Laws You Should Be Familiar with Before You Sell Your Car in UAE

Navigating UAE car sales? Avoid pitfalls with this concise guide. Learn the essential steps to sell your car in the UAE: valuations, RTA inspections, document preparation (Emirates ID, Mulkiya, insurance), and clearing fines and Salik tolls. Selling a financed car? Follow a proven step-by-step method for loan settlements and ownership transfers. Discover legal must-knows: no “for sale” signs, transparency on vehicle condition, and buyer negotiations. Whether settling loans or transferring plates, streamline the process and ensure compliance. Learn how to sell car in UAE confidently—no headaches.

1. Understanding the Basics: How to Sell Car in UAE

Before diving into the legalities, it’s essential to grasp the general process of how to sell car in UAE. Here’s a step-by-step overview:

a. Determine Your Car’s Market Value

Start by researching your vehicle’s current market value. Consider factors such as the make, model, year, mileage, and the car’s overall condition. Online platforms such as Dubizzle can offer insights into the average prices of similar vehicles.

While it might be tempting to list your vehicle for the highest price, you should know that a reasonable price can go a long way in attracting customers and sell your car in UAE as fast as possible, so you’d be well advised to refrain from quoting a high price.

b. Gather Necessary Documentation to Sell Your Car in UAE

Ensure you have all the required documents that you will need to provide at the time of sale. These documents include:

• Original Registration Card (Mulkiya): This is the official proof of your vehicle’s registration.
• Emirates ID: A valid identification card is mandatory for all official transactions.
• Passport and Visa Copies: If you are an expat, these documents are required to verify your residency status in the UAE.
• Car Insurance Policy: If you want to transfer the insurance to the buyer, this is also necessary.

c. Settle Any Outstanding Fines or Loans

Before proceeding, clear any traffic fines associated with the vehicle. If your car is financed, you’ll need to settle the loan or coordinate with the bank to obtain a clearance letter. You can technically sell your car in UAE if it is a financed car, even before it is paid off, but that’s a whole process itself, which we will get into later on.

d. Vehicle Inspection Before You Sell Your Car in UAE

The Roads and Transport Authority (RTA) requires a comprehensive vehicle inspection to ensure your vehicle is in good condition. This test checks essential components, such as brakes, lights, and emissions. You can get this inspection done at authorized centers, such as Tasjeel.

If your car fails to meet the standards, you will have to fix the issues and pay for a second inspection, which means more time and money out of your pocket, so we suggest you make sure your car is up to par before getting it inspected. 

Also, the inspection certificate is valid for 30 days. So, you need to sell the car within a month; otherwise, you’ll have to do the whole thing all over again. This is why many people prefer to do the inspection the day of the sale when both the buyer and the seller are present at the RTA for transferring ownership.

e. How To Sell Car in UAE with Advertising

List your car on reputable platforms with clear photos and detailed descriptions. Highlight features, recent maintenance, and any warranties or service contracts that might transfer to the new owner.

Taking good pictures of your car goes a long way in attracting buyers, so make sure you don’t upload blurry photos. Moreover, if you’re in a hurry, you can usually pay to get your ad to the top of the list, which can help more buyers see it. The more you pay, the longer it will remain there.

NOTE: something you need to know if you are new to the countries that, unlike many places, if you want to master how to sell car in UAE, you cannot put any ‘for sale’ sign on your window or any other place on your vehicle. This practice is against the law and can result in your car being impounded. 

f. How to Sell Car in UAE at the Highest Price: Negotiate and Finalize the Sale

Once you find a potential buyer, negotiate the terms, agree on a price, and decide on the payment method. Cash is commonly preferred to avoid complications. This can get complicated as you might have to set meetings with multiple buyers who would want to take the car for a test drive and will probably haggle over the price.

g. Transfer Ownership After You Sell Your Car in UAE

Both parties must visit an RTA service center to transfer ownership. The buyer will need to provide:

• Valid Emirates ID
• Passport and Visa Copies
• New Insurance Policy: The buyer must have insurance in their name before the transfer can be completed.
• Transfer Fee: Typically, the buyer bears this cost, but it’s negotiable.

This process can be a bit of a hassle if you don’t know how to transfer car ownership in UAE, so make sure to learn all about it before heading over to the RTA. After completing the paperwork and paying the necessary fees, the new registration card will be issued in the buyer’s name.

At this stage, you can choose to keep your insurance and license plate or transfer both to the buyer.

2. How to Sell Car in UAE Legally

Understanding the legal framework is crucial to ensure compliance and avoid potential pitfalls.

a. Ownership and Title Transfer

The UAE law mandates that the seller must be the legal owner of the vehicle. If the car is jointly owned, all parties must consent to the sale. The title transfer must occur at an authorized RTA center to be legally binding. 

Your car can be sold by a third party only if they are given power of attorney by you, which is itself a process that must be done officially and through relevant governmental offices.

b. Vehicle Condition and Misrepresentation

It is illegal to misrepresent the vehicle’s condition. Sellers are obligated to disclose any significant issues or accidents that may affect the property. Failure to do so can lead to legal disputes or the sale being voided.

c. Car Insurance in UAE

Before completing the ownership transfer, the buyer needs to provide insurance for the car. To do this, there are two ways: either they buy their insurance online through Lookinsure or in person from the available options at the RTA center. Alternatively, the seller can choose to transfer their insurance to the buyer.

To transfer car insurance in UAE, you first need to know that only 3rd party liability insurance is transferable and that there must be at least 7 months remaining on the policy. 

d. Outstanding Loans and Mortgages

If the vehicle is under finance, the loan must be settled before the sale. This involves:

• Obtaining a Liability Letter: This document from the financing bank states the outstanding amount and any early settlement fees that may be applicable.
• Settling the Loan: The seller pays off the remaining balance of the loan. Some buyers might agree to settle the loan on behalf of the seller, deducting it from the purchase price.
• Release of Mortgage: Once the loan is paid off, the bank issues a release letter, which is necessary for transferring ownership.

e. Traffic Fines and Salik (Toll) Charges

All pending traffic fines and Salik charges must be cleared before the sale. The RTA system will flag any outstanding amounts during the transfer process, preventing completion until the amounts are settled.

How to Sell a Financed Car in UAE

While not everyone might be willing to go through the complicated process of buying your car if it’s financed and you are unable to pay the outstanding loans, if you find a customer who is ready to do so, here is how you can go about it.

Step 1: Preparations Before You Sell Your Car in UAE

1. Inspect the Car & Assess the Seller

• Meet the seller in person and inspect the vehicle thoroughly.
• Ensure the car meets your expectations in terms of price, condition, and features.
• Verify that the seller is trustworthy to avoid complications later.

2. Request a Liability Letter from the Seller’s Bank

• This letter details the exact amount required to settle the car loan, including any applicable fees.
• If the selling price is lower than the liability amount, the seller must cover the difference.

3. Conduct a Pre-Purchase Inspection

• Visit a service center, such as Tasjeel or Shamil, for a professional checkup.
• Confirm any remaining warranty or service package with the dealership.

4. Check for Outstanding Fines

• Verify that the seller has cleared any police fines and SALIK (toll) charges before proceeding.

Step 2: Payment & Legal Formalities to Sell Your Car in UAE

5. Create a Power of Attorney (PoA)

• Visit a typing center with the seller to draft a power of attorney (PoA) stating that ownership will transfer to you once the loan is settled.
• You will receive three copies, one in English and one in Arabic.

6. Notarize the Power of Attorney

• Visit a Notary Public to have the Power of Attorney officially ratified by a judge.
• Only the seller needs to be present for this step.

7. Withdraw Cash for the Payment

• If paying in cash, withdraw the amount from your bank and note the transaction details for added security.

8. Pay Off the Seller’s Loan

• Go to the seller’s bank and confirm the liability amount with a banker.
• Deposit the cash directly into the loan account, not into the seller’s account.
• Collect at least two copies of the payment confirmation.

9. Wait for the Mortgage Release Notification

• The bank informs the RTA within 2-3 days (sometimes within hours) that the car loan is fully settled.
• During this period, you should keep the car and ensure you have:
  • All keys
  • The original registration card (Mulkiya)
  • Your PoA copy
  • Payment confirmation from the bank
  • Tasjeel inspection certificate (if applicable)

Step 3: Ownership Transfer

10. Get Car Insurance in UAE

• Shop for car insurance in UAE via platforms like Lookinsure.
• If buying insurance at an RTA center, expect slightly higher costs.

11. Transfer Ownership at the RTA

• Once you are notified of mortgage clearance, schedule a time with the seller to complete the transfer.
• The process is quick (5-10 minutes, plus queue time) if you’re keeping the same plate number.
• Required documents:
  • Buyer & seller’s Emirates ID
  • Original Mulkiya
  • Buyer’s UAE driving license
  • New insurance policy

12. Get a SALIK Tag

• Purchase a new toll tag after the transfer to avoid fines when driving on UAE roads.

Where to Sell Your Car in UAE

In the UAE there are both online services and offline centers where you can sell your car, and each has its benefits. While online options require more effort on the seller’s part, including taking pictures and negotiating with potential buyers, you’ll probably be able to sell your car for a higher price, as auto showrooms will charge you a certain amount for their services.

Some websites offer two options: one where they buy your car from you immediately and then sell it on the website for a profit, and another where you just use their website as an advertisement venue. While the former is the fastest way to sell your car, you won’t get a lot of money for your vehicle that way.

How to Sell Car in UAE: Final Steps for Success

Selling your car in UAE? Finalize your sale confidently by prioritizing key legal steps: clear any fines, pass RTA inspections, and settle outstanding loans. Transparency about your car’s condition and organized paperwork, such as your Mulkiya and Emirates ID, builds buyer trust. For financed vehicles, follow the structured ownership transfer process. Simplify the process with valid car insurance in UAE—transferable policies or guiding buyers to affordable plans can speed up the sale.

Frequently Asked Questions