In case you decide to go home for good, want a new car, or just fed up driving, here’s an expat guide on how to sell your car in Dubai.
Before you sell your car in Dubai
Decide on how much you want for your car. Here are some points to consider when determining a reasonable valuation.
- Car make (brand). Some brands have a higher resale value compared to others even if the car is of the same model. A Japanese car which is cheaper in maintenance cost usually have a higher resale price compared to brands that cost a new car to maintain.
- Model. Of course a newer model car have a higher resale value compared to an older one.
- Condition, a car that looks good in and out have a higher value.
- Mileage. Lower mileage usually sells at a higher price.
- Maintenance history. You will be able to sell your car at a higher price if you keep complete maintenance history of your car.
- Check the market. Check ads for those selling the same car brand and model as yours.
- Calculate the actual residual value taking into account the depreciation. In Dubai, depreciation is usually calculated at 15% per year.
- Bank mortgage balance.
Clear your bank mortgage
It’s easier to sell a car if there is no bank mortgage balance. Some buyers also do not want to go through the hassle of dealing with banks and would want to pay cash.
If you have enough money it’s better to clear the mortgage first. If the buyer finds out the actual mortgage value, they would want to negotiate to a price as close as possible to the mortgage value. In our case, a buyer initially valued our car at 30,000 AED. After finding out that the mortgage value is less than that, their offer value decreased to 20,000 AED.
Here are the steps to clear your mortgage
- Pay off the balance, online or visit the branch.
- In case you paid online, you still need to visit the branch. Go to the car loan department and speak to a customer service representative. Tell them that you want to clear your mortgage. They will take a copy of the car registration, your license and UAE ID. You will also be required to pay 200 AED (price may vary depending on the bank)
- Wait for the SMS from RTA advising that a mortgage clearance have been submitted.
- Visit the RTA and get a replacement registration card. This is required to make sure that mortgage information is removed from the registration card.
Ways to sell your car in Dubai
There are many ways to sell your car in Dubai, the most common means is with your friends. Before selling to others, offer your car to friends and relatives first.
Online, there are several online car buyers in Dubai, but they usually assess at a lower value. In case you want to sell online, their website will ask for car details and give initial valuation. If you are fine with the valuation you can then schedule an appointment for the inspection. They will check the overall condition, the mileage and check for damage history. They can do that by using a device that measure paint density around the car. A different paint density is usually a sign of repair work.
Advertise, you can put an ad online or in newspapers. Never put a for sale in your car. There is a law in UAE that prohibits such method. You car may be impounded just by placing a for sale sign on it.
Once you have a buyer, the buyer has to get an insurance for the car. The current insurance may be transferred to the new owner depending on the insurance company. Both of you have to go to RTA to get the transfer completed. In Dubai, vehicle testing is required regardless if the registration is still valid.
Once the transfer is complete, make sure that you remove all your property in the car, remove the Salik Tag and get a copy of the possession certificate, you will need this to refund the insurance premium if you are not able to transfer the current insurance.
And that’s it! Car Sold. 🙂