Car for sale in UAE: Used cars for sale in Dubai, UAE

By PolicyBazaar
  | Published: 16 July 2021
Average Rating / 5 (ratings ) | 249 Views
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UAE’s love for cars is not hidden from the world. Here a car is no less than your ‘Habibi’. Hareth Al Bustani, a famous journalist, once said, “(UAE is) a country where the car you drive can define you.” When you are so passionate about your car, you can’t afford to show any callousness while selling it too. If done right, your old car can prove to be a financial asset that can fetch good returns.

How to Sell car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE

If you are planning to sell your used car in the UAE, many questions must be bothering you such as - what is the procedure to sell a car? What is the best place to sell my used car in the UAE? Which method is the best way to sell the car? What are the laws of selling cars in the UAE? If these questions have been bothering you, then this article will help you find the right place to buy your car, giving you the best rates in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE.

Best Options to Sell Used Cars in the UAE

There are various options to sell your used car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE:

Sell privately

No one knows your car better than you do! If you want to sell your car at the best price point, your first option is to sell the car privately. Even though it can be a bit tedious because of the limited outreach and paperwork involved, selling a car in the UAE on your own, guarantees the satisfaction of mind as you will solely take care of everything and directly deal with the buyer. If you are planning to sell your used car in Dubai, Sharjah, Abu Dhabi, and the rest of the UAE on your own, you can use a variety of apps and websites that can help you through it. The apps and websites allow you to post all the details and photographs of your used car in the UAE. Posting for advertisements on these websites will expand your reach and fetch many buyers.

Selling through a dealer

You can also find the new owner for your old car in the UAE with the help of a registered car retail company. There are many car selling websites in the UAE that will allow you to sell your used car. Before contacting a car retailer, search from the pool of dealers available. See which of the dealers satiate your curiosity and offer you the best option for your car sale in Dubai and the UAE. Once your queries have been addressed satisfactorily, move to the next step and set a deal for your car. Selling a car in the UAE through a dealer is a convenient method of selling your car which saves your time and efforts. Al-Futtaim Automall and Sellanycar.com are some of the most popular platforms to sell your used car at good prices.

Sell Accident Car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE

You may find it difficult to sell your car if it has ever been in an accident. Selling such a car privately may be challenging since people would not trust your word. Under such circumstances, you can lower the price of your car to make it one of the cheapest cars in the UAE and sell it easily. Lowering the price is one of the most effective ways of selling your accident car in the UAE. If you do not want to choose this option, you can also consider selling it via a third party. Since the third-party re-registered companies check your vehicles thoroughly before putting a price tag on them, you will get the best value for your car. Besides, buyers have more faith in these registered companies so your vehicle will sell without any difficulty,

Scrap Car for sale in the UAE

A scrap car is nothing but a piece of junk that no one would purchase except scrap yards or companies that can re-use the material in some way. However, you still do not need to sell it at a lower price. Companies like sellanycar.com, cashanycar.com, webuycar.ae, and crazycarcomer.com will purchase and sell your scrap car in Dubai and the rest of the UAE at a reasonable price.

What is the procedure for selling the car?

When selling your car, you should be aware of several laws and procedures that will enhance the value of the car and bring your more profits on selling your car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE. Conforming to these laws will ensure peace of mind and a smooth car selling experience.

Laws related to care sale in the UAE

  • While selling the car in the UAE, you must not stick any ‘for sale’ signs, stickers, or advertisements inside their car windows. This is a popular European practice that is legally prohibited in the United Arab Emirates. If an advertisement is found, the police will impound the vehicle and you may be fined AED 100.
  • The laws in the UAE prohibit you from selling your car in the UAE if any outstanding payment or fine is pending on the vehicle. You are obligated to clear your pending debts before selling the car in the UAE.
  • Once you have cleared your debts, the bank will inform the Roads and Transport Authority to update the loan activated on your vehicle’s record. As soon as the status of the loan is updated on the RTA system, the RTA will send an SMS to you. Usually, this takes 1-2 business days.
  • Before advertising for selling your car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE, you should consider putting your car through Road and Transport Authority test. The RTA will detect and rectify the problems in your vehicle. After ticking all the checkboxes, the RTA will provide you with a car test certificate. This car test certificate will inform the possible buyers about the working condition of your car augmenting its market value and benefitting you. Without obtaining a valid car certificate, you cannot transfer your car to the buyer legally. The fee for the RTA test is AED 120. This certificate is valid for 30 days and it can’t be used after 30 days. 
  • When a buyer purchases your car, they are required to pay the vehicle test fee of AED 120 to you along with the registration fee of the car AED 330. 

Do I need to be physically present to sell my car?

  • If you are selling your car privately, you are mandated by law to be present while transferring the car at RTA.
  • In case you are selling your car through a third party i.e. car retail company, you may require signing a power of attorney in the favour of the car retail company providing them with the authority to sell your car in the UAE.
  • If you issue the power of attorney in the favour of your car retail company, you will not be required to remain physically present while transferring the car.

Please note that when you grant the power of attorney to the third party, the company also gains the authority to manage all aspects of your car. You are advised to not grant power of attorney to a third-party unless you entirely trust the company.

Car sales agreement in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE

If you are selling the used car privately in the UAE, you can procure the car sales agreement from various platforms:

  • You can download the agreement from the RTA website
  • Dubai registered car owners can visit online platforms such as Car Mubaya to procure car sale agreement
  • You can also visit an authorized car showroom that makes sales agreements on the owner’s behalf. You are required to be physically present with your original Emirates ID at the time of making the sales agreement

Words of Wisdom: If you grant the power of attorney or if you are signing a car sales agreement, negotiate with the car retailer to add a clause that permits them to advertise your car on your behalf, but you hold the authority to choose the buyer and the negotiations.

What documents are required for transferring the car?

As a seller, you will need:

  1. Original Emirates ID of both parties (buyer and seller)
  2. Gulf citizens visitors: Valid passport
  3. Arab visitors: Copy of the passport + valid visa
  4. Vehicle ownership in case of a registered vehicle, vehicle transfer certificate/export certificate/Customs Certificate.

The buyer requires submitting proof of residence.

Please note that the buyer’s address proof should be from the same emirates region they are purchasing and registering the car. In case the buyer holds address proof from different emirates, they are required to purchase or rent a property in the region from where they are purchasing the car in the UAE.

If you are selling via a company:

  1. Original Emirates ID of both parties (buyer and seller)
  2. Vehicle ownership in case of a registered vehicle, vehicle transfer certificate/export certificate/Customs Certificate
  3. Copy of the trade licence + list of partners
  4. Endorsement of signature from the notary public in the name of the dealership
  5. Copy of the memorandum of association for limited liability dealerships
  6. Vehicle insurance in the name of the company in case of registration.

Can I transfer my car insurance to the new buyer?

Your car insurance can be transferred to the new car owner if:

  • Your renewed car insurance is not older than 5 months
  • You meet the eligibility criteria set by the insurance company

Some car insurance providers in the UAE may not provide the facility of transferring car insurance. You can discuss this facility without your current insurance provider.

If your policy has 7 months or more remaining, you can also choose to cancel the insurance plan and get a refund for the remaining period. To avail of this option, the policyholder must submit a photocopy of the new registration card from the new car owner.

Can I sell my car with outstanding finances or fines?

You cannot sell your car with outstanding fines. However, if you took a loan to purchase the car and you are not able to repay the loan, you can sell your car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE. There are two options available for such a car sale:

  • Find a finance buyer
  • Find a buyer willing to pay your loan on your behalf

Find a finance buyer

  • You require finding a buyer who wants to obtain finance or a loan on the car from the same bank you borrowed a loan from.
  • Once you find such a buyer who is willing to receive from the same bank, ask the buyer to receive approval for the loan from the same bank.
  • Ensure that all the documents are in line and ask the bank to settle the debt on your account.
  • After completing all the formalities, you can hand over the ownership of your car to the new buyer.

Please note that some banks may not allow this facility, please confirm with your bank before making any deal.

Find a buyer willing to pay your loan on your behalf

  • Find a buyer who can clear your loans while purchasing your car.
  • Inform the buyer about the remaining dues on your car.
  • Also sign a power of attorney document allowing the buyer to pay for the car and declaring that once the loan is cleared by the buyer, they will become the sole owner of the car.
  • Visit your bank with the buyer and complete all the payment-related formalities
  • Once the bank informs RTA that the loan is cleared, you will require visiting RTA with the buyer to complete the legal transfer.

FAQs on selling a second-hand car

Q.1 who pays for registration when selling a car in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE?

Answer: At the time of purchase, the buyer will pay the registration fee of AED 330

Q.2. Can I sell my car in the UAE after visa cancellation in UAE?

Answer: If your visa is cancelled, and you face any difficulty in transferring the car, you can show your cancellation documents, driving license, and passport to sell your car in the UAE. However, after the date of cancellation of your Visa, you receive 30 days of grace period to manage your financial affairs.

Q.3. Can I sell my car in the UAE with expired registration?

Answer: As per the RTA guidelines you are not permitted to sell the car in the UAE without a valid registration. You will require renewing your registration before selling your car. However, you can receive the cost of registration from the buyer at the time of selling your car in the UAE.

Q.4. Can I sell my spouse, relative, or friend’s car on their behalf?

Answer: Yes you can sell the car in the UAE on behalf of your spouse, relative, or friend. However, you will require power of attorney to receive this authority.