re in a hurry to sell your car and want to speed up the process, DubiCars offer amazing packages to boost your ad listings starting from just AED 149! Sellers will be able to tap into a growing community of 1 million monthly eager car buyers. Here are a few tips to sell your car faster.

Vehicle Transfer Documents Required 

  • No Objection Certificate (NOC): Obtain the NOC from your bank, which states that there are no objections to selling the vehicle.
  • Vehicle Registration Card: The original vehicle registration card is necessary for the transfer process.
  • Passport and Emirates ID: Both the buyer and the seller must present their original passports and Emirates IDs.
  • Vehicle Insurance Certificate: Provide the vehicle’s insurance certificate to the buyer.
  • Mileage Certificate: Get a mileage certificate from an authorized service center to verify the car’s mileage.
  • Valid UAE Residence Visa: The buyer must present a valid UAE residence visa if he /she is not a local.
  • Sale Agreement: Prepare a comprehensive sale agreement outlining the terms and conditions of the sale.
  • Bank Clearance Letter: If the car was under a bank loan, a clearance letter from the bank confirming the settlement of the loan is necessary.

Selling a financed car in the UAE can be a smooth process if you follow the right steps. Start by clearing up any debts and determining the payoff amount. Consider finding finance or cash buyers, depending on your preference. For a hassle-free ownership transfer, ensure all the necessary documents are ready. By being well-prepared and transparent throughout the process, you can easily sell your financed car and embark on your next automotive journey.

Explore our exhaustive listings of cars If you are on the lookout for buying a new car in the UAE or a used car in the UAE.

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