Tips to buy a used car in UAE31 May, 2022
The process of purchasing a new car can be intimidating for many new drivers in the UAE. Purchasing a pre-owned vehicle is an excellent option to substitute the current one at a budget-friendly price and convenient. A rising economy may increase the number of new car purchases, but if you know how to shop for one, used cars can provide a great alternative
The process of buying a second hand car
The process of buying a second-hand car can be challenging, but owning one can be an extremely rewarding experience, especially if you can negotiate an affordable purchase price. Due to the availability of a great variety of used cars and services, it is almost always a buyer's market in the UAE; one can find some great deals.
If you are planning to purchase a pre-owned car, you can either purchase from authorized resellers (viz Al Futtaim Auto mall / Pre-owned car dealerships) or from private owners
While purchasing pre-owned vehicles from the authorized resellers, there is a large variety of options to select from. The risk of not having all the information of the vehicle from the previous vehicle owners can be eliminated. The salesperson at the dealership are experts in handling paperwork smoothly for the transfers and it would be a hassle-free process. Apart from which there will be flexible payment methods with the bank.
Some of the other major benefit of purchasing a used vehicle directly from the authorized dealer is that the price would be much lower than buying a brand-new vehicle and they ensure that the vehicles are in proper working condition covered under warranty. They provide other advantages of trade-in and after sales services such as free maintenance coverage, vehicle inspection, tyre rotation, oil changes and roadside assistance. There is also the factor of accountability while purchasing from dealers. Some of the authorized dealerships are Gargash enterprises, Al Nabooda, Al Futtaim, Al Tayer motors, etc.
Purchasing from a private owner is possible but there are concerns and risk factors involved. Firstly, after purchasing the vehicle there is no accountability. There is a chance that the previous owner would not respond to you. Although the price might be lower for the vehicle while purchasing from an individual, you will have to investigate the vehicle condition and paperwork yourself. Even in terms of finding the perfect vehicle for all your needs, a disadvantage that private seller would have been that they only have one vehicle at a time whereas at the dealership a wide variety would be available to select from.
Things to remember before purchasing the vehicle:
Set a Budget
Allot a budget for the purchase of your pre-owned car, also consider some additional charges that may incur like insurance, vehicle servicing, tyres and an ownership transfer based on if the purchase is from a private or authorized dealership. This will help you avoid any last-minute surprises. Al.
Decide on the type of vehicle that is intended to be purchased
Once you have decided your budget, you must decide the type of vehicle that you want to purchase. There are various types of vehicles available such as SUVs, sedans, MUV, Coupe, etc. The major difference would be in seating capacity, cylinders, and features. The pre-owned car market in the UAE is fairly extensive, and you can explore various brands and their numerous models, since every year car companies release new vehicle models and would have slight upgradation of features.
Checking the vehicle history
Before purchasing a second-hand vehicle, it is important to check on the condition of the vehicle. As the car was used prior, there are possibilities that the vehicle might have met with an accident or is an import model. It is crucial to get the vehicle check with a certified mechanic and with RTA before purchasing. There could be damages to the vehicle that may not be visible immediately such as leaks and functioning of buttons. It is better to be safe than sorry.
Remember to test drive the vehicle if you plan on the purchase to familiarize yourself with the features and to check if it is suitable for all your needs. If the vehicle does not seem fit to your requirements it is better to walk away and look for other options.
Documents required and processing transfer the vehicle
Once you have decided to purchase the vehicle, some documents need to be kept in hand to proceed with the registration. While transferring the ownership of the vehicle both seller and the buyer are required to be present at the authorized center depending on the Emirate that the transfer is taking place.
Prior to visiting the transfer department, remember to check if the seller has cleared off the bank loan and has the necessary papers about the completion of the loan otherwise a NOC would be required from the bank to complete the transfer. It is also important to check if the seller has any violations that he or she might have been fined for. This includes fines issued by the Police, Traffic department for parking ticket violations and Salik tag fines (used for toll ticketing).
Once all the documents are ready, visit the nearest RTA, Shamil center or approved offices to test the vehicle. The vehicle needs to be tested and if the report is satisfactory the passing paper will be provided to proceed to the next step. In the event of a negative inspection report, the vehicle will need to be fixed and tested again until passed to register the vehicle. After the entire inspection process is completed, you can select the number plate of your choice at an additional fee and proceed to register the vehicle with all the documents under the new owner's name to receive the new vehicle registration card (Mulkiya). At the same time, the new number plate and registration card will be provided to the buyer and the vehicle will officially become theirs.
It is mandatory to have vehicle insurance and the Insurance Authority of UAE regulates the laws. Without having comprehensive or third-party insurance, you will not be able to register the vehicle under your name. If the vehicle is under a mortgage, you cannot take third-party insurance as the vehicle is not covered under the insurance type.
Required documents for ownership transfer
- Insurance paper of the car
- Seller's vehicle registration paper for the vehicle
- Vehicle plate of the previous registration
- Emirates ID of the buyer and seller
- Driving license of the buyer and seller
- Passport copies of the buyer and seller
- Inspection certificate
- Bank documents if the vehicle is mortgaged
Whether you are looking for a pre-owned budget-friend salon car or a second hand luxury SUV, the booming pre-owned vehicle industry can cater to your needs. Keep in mind the above-mentioned tips, and ensure you have all your documents in place when you purchase.
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