How to Sell Your Car in UAE

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In the glitzy realm of the UAE, selling a car may seem like a breeze but hold on! Before you put that "For Sale" sign on your windshield and rev up for the process, there are some essential rules to follow throughout the process of sale and afterwards.

Worry not, though, as we've got you covered with a comprehensive guide to selling your car in the UAE!

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*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.

But first, let's rev up the excitement by sharing three crucial points to keep in mind:

  1. No Windshield Ads: Forget about those eye-catching signs on your windshield. They might be the norm elsewhere, but in the UAE, they're illegal and can land you in trouble with the police. Instead, embrace the power of online platforms to connect with potential buyers.
  2. Keep the Streets Dry: Love washing your car in the streets? Well, in the UAE, it's against the law. A fine of AED 100 awaits those caught sudsing up their vehicles on the roads. Let's keep it clean but within the bounds of the law, shall we?
  3. Settle the Loans: Before you zoom off into the selling process, make sure your car loan is squared away. The Roads and Transport Authority (RTA) requires a clear record of your vehicle's loan status, so don't forget to handle that before proceeding.

Now that we've got the engine running, let's dive into the basics of selling a car in the UAE.

The Essentials Before Selling

  1. Clear the Loans: If your car is financed through a bank loan, make sure that it's paid off and inform the RTA to confirm this change in their system.
  2. Pass the Test: Get your vehicle tested to ensure that it meets the mandatory inspection standards. A valid certificate is necessary for a smooth selling process.
  3. Bid Your Fines Goodbye: Before handing over the keys to the new owner, clear any outstanding fines or impoundment notices. The RTA app can help you check for any fines on your car.

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Documents Required for the Buyer

The buyer needs to provide the following documents to complete the purchase -

  • Valid insurance for the vehicle
  • Passport with a residence visa (valid only if it's their first registration)
  • Emirates ID
  • UAE driving licence (issuing emirate is not applicable)

Both originals and copies of the above-mentioned documents must be kept ready. 

A Little Emirate Twist

If the buyer holds a valid visa from a different emirate, they must ‘export’ the car to that emirate. Note that this step doesn't apply to Emirati passport holders.

Who Can Sell My Car?

You can sell your car without any hassle, provided it has no outstanding fines, loans, or impending impoundment. If you prefer a proxy, you can grant power of attorney to someone that you trust to act on your behalf.

Another option is to have a reputable car showroom authorised to sell the vehicle on your behalf. While doing that, just make sure that the showroom is reliable and trustworthy.

Insurance Transfer: Keep the Wheels Rolling

If your car insurance plan is valid for 7 months or more, you can make the transfer of the policy to the buyer provided they meet all the requirements of the said insurance company. However, not all insurance providers in the UAE offer this option, make sure to check with your provider beforehand.

Alternatively, you can cancel the insurance policy and claim a refund if it has seven months or more remaining. This is a common choice as it allows you to recoup a portion of your money.

renew car insurance

Loan Transfer: A Rocky Road

Selling a car with a bank loan can be a daunting task. While it might be possible, it is extremely difficult and not advisable. The RTA advises settling any mortgages before selling the car to avoid complications.

If you do decide to go ahead with a car sale involving a bank loan, you would be required to visit the bank along with the buyer, who would need to pay off the outstanding finance in full. Moreover, a sales agreement letter must be prepared and signed by both parties. The bank will then contact the RTA to approve the loan clearance, a process that may take up to 48 hours.

Once approved, an SMS notification will be sent to the vehicle owner to confirm the release of the car.

And there you have it - your comprehensive guide to selling a car in the UAE! Simply follow the tips discussed above and the official guidelines, and you'll be cruising towards a successful car sale in no time. Safe travels and smooth selling!

Laws You Should Be Familiar with Before You Sell Your Car in The UAE
Buying/Selling your Car? Here's How Insurance Impacts your Deal!
How to sell a car with a loan in the UAE
Car for sale in UAE: Used cars for sale in Dubai, UAE
A Guide for Buying Used Cars in the UAE
Second Hand Car Insurance: Types, Benefits and How to Buy
How to Protect Yourself When Buying a Used Car

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