Laws For Selling Your Car In UAE

Laws For Selling Your Car In UAE

Are you thinking about selling your car in UAE? If you answered yes, there are a few rules you should be aware of. Following the rules will guarantee that you have a pleasant car selling experience. Your peace of mind is ensured when you follow the guidelines. It is fairly simple to sell your car. You may get the best pricing by conducting a few Google searches. Just put cash your vehicle UAE into your Google search box and compare the numerous bids provided by various auto purchasing portals.

Regulations For Selling Your Car in UAE

“What regulations regulate vehicle sales in UAE?” This is the most often asked question when it  comes to selling a car. recommendations presented below will help you achieve clarity.

  • Vehicle owners are not permitted to place ‘for sale’ signs, stickers, advertisements, or sales literature within their vehicle windows. This is a European custom that is prohibited in UAE. If any advertisements are discovered, the car will be impounded by the police.
  • If a vehicle owner has any outstanding finance (mortgage), he or she cannot sell a car in UAE. When selling a car, the owner must pay off any outstanding finance (if any).

Bank, RTA, And Buyer Regulations

Bank RTA And Buyer Regulations
Laws For Selling Your Car In UAE
  • As previously stated, the automobile seller must pay off any outstanding debt (loan/mortgage). Once the funds have been repaid, the bank must notify the Roads and Transport Authority in order to change the loan status in their records. When the loan status on the RTA system is updated, the RTA will send an SMS to the car owner. This usually takes 1-2 business days.
  • It is in the best interests of the vehicle owners to get their vehicle tested by the Roads and Transport Authority before advertising. It will assist them in detecting faults (if any exist) and obtaining a valid car test certificate from the RTA. A car cannot be transferred to a buyer unless a valid car certificate is obtained. The RTA examination costs AED 120. The certificate is good for 30 days and cannot be used beyond that time.
  • Papers needed
    • The following are the paperwork that a buyer must have.
    • A valid Emirates ID for vehicle insurance
    • A valid UAE driver’s license.

The buyer must have both originals and photocopies of all documentation for buying used cars dubai or New cars.

The buyer must pay or repay the seller for the vehicle test fees (if he or she has already paid) (120 AED). Also, the buyer must pay registration fees (330 AED).

Remember: If a buyer has a visa from another emirate and the emirate in which he/she wishes to register the automobile is different, the buyer must own/rent a property in his home emirate and provide proof of residency.

Regulations For Car Seller

These laws provide a solution to the issue, “Who can sell my car for me?”

  • While the seller must be present at Roads & Transport Authority to transfer a car, there are a few ways that allow a third party to sell a car on the seller’s behalf. The seller might provide an individual power of attorney to sell new car in UAE or used car on his or her behalf.
  • Bear in mind that issuing power of attorney is a formal process. It must be organized legally through the court. The power of attorney is not limited to merely selling the car on the seller’s behalf; it may be utilized for all of the seller’s business. While choosing this choice, it is advised to exercise extreme caution.
  • A car owner can go to an approved auto dealership and have the sales agreement written on their behalf. The car owner must be physically present with his/her original Emirates ID when the sales agreement is written.

Before making any sale arrangements, make sure the car is clear of any outstanding loans or fines.

Remember: Make sure the car showroom is trustworthy because they will be able to legally sell your car on your behalf. It is advised that you include a condition that allows them to promote your car on your behalf, but the decision to proceed with the sale is  entirely yours.

Car Insurance Transfer Regulations

  • If the seller’s car insurance policy has more than 7 months until it expires, the policy can be transferred to the new car owner if he or she meets the insurance company’s qualifying standards. Not all insurance companies allow you to transfer your car insurance; be sure your existing insurance company does.
  • If a policy has 7 months or more remaining, the policyholder can terminate the coverage and get a reimbursement for the remaining time. To use this option, the policyholder must send a photocopy of the new car owner’s registration card.

How To Sell A Car While Having A Bank Loan

Selling a car with a bank loan is possible, but exceedingly difficult. If the seller does not have the cash to clear the loan, they must accompany the buyer to the bank and pay off the outstanding finance and terminate the account.

Prepare a sales agreement letter confirming that the buyer is paying off the debt before going to the bank. The letter must be signed by both parties.

After agreed upon and satisfied, the bank will contact the RTA to authorize the loan clearing on the RTA’s system. It may take up to 48 hours for this to be authorized.

After authorized, the car owners will get an SMS confirming that the vehicle has been released.

The buyer and seller can return to the RTA and Vehicle transfer ownership of the car to the seller.

Before we begin, here are three things to consider before selling

  • Put no paper on your windshield declaring that the vehicle is for sale. This includes ads and signage inside and outside your car. It is unlawful in UAE and may result in your car being seized by the authorities. You sold your car using an internet portal.
  • It is prohibited to wash your car on the street. If detected, a fine of AED 100 is imposed.
    In UAE, you cannot sell a car without first paying off any financial loans (mortgage). Theoretically, it is conceivable, but finding a buyer willing to take on the debt would be difficult. To Know about Traffic Fines we have a Guide To Pay And Check Traffic Fines

If you follow to the given guidelines, you can your car sold in no time.

Important Car Selling Advice

Selling a car might be a challenging process, but it doesn’t have to be. With the correct direction, you can find your way through the different options. This section contains useful information to help you get started selling cars.

  • Frauds and frauds are becoming increasingly common in UAE. This is something you should take seriously. Discover the latest scam news. If you do not want to be a victim of this fraud, never pay for your vehicle with a personal cheque.
  • To complete the transfer procedure, bring your passport, transfer form, a copy of your driver’s license, registration card, and new insurance certificate to the RTA. You must also settle all traffic penalties as the seller in order to officially transfer the car to the new owner. You should make a duplicate of the registration card and keep it securely as proof of the transfer.
  • It is illegal in UAE to display a notification or a sale ad on a vehicle’s window. This puts you at danger of having your vehicle seized. It is safer to post an ad on a website like carsclub, which allows you to sell cars in any city in UAE.
  • The registration must be transferred to the new owner when you sell the car. To do this, terminate your insurance coverage so that the new owner may obtain new car insurance in their own name. There are several websites that allow you to compare car insurance prices from various insurance providers.


It is not easy to sell your car. If you want to sell your car without any hassles, make sure you follow all rules so you don’t have to deal with any problems later. It takes time to sell a car, so don’t rush and be patient. You will be able to make better selections if you have more time on your hands.

Remember that car insurance is required in UAE. If you are a new car owner, you must get enough insurance coverage.

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