How to sell a bank financed car in Dubai

Many of the residents of the UAE does not acknowledge the problems they might face if they want to sell their car which is financed already. If you have bought a car and you still have loan tenure on your head then its quite difficult to sell your car in UAE until the car is mortgaged and the ownership is handed over to the bank. But there are some loopholes that might help you in selling your car in the UAE. There are two ways in which you might be able to sell your car in UAE if your car is still mortgaged.

  1. Find a buyer who is willing to finance your car using the same bank in which your loan is sanctioned.
  • Make an agreement with your bank that your buyer would use the same bank unfortunately not all banks would agree for the same.
  • Agree with your buyer to get a loan approved from the same bank and provide a valuation certificate of the car that does justice with the sanctioned loan.
  • Settle all your existing loan and if any early fees with the bank regarding the outstanding balance.
  • Ask the buyer to take over the ownership of the car over the at the RTA/Tasjeel.
  • The buyer must provide the bank with a certificate of registration of his/her ownership as proof and a copy of comprehensive insurance for the financed value of the car to settle the loan for the same.
  1. Find a buyer willing to to pay the loan in cash on your behalf, assuring him that he will get the ownership after payment of course!
  • Find your leftover loans and early settlement fees regarding closing the loan before its total tenure.
  • You must sign a ” Seller’s agreement” or “Power of Attorney” to give the buyer the power of transferring the ownership to his name after the loan is dealt with
  • You must ask the buyer to meet you at the bank preferably with cash or certified managers cheque because it is probably possible that personal cheques would not be accepted as it may bounce off, the justifiable value of your car.
  • When at the bank the buyer can, of course, hand over a justifiable amount to the bank to clear your loan. Until the car is under your name, it could be seen as a liability to you if anything happens to your car, for example, meeting an accident or incurring any kind of fine as its ownership still lies to your name. So, if possible, transfer the ownership rights to the buyer as soon as possible.
  • After all this procedure the buyer can take the car with him. To complete the ownership process they will be supposed to present themselves at the RTA once the bank informs the RTA electronically that the car is no longer under any sort of mortgage which might take a few working days.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.