It is not very straight forward to sell your car in Dubai and you need to have a clear understanding of the laws in this regard. All the important laws and regulations associated with the sale of a car are inevitable to follow in order to make sure that the whole process of the sale and purchase of the car is made transparent avoiding any possible loopholes. From some very common practices to few professionally dealt procedures, the laws to sell your car in Dubai are simple and systematic. No one can sell a car in Dubai unless all the required legal procedures are met.
This blog will help you out learning about the essential laws and regulations to sell your car in Dubai.
RTA Certificate is a Must
When you are selling your car in Dubai, you must get the car cleared from the RTA (Road and Transport Authority) system. The RTA system is there to ensure that the car to be sold has all its finances cleared and that all bank loans are already paid.
Cost of the RTA Test and its Validity
The RTA Test does not cost you much at all. You would need to pay Dh120 for the RTA Test and the test remains valid for 30 days.
Original Seller Must be Present at the Time of Sale
You cannot send somebody else to sell your car in your place. It is important in Dubai that the original seller of the car is there to foresee all the proceedings and complete the deal. The original seller should be there along with his original Emirates ID and the test certificate of RTA. In case, there is an emergency and the original seller cannot appear, the owner of the car must give the power of attorney to the person selling the car on his behalf. The process takes time as it involves the approval from recognized courts.
Insurance Transfer
Insurance Transfer is not always the option chosen as most of the insurance companies do not offer this facility. However, the companies that offer the insurance transfer have their own terms and conditions. Mostly what happens is that the insurance policy can be transferred to the new buyers if the policy is at least 7 months old. The best solution to this insurance issue is that you should cancel the Insurance if not more than 7 months insurance is remaining and get a refund for it.
Loan Transfer
The transfer of the loan is not possible. The pending loans of the car must be paid and the RTA clearance should be acquired before the car is handed over to a new buyer. In case the seller of the car does not have enough money to pay the loan of the car, there is still a possibility to sell the car. In this situation, the buyer must go with the seller to the corresponding bank and pay the loan to get the car released from the bank. In this case, a sales agreement will be signed by both seller and the buyer stating that the loan has been paid by the buyer and that both parties are in accord with that. The bank would then contact the RTA and the car be cleared for sale.
Few General Rules and Regulations
Along with all the important laws for selling a car in Dubai, there are some general rules and regulations everyone should follow to avoid unnecessary fines and other restrictions.
- The adverts or signs posted on the car for selling purpose are strictly banned in Dubai. You might find it legal in other parts of the world but in Dubai it is illegal.
- Getting the car washed before sale increases the chance to attract more buyers. But washing cars in streets is strictly banned in Dubai and a fine of Dh100 can be imposed. You must get your car washed from a proper service station.
Laws are made for the goodwill of the people and to save them from scams and frauds. They also help in maximizing the value of profits and maintain peace in a society. This is why it is of high importance to follow all the laws associated with sale of a car in Dubai.
Important Note: Car Dealers must have the Genuine Trading License to Buy Your Car
It is very important that you check the trading license of the dealer you are selling your car to and verify if it is genuine. Many small-scale car dealers in Dubai don’t have the authentic trading license and selling your car to such dealers can cause multiple problems especially at the time of post-sales paperwork. Only Genuine Car dealers in Dubai must be approached for selling car to avoid frauds.
Looking to Sell Your Car in Dubai?
These laws for selling a car in Dubai can be demanding and difficult to follow systematically for those selling their first car or for an expatriate in Dubai. At SellAnyCar.com we have devised a system of selling a car in Dubai which is very transparent and efficient. We have perfected this system to an extent that it has been certified by the Road and Transport Authority (RTA) and SellAnyCar.com proudly wears the “RTA Approved” badge.
Our RTA approved process ensures that from your car’s physical inspection to actually getting paid for your car, it will take only 30 minutes and this also includes handling of all the post-sale paperwork by SellAnyCar.com’s team. So if you are looking for a 100% hassle-free process to sell your old car, then fill-out our car valuation form and sell your car in 30 minutes.
Disclaimer: The rules governing the sale and purchase of vehicles are subjected to changes based on government decisions. Please note that SellAnyCar.com has made its best effort to put forth the complete information on selling a car as of its publishing date. So before you decide to sell your car please check the government media outlets for any announcements in the change of any concerned regulations.
