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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EXCELLENT Based on 262 reviews latern brightMarch 14, 2025.Trustindex verifies that the original source of the review is Google. I had a wonderful experience with Iqram when I bought my GLE 450 4 Matic. This person was extremely responsible for everything, and he knew cars and answered my questions very professionally. Because of him, my purchase journey was very smooth. It is no exaggeration to say that Iqram is one of the best sales person I have ever seen who puts customer needs first. If I change cars again, I will definitely come again and choose Iqram as my consultant. Abdulla Al QassabMarch 7, 2025.Trustindex verifies that the original source of the review is Google. Very easy to deal with, everything done transparently and they have definitely earned a lifelong customer. Special shout out to Brandon and Ashley Eduardo TelloMarch 7, 2025.Trustindex verifies that the original source of the review is Google. Great experience with Blackline!. Specially with Iqram and Prem. Since our first chat on WhatsApp arranging for me to view the car I was interested in until the moment I got the keys, everything was a breeze.Test drive allowed me to fully experience the car to understand if that was what I wanted. Iqram helped me get the car detailed and ready to be collected on my terms, going out of his way to ensure I was happy. It's very clear they only work with the highest quality sourced cars, providing the best possible customer service, ensuring the customer gets what they came for. It's one of the very few places that you don't see any red flags from start to finish. Will definitely work with them again in the future! SergeyMarch 2, 2025.Trustindex verifies that the original source of the review is Google. Very good experience with the company and the employees. Iqram helped me better understand the details and make a deal to buy a Porsche, which I am very happy with. The employees processed everything quickly and did the car registration. Thank you guys B WMarch 2, 2025.Trustindex verifies that the original source of the review is Google. Sold two cars with these guys. Good bunch, Ashley has been brilliant. Trustworthy too Peter KafieMarch 2, 2025.Trustindex verifies that the original source of the review is Google. I had an amazing experience working with Iqram while purchasing my new GLE 53 Coupe. From start to finish, he was professional, knowledgeable, and always available to answer any questions I had. He made the entire process smooth and stress-free, ensuring everything was handled efficiently. His attention to detail and commitment to customer satisfaction truly set him apart. If you’re looking for a seamless car-buying experience, I highly recommend working with Iqram. Thank you Prem for the Expo license plate and assistance. Blackline is a trusted company that I am glad to recommend. Thanks again for everything! Tayyab RajaFebruary 27, 2025.Trustindex verifies that the original source of the review is Google. Thank you Qasim for buying my car. By far the experience was world class!! Keep up the work - will be telling my friends to sell their car to you. Alex HollandFebruary 25, 2025.Trustindex verifies that the original source of the review is Google. Big thanks to Josh. Helped me buy my first car out here and the whole process couldn't have been easier. Josh was responsive from the first message (despite it being late at night) all the way through to even post-handover. Every question was answered, and the level of service was unmatched. I enquired about the car on Tuesday and drove away in it on Saturday. Would highly recommend Josh and Blackline Motor Company to anyone and I will be spreading the good word. Amar ZghibFebruary 24, 2025.Trustindex verifies that the original source of the review is Google. Quality dealer, excellent service. My experience was with Josh and Prem, they both had prompt, effective communication and tried their best to support all the way from booking to delivery. A tiny bit higher than market rates maybe but trustworthy vehicles.