If you-re staying only a few years in the United Arab Emirates, buying a used car may be more cost-effective than splurging on a brand-new automobile.
Used cars also provide greater value for the money. Instead of spending on a brand-new, ordinary all-rounder, you can get something a little more powerful and a little more pleasurable to drive by buying used.
The UAE is a particularly excellent used-cars market. On average, UAE motorists keep their cars only for 5.2 years before they sell them.
So, if you’re in the market for a pre-owned vehicle, here’s a guide on how to buy a car in the UAE. It provides information on the documents you need to check and prepare and how to register your vehicle.
Things to Look for and Prepare
When you buy a used car in the UAE, make sure to check and ask for the information and documents in the list below. Some of these, you need as a safeguard to make sure your seller owns or is authorized to sell the car you want to buy and that you’re getting good value. Others, you must have to process the car ownership transfer.
1. Vehicle Registration Card or Mulkiya
The “mulkiya” is the vehicle registration card that the Roads and Transport Authority (RTA) issues to car owners. You may not need this for the car ownership transfer, but you should still check it as a security measure.
Ensure the information on the mulkiya matches the seller’s ID. Verify, too, that the car details on the registration card (make, model, manufacturing year, chassis number, engine number, and registration number) match the vehicle you’re buying.
2. Emirates ID and Passport
Both you and the seller must prepare and present your Emirates ID and passport (copy).
3. Insurance Documents
Vehicle insurance is compulsory.
If the car has an active policy, transfer it to your name (if that’s allowed) or obtain a new one entirely. Download an electronic copy of your insurance plan and submit that with the other requirements when you apply for vehicle registration.
4. Contract
Execute a sale and purchase agreement (i.e., your sales contract). This contract outlines the details of your car purchase, including the car specifications, the condition of the vehicle, the sales price, the terms of the sale and payment, and any warranties.
This is the binding contract between you and the seller.
The RTA has a sales transaction service for pre-owned vehicles. Under this service, you and the seller can sign an electronic sale and purchase agreement instead of executing a paper contract.
The best thing about an electronic vehicle sale agreement is that the document lives online, in the searchable RTA database. From then on, sales transactions involving your vehicle can be checked on the RTA system.
5. Vehicle Inspection Report
If you’re buying a car that’s at least three years old, get it inspected. You can register the vehicle only if it passes a technical inspection and obtains a positive technical inspection certificate.
Note that the required technical inspection is a simple roadworthiness test to verify that the car still drives, is safe on the road, and has specifications that pass established standards.
If you want peace of mind that you’re buying a good car and paying the right money for it, go the extra mile by obtaining a comprehensive vehicle inspection report.
The relatively affordable cost to check the VIN number of the vehicle you’re planning to buy can save you from potential problems down the road. A vehicle inspection report can highlight any hidden damages or mechanical issues the seller may not disclose.
What can a comprehensive vehicle inspection report tell you or do for you?
- Confirm vehicle details. Make sure the details like the make, production year, model, and trim stated in the car documents match what you’re buying.
- Learn the car history: Is the vehicle you’re buying imported? Has it been recalled, reported stolen, or had any issues in the past? Has it been involved in an accident, fire, or flood? Learn about where your car is from, who has owned it in the past, and what has happened to it so far.
- Ascertain the car’s condition. Does the car run well? How do the parts look? Are they worn out?
- Verify that the seller’s asking price is reasonable. Is the price quoted appropriate, given the market valuation for similar vehicles? Given the car history, condition, and specifications, is the vehicle priced right?
- Estimate the cost of owning the vehicle. How much will owning the car cost you every month in terms of gas, maintenance, and insurance?
6. Proof of Payment of Traffic Fines
Make sure the car you’re buying is free of any outstanding fines. You can check for outstanding fines on the RTA website or app. The car ownership won’t be transferred to you unless all fines are cleared, so if you buy a car with unpaid fines and penalties, you’ll be liable to pay for those before you can get the vehicle registered under your name.
Tip: Buying from a dealership can be more convenient than buying from a private seller. Used-car companies can (and often do) facilitate car ownership transfer and vehicle registration for customers.
How to Register a Used Car in the UAE
Visit an RTA service center to register ownership. Make sure to bring all the required documents:
- Whichever of the following applies: a vehicle clearance certificate (VCC), a transfer certificate, an export certificate, a possession certificate, a possession transfer certificate, or a lost export certificate replacement
- Original Emirates ID
- A copy of your passport
- A copy of your residency visa (for residents)
- The electronic addition or release of mortgage, as applicable, for mortgaged vehicles
- Electronic vehicle insurance document
- A valid diplomatic ID plus a letter from the Ministry of Foreign Affairs (for diplomats)
- An official letter in Arabic, a copy of the company’s trade license, an endorsement of signature and a letter of authorization (for companies)
After submitting the required documents, pay the service fees (currently AED 400-500). There may be additional costs, such as the payment for outstanding fines. Some service centers may charge a small fee for handling the paperwork.
After your application has been processed, you can collect your mulkiya, plate number, and expiry date sticker.
Have a Smooth Used Car Purchase in the UAE
It’s practical to buy a used car in the UAE, and purchasing (as well as registering) one is a straightforward process.
Just make sure you’re buying from a legitimate seller, and that you’re purchasing a vehicle whose features match the details in the documents and is as good as it looks on paper. Also, ensure you have a binding contract with the seller, so you can transfer ownership of the vehicle afterward.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
