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Laws you should know before you sell your car in UAE




If you are thinking of selling your car in the UAE, you are at the right place! This article covers all the important laws you should keep in mind before making the decision.

1- Mandatory Inspection

Before selling your car in the UAE, you have to undergo a compulsory inspection test which examines the condition of the car. It is mandatory for the car to pass the test otherwise it cannot be sold.

The price of the inspection test is AED 120. The certificate which you will receive from the test remains valid for only a month. This means that you should sell the car within the timeframe of a month otherwise you will have to take the test again.

Moreover, if there are any fines or impoundment notices on the car, you need to take care of them beforehand stepping in the market.

2- Documentation

All legal processes are incomplete without valid documents. The documentation required for selling cars in UAE are car insurance, UAE driving license, passport, Emirates ID and residence visa.

Remember that issuing Emirates is not applicable to submit and the residence visa should only be given if it is your first registration. These documents should be original. You should have copies of all the documents too because the RTA demands them. In case you have a valid visa belonging to another Emirate, the car needs to be exported in that Emirate.

3- Places to sell the car

After clearing all the fines, loans and impoundment notices, you can sell it in different places. For example if you want another person to sell it, you need to provide the person with the power of attorney. This person should be someone you can trust who can act on your behalf. There are certain court procedures for giving the power of attorney. Similarly a car showroom can do the job for you. But make sure that the showroom is authorized. The showroom will advertise your car or even put it on sale. They may also demand some money for commission. During the signing of the agreement, it is obligatory for the owner of the car to be present at the place holding the original ID. This is called selling the car on consignment basis. Moreover, the owner should be available at the RTA when the car is being given to the new owner.

4- Insurance

Car insurance is very important and it should be dealt before selling. The insurance should be valid for 7 months or more. The insurance policy can be transferred to the new owner. The new owner must also complete the requirements given by the insurance company. Remember that some insurance companies in the UAE do not allow the transfer of the insurance policy so check the rules of your company beforehand. You can also cancel your insurance policy and have a refund. In fact, it is best to refund so that you can have some money back. But on the other hand, insurance is an added bonus if you want to sell the car. The insurance company requires an evidence of purchase which states that the car is bought by a person or organization. This is required to cancel the insurance policy. Evidence can be given by offering the copy of the new owner’s registration.

5- More things to adhere to

There are some instructions to follow before selling the car in UAE.

  • It is not allowed to indicate that your car is for sale by putting a paper in the windshield. Whether it is a sign or an advertisement and whether it is inside or outside of the car, it is prohibited. It is considered illegal in the UAE and the police can impound your car. The buyer should refer to the online platforms and authentic automotive websites.
  • It is an illegal act to wash the car in the streets. If you do so, a fine can be applied on you upto AED 100.

The used cars for sale in Dubai can not be sold by paying off mortgages. This includes all finance loans too. Although it is plausible but it’s impossible to get a potential buyer who is okay with taking the loan.


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