There comes a time when you might decide to sell your car. It can be because you want to move on to something nicer, or maybe you can’t afford to keep it. But what if your vehicle is financed and you are still paying the debt? Since the loan amount is not completely settled, the car remains under the bank’s ownership. However, you can still sell your financed car using several ways. As most people have to sell their vehicles before paying the loan, you can pick the option that best suits your needs.
Here is a guide to simplifying the process of selling your financed car in the UAE.
CLEAR UP THE DEBTS
A car with a clear title usually is more appealing in the market. So if you can afford to pay the amount, consider paying off the loan before selling a car. It can make the selling process as seamless as possible. To complete the transfer, you can suggest a buyer visit the RTA office and inform them about the loan clearance. Also, consider asking your bank to provide an official letter of record.
FIND A FINANCE BUYER
If you can’t pay off your debt immediately, seek a purchaser who wants to buy your car with a bank loan and is willing to choose the same bank where your vehicle is on the mortgage. Once you have found a prospective buyer, proceed as follows:
Inform your bank that you have a buyer ready to finance the car’s outstanding balances and transfer the ownership to the buyer. Emirates NBD, Noor Bank, and Dubai Islamic Bank offer loan transfers in the UAE, so check their policy before selling a car.
The buyer must submit a loan application to the same bank and receive approval.
The new owner of your car must submit a car valuation certificate to confirm that the car’s value matches the loan amount.
If you demand a price different from the outstanding loan amount, request a bank to settle your balance using the buyer’s loan. During the process, the bank could include an early settlement cost that is usually 1% of the loan value.
Once done, you can then officially transfer ownership of the car to the potential buyer via RTA or Tasjeel.
The buyer must give the bank a copy of its comprehensive car insurance policy and the new car registration card as evidence of ownership in order to legally settle the loan.
SEEK OUT A CASH BUYER
Finding a cash buyer who will pay the debt to the bank on your behalf is another
alternative for selling your financed car in the UAE. Once you have found a cash buyer, consider signing a Power of Attorney to transfer ownership of the vehicle when the loan is cleared.
Once the loan has been repaid, this will take effect, but until then, you are still liable for any penalties or accidents the car may incur. Lastly, you can request the new buyer to visit the RTA as soon as the bank informs the regulatory authority that the payment has been received.
CONSIDER AN AUTO-LOAN PAYOUT
Auto-loan payout is another easy option for selling a car under loan in Dubai. Emirates NBD offers an efficient financing option called AUTO SWAP. Vendors can sell their financed vehicles in Dubai without repaying their debts. This feature allows the buyer to obtain a new loan to fund the purchase.
Being honest and transparent will help you minimize misunderstandings that may deter buyers. Being a Dubai-based automotive specialist, we at CARS24 offer a “drive-in, walk-out” solution that enables you to sell your financed car as fast as possible.
We guarantee to provide you with the best value for your used car and will manage the documentation and registration certificate transfer. To experience a top-notch and effortless selling of your financed vehicle, talk to our experts at cars24.com/ae/
What documents are necessary for the buyer?
The buyer must present valid car insurance, a passport, a residency visa, and a United Arab Emirates driver’s license.
What things to consider before selling a financed car in the UAE?
The seller must analyze the car’s valuation and provide all the required documentation and essential paperwork. In addition, the seller must give a free and fair car inspection report.
What are the advantages of buying a financed car?
There are several benefits of buying a financed car in the UAE. For example, you can get lower interest rates (some companies even offer 0% interest rates), monthly payments, and delayed depreciation. Additionally, you don’t need to put anything as collateral. The vehicle itself serves as your collateral. The bank offers different flexible payment options to suit your needs.