The Selling of Financed Cars In Dubai
Numerous UAE residents are not aware on how problematic it can be trying to sell a financed car and only to find out the hard way. If you have a car that is funded by the bank, vending your car before the end of the finance lease can be a delicate task. This means unless the loan amount is fully settled, the car is pledged to the bank and officially still under their possession so you cannot finalize the sale. However, there is a way around it and MeBuyCar shall guide you with the information below:
Approach Your Bank
Start by agreeing with your bank, that your buyer will use the same bank to finance the car. Alas, not all banks in the UAE allow this, though here at MeBuyCar have been prosperous with Emirates NBD, and Dubai Islamic Bank, midst others.
Ask For Approval On The Loan
Request the buyer to apply, and get approval, for a loan from your same bank and provide an estimation certificate proving the value of the car that validates the loan amount.
Resolve Current Loan
Then once that’s accomplished, ask the bank to resolve your current loan ensuring them to close any outstanding balance. Find out from your bank the remaining finance amount and any early settlement fees related with closing the loan before its full tenure
Request Buyer To Prepare Payments
MeBuyCar prefers agreements between sellers, as they cannot be annulled after payment. This is generated to secure for our sellers and buyers. Ask the purchaser to meet you at the bank with the money, preferably in the form of cash or verified manager’s cheque for the worth of the car. At the bank, the buyer can hand over the applicable amount to the bank to clear the credit.
Transfer Of Ownership
Transference of ownership of the car is done to the new buyer at the RTA / Tasjeel. Ask the buyer to deliver the bank with the new registration card as evidence of tenure and a copy of inclusive insurance for the financed value of the car to close the mortgage. Sign a “Seller’s agreement” or “Power of Attorney” that would give the purchaser authority to transfer the car to his / her name once the mortgage is cleared.
Final Validation From RTA
Since the car is still under the first owner’s name at this point, they are liable in case the car gets into any accidents or incurs fines before it is shifted to the buyer’s name. The buyer can then take the vehicle home at this point. To complete the transfer of ownership, however, both the buyer and the current owner are required to go to the RTA (Road Transport Authority) once the bank electronically informs the RTA that the car is no longer under mortgage. This is usually concluded after few working days.