Selling a Financed Car in Dubai – A Comprehensive Guide
Selling a financed car in Dubai can be more complex than selling a debt‑free vehicle. With extra steps involved in settling your loan and transferring ownership, it’s essential to understand your options and follow the proper process. In this guide, we’ll walk you through everything you need to know—from checking your loan balance to transferring ownership—ensuring a smooth, hassle‑free sale even when your car is still under finance.
1. Check Your Loan Balance and Early Settlement Amount
Before you start the selling process, contact your bank or financing institution to determine:
- Outstanding Loan Balance: Find out exactly how much remains on your loan.
- Early Settlement Amount: Ask for the total amount required to clear your loan early. This figure may differ from the outstanding balance due to interest and fees.
Tip: Keep a copy of your loan statement and early settlement quote, as these documents will be useful during negotiations
2. Choose Your Selling Option
When selling a financed car in Dubai, you generally have two main options:
Option A: Settle the Loan First
- Pay Off the Loan: Clear the remaining balance yourself and obtain a clearance letter from your bank.
- Sell as a Debt‑Free Vehicle: Once your car is debt‑free, you can sell it like any other car without the complications of an active loan.
Option B: Sell with the Loan Active
- Include the Loan in the Sale: Sell the car to a buyer (or a specialized dealer like Blackline Motor Company) who agrees to settle the loan as part of the purchase process.
- Transparent Communication: Inform potential buyers about the existing loan and outline how it will be cleared during the transaction.
Note: Dealers with experience in buying financed cars can streamline this process, ensuring that the loan is settled and ownership is transferred smoothly
3. Discuss the Loan with Potential Buyers
When engaging with potential buyers:
- Be Transparent: Clearly state that your car is financed and explain the outstanding balance and settlement process.
- Present Options: Inform buyers about the two options—either you settle the loan first or the buyer can pay the settlement amount directly.
- Negotiate Wisely: Ensure that both parties understand the financial arrangements. A buyer who agrees to help settle the loan may result in a smoother transaction.

4.Transfer Ownership – The Essential Steps
Once the loan is settled (either by you or as part of the sale), you must transfer ownership through the RTA (Roads and Transport Authority). Here’s how:
Required Documents:
- Seller’s Documents: Emirates ID (original), Mulkiya (car registration card), Loan clearance letter (if applicable)
- Buyer’s Documents: Emirates ID (original), Valid UAE driver’s license, Proof of car insurance (for the new owner)
The Transfer Process:
- Visit an RTA Center or Tasjeel Service Center: Both buyer and seller must be present.
- Submit Documentation: Present all required documents and pay the transfer fee (approximately AED 350).
- New Insurance: Ensure the buyer has arranged new insurance before the transfer is finalized.
- Finalize the Transfer: Receive a new Mulkiya in the buyer’s name.
5. Finalize the Sale and Secure Payment
- Negotiate the Final Price: Know your minimum acceptable price and be prepared for negotiation.
- Secure Payment: Accept payment via a secure method (bank transfer or cash). Note that bank transfers may take 2‑3 business days.
- Confirm Completion: Ensure all funds are received and ownership has been properly transferred before releasing the car.
6. Post-Sale Actions
- Cancel Your Insurance: Once the transfer is complete, cancel your car insurance and request a refund for any unused premium.
- Handle Additional Accounts: If applicable, cancel or transfer your Salik tag registration.

Conclusion
Selling a financed car in Dubai involves extra steps, but with careful planning and transparency, you can achieve a smooth and successful sale. Whether you choose to settle your loan before selling or work with a dealer who handles the process for you, following these steps ensures that both you and the buyer have a hassle‑free experience.
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