How to Buy Used Car in Dubai for Export
How to Buy Used Car in Dubai for Export

How to Buy Used Car in Dubai for Export

May 3, 2024
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Dubai is a renowned hub for the automotive world, offering a vast selection of luxury, sports, and economy vehicles at competitive prices. 

Whether you’re a car enthusiast looking for a high-performance vehicle or a dealer seeking to expand your inventory, buying a used car in Dubai for export is smart. 

This guide will help you navigate the process, highlighting the cost benefits and the range of quality cars available.

Why Buy Used Car in Dubai for Export?

Dubai’s used car market is unique in its diversity and value. Here’s why many buyers from around the world choose Dubai for their used car purchases:

  • Cost Benefits of Buying Used Cars in Dubai

Dubai offers competitive prices on used cars, making them an attractive alternative to new models. This is especially true for luxury and high-performance vehicles, which often depreciate faster.

  • Quality and Availability of Used Cars from Dubai

Dubai boasts a vast selection of well-maintained used cars from leading global brands. These include everything from luxury SUVs like the Lexus LX to popular Japanese workhorses like the Nissan Patrol. As a central export hub, Dubai constantly receives quality pre-owned vehicles.

  • Strategic Location of UAE

Dubai’s strategic location is a convenient starting point for international car exports. With a well-developed shipping infrastructure, you can easily arrange transportation to your desired destination.

Formula Auto FZE 1

The Process of Buying and Exporting Used Cars from Dubai

You must navigate through a structured process when buying a used car in Dubai for export. Here’s what you need to know to ensure a smooth experience from purchase to export:

Legal Requirements for Exporting Used Cars from Dubai

Exporting a used car from Dubai involves several legal requirements that you must meet:

  • First, if the vehicle’s license has expired or is not currently licensed, it must undergo a technical inspection. This ensures that the car meets safety and environmental standards. 
  • Second, you must return the car’s license plates to the Roads and Transport Authority (RTA) to cancel the registration, signaling that the vehicle is ready for export. 
  • Third, you must ensure that any existing mortgage or loan on the car is cleared, providing proof with a mortgage clearance certificate.

Required Documents and Export Procedures from Dubai

To export a used car from Dubai, you need to gather the following documents:

  • Emirates ID: Serves as proof of identity and residency.
  • Export Certificate: You can get this from the RTA once the registration is canceled.
  • Vehicle Insurance Certificate: A valid document is essential for export.
  • Mortgage Clearance Certificate: If the vehicle was financed, you need proof that the loan has been paid off.
  • Vehicle License Plates: These must be handed over to the RTA. If they’re missing, you need a police report to justify their absence.

If a business owns the car, additional documents are required, such as a trade license, an official letter confirming the export in Arabic, and a Memorandum of Association (MOA) if applicable. Ensure you have all the necessary paperwork to avoid delays in the export process.

Handling Customs and Export Duties from Dubai

After obtaining the required documents and canceling the car’s registration, the next step involves customs and export duties. Customs clearance is mandatory to export a car from Dubai legally. 

It would help if you worked with a licensed shipping agent or customs broker to navigate the customs process. Export duties and taxes may apply depending on the destination country, so it’s crucial to understand these costs beforehand.

Choose a shipping method that suits your needs—whether by water, air, or land. Shipping by water is often the most cost-effective option, while air freight provides faster delivery at a higher cost. If you’re exporting to neighboring GCC countries, land shipping via dedicated car trucks is a practical option.

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Key Considerations When Buying a Used Car for Export from Dubai

Various factors must be considered when buying a used car in Dubai for export to ensure a smooth and successful process. Below are the key aspects to keep in mind when planning your purchase.

  1. Your Budget

Set a clear budget before you start shopping for a used car. Remember to account for additional costs such as shipping, export duties, taxes, and insurance.

  1. Research Vehicle History and Reliability

A thorough vehicle history report is essential for buying a used car. It reveals critical details like past accidents, odometer readings, recall history, and previous Ownership.

  1. Test Drive and Pre-Purchase Inspection

Before committing to a purchase, always test-drive the car. Pay attention to its performance, comfort, and unusual noises or vibrations. A professional pre-purchase inspection is highly recommended to detect hidden problems that might not be immediately visible.

  1. Understand Legal Requirements and Necessary Documentation

To export a used car from Dubai, you must comply with legal requirements and have the proper documentation.

  1. Consider Your Lifestyle and Practicality

Your lifestyle plays a significant role in choosing the right car. A flashy sports car might be appealing, but an SUV or sedan could be more suitable if you have a family or require cargo space. To select a car that meets your practical needs, consider your daily activities, commute, and future travel plans.

  1. Explore Financing Options

If you require financing, research your options early in the process. You may need to provide proof of income, residency, or other documents to qualify for a loan. Compare interest rates and terms to find the best deal. Having your financing arranged beforehand can speed up the purchase process.

  1. Check for Warranties and Understand “As Is” Sales

Find out if the used car comes with a warranty. Some cars are sold “as is,” meaning the seller isn’t responsible for any issues after the sale. If the vehicle still has a warranty, understand what it covers and for how long. If it’s no longer under warranty, you might consider purchasing an extended warranty for added protection against unexpected repairs.

  1. Get the Right Insurance

Before driving away with your new purchase, ensure you have the necessary insurance coverage. Contact insurance companies for quotes based on the vehicle’s identification number or make and model. This will help you budget accurately and avoid legal issues with your purchase.

  1. Obtain the Car Title and Verify Ownership

To complete the purchase, you need the car title. If the car is financed, the lender retains the title until the loan is paid off. The seller should give you the title upon sale if the vehicle has no lien. If buying from an individual, ensure they are the owner by checking their ID against the name on the title to avoid fraud or legal issues.

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Where to Find the Best Used Cars for Export in Dubai

Dubai’s car market offers a wide range of vehicles for export, but finding a reliable partner is critical. Here are some of Dubai’s best-used cars for export!

Formula Auto: Your Partner for buying used cars from Dubai

Formula Auto is your go-to choice when exporting used cars from Dubai. Established in 2010, we are leaders in automotive re-export and supply chain services in the UAE, with a strong network of car dealerships in over 100 countries.

  • Global Reach: Formula Auto has established connections with a vast network of car dealerships, allowing us to export cars to almost anywhere in the world.
  • Customer-Centric: Our advanced infrastructure and e-commerce platform make finding and exporting used cars straightforward and hassle-free.
  • Comprehensive Services: We offer everything from installation and maintenance to logistics and customs clearance, ensuring a seamless export process.
  • Quality and Integrity: With over 13 years in business, we prioritize customer satisfaction and provide high-quality products from reliable sources.

We take care of the entire process, from sourcing the right vehicle to handling all export logistics so you can focus on your business goals.

FAQ

Are second-hand cars cheaper in Dubai compared to other markets?

Yes, second-hand cars in Dubai are generally cheaper than in other markets due to the high turnover rate of vehicles and lower import duties. Dubai’s competitive market and high demand for new cars contribute to more affordable prices for used vehicles.

What is the best second-hand car to buy in Dubai for export?

The best second-hand car to buy in Dubai for export depends on your preferences and needs. Popular choices for export include luxury SUVs like the Lexus LX, high-performance sports cars, and reliable Japanese models such as the Nissan Patrol. These vehicles are well-maintained and often come with lower mileage.

Can I buy a car in Dubai without residency and export it?

Yes, you can buy and export a car in Dubai without residency. However, if the vehicle was financed, you must meet specific legal requirements and provide necessary documentation, such as an export certificate, vehicle insurance, and a mortgage clearance certificate.

Why are used cars so cheap in the UAE?

Used cars in the UAE are often cheaper due to high depreciation rates, a competitive market, and a high demand for new cars. Additionally, the U.A.E.’s low import duties and taxes contribute to lower prices for used cars, making them attractive for buyers seeking cost-effective options.

How much is car import tax in Dubai?

Dubai has low import duties, but there is no specific “import tax” for cars. However, customs duties, typically around 5% of the vehicle’s CIF (Cost, Insurance, Freight) value, may apply.

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