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Know The UAE Laws Before You Sell Your Car

Know The UAE Laws Before You Sell Your Car

CarWise, 1 year(s) ago | Categories: Selling cars In UAE, Laws in the UAE

 UAE Laws For Selling Your Car

So, you have finally found a taker for your car on sale in the UAE. That sounds great though it is the first step of the long process required for car resale. But do you have any knowledge about the UAE laws pertaining to the sale of the second-hand cars? If no, you are in the same boat that I was in a couple of years ago. I dropped a visit to the Dubai RTA office, queued in a long line and found out that I had no sales contract.

The biggest problem of selling a car in the UAE is not getting what your car is worth but getting paid not at all. In other words, there are higher risks of meeting the frauds and not being aware of their fraudulent activities until the cheque bounces or you get fake notes. Having knowledge about the UAE traffic and car sale laws will safeguard you from the potential risks of fraudulence.

Some of the biggest risks involved in car sale in the UAE are as follows:

  • What if you are not paid at all?
  • What if you get paid less than the negotiated amount?
  • Will you get paid first or payment will be made only after transfer of the car ownership title?
  • What will be the mode of payment?
  • There is an upper limit on cash for car sale in the UAE. Anything received more than the limit is considered illegal. What is more, payment can be less or fake. There are chances that a cheque will bounce and a wire transfer will not arrive.

From the buyer’s perspective, there are several questions that need clarification from your side. These queries and questions are as follows:

  • What if the car on sale carries an outstanding loan?
  • If the buyer clears your loan, what kind of guarantee will the person have?
  • What are the requisite documents to transfer the loan responsibility to the new owner?
  • How long will it take to complete the procedure?
  • What will happen to your car number plate and insurance paper?
  • How do you return home after car selling is complete?

I was not aware of some of these pertinent questions but definitely, have queries regarding the remaining ones. I spent a week to dig out information about the car selling process and rules. However, at the end of the day, I realized that it would not be okay to sell my car to just anyone without an expert’s guidance.

I visited a reputed website in regards to my needs. It is a reputed website and claims to take care of all the required paperwork. They even profess to clear the outstanding dues on your car and do the requisite bank documentation process on your behalf. Thus, they give you a good respite of having to visit the Dubai RTA office. The website is authorized by the RTA office in Dubai to sign certified agreements of car purchase.

The website makes direct payment to the seller and arranges for a free chauffeured-driven car to help you get back home. What is more, they also provide the car seller with a free rental car for up to 1 month subject to what they have sold to them.

Here are some tips after you decide to sell your car in the UAE:

  • Sign a certified purchase agreement with the person buying your car ahead of car ownership title.
  • Never accept cheques from an unknown person.
  • Check if the company you are involving in car sale is a properly licensed and reliable one.
  • Request your bank to issue a liability letter if you are yet to clear the car loan.
  • Once your car is sold, remember to remove all personal belongings including the Salik tag and number plate.
  • After the title is transferred, get a copy of the new ownership certificate and send it to your insurer to get a potential refund as well as inform them about the change of title.
  • If you have reached an agreement with an unknown dealer or a stranger for the car sale and are not sure about getting paid, using an escrow payment service will solve your problem. It will cost you a hefty sum but you will receive the agreed amount for a car sale.
  • The UAE laws allow you to sell your car secretly but that will earn you less cash due to loss of time and transaction costs as well as car depreciation value.

Other Rules and Regulations

The traffic laws in the UAE are stringent and any violation of the rules and regulations will push you in big troubles. For example, the car owners and drivers are strictly prohibited from leaving any unregistered vehicle on the roads. According to the laws, it is compulsory for the destroyer to provide a declaration certificate to the car owner. The purpose of issuing the certificate is to notify the car owner about the destruction of the vehicle.

It is important to inspect your car thoroughly before you put it for sale. Even if a minor damage is found, you should rectify it before selling. Transparency is important while selling your car. Hiding the defects is illegal as it will increase the probability of accidents on the road and will result in your paying a heavy warranty claims by the new owner 6 months down the road.

It is important to know about the Dubai Roads and Transport Authority if you intend to sell your car in the UAE. Any unregistered car left on the public roads along with its registration certificate should be returned to the authority. If you are planning to buy a new car as a replacement for one that you want to sell, the overpaid sum will be deducted from payable tax on the new possession.

The concerned authority will inform your insurer about the new registration number and send you the number via your broker or insurance company. The documentation about the number change will be sent to the Road Transport Authority. It is the broker’s responsibility to adjust the change in your insurance policy.


Selling a car in the UAE will take you through a set of procedures. Car resale in the UAE is governed by a cluster of strict rules. Failing to conform to the laws will slap you with a heavy punishment in terms of monetary fine, imprisonment or both. When selling a car, the most important challenge for the seller is to find out a genuine buyer and get what his car is worth at present.

How much is enough for your car? At first, you should calculate the figure. If you have recently spent some money due to sand damage on cars, you may want the tagged price to cover these expenses. Don’t set the price too high as it may drive away from the potential buyers. Against, setting it too low will not earn you much. A mid-price point is fine to receive responses from a larger pool of prospective buyers.

The UAE laws safeguard the car sellers from frauds but only if you are aware of those. Before you sell your car, educate yourself about the UAE laws and car selling procedures.


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