We are in the last quarter of 2017, which means the implementation of 5% VAT on many new items in the UAE is just a few months away. Value added tax of 5% will be implemented on the purchase of new items from January 1, 2018, which will also apply to the purchase of new cars. The reason why car buyers need to be more concerned ahead of the VAT implementation is that VAT will also be implemented on the insurance premium of new vehicles.
This is what makes the last quarter of 2017 an ideal time to upgrade your vehicle in the UAE. Selling your used car and buying a new one before the implementation of VAT can be a beneficial decision. This is because car dealers are offering some amazing pre-VAT based discounts and incentives on the sale of new cars to push their sales ahead of a major drop expected in purchase of new cars once VAT is implemented in the UAE.
While it can be profitable to buy a new vehicle before the implementation of VAT, people must avoid selling their used cars in a haste because such an approach can give an open invitation to fraudsters to exploit the situation and trick vulnerable car sellers.
There is no harm in planning and upgrading your car before the implementation of VAT in the UAE, but here is why you need to be aware of fraudsters when you are making your mind to sell your used car in order to avail the pre-VAT incentives on the purchase of new cars.
Also read: VAT Implementation in the UAE: Why Q4 is an Ideal Time to Buy a Car in 2017?
Recent Car Selling Scams in the UAE
Car selling can be a tricky business because of the potential risk of frauds and car selling scams. Car sellers must be able to distinguish between genuine buyers and fraudsters, which can be very difficult, especially if you are an expat or selling a car for the first time in the UAE. In many recent car selling scams in the UAE, people with fraudulent intentions have used multiple tricks to scam car sellers in stealing their expensive vehicles.
In a recent incident which took place in Dubai, a fraudster in a Rolls-Royce managed to steal a car with the help of a dud cheque. The owner of the vehicle had placed a car selling ad on a classified website. The fraudster contacted the seller and showed his interest in inspecting the vehicle before making a final decision to buy it.
The owner of the vehicle called the fraudster for physical inspection of the car and the meeting took place. After taking a close look at the vehicle, the fraudster offered a little amount in cash while for the rest of the payment, he offered a cheque. Impressed by the Rolls-Royce and the expensive getup of the fraudster, the owner of the car accepted the cheque. When the owner tried to cash the cheque, he found out that the cheque was fake. Police was informed of the incident but by then, the fraudster was long gone.
Read more about this incident here.
Unfortunately, this was not the only recent car selling scam in the UAE. During the first half of 2017, many complaints were registered with the Dubai Police as a number of car sellers were tricked by conmen who paid a dud cheque in return of their expensive vehicles. It is never a good idea to accept a cheque as a mode of payment, but fraudsters make vulnerable sellers agree on accepting cheques which bounce when they try to cash it.
On the other hand, in June, the Abu Dhabi Police arrested 54 people who were running an illegal investment business that affected 3,700 people. It was a huge car scam worth AED 2.3 Billion where the arrested gang members acted as professional car dealers and urged the investors to buy and sell cars with them for substantial profits. Few investors did get profit in real which convinced other investors to follow suit and they invested heavily in this illegal business. The arrested gang paid post-dated and bogus cheques to investors and grew their business further by tricking thousands of investors.
Why are Classified Websites not a Safe Platform to Sell a Used Car?
As expats and first-time car sellers don’t have significant experience of selling a used car in the UAE, they are the ones with maximum vulnerability against fraudulent deals. Inexperienced car sellers try to find an easy method to sell their used cars and select classifieds websites to post a car selling ad.
The fundamental problem with selling a car through classifieds is the absence of a mechanism to govern the authenticity of all users and lack of monitoring of the whole procedure to sell or buy goods. There is no payment gateway for transactions, so fraudsters can easily contact the vulnerable car sellers and trick them to steal their expensive vehicles.
Other than the financial risk of selling a car through classifieds, the privacy of car sellers also remains at stake because of dealing with strangers. You can never be aware of the intentions of a stranger who acts like a potential buyer and approaches you through classifieds. This risk is particularly very high for women trying to sell their used cars through a classified website. Meeting strangers even at a public place to check your vehicle is not safe as a fraudster can potentially run away with your vehicle while inspecting the interior or test driving it. This is why classifieds are not an ideal medium to sell a used car.
How to Spot a Fake Dealer?
It is never easy to spot a fake dealer as these dealers always have a well-devised plan to trick vulnerable car sellers. However, a smart approach can easily help you identify a fake dealer which can save you from pursuing with a fraudulent car selling deal. The best way to spot fake car dealers is to ask them about their trade license.
These dealers will never show you a trade license because they don’t have one and if you ask them about their existing customers, they will never give a satisfactory answer and try to change the subject of discussion. Such dealers can offer you a luring resale price for your used car and can offer to buy your car quickly, but you should never accept these offers as these are just the tricks used by fake car dealers to trap vulnerable car sellers in a fraudulent deal. It is important to avoid taking a deal forward if a dealer fails to prove his/her legal identity.
Also read: The Best Way to Sell a Used Car in the UAE and Avoid Fraudulent Car Buyers
How to Sell a Used Car fast and safely in the UAE to capitalize on pre-VAT based incentives and offers?
The safest, easiest, fastest and the most hassle-free way of selling a used car in the UAE is to sell it to SellAnyCar.com. With the largest car buying network in the UAE, SellAnyCar.com is a specialist car buying company that makes selling a car completely trouble-free for car sellers in the UAE. This is a safe method to sell a used car because SellAnyCar.com is a legal car buyer in the UAE with a satisfied clientele and a network of nationwide branches.
With SellAnyCar.com, car sellers can sell their used cars without having to worry about their car’s age, condition, model, make and even if you want to sell a car that is a non-runner, you will get a reasonable price for it. SellAnyCar.com buys all used cars and gives the assurance to car sellers of a guaranteed purchase for every car that is brought to any of its 14 nationwide branches for physical inspection.
Car sellers can book an appointment for physical inspection of the vehicle by filling the online valuation form at uae.sellanycar.com. Once a car is physically inspected by the SellAnyCar.com team, an offer is made against the used car. If the seller agrees on the resale price, a legal purchase agreement (Mubaya) is signed between SellAnyCar.com and the seller and payment against the vehicle is made through electronic bank transfer or Al Ansari Exchange once the title of the vehicle is transferred. Selling a car becomes safe, secure and hassle-free when you sell it to SellAnyCar.com as the whole car selling process is legal and certified while the post-sale paperwork is also handled by the SellAnyCar.com team. This is how you can safely sell your car in the UAE and avoid fraudsters who remain on the lookout for a vulnerable car seller.
If you are planning to buy a new vehicle and looking to sell your used car safely at an ideal resale price, then don’t forget that with us, you can sell your used car in just 30 minutes while all the post-sale paperwork is handled by SellAnyCar.com’s team.
