Dubai Cars For Sale: Some Tips & Requirements For Selling
Dubai is a city of dreams, a place where people get lost amongst the wide expanses and the lavish middle eastern lifestyle. Replete with expensive cars and incredible infrastructure, Dubai stands out for its larger than life image that it has achieved in a few decades. People from all over the world come to visit, and it brings in a lot of revenue as well.
Dubai is well known for its love of supercars, and a lot of people in Dubai try to find Dubai cars for sale so they can get a supercar for sale at a lower price. Also, some people even look forward to buying from Dubai cars for sale and then exporting it back to their country.
However, not everyone is well acquainted with the rules and regulations to purchase any Dubai cars for sale, and hence, it is important to know about it, so you don’t miss out on the car you are looking forward to selling!
Some Basic Tips
Usually, people focus on the major requirements related to banks, RTA or the buyer when putting their Dubai cars for sale. In the process, they forget some minute details that can lead to one or the other minor violation.
- Unlike most of the world including Europe, it is illegal to put up signs, advertisements or any promotional stickers on the car windows in Dubai. In no way can anybody do the following action, failure to comply with this rule can lead to impounding of the vehicle by the Dubai Police, and you can’t outrun police considering they don’t leave any stone unturned in catching any culprits using Dubai Police’s supercars.
- Also, washing your car on the street can also attract a penalty of AED 100, which would just be an additional loss.
- Although it’ll be discussed thoroughly later, the law implicitly states that before clearing any outstanding mortgage, you can’t put Dubai cars on sale. For selling the car, any dues will have to be cleared.
Requirement For Banks, RTA, & Buyer
- Clearance of any loan/mortgage: The first requirement for selling is to clear any and all outstanding loan/mortgage. After the loan has been cleared, the bank informs the RTA which in turn sends a text message to the owner regarding clearance from RTA system. The process takes 1-2 days and is important before proceeding any further.
- Clearing RTA test certificate: It is advised to the seller to get the RTA test certification before putting up advertisements selling the car. This test from RTA is mandatory and is a necessary document notwithstanding which the sale can’t be completed. The certificate is valid for the period of 30 days and costs AED 120. The car is inspected to check for issues with car performance so that it can be rectified.
- Checking for fines: It is important to check for any kinds of fines before putting your Dubai cars for sale. The fines(if any) can be verified on the Dubai Police iOS or Android app and their website.
- Physical Presence required: For the vehicle to be sold, the seller has to be present along with their UAE license or their Emirates ID, and the valid test certificate. The seller should be present at the place of transfer.
- Payment of fees: The ownership change and registration fees of AED 330 along with the vehicle test fees of AED 120 will have to be paid by the buyer.
Insurance And Loan Transfer
Insurance Policy: According to the law regarding Dubai cars for sale, the insurance can only be transferred if the policy has a remaining time period of 7 or more months. Transfer of insurance also depends on the insurance company and hence needs to be checked first.
However, if a policy has a remaining time period of at least seven months, the insurance policy can be canceled and in that case, a refund for the remaining time period will be provided.
Loan Transfer: According to RTA norms, transferring of loans can’t take place. The seller can only put Dubai cars for sale after any existing loan against the car has been completely paid off.
Although there is a provision in case the seller doesn’t possess the funds to clear the loans, in that case, the buyer may go with the seller of the car to the bank. The buyer will, in that case, pay the remaining amount of the loan and close the mortgage. A sales deed letter which states that buyer is clearing the loan must be prepared and signed by both parties.
After the bank has been paid off, the RTA will get a confirmation and only then can the car be sold.
Who Has the Authority to Sell the Car For me?
According to the norms set by RTA, the seller has to be physically present at RTA premises for any Dubai cars for sale. Some options allow a third party to sell the vehicle on behalf of the first party(seller).
Power of Attorney: The seller can grant an individual power of attorney to conduct the deed on your behalf. This process happens through courts.
Sales Agreement: An authorized car showroom can write sales contracts provided the owner of the vehicle is present along with original ID. This is useful for scenarios where an individual travels frequently or if the owner will be out of the country for a period of time. This process allows the seller to give someone else authority to trade the car on their behalf.
An important point to note is that if you are opting to give someone sales agreement authority, then you need to be sure about the person or the company. Since the individual who has the authority will be able to sell the car and receive the amount from it, a letter can be drafted that allows the person to sell on your behalf but the amount received will be yours.
There are a lot of Dubai cars for sale, but if the rules and regulations aren’t complied with correctly, the sale can’t proceed forward, and with all these factors in mind, these rules and regulations are necessary. However since you have learned about these rules, you’ll be able to put your Dubai cars for sale and sell it without much hassle!