How to Sell a Car with an Outstanding Bank Loan in the UAE
One of the most common myths among car owners in the UAE is that you cannot sell a vehicle if it is still under bank finance. The truth is, a large percentage of cars on UAE roads are mortgaged, and selling them is entirely possible—though it does add a layer of complexity.
If you have an outstanding loan on your vehicle, you generally have two options: pay it off yourself before selling, or find a buyer willing to handle the clearance. Here is how the process works and how CarSettle simplifies it.
The Traditional Way (The Hard Way)
If you try to sell a financed car privately, you face a 'Chicken and Egg' problem. The buyer cannot transfer the car to their name until the mortgage is cleared, but they often don't want to hand over cash to you until the car is in their name.
This usually requires:
- Finding a cash buyer willing to trust you.
- Going to the bank together to pay off the loan.
- Waiting days for the bank to release the mortgage electronically.
- Meeting again to transfer the car at the RTA.
The CarSettle Way (The Easy Way)
At CarSettle, we buy financed cars daily. We handle the entire liability settlement process directly with your bank.
- We Value Your Car: We inspect the car and agree on a price.
- We Contact Your Bank: We communicate directly with your bank to determine the exact payoff amount.
- We Clear the Loan: If the car's value is higher than the loan, we pay the bank and transfer the remaining balance to you. If the loan is higher, you simply pay us the difference to clear the debt.
Conclusion
Don't let a bank loan stuck you with a car you no longer need. CarSettle acts as the trusted middleman, ensuring the loan is cleared and the car is sold in one smooth transaction.