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Buying a used car with outstanding finance


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I need to buy a used car for my office, found a good Tiida from Dubizzle. The current owner has bank finance outstanding on it, and does not have the cash to clear the outstanding amount. The only method from what I am told is that I pay him cash, or visit the bank with him and give the bank cash to clear the loan plus any early settlement fees and wait for them to issue a NOC letter, which can take 5 working days. 

Obviously issue is that the car loan has been cleared with my cash, and owner still has the car in their name, until the letter is issued and he transfers to my name after 5 working days. 

Any safer method to do this in Dubai? Car is Dubai registered, and I will be putting the vehicle in company name.

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Use cheque as a security for 5 days and pay bank by wire transfer and get all this agreed on email from seller as email these days can be use for legal cases. 

Let's root for each other & watch each other grow.

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Yean I'm with sertac on this one. Place is crawling with Tiidas, not worth the hassle or the risk, unless you can get the bank NOC on the spot. I've known friends who have done this and the bank always gave the letter within the hour or so, but this was quite sometime back. Dunno about now.

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you can goto the bank which has financed the car along with the seller and make the payment direct to them and get the release letter and I think in the meanwhile you can get the sale agreement done as well so that the car becomes yours once the payment is done.

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4 minutes ago, skumar83 said:

you can goto the bank which has financed the car along with the seller and make the payment direct to them and get the release letter and I think in the meanwhile you can get the sale agreement done as well so that the car becomes yours once the payment is done.

Yeah, that sale letter agreement called Mubaya or Hausa, in aweer lot of car dealer do that.

Let's root for each other & watch each other grow.

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If you feel the car is a good buy then i suggest that you can pay the bank directly and get the clearance letter from the bank on the spot. The NOC (or Release) these days are online in RTA system which might take 2-3 working days. If there is balance money to be paid to the seller you can get the Mubaya (sales agreement) done and pay him over the table. With the Mubaya the car is practically yours, but please note that there is a validity of 15 days for you to complete the transaction. Please recheck this validity once in RTA. The Mubaya can be done online as well.

If the vehicle is under finance, never give the cash to the seller for him to settle with the bank. You should pay it direct to the bank counter and get the clearance letter.  I have seen from close quarters the frauds that are happening here and you will be surprised what all can go wrong.

While I agree with Gaurav about the email I always believe in one thing, that the email is valid only in the court of law and to get a judgement in your favor you need to run around which frankly is not worth it.

Edited by skumar83
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Thanks guys. Yes many tiidas....but most are one man show dealers, and the cars are not registered....so cant test drive....and almost all dont have service history

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just be mindful that when bank car loan is cleared it can take upto two weeks for clearance to come and get uploaded on RTA system, before that you cannot change the Registration name.

Ownership is still with the seller

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