AnotherWorld

Just wondering what is the correct way of selling a car in the UAE when it is financed by a bank?

Can you let someone take over the repayments into their name until the finance is paid?

Any experience on how the second hand market is at this time?

busybee2

2nd hand market prob rubbish with the amount of people leaving. you cannot sell a car until you have paid off the loan, you have to show the traffic dept a letter from loan company saying its paid off, then you can sell the car on. nobody else would be able to take over your repayments.

busybee2

and thats why people have just left the car/keys/papers at the airport

Confucius

Some of them are just parking it in front of the bank, going inside and handing the keys to the branch manager...

AnotherWorld

Surely not?

So you can't actually sell the car until you pay off the loan? How do you work it? I mean, if you owe 100k on a car, you need to sell it before you come up with 100k right? Would you take the buyer into the bank with you and he writes the cheque to the bank or what?

Do people really leave their cars at the airport without bothering to pay out the loan and sell the car?

Confucius

Leaving the car at the airport or in the bank parking is now the low-tech way of fixing problems...

busybee2

no you need to prove to traffic that you have paid off your loan, for eg, we had a loan on a car which was 7 years old, bought new, so loan paid off after 2, but forgot about needing the letter, went to traffic had to organise that letter, so even if the car is 'old' the traffic papers will show that there was a loan on it, you need to prove that its paid off as they will not deregister the car. so yes if you owe 100k then you must pay 100k back, whether you take somebody into the bank and they pay it off for you then thats up to you how you do it.

Eva

http://www.gulfnews.com/nation/General/10233560.html

busybee2

also i wouldnt suggest defaulting on your loan, as this will be a big prob for the authorities here and they may catch up with you at some point down the line, and then what....... they do have the means to ........

AnotherWorld

Well according to the link provided:
http://www.gulfnews.com/nation/General/10233560.html

"According to a leading auto loan provider, you technically have to settle the balance of the loan before you can sell the car. This can be done through the 'mortgage' transferrable to the buyer, who will settle the loan amount."

So you can transfer payments.

Eva

Yes.Though I am sure there will be some reluctance given the current climate but it is possible.

busybee2

technically yes, but is your loan with this leading auto loan provider, will the person buying your car be able to get a loan, because that is not always the case nowadays, the banks will not lend out to people as it did in the past. will you get enough money to pay off the loan in the first place. if its cash then there is no problem anyway.

Eva

The sky is falling, the sky is falling............

Howabout we just provide the info, let the grown up boys and girls on here make the (accurately) informed choice????
Our opinions or armchair forecasts are irrelevent.
No offense intended

busybee2

yes i am providing information

AnotherWorld

Yes the options are there, whether or not they work out for you is a different story.