Laws for selling your cars in the UAE

iCrowdNewswire   Jan 18, 2021  2:23 PM ET

Just like there are certain rules concerning pre owned cars in UAE, selling a car in UAE has similar regulations too which needs to be maintained. Although it is not a difficult task to sell a car in UAE, there are a few things which should be noted before starting the process.

  • It is not allowed to wash your vehicle in the streets. If anyone is caught doing it, a fine of AED 100 will be applied.
  • It is not allowed to place a piece of paper on the windshield of the car, saying that it is for sale. This refers to any ads or signs whether inside or outside of the vehicle. Since it is illegal in UAE, the police can impound your vehicle.
  • It is not allowed to sell a vehicle with paying off any mortgages. Although it is possible, it’s illegal in UAE. Moreover, it’s not easy finding a buyer who can take on the loan.

If you refrain from these acts, you can easily sell your car in the UAE. Following are more instructions on carrying out the process.

What needs to be tackled prior to selling

If you have bought a vehicle via a loan from a bank, you will have to pay off it first. The Roads and Transport Authority (RTA) will wipe away the loan from their records after the bank has declared that it’s paid off.

Afterwards, an obligatory car test needs to be held. This test guarantees the standards and efficiency of the vehicle. In case the test is failed, you can not sell the vehicle. The expenses of a car test is AED 120. A certificate is given if the test is passed which is valid for 30 days.

If the vehicle has any previous notices of impoundment or fines, they need to be paid off before you can be eligible to sell. As any legal process requires documents, the following are needed to be provided by the buyer:

  • Driving license (Issuing Emirate is not appropriate)
  • The vehicle’s valid insurance
  • Emirates ID
  • Passport and Residence visa which should be valid. This visa is only needed for the first registration.

These documents should be original. However, you will also need copies which can be obtained from the RTA. In case you have a valid visa from a different Emirate, you need to export the vehicle to the specific Emirate. However, this is not required from the Emirati passport holders.

Who can sell the vehicle?

The buyer can definitely sell the vehicle only if it does not have any fines, loans or impoundment. However, the power of attorney can be directed to another person as well who can sell the vehicle on your behalf. In order to do this, you need to visit the courts. The power of attorney will have authority on all your offers. Therefore, it is important to only deliver this power to someone you can rely on.

As an alternate option, any local car showroom can sell the vehicle on your behalf.

The owner should be present with the original ID while doing the agreement. This procedure is also called the selling of vehicles on a consignment basis. If you want to hand over the matter to the power of attorney, determine that the showroom which is engaged with your dealing is a trustworthy one.

Whichever showroom you will choose will advertise your vehicle. For this purpose, they will ask for a small amount of commission which you will have to pay.

Another important point is that the original owner of the vehicle should be present at the scene when the car is being given to the power of attorney at the RTA.

Wrapping it up

This concludes the basic information about selling a vehicle in the UAE. If you want to buy second hand cars in Dubai, you can view the versatile range of certified and inspected vehicles at CarSwitch. We can also give you an in-depth knowledge regarding selling any type of vehicle in any of the Emirates. Our professional team can take over the matters and sell your vehicle. We can seal the deal with a perfect price and customer satisfaction.


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