UAE: How to Sell a Financed Car: Key Facts to Consider
Selling a car still under a bank loan in the UAE can be a complex process, as the bank retains the vehicle’s title until the loan is fully paid off.
Experts stress that owners must settle any outstanding loan balance before transferring ownership to a new buyer.
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According to Madiha Asif, a business analyst at Nexus Insurance Brokers, the steps to sell a financed car include notifying the bank of the intent to sell, settling the loan, obtaining a loan clearance letter, and finally transferring ownership through the Roads and Transport Authority (RTA) or relevant local authority.
Typically, the loan cannot be transferred to the new owner; they would need to secure their own financing.
If the seller cannot clear the loan independently, they may seek a cash buyer who can pay off the loan on their behalf or explore whether their bank allows for a loan transfer to the buyer.
Qaiser Abbas, co-founder of SellCarUAE, highlighted that sellers must find a buyer willing to pay cash to clear the outstanding loan.
He also mentioned that some banks might consider transferring the loan, depending on the circumstances, but this varies by institution.
Overall, potential sellers are advised to consult their banks for specific processes and requirements to ensure a smooth transaction.
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