Selling a car in the UAE is a straightforward process, but there are rules and regulations to follow. Whether you’re selling privately or through a dealer, adhering to these laws ensures a smooth transaction.
Laws For Selling A Car In The UAE At Glance
- Important Points to Note Before Selling
- Pre-Sale Requirements
- Documents Required for the Buyer
- Who Can Sell Your Car?
- Transferring Insurance
- Selling a Car with a Bank Loan
- Selling a Car When Leaving the UAE
- RTA Smart Services for Selling a Car
- Selling a Car to a Dealer
- Car Valuation Process
- Exporting a Car from the UAE
- Common Scams and How to Avoid Them
- Service Fees for Vehicle Transfers
- FAQs
Important Points to Note Before Selling
Before you list your car for sale, keep these three key points in mind:
- Advertising Restrictions: Do not place a “For Sale” sign on your car’s windshield or anywhere on the vehicle. This practice is illegal and can result in your car being impounded by the police. Instead, use DubiCars to list your car.
- Car Washing Rules: Washing your car in public streets is illegal and carries a fine of AED 100.
- Outstanding Loans: If your car is under a bank loan, you must pay off the remaining balance before selling. While it is technically possible to sell a car with an outstanding loan, most buyers will avoid such transactions due to the complexities involved.
By following these regulations, you can avoid unnecessary fines and delays.
Pre-Sale Requirements
Before selling your car, ensure the following steps are completed:
- Clear Outstanding Loans: If your car was purchased via a bank loan, it must be paid off before selling. Once cleared, the bank notifies the Roads and Transport Authority (RTA) to update their system.
- Vehicle Inspection: The car must pass a mandatory RTA inspection to ensure it is roadworthy. The cost of the test is AED 170, and the certificate remains valid for 30 days. If the vehicle fails, necessary repairs must be made before retesting.
- Clear Fines and Penalties: Any pending traffic fines or vehicle impoundment notices must be cleared. You can check for fines using the RTA app or website.
Documents Required for the Buyer
The following documents are mandatory for the buyer when purchasing a vehicle:
- Valid insurance policy for the vehicle.
- Emirates ID.
- UAE driving licence (the issuing emirate does not matter).
- Passport with a residence visa (only required for first-time car registrations).
All documents must be original, though copies may be required during the process. If the buyer holds a residence visa from a different emirate, they must register the car in their emirate. This requirement does not apply to UAE nationals.
Who Can Sell Your Car?
Personal Sale
The registered owner can sell their car as long as there are no outstanding loans or pending legal issues.
Selling Through an Authorised Representative
If you cannot be present for the sale, you can grant power of attorney to another person, allowing them to sell the car on your behalf. This must be done through the UAE courts.
Selling Through a Showroom
Another option is to sell through an authorised car showroom on a consignment basis. Some showrooms may also list your car for sale and charge a commission.
Regardless of the selling method, the original owner must be present when transferring the vehicle ownership at the RTA.
Transferring Insurance
If the car’s insurance policy is valid for seven months or more, the seller can transfer it to the buyer. However, not all insurance providers offer this service, so check with your insurer beforehand.
Alternatively, sellers can cancel their insurance policy and request a refund for the remaining period, provided there are at least seven months left on the policy. A copy of the new registration certificate is required as proof of cancellation.
Selling a Car with a Bank Loan
While possible, selling a car with an outstanding car loan is complicated and generally discouraged.
If the loan has not been paid off, the process involves:
- The buyer and seller visit the bank together.
- The buyer clearing the outstanding amount in full.
- A sales agreement letter is being signed by both parties.
- The bank notifies the RTA of loan clearance (this can take up to 48 hours).
- An SMS confirmation is sent to the seller confirming the loan has been cleared.
- The buyer and seller proceeded to the RTA to transfer ownership.
Check this detailed guide on how to sell your car under finance in the UAE.
Selling a Car When Leaving the UAE
- If an expatriate is leaving the UAE permanently, they must sell or export their car before cancelling their visa.
- If not sold, the car could accumulate fines or even be impounded by authorities.
- If exporting, they need to obtain an Export Certificate from the RTA.
RTA Smart Services for Selling a Car
- The RTA offers online and smart services where sellers can initiate the vehicle transfer process through the RTA website.
- This allows buyers and sellers to complete transactions digitally before visiting the RTA for final confirmation.
Selling a Car to a Dealer
- If the seller wants an instant sale, they can approach a licensed dealership that buys used cars.
- The dealer will handle the paperwork, but the sale price may be lower than the market rate.
- The seller must ensure they receive a signed agreement and a confirmation of ownership transfer.
Car Valuation Process
- The seller should get a car valuation to determine a fair market price.
- Several methods exist for valuation, such as RTA-approved valuation centres or online valuation tools.
- Use the free DubiCars online car valuation tool to get transparent quotes for your used car.
Exporting a Car from the UAE
- If the buyer is taking the car out of the UAE, they need to apply for an Export Certificate from the RTA.
- The car must pass an Export Test, and the seller should remove the UAE licence plates.
- Insurance and registration will be cancelled once the export process is complete.
Common Scams and How to Avoid Them
- Fake buyers using fraudulent cheques or promising partial payments should be avoided.
- Always conduct transactions in person at an RTA-approved service centre or through a secure platform.
- Avoid sharing vehicle details or documents without verifying the buyer’s identity.
Service Fees for Vehicle Transfers
- The RTA charges a vehicle transfer fee, which varies based on vehicle type and weight—here are more details about the car transfer.
- As of the latest update, fees start from AED 350 for light vehicles.
- Additional fees may apply for special number plates or personalised plates.
Selling a car in the UAE is a smooth process if you follow the regulations. Whether you sell privately or through an authorised showroom, ensure all paperwork is in order and all financial obligations are settled.
For a hassle-free selling experience, consider listing your car on DubiCars, the leading online marketplace for buying and selling cars in the UAE.
FAQs
You’ll need your original Emirates ID, the car’s registration card (Mulkiya), a valid vehicle inspection certificate, and a loan clearance letter if the car was financed.
Yes, but you’ll need to settle the outstanding loan or coordinate with the buyer and bank to clear the loan during the sale process.
Typically, the buyer pays the transfer fee, which is approximately AED 350.
Yes, if the car is over three years old, a passing vehicle inspection test certificate is required.
If the insurance policy has seven months or more remaining, and the buyer meets the insurer’s requirements, it may be transferable. Otherwise, you can cancel the policy and request a refund for the unused period.
You can use trusted online valuation tools by entering your car’s make, model, year, mileage, and condition.
All fines must be settled before the ownership transfer can proceed. You can check and pay fines through the RTA’s online portal or at service centres.
No, placing ‘For Sale’ signs on your car is illegal in the UAE and can result in the vehicle being impounded.
Yes, you can grant power of attorney to a trusted individual to sell the car on your behalf. This must be arranged officially through the courts.
After the sale, cancel your insurance policy to avoid future liabilities and deactivate any toll tags associated with the vehicle.
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