Everything you should know about selling a car in UAE

4 min read

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If you want to sell any car in the UAE, there are two mainstream methods of doing it. Either you can accept the dealer’s price for the trade-in or you can sell the vehicle privately. For both scenarios, CarSwitch has brought you a guide so that you can have a swift and secure selling procedure. 

There are many nitty gritty details and other things to know about before jumping in this matter. But don’t worry! You can learn how to be a pro at selling cars in the UAE by reading the A-Z of this business below. 

Should you accept the trade-in price from the dealer or not? 

Why should you take the dealer path? Most people opt for this method because it is easy and simple. The dealer is a one-stop professional solution which sells your car without any hassle. You do not have to put much effort with the old metal. 

The dealer also takes care of all the documents which should be signed and obtained. All the organization will be done via the dealer and only give advice in some ways. Usually, everything can be done at the desk of the automotive showroom. 

But what are the disadvantages of choosing a dealer for selling your car? There are many cons in doing so. First of all, you will most likely get a lower price from the dealer for your car as compared to selling the car privately. 

Carry out your research beforehand about average values of your vehicle model, it’s condition and year. This will help you decide on the deserving price you should get from the dealer. In case the gap between the average price of the car and what the dealer is offering is not much, then sell your car at the dealer. But if the gap is big, you should sell your car privately. 

This leads us to:

UAE Laws you should know

In order to have a smooth car selling experience, there are some UAE laws you should have on your fingertips. Following these laws will put your mind at ease and minimize any potential of risk. 

Laws regarding the seller

  • Although the seller should be personally present at the Roads and Transport Authority to transfer the vehicle, there are some choices which permit another party to sell the vehicle on the seller’s behalf. The seller can offer any person the power of attorney so that the vehicle can be sold on the seller’s behalf. However, the procedure of giving the power of attorney to a third party is a formal and official one. It should be organized properly in the court. The person chosen to give the power of attorney is capable of not only selling the vehicle on the seller’s behalf; he/she can use the car for any matter. Therefore, one should give the power of attorney to a trustworthy person. 
  • A car owner is allowed to go to a certified auto showroom which gives sales agreements on the owner’s behalf. The car owner should be present along with the valid Emirates ID while writing the sales agreement. 

Remember that: 

  • Make sure that you have cleared all the fines and loans before making any sale agreement. 

Laws regarding the RTA, buyer and banks

  • The seller is supposed to pay off any outstanding loan or mortgage. After clearing these finances, the seller’s bank will notify the Roads and Transport Authority to update the loan status in their records. After the status of loan is updated in the RTA records, they will send an SMS to the car owner. This procedure requires a few business days. 
  • If you want to have a good interest in being a car owner, you should make the vehicle go through the Roads and Transport Authority test prior to advertising. This will let the potential buyers know about any problems of the car which can be fixed. You will be provided by a valid car test certificate from the RTA. If you do not get this certificate, you can not transfer the vehicle to another buyer. The charge for this car test is only AED 120. This car test certificate remains valid for a month and can not be used after 30 days are up. 
  • There are some official documents which a buyer must have. These are a valid driver’s license of UAE, a valid car insurance and Emirates ID. 
  • The seller should be present when the car is being transferred. He should bring a valid driver’s license, valid RTA car test certificate and Emirates ID. 

Other important things to keep in mind are:

  • The buyer has to pay or refund the seller (in case they have already paid) the car test charges which is AED 120. Moreover, the buyer must pay AED 330 which is the registration fees. 
  • If the buyer has a visa from another Emirate and the Emirate in which he wants to register the vehicle is different, then the buyer must either rent or own a property in his original Emirate and provide evidence of residency. 

Important tips for selling a car

Selling cars can be a difficult task but it does not have to be that way. With the proper guidance, you can find your way through the different decisions. In this section, you will find some important tips to kickstart your car selling path. 

  1. Frauds and scams are becoming popular in the UAE. You should be taking this seriously. Learn about these scam news. If you do not want to be a victim of this fraud, you should never take a personal cheque as the payment of your vehicle. 
  2. Provide your passport, transfer form, copy of your driver’s license, registration card, and new insurance certificate to the RTA for finalizing the transfer procedure. Being the seller, you also have to clear all traffic fines in order to properly transfer the vehicle to the new owner. As evidence of the transfer, you should take a copy of the registration card and keep it safe. 
  3. In UAE, it is prohibited to place a notice or a sale ad on the vehicle’s window. This will put you at the risk of getting the vehicle impounded. It is safer to put an ad on any online website such as CarSwitch which will let you sell cars in any city of the UAE. You can sell the vehicle at a used car dealership too but the upside is that you will get 25 to 30% less than the average value of the car. Therefore, only put the dealership option at the end. 
  4. After you sell the vehicle, the registration has to be transferred to the new owner. For this purpose, end your insurance coverage so that the new owner can hold the new car insurance in their respective name. There are many websites for comparing the car insurance quotes from different car insurance companies. 

Wrapping it up

Do you want to go the easy way of selling the car? Let CarSwitch tackle all the processes while you sit back and relax. Our team is adept at selling vehicles like a true professional so hand your automotive matters to us!

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