For some people, the idea of selling a car can be a tedious process from price benchmarking to taking late-night calls to meeting both tire kickers and potential buyers. It all comes down to finding the right buyer at the right price. But even then, there’s a little bit of “paperwork” to do. This especially becomes a greater deal if there is an outstanding loan on the car and the seller is unable to clear this loan themselves first.
If you are currently looking to sell your car with an outstanding loan, here are 3 potential routes you can consider:
1. Pay it off in advance
Settling a bank loan in Dubai is a simple process. However, keep in mind that banks require a few working days to electronically file loan clearance with the RTA. Car loans are all registered with the RTA, and the transfer of ownership simply will not proceed unless the lending bank instructs the RTA that it’s OK for the transfer to proceed. Yet not all of us have the money and/or money to pay off this debt in advance.
2. Find a cash buyer
While the used car market makes ownership more accessible, many sellers have an outstanding loan on their current car that has to be cleared before the transfer of ownership can take place. dubizzle estimates that one in four customers find it difficult to settle their outstanding loans leading to the inability to make the sale. This leaves sellers searching for a cash buyer who is able and willing to pay the lending bank directly. The seller signs a “Power of Attorney” letter which gives the buyer the power to transfer the car to their name, as soon as the loan is cleared. After finding a cash buyer, the process would take a few days after the payment is processed. The new buyer will then need to go to the RTA once the bank electronically informs the RTA that the car is no longer under a loan. Despite the time it takes, this solution works just fine for most people. Other buyers will say they’re not willing to part with their money unless the car is immediately in their possession. And we understand that…
3. Get an auto-loan buyout
Finally, Sellers can use AUTOSWAP, Emirates NBD’s first-of-its-kind auto loan buyout product that provides a convenient and hassle-free financing solution for individuals seeking to sell and transfer ownership of their vehicles to prospective buyers without the hassle of having to settle the loan amount first. Sellers can opt for this solution by using SellerAssist, a premium service offered by dubizzle pro which manages the entire selling process. SellerAssist will carry out the process from capturing photographs and managing calls to negotiating prices and managing paperwork and financial transactions. Launched in partnership with dubizzle, the AUTOSWAP, an expansion to the scope of the existing partnership between Emirates NBD and dubizzle, the solution will enable car owners looking to sell their vehicles to complete the transaction without having to settle their existing loans and the buyer will also be offered a new loan to help finance their purchase. This helps eliminate the challenges that car sellers and buyers face and boost the pre-owned vehicle marketplace in the UAE.
Want to sell your car without clearing your loan? Visit Emirates NBD.
Want to let the experts do it all? Visit dubizzle pro.